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Govts & policies

Plans for tourism boost through IT

Beijing will promote the use of information technology in tourism to boost the sector's growth by 2020, according to a government plan released on Tuesday. All tourist areas classified as 4A sites or above will offer free Wi-Fi, audio guides, online reservations and other information services by 2020, according to the China National Tourism Administration. The 4A rating is the second highest in a five-level assessment system. The plan set a target for investment in online tourism businesses, to account for 15 percent or more of total tourism investment. The goal is that by 2020, online travel spending should take up at least 20 percent of total tourist spending.

Agreement to deepen trade, investment

China and the Philippines discussed on Tuesday ways to deepen trade and investment relations. "Both sides agreed on important initiatives, geared toward improving overall levels of trade and investment between the two countries," Philippine Trade Secretary Ramon Lopez told a news conference. He met China's newly appointed Commerce Minister Zhong Shan in Manila during the 28th Philippine-Chinese Joint Commission on Economic and Trade Cooperation, the official bilateral mechanism for discussion of trade, investment and economic cooperation.

Companies & markets

Yuan weakens against the US dollar

The central parity rate of the Chinese currency renminbi, or the yuan, weakened 75 basis points to 6.9032 against the US dollar on Wednesday, according to the China Foreign Exchange Trade System. In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day. The central parity rate of the yuan against the US dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

CDB Aviation orders Boeing MAX 8 jets

China's CDB Aviation Lease Finance will soon announce an order for 30 Boeing 737 MAX 8 passenger jets and is looking at more aircraft orders as it pursues international growth, industry sources said on Tuesday. The deal is worth $3.3 billion at list prices, but manufacturers typically charge about half price for actual market transactions, the sources added. Dublin-based CDB Aviation, an arm of China Development Bank Corp, and Boeing Co both declined to comment on the order. The CDB deal would be the first business announcement since the company appointed leasing veteran Peter Chang as its chief executive in December, with a remit to expand the bank's leasing arm into a global platform with an international presence.

Russia's Tatneft signs Iran oilfield deal

Russian oil and gas company Tatneft signed a memorandum of understanding with National Iranian South Oilfields Co to carry out oilfield development studies in southwestern Iran, the Teheran Times reported on Tuesday. The agreement is for preliminary studies on the Shadegan oilfield in Khuzestan province and Tatneft will hand over the results and its proposal to Iran in six months, the report said. Hamid Deris, the Iranian company's director for technical affairs, said he hoped two other similar agreements would be signed in coming weeks. Deris did not say which companies were the two candidates.

France's PSA buys Opel-Vauxhall

France's leading auto manufacturer PSA Group announced the purchase of the Opel and Vauxhall brands from General Motors for 1.3 billion euros ($1.38 billion) "to support its worldwide profitable growth". Following the transaction, PSA said it wanted to become the second biggest automotive company in Europe after VW with 17 percent market share. The PSA Group, which owns Peugeot, Citroen and DS brands, expects the purchase of Opel-Vauxhall to take its operating margin to 2 percent by 2020 and 6 percent by 2026, and to generate a positive operational free cash flow over the next three years.

Around the world

Imported car sales rise in South Korea

Imported car sales in South Korea rose for two straight months on robust demand for German luxury vehicles, industry data showed. Newly registered foreign vehicles reached 16,212 in February, up 3.5 percent from a year earlier, according to the Korea Automobile Importers and Distributors Association. It was the second consecutive month of growth, after jumping for the first time in 15 months in January. Sales of Mercedes-Benz cars led the continued increase. The German automaker sold 5,534 vehicles in February. Mercedes-Benz had the most market share among foreign automakers in February, at 34.1 percent.

Kazakh GDP seen growing up to 2.2%

Kazakhstan's gross domestic product in 2017 will grow by 2-2.2 percent, assuming oil costs $50 per barrel, according to the Kazakh National Bank. "According to the estimates of the bank, Kazakhstan's GDP growth in 2017 will be 1.5-2 percent with a world oil price of $40 per barrel and 2-2.2 percent with an oil price of $50 per barrel," the bank's research and statistics director, Vitaliy Tutushkin, said on Tuesday. He also said that a positive contribution to GDP growth would be made by an increase in real exports. Tutushkin said that oil production at the Kashagan oilfield contributed to the GDP growth as well.

Ukraine's agricultural exports to EU increase

Ukraine became the third-biggest exporter of agricultural goods to the European Union last year, Deputy Economic Development and Trade Minister Natalia Mykolska said on Tuesday. "The agricultural sector is currently a key driver of our trade with the EU. Ukraine has entered the top three countries that supply farm products to the EU," Mykolska was quoted as saying by the Economic Development and Trade Ministry's press service. Ukraine sold food and agricultural products worth $4.12 billion in 2016 to the EU, up 1.6 percent year-on-year. Ukraine's traditional export products such as grain, oils and oilseeds, led the supplies to the European market last year, the ministry said.

Brazil economy slows down again

Brazil's GDP fell by 3.6 percent in 2016, marking the second consecutive annual slump for Latin America's largest economy, the government said. According to data from the State-owned Brazilian Institute of Geography and Statistics, the result confirmed the worst recession in Brazil's history. In 2015, the country's GDP fell by 3.8 percent. In the fourth quarter of 2016, the economy shrank by 0.9 percent from the third quarter and 2.5 percent year-on-year. All of Brazil's economic sectors saw strong losses over the course of 2016. Agriculture was the worst-hit, with a contraction of 6.6 percent. The industrial sector shrank by 3.8 percent,while services fell by 2.7 percent.

Bulgarian data show 3.4% growth in 2016

Bulgaria's gross domestic product grew by 3.4 percent year-on-year in 2016 in real terms, according to preliminary data released by the country's National Statistical Institute on Tuesday. The nominal value of the GDP for 2016 was 92.64 billion levs ($52.39 billion), based on the average annual exchange rate of 1.77 Bulgarian levs to $1, the institute said. GDP per person was$7,333.

China Daily - Agencies