Page 25 - ARUBA TODAY

BUSINESS Tuesday 22 augusT 2017
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Economists see only slight impact from Fed bond trimming

By MARTIN CRUTSINGER The latest survey, out Mon- point in the 10-year note pected to announce at its a boost by lowering long-
AP Economics Writer day, of the National Associ- while only 11 percent saw September meeting a start- term interest rates to pull
WASHINGTON (AP) — The ation for Business Econom- rates going up more than 1 ing date for the reduction the country out of a deep
nation’s business econo- ics found that 41 percent percentage point over the in its $4.5 trillion balance recession.
mists believe that the Fed- of economists surveyed ex- extended period that the sheet, which has grown The Fed has said the bond
eral Reserve’s long-await- pected rates on the 10-year Fed is reducing its holdings. five-fold since right before reductions will take place
ed move to start reducing Treasury note will rise by just The policy survey summa- the 2008 financial crisis. gradually over a number of
its massive bond holdings one-half percentage point rized the responses of 184 The increase came as the years and the survey found
will push long-term bond or less. About one-fourth of the association’s mem- central bank bought Trea- that private economists
rates higher but most think saw an increase of three- bers surveyed from July 18 sury bonds and mortgage- generally agree with Fed
the impact will be fairly fourths of a percentage to Aug. 2. backed securities in an ef- officials who think there will
modest. point to a full percentage The Federal Reserve is ex- fort to give the economy be little market impact.q

China’s Great Wall considers bid for Fiat Chrysler Jeep unit

By JOE McDONALD with a Jeep bid, Great Wall
AP Business could become the second
BEIJING (AP) — Chinese Chinese automaker, after
SUV maker Great Wall Mo- Geely Holding Group, to
tors is considering making expand onto the global
a bid to buy Fiat Chrysler’s stage by acquiring an es-
Jeep unit, spokespeople tablished foreign brand.
for the company said Mon- Geely bought Sweden’s
day, in a possible ambitious Volvo Cars from Ford Mo-
new step onto the global tor Co. in 2010 and has
stage for China’s fast-grow- launched a third brand,
ing auto brands. Lynk & Co., as a partner-
Great Wall has yet to for- ship between Volvo and
mally declare its interest in Geely’s Chinese brand. In
Jeep, but a possible acqui- June, Geely bought a 49.9
sition would be in line with percent stake in Malaysian
chairman Wang Jianjun’s automaker Proton and a
goal, announced in Febru- controlling interest in British
ary, of becoming the top sports car maker Lotus. In
specialty SUV producer by 2011, a state-owned Chi-
2020. nese automaker, Dong-
Great Wall “has this inten- feng Motor Group, bought
tion,” said the public rela- 14 percent of France’s PSA
tions director for its Haval In this Feb. 19, 2017 photo, a worker walks past Haval SUV models parked outside the Great Wall Peugeot Citroen, Europe’s
SUV brand, Zhao Lijia, when Motors assembly plant in Baoding in north China’s Hebei province. Chinese SUV maker Great second-largest automaker.
Wall Motors is considering making a bid to acquire Fiat Chrysler’s Jeep unit, two employees of the
asked about a report by Chinese company said Monday, Aug. 21, 2017 in an ambitious new move for the country’s fast- Great Wall sold just under
Automotive News that the growing domestic auto brands. 1.1 million SUVs last year,
Chinese automaker wants (AP Photo/Andy Wong) behind Jeep’s 1.4 million.
to buy Jeep. An employee Fiat Chrysler CEO Sergio Marchionne said in April their competitive position Its revenue of 98.6 billion
of the press office for the Marchionne has said the that Jeep and Chrysler’s at home and speed their yuan ($14.4 billion) was a
company headquarters, company is for sale and Ram truck brand are strong development. fraction of FCA’s global to-
who would give only his cannot compete globally enough to stand alone. The Great Wall Motors Ltd., tal of $118 billion (111 billion
surname, Zhang, said, “Yes, without a tie-up to a big- company spun off its Ferrari headquartered in Baoding, euros), but its $1.5 billion
we are interested in Jeep.” ger partner due to the high brand in 2015 into a sepa- southwest of Beijing, is one profit was almost equal to
Zhao and Zhang said they costs of developing and rate business. of a series of independent the Italian-U.S. automaker’s
had no other details when marketing vehicles. Chinese companies in in- Chinese automakers that $1.8 billion.
asked about a possible In a statement Monday, dustries from autos to robots have grown up alongside Great Wall also can draw
price. Zhao said it may take Fiat Chrysler Automobiles are spending billions of dol- state-owned giants such on strong demand in Chi-
some time to assemble a NV said it had not been ap- lars to acquire brands and as Shanghai Automotive na, the biggest auto mar-
formal bid. proached by Great Wall. technology to strengthen Industries. If it goes ahead ket by units sold. q

Sempra Energy bids $9.45B for Oncor, topping Buffett offer

SAN DIEGO (AP) — Sem- reorganized Energy Future a significant portion of On- more to all of Oncor and next year. The deal still
pra Energy is buying Texas Holdings Corp. Energy Fu- cor’s debt, opposed Berk- Energy Future’s creditors. needs the approval of the
power transmitter Oncor for ture entered bankruptcy shire’s takeover bid, say- Greg Abel, who leads Berk- Public Utility Commission
$9.45 billion in cash, wrest- in 2014, saddled with more ing it wasn’t enough. But shire Hathaway Energy, of Texas, U.S. Bankruptcy
ing it away from Warren than $40 billion in debt due Berkshire Hathaway stood said he’s disappointed the Court of Delaware, Federal
Buffett’s Berkshire Hatha- to cratering energy prices. firm on its offer, saying last Oncor deal was terminated Energy Regulatory Com-
way. Berkshire Hathaway said week that it would not be by Energy Future. But Berk- mission and the U.S. De-
Sempra said Monday that it last month that it would increasing the bid. shire is entitled to receive a partment of Justice.
will also pick up $9.35 billion buy Oncor for $9 billion, Elliott spokesman Michael $270 million termination fee A buyout attempt last
of the company’s debt. To and last week it stuck to O’Looney said the hedge that was negotiated. year backed by the Ray
gain possession of Oncor, that bid. Hedge fund Elliott fund supports Sempra’s Sempra expects to close Hunt family of Dallas also
Sempra will acquire the Management, which owns bid because it will provide the sale in the first half of faltered.q