Author: Business News Asia

The Industrial & Commercial Bank of China Ltd (ICBC) is now the world’s most valuable bank, overtaking US bank Wells Fargo & Co, after it posted market capitalization of USD315 billion on 23 April. A report by Bloomberg said ICBC’s market capitalization was 11 percent more than Wells Fargo. That means the gap between the two banks has widened since ICBC took over the lead on 7 April. ICBC is the first Chinese bank to be named the largest bank in the world by assets. ICBC posted a net profit growth of 5.1 percent to Rmb276.29 billion (USD45.29 billion) in…

HONG KONG – Global rating agency Moody’s Investors Service said most countries in the Asia-Pacific region have a relatively high degree of immunity to external economic shocks with divergent rating momentum. The rating momentum is diverging as some economies drive through ambitious reforms, while others struggle with deep-rooted challenges. A key risk for credit quality is, therefore, whether governments can deliver on policy pledges, Moody’s said in its latest report. “A common challenge for emerging economies in the region will come when the US Federal Reserve begins to raise interest rates,” said the report. The rating agency added that Asia-Pacific…

SHANGHAI, CHINA – The latest flash HSBC / Markit PMI survey showed that China’s factory activity slowed to its lowest level in a year in April, with the purchasing managers’ index contracting to 49.2 percent. The latest flash HSBC/Markit PMI suggests that China’s economic conditions remain in a deteriorating phase even as the country’s central bank has aggressively increased its policy easing. HSBC’s preliminary reading of China’s factory activity for April came in at 49.2, compared with a Reuters forecast for a 49.6 print. Last month, government data showed the official (PMI) edged up to 50.1, better than HSBC’s final…

The world’s largest chain of hamburger fast food restaurants, McDonald’s, announced that it will close about 700 stores around the world this year to turn around global sales declines. Details of the planned store closures were not immediately disclosed but CEO Steve Easterbrook was quoted by the Associated Press as saying that the company will announce initial details of the plan by 4 May. “I think there is a hunger and an interest in our business to embrace change,” Easterbrook said. Analysts said shutting down a number of stores around the world will help McDonald’s turn around sales declines. In…

United States President Barack Obama has confirmed that two hostages held by Al Qaeda were accidentally killed in a US counterterrorism operation, expressing grief and condolences for the drone strike. In a public address from the White House, Obama said he took full responsibility for the operation and apologized to the families of the hostages. “I profoundly regret what happened,” he said. “I take full responsibility for a U.S. government counterterrorism operation that killed two innocent hostages held by al Qaeda,” President Obama said today. “Analysis of all available information has led the Intelligence Community to judge with high confidence…

MANILA, PHILIPPINES – Low-cost Philippine carrier Cebu Pacific Air announces interest to further expand operations in Australia by seeking more seat entitlements in the country. Cebu Pacific, a publicly-listed subsidiary of JG Summit Holdings, said it is fully utilizing its seat entitlements to Australia and will participate in air talks that will be held in Canberra on 28 April. The airline’s expansion plan was based on the number of passengers it carried to Sydney from Manila in January 2015. That month, Cebu Pacific said it carried 13,875 passengers, more than any other carrier operating direct flights from Manila to Sydney.…

MANILA, PHILIPPINES – Commissioner John Sevilla, the head of the Bureau of Customs in the Philippines, has tendered his resignation on Thursday, citing vague reasons for his decision. Commissioner Sevilla announced his resignation and said it will take effect as soon as Philippine President Benigno Aquino III names a successor. Sevilla, who replaced Rufino Biazon, did not elaborate on the reason for his resignation aside from saying that “when you do something right at the Customs, you will have to face some risks”. Sevilla has introduced several reforms in Customs, making more transactions transparent, such as the “importer’s bible.” Sevilla also…

MANILA, PHIILPPINES – Member economies of the Asia-Pacific Economic Cooperation (APEC) must enhance the participation of small and medium enterprises (SMEs) in the automotive industry to spur regional growth, a Philippine trade official has said. In his keynote speech on Wednesday, Trade Assistant Secretary Ceferino S. Rodolfo said globalization makes a good driver of cooperation because it enables many economies to be key players in automotive manufacturing by participating in production activities of global value chains (GVCs). “But an economy’s participation in GVCs does not readily translate to inclusive growth. We need to deliberately foster SME participation in automotive GVCs,”…

MANILA, PHILIPPINES – Philippine President Benigno Aquino III welcomed the European Union’s decision to lift its yellow-card warning on the Philippines, moving the country out of the list of countries that the EU threatened with a trade ban due to illegal, unreported and unregulated fishing. “This warning was issued in June of 2014, because the EU deemed that the Philippines had previously not done enough to combat illegal, unreported, and unregulated fishing. Had the situation worsened, this would have alienated one of the biggest importers of fish for the Philippines, which would have been a blow against our fishing industry and Filipino…

CEBU, PHILIPPINES – The Philippines has been removed from the list of countries that the European Union (EU) has threatened with a trade ban due to illegal, unreported, and unregulated (IUU) fishing, following reforms in the legal framework of the Fisheries Code. Oceana welcomed the de-listing of the Philippines, which shows that the government has enough political will to reform the fishing industry. “We congratulate the Philippine government’s efforts in complying with the conditions to lift the yellow card warning imposed by the EU. The yellow card was actually a positive development as it pushed government into action by amending…

MANILA PHILIPPINES – Veteran actress Janice de Belen has denied reports linking her to the recent break-up of Gerald Anderson and Maja Salvador while Senator Chiz Escudero said wife Evangelista will only enter politics if he enters showbiz. In a post on her social media account, the veteran actress, who was Anderson’s mother in the hit ABS-CBN teleserye Budoy, said “Rumors are carried by haters, spread by fools and accepted by idiots”. She also urged everyone not to judge any person. Anderson and Salvador announced the breakup of their relationship, saying they both need some space. While the two did…

MANILA, PHILIPPINES – Maybank Philippines Inc (MPI), the local unit of Malaysia’s largest bank and financial group, posted a record net income of Php1.01 billion (USD22.6 million) in 2014. The 2014 net income was more than double the Php409 million (USD9.25 million) that the bank booked in 2013, thanks to the growth of its core businesses and the realization of one-off gains. “2014 turned out to be an eventful year for MPI as new milestones and breakthroughs were achieved against a business environment that remained challenging not only for MPI, but the whole banking industry as well,” MPI President and…

ANTIPOLO CITY, PHILIPPINES – Eleven children, aged six to 12, were hospitalized after eating the fruits of Jatropha, locally known as tuba-tuba in Antipolo Tuesday afternoon, authorities said today. The children, all residents of San Jose in Antipolo City, feasted on the fruits of tuba-tuba but started vomiting minutes later. The children then complained of stomach pains. Parents of the children said they did not know that tuba-tuba is poisonous until their children started showing signs of food poisoning. Seven of the children were rushed to the Rizal Provincial Hospital while the other four were brought to the Amang Rodriguez…

NEW YORK – The Clinton Foundation said it will only accept donations from governments of Australia, Canada, Germany, Netherlands, Norway and the United Kingdom, taking out Mid-eastern governments. The foundation has been criticized for its reliance on governments that suppress women equality concerns and the issue could be raised against board member Hillary Clinton, who is undertaking her presidential campaign, Moneyflowindex.org reported The Clinton Foundation said that going forward it will continue to look abroad for millions of dollars but will limit donor nations to a select group of 6, which are long-time allies of the United States. The foundation…

MANILA, PHILIPPINES – Stakeholders in the automotive industry are gathering for the 22nd Asia-Pacific Economic Cooperation (APEC) Automotive Dialogue, which is held Dusit Thani Hotel in Makati City from April 22 to 24 to discuss the challenges facing the industry, the Office of the President reported. The Automotive Dialogue, with the theme “Integrating SMEs (Small and Medium Enterprises) into the Automotive Global Value Chains,” aims to encourage economies to move toward more integrated regional and global approaches to automotive policies. The APEC Automotive Dialogue is an avenue for APEC member economy officials and senior industry representatives to collaborate in formulating…

MANILA, PHILIPPINES – After years of rigorous planning and consultations with education stakeholders, the Department of Education (DepEd) has identified and mapped more than 5,800 public schools set to offer Senior High School (SHS) in 2016 nationwide as part of its continued preparations for the full implementation of the K to 12 program. Over the last several years, division personnel field office personnel and school heads have been continuously collaborating with their respective communities, local chief executives, legislators, industry partners, civil society organizations, and other stakeholders for SHS preparations. Factors such as the availability of space and school sites, community…

JAKARTA, INDONESIA – An Indonesian court has sentenced to 10 years and 18 years in prison an American couple, from the state of Chicago, for the murder of the convicted woman’s mother. The Denpasar District Court sentenced Heather Louis Mack, 19, and Tommy Schaefer, 21, to 10 years and 18 years in prison, respectively, for the murder of Mack’s 62-year-old mother, Sheila Ann von Wiese-Mack. The penalty, however, was lower than the expected death penalty for the American couple. The murder of Wiese-Mack shocked the public when it was reported in August 2014. The American woman’s body was found in…

MANILA, PHILIPPINES – The Supreme Court (SC) of the Philippines has ruled as unconstitutional the contract that allowed the exploration, development and exploitation of petroleum resources within Tañon Strait in the Visayas area. Tañon Strait was declared as a protected area in 1998 by former President Joseph Estrada. In a decision penned by Associate Justice Teresita Leonardo de-Castro, the SC ruled that Service Contract 46 (SC-46) failed to comply with the safeguards under Section 2, Article XII of the Constitution which requires that the service contract be authorized by a general law signed by the President, and reported to Congress.…

SHANGHAI, CHINA – After a robust 2014, China’s private equity market is forecast to grow at a slower pace this year, a report by Bain & Co showed. The industry report said it will be difficult for PE investors in China to maintain the momentum for the rest of the year due to various factors, including fierce competition and economic slowdown. In 2014, PE investors in China invested in USD451bn worth of deals, a 173 percent year on year. The number of deals surged to 350, exceeding the market’s five-year average by 30 percent, the report said. The value of…

MANILA, PHILIPPINES – In the middle of a hot Tuesday afternoon, a sudden downpour caused by a thunderstorm surprised residents in Metro Manila while other areas experienced hailstorms as the rest of the country works hard to contain the effects of the dry spell caused by mild El Niño. The downpour that lasted for less than two hours immediately triggered flooding in some parts of the metropolis. The Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa) earlier issued a thunderstorm advisory in Metro Manila and warned that heavy rains, strong winds and possible flash floods may occur. The heavy rains…