Brief

SBP’s coupon rate of 3-year sukuk

By our correspondent

KARACHI: The State Bank of Pakistan (SBP) on Friday declared 4th rental coupon rate of three-year government of Pakistan Ijara Sukuk (GIS-16), a statement said. The rate is 5.5109 percent per annum; with December 18, 2017 as the date of payment. The Ijara Sukuk (GIS-16) was auctioned on December 15, 2015, the central bank added.

SBP injects Rs1,325bln in market

By our correspondent

KARACHI: The State Bank of Pakistan on Friday injected Rs1,325 billion in the money market for seven days through its open market operation. The rate of return accepted is 5.76 percent, a statement issued by the central bank said.

SAI welcomes fifth Airbus A319

By our correspondent

KARACHI: Shaheen Air International (SAI) has welcomed a fifth Airbus A319 to its fleet, a statement said on Friday. The new airbus enables Shaheen to expand its local and international routes, while maintaining their utmost standard of aviation hospitality for passengers, it added. It also commends the carrier’s dream to spread its wings and be a force for good through value creation that continuously unites and enriches the world. The Airbus A319 has been custom-fitted with thin and linear seats to provide added comfort to passengers, the statement said.

Rolls-Royce units performing in line

LONDON: British aero-engineer Rolls-Royce said on Friday that 2017 had started well, with all businesses performing in line and expectations for the first half of the year unchanged. Chief Executive Warren East said he was pleased with the start of the year, although there was still a great deal more to do to deliver the full year. "As expected, near term cash flow performance remains challenging as we continue to invest in transforming and growing the business to benefit future years," he said in an update ahead of the Paris Air Show.

BHP names MacKenzie as new chief

SYDNEY/MELBOURNE: Mining giant BHP on Friday named successful packaging executive Ken MacKenzie as its next chairman, handing him the job of tackling calls to dump its oil business and overhaul the board.

MacKenzie, 53, succeeds Jac Nasser as of Sept. 1 at a time when the world´s biggest miner is being challenged by activist shareholders to revamp its structure and improve returns. Investors welcomed the appointment of MacKenzie, who said he plans to meet shareholders in coming weeks to listen to their views.

He was seen as one of Australia´s most successful chief executives in his 10 years running Amcor Ltd. "It´s an important first step in the right direction. Hopefully it creates a platform to be able to review what´s amiss with the company in the eyes of some and address the concerns," said Brenton Saunders, an analyst at BT Investment Management, which owns shares in BHP.

Canadian-born MacKenzie presided over a long stretch of prosperity at Amcor, which makes packaging for food producers, industrial companies and pharmaceutical firms, that coincided with the end of a boom period for mining companies.

Hedge fund Elliott Management has fired a barrage of criticism at Nasser and BHP Chief Executive Andrew Mackenzie since publicly releasing a roadmap of changes it wants at the company, most notably an exit from U.S. oil and shale businesses.

Elliott also wants BHP to collapse its dual listing, and earlier this week called for a board shake-up, blaming long-tenured directors for bad investments and ill-timed share buybacks. That could place MacKenzie, who joined BHP´s board just last year, in good

Tesco lifts food sales

London: Britain´s largest retailer, supermarket group Tesco, reported Friday rising sales during its first quarter as it looks to turn a corner after an accounting scandal.

Sales in Britain and abroad grew by a combined 3.6 percent during three months to late May, Tesco said in a trading update.

The corresponding performance for the UK alone advanced by 1.6 percent. "In tough market conditions, we have stayed true to our commitment to helping customers -- working closely with our supplier partners to keep prices low," Tesco chief executive Dave Lewis said in the statement.

"Customers have responded by doing more of their shopping with us and as a result we continue to grow volumes, particularly in fresh food," he added.

British inflation soared close to a four-year high in May, official data showed this week, as a Brexit-fuelled slump in the pound pushed up import costs.

The Consumer Price Index inflation rate leapt last month to 2.9 percent, boosted by the rising cost of energy, food and recreational goods.

Inflation had held close to zero throughout 2015 -- but has surged since then on the back of the weak pound following the shock EU exit vote in June 2016.

In early trading, shares in Tesco jumped 2.0 percent to 183 pence on London´s rising FTSE 100 index, buoyed also by an underlying UK sales growth of 2.3 percent according to traders.

The latest data from Tesco meanwhile comes after it announced in April an annual net loss totalling £40 million on an accounting scandal.  Tesco recently agreed to a fine and compensation costs over the incident in a deal with Britain´s Serious Fraud Office deal, under which the supermarket group will not face prosecution.  However, charges have previously been brought against three former Tesco executives, who will face trial over alleged fraud and false accounting.