Sat, Dec 04, 2021 page10

• World Business Quick Take

  • Agencies
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  AVIATION

  China greenlights 737 Max

  Boeing Co’s 737 Max jets might resume commercial flights in China by the end of this year or early next year, the Chinese Civil Aviation Administration said yesterday, a day after issuing an airworthiness directive that paved the way for the single-aisle workhorse to return to the Chinese skies after an almost three-year grounding. China is also to start introducing new Max aircraft around the same time, the agency said, marking a key moment for the US planemaker, which has already convinced most major global regulators about the jet’s safety following extensive fixes. A return in the world’s second-busiest aviation market would pave the way for a planned ramp-up in 737 Max production to at least 31 planes a month early next year from 19 today.

  EUROZONE

  Business activity picks up

  Eurozone business activity accelerated last month, but the bounce might be temporary as demand growth weakened and fears about the Omicron variant of SARS-CoV-2 put a dent in optimism, a survey showed yesterday. IHS Markit’s flash composite purchasing managers’ index (PMI) jumped to 55.4 last month from 54.2 in October, below an earlier 55.8 “flash” estimate, but still above the 50 mark separating growth from contraction. “An improvement in the rate of economic growth signaled by the eurozone PMI looks likely to be short-lived,” said Chris Williamson, chief business economist at IHS Markit. “Not only did demand growth weaken, but firms’ expectations of future growth also sank lower as worries about the pandemic intensified again.” A final PMI for the bloc’s dominant service industry did rise to 55.9 from 54.6, although that was well below the preliminary estimate of 56.6. However, the business expectations index, which measures optimism about the year ahead, sank to 66.7 from 69.0 — its lowest level since February.

  AUTOMAKERS

  Polestar talks chip shortage

  Polestar, the electric-vehicle maker that is set to go public in a US$20 billion reverse merger next year, expects to battle chip shortages into next year, as it ramps up production to meet the sales targets outlined to investors. Executives from Polestar, backed by Volvo Car Group and Zhejiang Geely Holding Group Co (吉利控股集團), were in New York on Thursday to show off a new luxury sport sedan, the Polestar 5. The sporty sedan, modeled off Polestar’s Precept concept car, is aiming to steal share from Porsche AG and Tesla Inc. It is the first of three new models Polestar plans to introduce by 2025. Polestar, which is set to complete its reverse merger in the first half of next year, is aiming to sell 29,000 cars worldwide this year, 65,000 next year and 290,000 by 2025, achieving margins of 9 percent, it said in an investor presentation.

  TRADE

  Mexico mulls suing US

  The Mexican government on Thursday threatened legal action over provisions of US President Joe Biden’s Build Back Better Act that would give subsidies of up to US$12,500 for purchases of union-made, US-made electric vehicles. Mexican Secretary of the Economy Tatiana Clouthier said the bill before the US Senate would violate non-discrimination clauses of the US-Mexico-Canada free-trade pact. Clouthier said the measure would discriminate against potential exports of Mexican-built EVs and favor domestic producers, something she said is forbidden under the pact. Clouthier said the Senate bill could cost Mexico jobs and “could generate additional pressures for migration.”
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