Wed, Jun 21, 2023 page10

• World Business Quick Take

  • Agencies
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  CHINA

  Central bank cuts rates

  The central bank yesterday lowered two benchmark interest rates, following several similar measures over the past few days in an attempt to counter the post-COVID-19 growth slowdown in the world’s second-largest economy. The People’s Bank of China lowered the one-year loan prime rate, which serves as a benchmark for corporate loans, from 3.65 percent to 3.55 percent, while the five-year loan prime rate, which is used to price mortgages, was cut from 4.3 percent to 4.2 percent. The decision knocked the yuan lower. It fell 0.2 percent in onshore trade to 7.1803 yuan per US dollar, not far from last week’s nearly seven-month low of 7.1819 yuan. The offshore yuan was last 0.2 percent lower at 7.1769 yuan per US dollar, languishing near last week’s trough of 7.1916 yuan.

  NEW ZEALAND

  Banks face profit probe

  Wellington announced an inquiry into the nation’s banking sector amid concerns that lenders are making excessive profits. The cabinet has agreed to a market study into competition in the sector for personal banking services to ensure that the market is working well for locals, Minister of Finance Grant Robertson said yesterday. It would be conducted by the Commerce Commission antitrust watchdog and be completed by August next year, Robertson said. Across the industry, bank earnings rose 17 percent to NZ$7.2 billion (US$4.5 billion) last year for a return on equity of 13.4 percent, a KPMG analysis found. The four biggest lenders, which together hold about 90 percent of deposits in New Zealand, generated profits exceeding NZ$6.4 billion.

  INTERNET

  Grab planning major layoffs

  Grab Holdings Ltd is preparing its biggest round of layoffs since the COVID-19 pandemic, as the Internet company faces stiffening competition in ride-hailing and meal delivery across Southeast Asia. The reductions are set to be announced as soon as this week and are likely to surpass a 2020 round that shrank staff by 5 percent, or about 360 employees, people familiar with the matter said. While Singapore-based Grab leads Southeast Asia’s ride-hailing and delivery markets, it has yet to reach profitability and has been slower to slash expenses than regional competitors. The company refrained from mass layoffs, but added more than 3,000 staff last year, largely because of its acquisition of supermarket chain Jaya Grocer, taking its total headcount north of 11,000. Shares of Grab have slumped about 70 percent since its stock market debut in New York in late 2021.

  AUTOMAKERS

  Carlos Ghosn suing Nissan

  Carlos Ghosn, the former chairman and CEO of Nissan Motor Co, has sued the Japanese automaker and connected individuals for ousting him in 2018 and arranging his arrest for alleged financial misconduct, claiming more than US$1 billion for “deep damage” to his finances and reputation. The former auto executive, who forged Nissan’s automaking alliance with Renault SA and Mitsubishi Motors Corp, filed his claims with the public prosecutor in the Court of Cassation in Lebanon, where he has lived since his dramatic escape from Japan in late 2019 to flee trial. The lawsuit, submitted on May 18 and translated into English from Arabic, claims US$588 million in lost compensation and costs, as well as US$500 million in punitive measures.
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