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									                                                                                                                                                                                                                              ARAB TIMES, FRIDAY, AUGUST 10, 2012
    BUSINESS                                                                                                                                                                                                                                                                    40

 Chen Yunlin (left),
       Chairman of
            China’s                                                                                                    Taiwan, China ink pact                                                       Australian unemployment steady
    Association for
  Relations Across
the Taiwan Straits,                                                                                       China and Taiwan signed a landmark investment pact on                     Australia’s unemployment rate held               only 8,500 extra jobs to be created.
shakes hands with                                                                                         Thursday as hundreds of protesters voiced their anger                     steady at 5.2 percent in July, data                 The Australian dollar rose slightly
 Chiang Pin-kung,                                                                                         over the island’s ever-closer economic ties with its giant                showed Thursday, with the economy                on the data to US$1.0586 from
       chairman of                                                                                        former foe.                                                               beating forecasts by creating 14,000             US$1.0569 immediately prior, with
   Taiwan’s Straits                                                                                          China’s chief negotiator Chen Yunlin and his                           jobs.                                            investors seeing it as further evidence
          Exchange                                                                                        Taiwanese counterpart Chiang Pin-kung put their names                        The Australian Bureau of Statistics           against an interest rate cut.
  Foundation, after                                                                                       to the long-awaited deal, which will provide a legal                      said the seasonally-adjusted jobless                Australia’s central bank held rates
 signing an invest-                                                                                       umbrella for Taiwanese companies operating in China.                      rate was boosted by a jump in both               steady at 3.50 percent for a second
   ment protection                                                                                           “It’s extremely important not only for Taiwan’s invest-                full and part-time employment, with              consecutive month this week, saying
    pact at a Taipei                                                                                      ment and trade links with the mainland, but also for bilat-               11,512,600 people now in work.                   domestic growth was close to trend,
  hotel, Taiwan, on                                                                                       eral ties as a whole,” Chiang told reporters after signing                   Economists had expected unemploy-             inflation was low and employment
        Aug 9. (AP)                                                                                       the agreement. (AFP)                                                      ment to tick up to 5.3 percent and for           was growing moderately. (AFP)



                                                                                                   Core machinery orders up 5.6% in June


Bank of Japan holds off fresh easing measures
TOKYO, Aug 9, (AFP): The Bank of                products and Tokyo warned that the euro-
Japan held off fresh easing measures            zone’s fiscal crisis was the biggest threat
Thursday and repeated its view that the
economy was “picking up moderately”
but warned Europe’s ongoing debt crisis
                                                to recovery. The BoJ’s decision on
                                                Thursday was largely in line with market
                                                expectations, and came after the US
                                                                                              S. Korea cbank keeps key interest rate unchanged
continued to cast a shadow.                     Federal Reserve and European Central          SEOUL, Aug 9, (AFP): South Korea’s            China’s slowdown weighed on the                But in a statement it cited potential        for the economy to grow 3.0 percent
   After a two-day policy meeting, the          Bank also held off fresh measures follow-     central bank kept its key interest rate       export-dominated economy.                   risk factors, such as rising internation-       this year but its governor Kim
central bank said it left unchanged its pol-    ing recent policy meetings.                   unchanged Thursday despite a down-               Exports dropped 8.8 percent in July      al grain prices and increases in local          Choong-Soo has said that may be too
icy tool, a 70-trillion-yen ($891-billion)         “Japan’s economy started improving         beat assessment of the global econo-          from a year earlier. The economy            utility fees.                                   optimistic
asset purchase programme while it would         ahead of others,” Yuji Kameoka, chief         my, but analysts said another cut             grew just 0.4 percent quarter-on-quar-         Analysts said a back-to-back rate               Many analysts said a rate cut was
also hold interest rates unchanged at           currency strategist at Daiwa Securities,      could be on the cards before the end          ter in April-June compared with 0.9         cut could have fuelled bleak interna-           likely in coming months after
between zero and 0.1 percent.                   told Dow Jones Newswires, adding that         of the year.                                  percent in January-March.                   tional assessments of the prospects             Thursday’s decision to stand pat.
   “Japan’s economy has started picking         the BoJ would likely take a “wait-and-see        The Bank of Korea’s (BOK) mone-               The bank forecast a very moderate        for Asia’s fourth-largest economy.                 “The chances for a rate cut next
up moderately as domestic demand                stance” on fresh measures.                    tary policy committee, in a unanimous         recovery globally and said the trend of        The bank “can now wait and see               month      have    increased     now,”
remains firm, mainly supported by recon-           “Emerging economies like China             decision, kept the benchmark seven-           domestic economic growth had                the impact of monetary easing steps             Samsung Securities analyst Ryan Oh
struction demand” following the March           aren’t bad. There are also signs of           day repo rate steady at 3.0 percent for       slowed “owing to lacklustre exports         (expected) to be taken by the US and            told Dow Jones Newswires.
11 quake-tsunami disaster, it added.            improvement in the US economic indica-        August.                                       and domestic demand”.                       Europe before deciding on taking a                 “Given that the Korean economy is
   The nation’s economy was hammered            tors recently. The exception is Europe.”         In July the bank announced a sur-             Inflation eased in July year-on-year     second rate cut”, Kong Dong-Rak, of             in a downturn, I expect further easing
                                                                                              prise cut of 25 basis points, the first       to 1.5 percent, its lowest rate in more     Taurus Investment and Securities,               after a cut in September to bring the
by last year’s terror, which wreaked               The yen got a boost following the BoJ’s    reduction in more than three years, as        than 12 years, and the bank forecast        told Yonhap news agency.                        policy rate to 2.5 percent by year-
havoc on industrial production, while           decision, with the euro buying 96.99 yen      Europe’s protracted debt crisis and           it would stay low for the time being.          The central bank’s latest forecast is        end.”
flooding in Thailand and the yen’s surge        and the dollar at 78.36 yen, compared with
to record highs against the dollar later in     97.22 yen and 78.52 yen earlier.
the year also hurt growth.                         “If the Fed takes additional easing and    general trend of falling prices having lit-      It kept a 1.7 percent growth forecast    purchase of treasury discount bills by the        The rise in the private-sector core data,
   On Thursday, the BoJ said “overseas          that pushes the dollar down against the                                                                                                 same amount.
economies have shown moderate                   yen and increase Japan’s deflationary         tle impact. Last month, the BoJ said it       for the next fiscal year unchanged.                                                         which exclude volatile demand from
improvement” but added that “in global          pressure, the BoJ may be forced to do         expected Japan’s economy to expand 2.2           While the bank made no major policy                    Also:                             power companies and for ships, reversed
financial markets some nervousness con-         something new,” said Barclays Securities      percent in the fiscal year through March      moves after its July meeting, it said it    TOKYO: Japan’s core machinery orders            a fall of 14.8 percent in May but was
tinues to be seen, mainly due to concern        Japan chief economist Kyohei Morita.          2013, slightly lower than its April out-      would tweak policy by reducing the          rose by a smaller-than-expected 5.6 per-        smaller than 11.0 percent growth expect-
about the European debt problem”.                  Japan has been stuck in a deflationary     look of 2.3 percent but still above a         amount of fixed-rate loans it offers by     cent in June from the previous month,           ed by economists polled by Dow Jones
   Europe is a major market for Japanese        spiral for years with efforts to battle a     January forecast of 2.0 percent.              five trillion yen while it increased the    official figures showed Thursday.               Newswires.


                          the    bottomline
  NEW DELHI: Indian pharmaceutical
  giant Ranbaxy on Thursday reported a
                                                billion (US$3.61 billion) Thursday after
                                                attracting new mobile phone customers.
                                                                                              China factory output growth
                                                                                              slows unexpectedly in July
  surprise quarterly net loss, hit by              The company’s profit for the 12
  adverse foreign exchange movements,           months to June 30 was up from
  despite an upsurge in sales in its crucial    Aus$3.23 billion in the previous year,
  US market.                                    and just below analyst expectations.
     The headline results were bad news            Revenue increased by 1.1 percent to
  for Ranbaxy’s Japanese owner, Daiichi         Aus$25.4 billion while earnings before
  Sankyo, which has seen the Indian             interest, tax, depreciation and amortisa-
  firm’s earnings hit by a string of US reg-    tion were up 0.8 percent at Aus$10.23
  ulatory setbacks since it paid $4.6 bil-
  lion in 2008 for a controlling stake.
                                                billion.
                                                   Telstra said it had added 1.6 million
                                                                                                                                                    Consumer inflation at 30-mth low
     New Delhi-based Ranbaxy                    mobile customers in the period, taking
  Laboratories said in a statement it           its total number to 13.8 million, while
  swung to a net quarterly loss of 5.86 bil-    retaining existing subscribers due to bet-    BEIJING, Aug 9, (RTRS): China’s factory output growth                                     support an economy that has seen growth sliding for six straight quarters.
                                                                                                                                                                                           Annual consumer inflation, meanwhile, fell to a 30-month low last month, suggest-
  lion rupees ($106 million) for the three      ter customer service.                         slowed unexpectedly in July to its weakest in more than three                             ing that the central bank has ample scope to ease policy further after cutting interest
  months to June from a quarterly net              “We have seen two years of signifi-
  profit of 2.43 billion rupees for the same    cant customer growth as our strategy          years, underlining stiff global headwinds that may prompt                                 rates in June and July. “We think the weakness will be more stubborn than people had
  period last year.                             continues to bear fruit,” said chief exec-    policymakers to take more action to keep growth on track to                               expected,” said Li Wei, China economist at Standard Chartered Bank in Shanghai. “My
     Market analysts had expected the           utive David Thodey.                                                                                                                     view is that political rhetoric is losing its effectiveness in boosting confidence and you
  generics heavyweight, India’s largest            “This has translated into strong finan-    meet a 7.5 percent annual target.                                                         need actual actions to boost growth.”
  drug company by sales, to post a profit       cial results despite tough domestic and         Retail sales and fixed asset investment also missed market forecasts in offi-              Expectations of more stimulus measures in response to the data boosted riskier
  of around three billion rupees in the         international economic conditions.            cial data released in Thursday, increasing expectations that Beijing will act to          assets, with Asian shares rising to a three-month high and the commodity-sensitive
  company’s second financial quarter.              “We have achieved top and bottom                                                                                                                                                       Australian dollar testing a 4-1/2-month
     The loss came despite a 140-percent        line growth and expect to do so again in                                                                                                                                                  peak.
  jump to 14.7 billion rupees in sales in       the 2013 financial year,” he added.                                                                                                                                                          Apart from lowering interest rates,
  North America, Ranbaxy’s main market,            Despite the solid result, the compa-                                                                                                                                                   Beijing has also cut the amount of cash
  that was powered by the its generic           ny’s share price fell 2.27 percent to
                                                Aus$3.88 in a generally flat market.                                                                                                                                                      that banks must hold as reserves (RRR)
  brand of Lipitor, Pfizer’s best-selling                                                                                                                                                                                                 to free up an estimated 1.2 trillion yuan
  cholesterol-busting drug.                        Rhett Kessler, a portfolio manager in
     “Sales and profitability grew in the       Sydney with Pengana Capital, said                                                                                                                                                         ($191 billion) for lending in a series of
  quarter with overall improvement across       investors were expecting even more.                                                                                                                                                       moves since November 2011.
  major regions,” Ranbaxy’s chief execu-           “Investors are also shifting away from                                                                                                                                                    President Hu Jintao and Premier Wen
  tive Arun Sawhney said, adding, “US           safe havens generally. At a cursory look,                                                                                                                                                 Jiabao have promised to step up policy
  sales were robust.”                           this is a solid result which has delivered                                                                                                                                                “fine tuning” in the second half of the
     But adverse currency movements in          on operational expectations,” he told                                                                                                                                                     year to support the economy.
  the quarter dragged the company into          Dow Jones Newswires. (AFP)                                                                                                                                                                                Easing
  the red, Ranbaxy said.                                       ❑      ❑    ❑                                                                                                                                                               The central bank is widely expected to
     “There was a net charge of $160 mil-                                                                                                                                                                                               continue its gradual policy easing in the
  lion or 8.76 billion on the profit and loss   NEW DELHI: India’s Reliance
  account on account of the forex items,”       Industries has slashed its recoverable                                                                                                                                                  coming months to support growth,
  the company said.                             natural gas reserve estimates in its main                                                                                                                                               despite its recent warning that inflation
     Earlier in the year, Ranbaxy reached       production fields by 70 percent, due to                                                                                                                                                 may pick up after August.
  agreement with the US Food and Drug           “unforeseen geological surprises”, a                                                                                                                                                       The benchmark Reuters poll last month
  Administration over a lengthy quality         minister said on Thursday.                                                                                                                                                              showed analysts expected the central bank
  compliance dispute and said it would             Declining gas production at the D6                                                                                                                                                   to deliver its next interest rate cut in the
  name an inspector to carry out quality        block in the Krishna Godavari basin,                                                                                                                                                    third quarter and two more cuts in banks’
  checks on its plants. (AFP)                   India’s richest gas find, has already                                                                                                                                                   reserve requirement ratio by the end of the
                                                reduced the country’s overall gas pro-
                 ❑     ❑     ❑                  duction, obliging it to import costlier
                                                                                                                                                                                                                                        year. “Policy measures the government has
                                                                                                                                                                                                                                        taken so far are not enough to stabilise
  MUMBAI: India’s top vehicle maker             liquefied natural gas.
                                                                                                                                                                                                                                        growth and policy support should be
  Tata Motors on Thursday posted a 12.2            Reliance, controlled by India’s
  percent rise in quarterly profit, but         wealthiest man Mukesh Ambani, has cut                                                                                                                                                   stepped up,” said Wang Jun, economist at
  missed forecasts, even as strong sales of     estimated recoverable gas reserves from                                                                                                                                                 China Centre for International Economic
  British brands Jaguar and Land Rover          two gas fields in the KG-D6 basin off                                                                                                                                                   Exchanges (CCIEE), a government think-
  offset weak local demand.                     eastern India to 3.10 trillion cubic feet                                                                                                                                               tank in Beijing.
      The auto giant reported consolidated      (tcf), junior oil minister R.P.N. Singh                                                                                                                                                    “On monetary policy, the central bank
  net profit of 22.44 billion rupees ($406      told the lower house of parliament.                 A woman walks past a promotional advertisement in a shopping mall in central Beijing, China, on Aug 9. (AP)                         should cut banks’ reserve requirement
  million) for the three months to June, up        The earlier estimate was 10.3 tcf,                                                                                                                                                   ratio (RRR) as quickly as possible.”
  from 20 billion rupees a year earlier.        Singh said. “The operator (Reliance) has                                                                                                                                                   China’s economy is struggling to
      The company, part of the salt-to-steel    attributed lower gas production (com-                                                                                                                                                   escape from the effects of the euro zone
  Tata conglomerate, however undershot          pared with an amended initial develop-                                               Car sales rise 6.7 pct in July                                                                     debt crisis and a sluggish US recovery
  analysts’ expectations of profit of           ment plan) from the D1 and D3 fields to                                                                                                                                                 that are keeping global growth at a low
  around 27 billion rupees.                     unforeseen geological surprises and                                                                                                                                                     ebb, the main factor that pushed China’s
      Revenues for the first financial quar-
  ter climbed 30 percent to 431.7 billion
  rupees, the firm said.
      Tata Motors, which also makes utility
                                                reservoir,” the minister said, without
                                                elaborating.
                                                   A Reliance company spokesman
                                                declined to comment, but said they had
                                                                                              India industrial output shrinks 1.8%                                                                                                      new export orders in July into their steep-
                                                                                                                                                                                                                                        est fall in eight months.
                                                                                                                                                                                                                                           Weak property investment is hurting
                                                stated “a similar position” in their last                                                                                                                                               economic growth despite a modest pick-
  vehicles and the low-cost Nano car, said                                                    NEW DELHI, Aug 9, (AFP): India’s                 India’s once-booming economy             6.7 percent in July, their weakest pace         up in sales and prices, while falling facto-
  it suffered a foreign-exchange loss of        annual report. D1 and D3 are the largest      industrial output shrank by a shock 1.8       grew just 5.3 percent between January       in three months, an automobile body
  4.41 billion rupees in the quarter, around    of the 18 finds Reliance made in the                                                                                                                                                    ry-gate prices cut into corporate earnings
                                                deep-sea oil and gas blocks in the Bay
                                                                                              percent in June, data showed                  and March — its slowest annual quar-        reported Thursday as it called for              and limit capital spending. The central
  eight times more than the size of its cur-
  rency loss of 570 million rupees a year       of Bengal, which had started production       Thursday, highlighting the challenge          terly expansion in nearly a decade.         lower interest rates to help spur the           government has been fast-tracking some
  earlier.                                      in April 2009.                                for new Finance Minister P.                      Unlike other central banks which         flagging sector.                                infrastructure projects, but its efforts have
      Jaguar and Land Rover have been key          India’s oil regulator and analysts have    Chidambaram to reverse the nation’s           have been cutting rates to spur growth,        Domestic car sales in July climbed           sparked fears of overcapacity.
  growth drivers for the Indian firm in         been concerned in recent months about         sharp growth slowdown.                        the Reserve Bank of India (RBI) has         by 6.7 percent to 143,496 units, from              Growth-obsessed local authorities
  recent quarters, where car sales are          falling oil and gas output from                  Manufacturing output, which                been holding back on reducing borrow-       134,473 units in the same month last            have been rolling out some investment
  slowing due to a rise in raw material         Reliance’s main fields, which has seen        accounts for three-quarters of the                                                        year, according to figures released by          projects in recent weeks, but their ability
  costs, vehicle prices, high fuel prices       its stock underperform. (AFP)                                                               ing costs, saying it wants inflation run-
                                                                                              Index of Industrial Production, was                                                       the Society of Indian Automobile                to fund them remains in doubt given
  and interest rates.                                          ❑     ❑      ❑
                                                                                                                                            ning at over seven percent to ease first.                                                   more than 10 trillion yuan in local debt –
      Tata Motors car sales in India slid 9.9                                                 chiefly to blame, falling 3.2 percent            “The situation calls for urgent poli-    Manufacturers (SIAM).
                                                MANILA: The Philippines’ largest gold         from a year earlier in June, according                                                       The growth rate would have been              a legacy of the massive stimulus
  percent from a year earlier to 62,619                                                                                                     cy measures both by the RBI as well                                                         unleashed in 2008/09.
  units and its profit from standalone local    and copper producer says its full-year        to government figures.                                                                    much weaker but last year’s low base
                                                earnings will drop as its mine in north-                                                    as the government to salvage industry                                                          Policy stimulus could give only a lim-
  operations nearly halved to 2.05 billion                                                       Chidambaram called the numbers             from further decline,” said Chandrajit      helped to improve the figure. Half of           ited boost to the economy in the absence
  rupees, in the June-ended quarter.            ern Benguet province remains shut after       “disappointing” and said he would act                                                     the country’s 18 carmakers reported a
      The company said slowing local            waste leaked from a storage pond.                                                           Banerjee, director general of the                                                           of a global recovery, analysts say.
                                                   Philex Mining Corp said Thursday           in “double-quick time” to remove              Confederation of Indian Industry.           fall in sales in July, despite hefty price         “Economic growth in the third quarter
  industrial growth, weak growth outlook                                                      bureaucratic and other bottlenecks                                                        discounts to boost business.
  and concerns over deregulation of gov-        operations at its Padcal mine will remain                                                      India’s benchmark Sensex share                                                           is likely to remain sluggish. Growth may
  ernment-controlled diesel prices will         suspended for some time, until the safe-      hindering India’s production.                 index closed down a fifth of a percent-        “These July numbers are not very             show some improvement from
  have an impact on overall demand for          ty and integrity of its tailing pond is          “We intend to find practical solu-         age point to 17,560.87 points on the        strong. Sentiment continues to be very          September,” said Zhang Hanya, a
  cars in India, in a presentation to           assured.                                      tions,” he said.                                                                          weak, but we’re hoping interest rates           researcher       with      the      National
                                                   The company says each month of sus-                                                      back of the data.                                                                           Development and Reform Commission,
  reporters.                                                                                     The industrial output fall defied             The next quarterly growth figures        will come down and improve buying
      Tata Motors bought Jaguar and Land        pension will cost 220 million pesos                                                                                                                                                     the country’s top planning agency.
                                                                                              market forecasts of close to one per-                                                     sentiment,” said SIAM senior director
  Rover from Ford Motor in 2008 for $2.3        ($5.3 million).
                                                                                              cent growth and came as the country           are due at the end of the month but         Sugato Sen.                                        China’s industrial output growth
  billion as part of plans to expand its           Mine operations were suspended on                                                        “the omens are not particularly                                                             slowed to 9.2 percent year-on-year in
  reach beyond Asia.                            August 1 and the leak was plugged             faces the spectre of its third drought in                                                    Car loan interest costs are running at
                                                                                              a decade, which would further reduce          encouraging”,          said        Prior-   12 to 14 percent.                               July, its weakest since May 2009, down
      The deal vaulted Tata Motors from a       within 48 hours.
                                                                                                                                            Wandesforde.                                                                                from 9.5 percent in June and below the
  commercial vehicle and small-car maker           Insurance would mitigate losses but        economic expansion.                                                                          SIAM has projected auto sales will           9.8 percent forecast in a Reuters poll.
  into a global player with luxury brands       Philex Chairman Manuel Pangilinan                “This was another shocking indus-             Capital goods output, a vital invest-    rise by nine to 11 percent this year —
                                                says full-year earnings would be “mate-                                                     ment signal, slid 27.9 percent in June                                                         Annual growth in fixed-asset invest-
  in its range of offerings. (AFP)                                                            trial production release from India...                                                    far higher than last year when growth           ment, in the likes of real estate, roads and
                                                rially impacted.”                                                                           — the largest contraction on record
                 ❑      ❑     ❑                    Philex’ made a net profit of 2.11 bil-     and will inevitably heap more pressure                                                    slowed to 2.2 percent as the sector             bridges, came in at 20.4 percent in
                                                                                              on the central bank to restart its rate       according to Credit Suisse.                 was hit by aggressive rate hikes to             January-to-July, unchanged from the
  SYDNEY: Australia’s dominant telecom          lion pesos ($50.6 million) in the first
  company Telstra posted a 5.4 percent          half of the year. Net profit for 2011 was     cutting,” said Credit Suisse economist                         Also:                      curb inflation and industrial prob-             January-to-June period and just below the
  jump in annual net profit to Aus$3.42         5.57 billion pesos ($133.6 million). (AP)     Robert Prior-Wandesforde.                     NEW DELHI: India’s car sales grew by        lems.                                           20.5 percent forecast.

								
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