RBA vows massive bond buy
The central bank yesterday formalized a quantitative easing program, pledging to buy up to 1 trillion rupees (US$13.4 billion) of bonds in the secondary market this quarter, as it sought to keep borrowing costs low to support an economic recovery. The debt purchases are to start from Thursday next week, Reserve Bank of India Governor Shaktikanta Das said, after policymakers held the benchmark repurchase rate at a record low 4 percent. The bank bought 3 trillion rupees of bonds in the previous fiscal year to March 31, Das said.
Italy, Portugal offer bonds
Two of Europe’s most indebted nations are testing investor appetite for their bonds. Italy yesterday offered its first new 50-year bond in almost five years via banks, and was also selling debt maturing in 2028. Italy gave initial price guidance of about 50 basis points over existing bonds for its 50-year sale and 12 basis points over similar-dated bonds for its 2028 maturity. Portugal brought to market a 10-year security, with an initial price guidance of about 29 basis points over midswaps.
Home prices hit a record
The price of single family homes in skyrocketed 17 percent in the first three months of the year, data showed yesterday, increasing concerns that the market is overheating. The rise was a record, said Svensk Maklarstatistik, an association of real-estate agents, since it started collecting data in 2005. Apartment prices rose 8 percent over the same period. “Big price rises are usually followed by a recoil,” Maklarstatistik head of sales Hans Flink said. “I wouldn’t call it a bubble, but there could be a reverse.”
Amundi to buy Lyxor
Amundi SA has agreed to buy Societe Generale SA’s fund management arm Lyxor in an 825 million euros (US$980 million) cash deal that would make it the second-biggest provider of exchange-traded products in Europe. The Paris-based firm has entered into exclusive negotiations with the lender and expects the deal to close by February of next year, it said in a statement yesterday. Bloomberg reported earlier that Amundi was the leading bidder for Lyxor.
Goldman props up Deliveroo
Goldman Sachs Group Inc bought ￡75 million (US$103.8 million) of shares in food delivery group Deliveroo Holdings PLC to prop up trading after an underwhelming market debut, the Financial Times reported on Tuesday. The purchase equates to nearly a quarter of the value of shares traded in Deliveroo during its first two days as a public company last week, the report said, citing Bloomberg data. The share purchase by the bank, when taken together with the “overallotment” option, would mean the bank would have recorded a profit from the food delivery group’s declining share price, the report said.
E3 to hold virtual show
The world’s premier video game trade show is to return in June as a free, virtual event after the annual gathering was canceled last year because of the COVID-19 pandemic. Electronic Entertainment Expo (E3) shop talk and game revelations are to be solely online in a show that is to take place from June 12 through June 15, the Entertainment Software Association announced on Tuesday.
WALKING AWAY: At one point the world’s No. 3 smartphone brand, LG has fallen from a position as a market leader after a series of software and hardware mishaps South Korea’s LG Electronics Inc is to wind down its loss-making mobile division after failing to find a buyer, a move that would make it the first major smartphone brand to completely withdraw from the market. Its decision to pull out will leave its 10 percent share in North America, where it is the No. 3 brand, to be gobbled up by Samsung Electronics Co and Apple Inc with its domestic rival expected to have the edge. “In the United States, LG has targeted mid-priced — if not ultra-low — models and that means Samsung, which has more mid-priced product lines than
SPECULATION: The integrated house and land transaction income tax has been amended as the real-estate market heats up because of high liquidity and low interest rates Lawmakers across party lines yesterday agreed to July 1 as the provisional date on which a draft amendment to the Income Tax Act (所得稅法) is to come into effect, with the aim of curbing real-estate speculation. The consensus was reached following interparty negotiations at the legislature’s Finance Committee to determine when revisions to the “integrated house and land transaction income tax” would take effect. The committee on Monday last week passed a number of revisions to the act, but failed to agree on when they would take effect. Under the proposed revisions, the tax would be set at 45 percent
TAICHUNG PLANT: An official said that generator No. 3 had been retrofitted and it generates 0.46g of particulate pollution per kilowatt-hour, down from 0.6g to 0.7g A spike in demand for electricity made it necessary to restart the third coal-fired generator at the Taichung Power Plant, Taiwan Power Co (Taipower, 台電) said yesterday as a feud with the Taichung City Government lingers. Taichung Mayor Lu Shiow-yen (盧秀燕) has sought to keep the generator from being used. In 2019, he revoked Taipower’s license to operate the generator. However, the state-run utility has taken the city government to court over the license revocation and won the case in February last year, Taipower manager Chang Ting-shu (張廷抒) said. “We would like to remind the Taichung City Government that operation of the third
Several hundred people have already booked their tickets and begun training for a spectacular voyage: a few minutes, or perhaps days, in the weightlessness of space. The mainly wealthy first-time space travelers are preparing to take part in one of several private missions which are preparing to launch. The era of space tourism is on the horizon 60 years after Soviet cosmonaut Yuri Gagarin became the first person in space. Two companies, Virgin Galactic and Blue Origin LLC, are building spacecraft capable of sending private clients on suborbital flights to the edge of space lasting several minutes. Glenn King is the director of