19/09/2024

BIZ & FINANCE THURSDAY | SEP 19, 2024

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UK inflation stable as BoE rate call looms LONDON: British inflation was unchanged at 2.2% in August, official data showed yesterday, fuelling expectations that the Bank of England (BoE) will not cut interest rates again at its meeting this week. The Consumer Prices Index was at the same level as in July, the Office for National Statistics (ONS) said. The steady annual inflation rate cemented analyst expectations that the central bank would likely avoid cutting rates again at the end of its regular two-day policy meeting today. The BoE trimmed borrowing costs in August for the first-time since the onset of the Covid pandemic in early 2020 and after UK inflation retreated from four-decade highs, briefly meeting its 2% target in May before edging back up. “Years of sky-high inflation have taken their toll; and prices are still much higher than four years ago,” Darren Jones, a senior official at the UK Treasury, said in response to yesterday’s data. The main inflationary movements in August came from large monthly rises to airfares, particularly for European destinations, noted ONS chief economist Grant Fitzner. “This was offset by lower prices at the pump as well as falling costs at restaurants and hotels.” – AFP Earlier this month, Carmat cut its full year sales guidance to between €8 million and €12 million, from €14 million previously, due to markets dynamics and seasonality. – Reuters Artificial heart maker Carmat’s shares slide PARIS: Artificial heart maker Carmat announced a capital increase of an initial €10.3 million (RM48.8 million) yesterday to cover “short-term working capital needs”, sending its shares down more than 13%. The French firm, which has launched a series of capital increases since September 2023, after flagging supply chain issues that threatened its survival, said the funding will support its activities until at least the end of 2024. “The capital increase with a priority period for shareholders that we are launching today is crucial to strengthen our short-term financial structure,” CEO Stéphane Piat said in a statement. Shares in Carmat were down 13.3% to €1.77 at 0708 GMT (3.08pm in Malaysia) after the announcement of the issue at €1.60 per share. Carmat said its financing needs to the end of September 2025 will be between €36 million and €38 million after the move. BNP Paribas analyst Mohamed Kaabouni said in a note that Carmat’s latest capital increase was to be expected as the first step of a larger global offering. “It will give the company the means to finance itself until the end of the year, and eventually to achieve operational catalysts such as the confirmation of the new sales guidance.”

Tupperware Brands files for bankruptcy A Tupperware Brands employee working at the group’s plant in Joue-les-Tours, France. – AFPPIC

resorting to “ever more subsidies”. “Only if we succeed in mobilising more private capital will we create additional growth.” Nearly 1,400 startups were founded in Germany in the first half of 2024, a 15% increase on the preceding six months, according to government figures. The German scheme is similar to the “Tibi” initiative launched in France in 2019 to boost financing for tech startups. – AFP In its filing with the US Bankruptcy Court for the District of Delaware, Tupperware listed assets of between US$500 million (RM2.1 billion) and US$1 billion and liabilities of between US$1 billion and US$10 billion. The filing also said it had between 50,000 and 100,000 creditors. Tupperware, whose name became synonymous with its airtight plastic containers, in recent years lost popularity with consumers and an initiative to gain distribution through big-box chain Target failed to reverse its fortunes. The company’s roots date to 1946, when chemist Earl Tupper “had a spark of inspiration while creating molds at a plastics factory shortly after the Great Depression”, according to Tupperware’s website. “If he could design an airtight seal for plastic storage containers, like those on a paint can, he could help war-weary families save money on costly food waste.” Over time, Tupper’s hermetically sealed plastic containers also became associated with “Tupperware Parties”, where friends would gather with food and drink as a company representative demonstrated the items. – AFP

said it would also seek approval to continue operating during the bankruptcy proceedings and would continue to pay its employees and suppliers. “We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process,” Goldman said. The firm’s shares were trading at US$0.5099 on Monday, well down from US$2.55 in December last year. Tupperware said it had implemented a strategic plan to modernise its operations and drive efficiencies to ignite growth following the appointment of a new management team last year. “The firm has made significant progress and intends to continue this important transformation work.”

o Food container company hit by dwindling sales in recent years

WASHINGTON: Tupperware Brands and some of its subsidiaries filed for Chapter 11 bankruptcy protection on Tuesday, the food container firm said in a statement. The company, known for its trademark food storage containers, has been hit by dwindling sales in recent years. Last year, the New York-listed firm warned of “substantial doubt” about its ability to keep operating in light of its poor financial position. “Over the last several years, the company’s financial position has been severely impacted by the

challenging macroeconomic environment,” president and CEO Laurie Ann Goldman said in a statement announcing the bankruptcy filing. “As a result, we explored numerous strategic options and determined this is the best path forward.” The company said it would seek court approval for a sale process for the business to protect its brand and “further advance Tupperware’s transformation into a digital-first, technology-led company”. The Orlando, Florida-based firm

Germany pledges billions to boost startups BERLIN: The German government and private investors pledged on Tuesday to work together to pour billions of euros into funding for startups over the coming years, in a bid to keep young companies from moving abroad. The declaration – signed by the government, public lender KfW, business groups and companies such as Allianz, Commerzbank and Deutsche Bank – pledges to make it easier for startups to get the funding injections they need to grow their business. The German initiative will “mobilise private investment in venture capital, startups and innovation technologies”, he said. “Strengthening our competitive

ness and technological sovereignty is of central importance” at a time of shifting geopolitical relationships, he added. Finance Minister Christian Lindner said the government had to create the right conditions for companies to thrive, without

Under a new programme dubbed the “WIN” initiative, Berlin secured financing pledges of up to €12 billion (RM55 billion) by 2030 from investors to support start-ups in Europe’s largest economy.

Startups need “better financing options” so they can scale up in Germany and Europe instead of having to relocate to places like the US to raise capital, Chancellor Olaf Scholz said.