Higher growth tipped for Indonesia
JAKARTA • Indonesia, South-east Asia's biggest economy, is expected to grow by between 5.2 per cent and 5.6 per cent next year, its central bank governor said yesterday.
Mr Agus Martowardojo told a parliamentary hearing that government spending on infrastructure was expected to drive higher growth. He added that inflation next year was tipped to be 4 per cent in anticipation of rising food commodity prices.
The rupiah was expected to trade in the range of 13,600 to 13,900 against the US dollar next year, he said.
Meanwhile, investors have kept faith in the nation's sovereign bond market, Asia's best- performing, after S&P Global Ratings left Indonesia at junk status. S&P stands alone among the three major debt assessors to keep the nation below investment grade.
HSBC to restructure global banking unit
LONDON • HSBC has announced a major reshuffle of managerial responsibilities and organisational structure within its global banking division, according to an internal memo obtained by Reuters yesterday.
The new structure will make the division more cost-efficient, co-heads Robin Phillips and Matthew Westerman said in the memo. It does not mention how many jobs will be cut in the cost-saving drive.
An HSBC spokesman confirmed the contents of the memo.
Burberry chief takes 75% pay cut
LONDON • Burberry Group's embattled chief Christopher Bailey took a 75 per cent pay cut last year as Britain's largest luxury goods maker struggled for growth.
Mr Bailey's remuneration fell to £1.9 million (S$3.7 million) in the year to March 31 from £7.5 million a year earlier, according to Burberry's annual report published yesterday.
He did not receive a bonus or other incentive payment as earnings missed the company's target.
Pressure has been mounting on Mr Bailey amid concern that his leadership has been compromised by his dual role as chief creative officer.
The share price has slumped 35 per cent in the past year.