IN BRIEF (Page 16)

Soaring sales

Australian retail sales surged 0.9 percent in February, blowing past market forecasts and heightening the risk of another rise in interest rates, perhaps as early as this week.

Other government data yesterday showed approvals to build new homes in Australia jumped 10.6 percent in February as the volatile apartment sector boasted a huge 31.5 percent increase.

Troubling Tankan

Japan's major manufacturers have become more cautious for the first time in one year, reflecting fears that slower US economic growth will hit their exports, a central bank survey showed yesterday.

Confidence among Japan's largest manufacturers dropped to a reading of 23 in March from a two-year high of 25 in December, the central bank's quarterly Tankan survey showed, missing market expectations for a figure of 24.

On target

Hynix Semiconductor Inc's new CEO said yesterday first-quarter market conditions had been more difficult than expected, but added the memory chip maker had not modified its annual targets.

"Several chip manufacturing companies are experiencing difficulties in their revenue and their profits," said Kim Jong-kap (above).

Price pledge

The European Central Bank will do what is necessary to ensure stable prices in the eurozone, President Jean-Claude Trichet said in newspaper interviews published yesterday.

In a joint interview with four European newspapers, Trichet repeated that ECB rates of 3.75 percent were moderate and monetary policy remained on the accommodative side.

Under pressure

A number of big institutional investors are turning up the pressure on German-US auto giant DaimlerChrysler to sell its troubled US unit Chrysler, the business daily Handelsblatt reported yesterday.

Among the investors, the powerful Union Investment fund and SEB, are to demand from DaimlerChrysler chief Dieter Zetsche at the carmaker's annual general meeting this week a clear commitment to sell the loss-making unit.

Growth slows

British manufacturing activity slowed in March from a two-and-a-half year high but overall growth in output and new orders remained robust, according to a survey published yesterday.

The Chartered Institute of Purchasing and Supply/Royal Bank of Scotland Purchasing Managers' Index fell to 54.4 last month from 55.4 in February. Analysts had predicted a less steep drop to 55.1.

Offer planned

Kohlberg Kravis Roberts & Co plans to offer $25.6 billion for payment processor First Data Corp, a source familiar with the matter said, in what could become the second-largest private equity buyout.

KKR is in late stage discussions with the company about the proposal, which at $34 per share in cash represents a 26 percent premium to Friday's closing price of $26.9 per share.

Italian talks

Top US phone company AT&T said it and Mexican cell phone operator America Movil are in talks to buy stakes in a company that controls Telecom Italia for about 4.8 billion euros.

A potential deal will allow AT&T to expand its international business to offset a decline in its traditional phone subscriptions.

Agencies

(China Daily 04/03/2007 page16)