Money Briefs: Burberry's first-half profit drops

Burberry's first-half profit drops

LONDON • Burberry Group reported a drop in first-half profit that met analysts' estimates as the British luxury goods maker suffered from weakness in Asia.

Adjusted pre-tax profit fell 4 per cent to £146 million (S$252 million) in the six months to September, the company said in a statement yesterday.

Burberry said it is on track to meet its financial goals for the year. It is still grappling with ebbing demand in key luxury hubs like Hong Kong. The industry has been weighed down by years of weakening demand in China, while terrorist attacks in Europe have reduced tourism flows to the region.

Burberry also repeated that the weakness of the sterling will add about £125 million to full-year profit, based on recent exchange rates.

BLOOMBERG

Thai key rate held amid turmoil

BANGKOK • Thailand held its key interest rate for a 12th meeting, the longest streak on record, opting to preserve its firepower as growth risks mount, following the death of King Bhumibol Adulyadej and market turmoil heightened in the aftermath of the United States presidential elections.

The Bank of Thailand kept its one-day bond repurchase rate at 1.5 per cent, with monetary policy committee members voting unanimously in favour, it said yesterday.

Policymakers face rising market volatility following the death of the King. Foreign investors pulled out of Thailand stocks at the fastest pace this year last month, while a year-long mourning period threatens to curb growth on entertainment and other social spending.

The bank also stuck to its unchanged stance as markets were roiled by Mr Donald Trump's victory.

BLOOMBERG

Petronas to add Kimanis to crudes

KUALA LUMPUR • Malaysian state oil company Petronas will add the country's Kimanis crude into the basket of crudes it uses to set its official selling price (OSP), according to a document sent to customers.

Kimanis will be added to the basket starting from January next year. It is currently made up of its three flagship grades, Labuan, Kikeh and Miri Light.

The oil company will continue to price its crude against the dated Brent benchmark and will publish monthly OSPs by adding an alpha to the monthly average to the benchmark.

The alpha will continue to be set based on the average premium or discount of spot trades for Labuan, Miri Light, Kikeh and Kimanis.

A version of this article appeared in the print edition of The Straits Times on November 10, 2016, with the headline 'Money Briefs'. Print Edition | Subscribe