Page 25 - ARUBA TODAY 7 NOV 2015

BUSINESS A25
Saturday 7 November 2015

China to resume IPOs as it slows emergency measures

JOE McDONALD market index plunged 30 “Currently, the stock mar- index soared more than A group of state entities
AP Business Writer percent from its June 12 ket has entered a self- 150 percent starting late is believed to have spent
BEIJING (AP) — China is re- peak. That disrupted fund- healing and self-adjusting last year after state media tens of billions of dollars
suming initial public stock raising plans for dozens of stage,” Ge was quoted as said shares were inexpen- buying shares to prop up
offerings as it winds down companies. saying. sive. That led investors to prices.
emergency measures im- The end of the morato- believe Beijing would step Goldman Sachs estimated
posed to stop a market rium was announced by a “Resuming IPOs will help in to prop up prices if nec- in a report in August that
plunge, a government spokesman for the China enhance the vitality of the essary. the group, dubbed the
spokesman was quoted by Securities Regulatory Com- market and repair its func- The bubble burst after an “National Team” by finan-
state media as saying Fri- mission, Deng Ge, accord- tions.” unrelated change in bank- cial analysts, spent 860 bil-
day. ing to the Xinhua News The Shanghai Composite ing rules in early June made lion-900 billion yuan ($135
Regulators suspended IPOs Agency and financial news Index has surged 17.6 per- investors think Beijing’s sup- billion-$140 billion) in June
in July after China’s main outlets. cent in the past month. port might be weakening. and July.q
Before the June slump, the

Japanese air bag maker Takata reports $46 million loss

Japanese air bag maker Takata Corp. CEO Shigehisa Takada speaks at a press conference in To- On Friday, Toyota Motor has agreed to phase out
kyo. Embattled Takata Corp. reported a half-year loss of 5.58 billion yen ($45.8 million) on Friday, Corp. president Akio Toyo- air bag inflators that use
Nov. 6, due to recall costs, as Toyota announced it would stop using Takata air bag inflators that da said the world’s top- ammonium nitrate, the
are at the center of the company’s massive product safety scandal. selling automaker will stop propellant blamed for the
using Takata’s ammonium explosions. It also agreed
(Kyodo News via AP) nitrate air bag inflators but with the National Highway
didn’t provide details. Traffic Safety Administra-
ELAINE KURTENBACH of the company’s massive millions of vehicles globally. Takata had forecast a 7.5 tion to a schedule for re-
AP Business Writer product safety scandal. Takata’s financial report billion yen ($62 million) net placing many of the devic-
TOKYO (AP) — Embattled Tokyo-based Takata cut its capped a week of bad profit for the fiscal first half. es already in use over the
Takata Corp. reported a profit forecast for the full news for the company af- Its net loss a year earlier next two years.
half-year loss of 5.6 billion fiscal year that will end in ter at least three major cus- was 35.2 billion yen. Takata uses the chemical
yen ($45.8 million) on Fri- March by 75 percent, to 5 tomers, including Honda Takata said its sales totaled ammonium nitrate to cre-
day due to recall costs, billion yen ($41 million) from Motor Co., said they would 359.4 billion yen ($2.95 bil- ate an explosion that in-
as Toyota announced it 20 billion yen, reflecting the stop purchasing the types lion) in April-September. It flates air bags, but it can
would stop using Takata air expense of recalls for de- of air bags involved in the kept its full-year sales fore- deteriorate over time, es-
bag inflators at the center fective air bags that affect recalls. cast at 720 billion yen ($5.9 pecially when exposed to
billion). Apart from air bags, moist air. In the U.S., about
it also makes other car 23.4 million Takata driver
parts including seatbelts and passenger air bag in-
and steering wheels. flators have been recalled
On Tuesday, U.S. auto safe- on 19.2 million vehicles sold
ty regulators fined Takata by 12 auto and truck mak-
$70 million for concealing ers. As of Oct. 9, only 22.5
evidence for years that percent of the recalled in-
its air bags are prone to flators had been replaced
explode with grisly con- nationwide, but the pace is
sequences. The defect a bit faster in high-humidity
is linked to eight deaths states like Florida, which
and more than 100 injuries have been given priority.
worldwide. The spate of Repairs have been slowed
bad news prompted heavy by the magnitude and
selling of Takata’s shares, complexity of the recalls
which fell 6.2 percent on Fri- and by limits to the number
day and lost nearly 40 per- of replacement parts that
cent for the week. Takata are available.q

Disney 4Q results allay concerns about any cord-cutting

AP Business Writer in ESPN subscribers. Last is licensing ESPN and other ESPN remains a key driver of $4.22 billion expected by
LOS ANGELES (AP) — Disney month, Disney cut about channels to Sony’s PlaySta- the popularity of new offer- analysts polled by FactSet.
is allaying concerns about 300 jobs at ESPN and shut- tion Vue online TV service, a ings, including Vue. “They An increase in subscribers
cord-cutting after reporting tered its popular Grant- bundle of over 50 channels came to us to negotiate a at its newly launched SEC
better-than-expected rev- land website. “The fact that is still smaller than most deal because it was clear Network partially offset a
enue in the cable-network remains that the industry traditional pay TV packag- the product that they had decline “at certain of our
division that houses ESPN. did lose some (subscribers) es and costs $50 a month. launched was not pene- networks,” the company
CEO Bob Iger told CNBC last year,” he told CNBC. Iger told analysts on a con- trating the market as much said, without specifying.
that he remains “bullish” “Now is that a reason to ference call that Disney as I think they were expect- Overall, revenue rose 9 per-
about the TV business. panic? Absolutely not. would continue to license ing,” he said. Disney said cent to $13.51 billion, shy of
Three months earlier, Dis- People still love television, its top networks to new Thursday that revenue at the $13.55 billion expected.
ney set off a wave of selling the still love ESPN and they entrants with slimmer bun- its leading business, cable But adjusted earnings grew
in media stocks after trim- love live sports.” Thursday’s dles of channels that are networks, rose 12 percent to $1.20 per share from 89
ming its future guidance comments come the same more attractively priced to to $4.25 billion in the fiscal cents a year ago, beating
due to a modest decrease day Disney announced it young people. He also said fourth quarter, beating the the $1.15 expected. q