Good morning! Here are the major stories in markets today.
Saudi Arabia says its efforts to hurt US shale producers are working. According to the Financial Times, a Saudi official told the newspaper that the overproduction and fall in prices “has deterred investors away from expensive oil including US shale, deep offshore and heavy oils.“
Even after a massive merger with BG, Shell says it could look at more small deals. Royal Dutch Shell Plc will consider small additions to its North America oil and gas business, despite ruling out large acquisitions after its deal to buy BG Group, Marvin Odum, director of Shell’s Americas exploration and production business, said in an interview Wednesday.
Former Australian Prime Minister Kevin Rudd says “two Asias” are emerging. In the next decade or so, China’s economy is expected to surpass that of the US. (And, by some measures, it already has.) However, even though China’s increased defence spending will continue to close the gap, Rudd notes US is expected remain the dominant regional and global military power.
Brazil’s lower legislative house approved further austerity measures. The lower chamber of Brazil’s Congress passed a bill on Wednesday toughening access to social security pensions, the second measure approved in a week to cut benefits in a drive to reduce a growing fiscal deficit.
Chinese markets are pretty flat, and the Nikkei is down. Hong Kong’s Hang Seng is up 0.11%, while the Shanghai Composite Index is down 0.04%. Japan’s Nikkei has fallen 1.04% from Wednesday’s close.
Honda is following Toyota by recalling millions of cars. Honda said on Thursday it would recall another 4.8 million cars globally to replace potentially fatal air bag inflators made by Japan’s Takata, already at the centre of one of the biggest automotive recalls to date. The recall comes a day after Toyota Motor Corp and Nissan Motor Co said they were taking back some 6.5 million vehicles worldwide Read more:
Accounting embarrassment fas forced Toshiba into major profit restatements. Japan’s Toshiba Corp warned it was likely to mark down its reported operating profit for the three fiscal years through March 2014 by a total of at least 50 billion yen ($US419.43 million, £266.34 million) after an investigation into accounting irregularities.
Japan’s Sharp is about to show massive losses and job cuts. Japanese electronics giant Sharp will announce later on Thursday a $US1.68 billion (£1.07 billion) fiscal year loss and thousands of job cuts as it fights to stay afloat, reports from Japanese business daily Nikkei said.
Islamic finance may get a role in China’s Asian Infrastructure Investment Bank. The Islamic Development Bank (IDB) is in discussions with Chinese officials to study the use of Islamic financing in the planned Asian Infrastructure Investment Bank (AIIB), the head of the Jeddah-based multilateral lender told Reuters.
Amazon has launched a new advertising platform for mobile app developers. Amazon.com Inc launched a new advertising platform for mobile app developers to promote their apps on Android devices, Bloomberg reported. Developers can advertise their apps on Android smartphones and tablets by paying Amazon each time a user clicks an ad displayed through the system, Bloomberg said.