Business

WASHINGTON — The skyrocketing US trade deficit last year hit the highest level in a decade, despite President Donald Trump’s global trade offensive, according to a government report on Wednesday.

America’s trade deficit with the world jumped 12.5 per cent to $621 billion, the Commerce Department reported, as both imports and exports rose to the highest levels ever. The deficit in 2017 was $552.3 billion.

The trade gaps with China, Mexico and the European Union all jumped to all-time highs even after Washington slapped tariffs on hundreds of billions in imports from its largest trading partners.

In December, the overall US trade deficit also vaulted past expectations, surging 18.8 per cent and likely weighing on an economy which already was slowing at the close of the year.

For a president who describes imbalanced trade as a defeat for the world’s largest economy, the new records marked a stunning but foreseeable reversal for Trump’s signature policy.

Solid growth, low unemployment and consumers’ thirst for foreign products drove imports of goods and services up 7.5 per cent to a record $3.1 trillion in 2018.

American exports of goods and services also rose, but not enough to chip away at the imbalance. Exports increased 6.3 per cent to $2.5 trillion last year, also their highest levels ever. 

As the country becomes a net oil exporter, crude oil sales abroad more than doubled to $47 billion.

But soybean exports, a crucial crop across vast expanses of the country, fell 18 per cent for the year to $18.2 billion, amid a Chinese boycott sparked by Trump’s trade war.

Record imports 

American purchases of foreign autos, computers and machinery, and consumer goods as well as foods and animal feeds were the highest ever.

Imports of goods ($2.6 trillion) and services ($557.9 billion) reached new all-time highs, the report showed.

While Washington and Beijing have exchanged punitive tariffs on more than $360 billion in two-way trade, the US deficit with China expanded to an even larger $419.2 billion, a new record.

Trump in recent weeks has signalled the US is closing in on a resolution to his year-long trade battle with Beijing but details remain scarce.

The deficit with the European Union also rose to a record $169.3 billion, while the gap with Mexico hit a high of $81.5 billion.

The United States recorded surpluses with the United Kingdom and the regions of South and Central America.

The Organisation for Economic Cooperation and Development on Wednesday cut its global growth forecast for 2019 by two tenths to 3.3 per cent, citing trade tensions and political uncertainty.

HONG KONG — Cathay Pacific confirmed on Tuesday it is in talks to buy a stake in Hong Kong's sole low-cost airline, as it competes to counter the growth of budget carriers in the region.

Asia largest airline said it was "in active discussions about an acquisition involving HKE [Hong Kong Express]".

"No agreement for the acquisition has been entered into and there can be no certainty that any agreement will be entered into," it added in a statement to Hong Kong's stock exchange.

Hong Kong Express is owned by HNA Group, a struggling Chinese conglomerate that has been looking to lower its debt pile. The group also owns Hong Kong Airlines, another Cathay competitor that has found itself in financial difficulties in recent months.

Local and international media previously reported Cathay had held preliminary talks to buy stakes in both Hong Kong Express and Hong Kong Airlines. 

But Tuesday's statement only confirmed talks to acquire a stake in Hong Kong Express.

Cathay shares were up 2.3 per cent at HK$13.32 in morning trading after the announcement.

Hong Kong Express is the city's sole budget carrier — a sector of the industry that a marquee brand like Cathay has struggled to compete against.

Cathay embarked on a three-year plan to overhaul its operations after posting its first losses in eight years in 2016 as it faced stiff competition from budget rivals on the mainland. 

It fired more than 600 workers, cut back overseas offices and crew stations, and added international routes and better on board services in a bid to compete with well-heeled Middle Eastern carriers.

The overhaul appears to be paying dividends. Last month Cathay said it expects to have swung back to black in 2018, recording a consolidated profit of around $293 million.

But 2018 also saw a massive breach with hackers making off with the data of 9.4 million customers, including some passport numbers and credit card details.

The airline faces potentially steep payouts in Europe, which boasts strong protection laws and financial penalties for companies that do not swiftly own up to data breaches.

LONDON- Britain’s economy came close to stagnating again in February as services companies, preparing for Brexit, cut staff at the fastest rate in more than seven years and consumers reined in their spending, surveys showed on Tuesday.

The figures suggested growth in the world’s fifth-biggest economy was near a standstill as Prime Minister Theresa May tried to win last-minute Brexit concessions from Brussels.

IHS Markit, a data firm, said its UK Services Purchasing Managers’ Index showed Britain’s economy was set to grow by just 0.1 percent in the first three months of 2019 compared with the last three of 2018.

After touching its lowest level in January since immediately after the Brexit referendum in 2016, the services PMI edged up to 51.3 from 50.1. That was better than the median forecast of 49.9 in a Reuters poll of economists.

But Howard Archer, an economist with EY Item Club, a forecasting firm, said the risk was very real that economic growth in the first quarter of 2019 would be weaker than his existing forecast of 0.2 percent.

“There is a genuine chance now that the Bank of England will sit tight on interest rates through 2019 – especially if Brexit is delayed and extends the uncertainty,” he said.

Separate data on Tuesday showed consumers slowed the increase in their spending in February and focused on buying food, including for stockpiling, rather than non-essential items.

Sterling rose initially on the higher-than-expected PMI reading but soon gave up its gains and was down 0.2 percent against the U.S. dollar at $1.3158 at 1125 GMT.

BREXIT NEARS, BUT DELAY POSSIBLE

Britain’s economy defied forecasts of a recession after the 2016 referendum vote to leave the European Union. But growth slowed sharply in late 2018 as worries mounted about the possibility of an abrupt, no-deal Brexit on March 29, and the global economy also weakened.

Carmakers based in Britain fear that their complex supply chains could be damaged by Brexit, and the Bank of England said on Tuesday other European Union countries were not ready for possible financial disruption.

Under pressure from within her Conservative Party, May is still seeking to rework the Brexit deal she agreed with other EU leaders. She has also raised the possibility of a delay of the departure date until June.

IHS Markit said optimism about the year ahead among services — ranging from giant banks to high-street hairdressers — had been lower only at the height of the global financial crisis and immediately after the Brexit referendum.

Many investment decisions were on hold and some companies said European clients were delaying committing to new projects in Britain. New export orders among services contracted for the sixth month in a row.

World shares tick higher on U.S.-China trade deal optimism

Companies cut jobs at the fastest pace since November 2011, with many opting not to replace people who left voluntarily.

Some companies said Britain’s low unemployment rate was making it hard to find skilled staff.

IHS Markit said the main positive in February was the weakest increase in costs for services firms since May last year, opening up scope for offering discounts to clients.

AMMAN — Jordanian manufacturer Petra Engineering Industries Company on Monday signed the first ever deal in Jordan with international company Siemens to supply smart heating, ventilation and air conditioning (HVAC) systems and equipments.

During the signing ceremony at Petra’s industrial facilities, 30km southeast of Amman, the company uncovered that this deal is Siemens’ first ever in the Middle East region.

Petra Vice Chairman and President of the Jordanian Exporters Association Omar Abu Wishah told The Jordan Times that the German giant, Siemens, has signed only one other similar deal with a Chinese company.

This is the second ever for Siemens worldwide, he noted.

Under the contract, Siemens will supply Petra with the building technology and software to develop a line of smart HVAC and building management systems.

These systems are based on the Siemens Controllers platforms, and are to be marketed by Petra in over 40 markets worldwide, a statement by the company said.

In more details, Abu Wishah explained that the Siemens technology will also complement Petra’s systems to “revolutionise the competitiveness and quality of its product lines”.

According to Petra’s Electrical Design Manager Mohammad Lahham, the German manufacturer’s technology will be customised to meet Petra’s specifications, supplied at preferential costs.

Petra will then develop Siemens’s technologies and their own systems, as well as the necessary circuitry, to integrate these parts into smart, digital HVAC systems, Lahham continued.

“This is a landmark partnership for Jordan’s manufacturing sector, strengthening the portfolio of a world-class Original Equipment Manufacturer (OEM) with smart building technology from Siemens,” noted Markus Strohmeier, senior executive vice president for Siemens Middle East’s Building Technologies Division in his remarks at the ceremony

“Together we can drive the adoption of intelligent, digitalised infrastructure around the world in pursuit of more efficient, liveable cities,” Strohmeier said.

According to Firas Abu Wishah, a member of Petra’s board of directors, this deal constitutes a milestone in the development of the HVAC industry, as well as Jordan’s industrial sector.

“Being one of the world leaders in the field of high-end engineered HVAC products, believes in this initiative. It is of paramount importance for the sake of our future to continue building smart, energy efficient and sustainable equipment,” he said.

“The world is changing,” the board member exclaimed, hence, the need to develop more economical, greener technologies.

“We need to be at the forefront of engineering development with all of our partners to deliver on our promise of creating a greener future. This partnership will ensure that we are able to meet that goal and develop state of the art solutions for our clients globally,” the board member said.

Notably, the Siemens software is the first integrated building management platform to cover the complete scope from small to large buildings, the statement said.

German Ambassador Birgitta Siefker-Eberle and Omar Abu Eid from the EU delegation also attended the ceremony.

Speaking at the event, Siefker-Eberle expressed pride in Germany’s partnership with Jordan, underlining achievements made at The London Initiative Conference, last Thursday.

“The conference highlighted Jordan's attractiveness for investment in terms of its central geo-strategic position, its high amount of talented, well-qualified and aspiring young people as well as in terms of security and infrastructure.”

It also showcased economic success stories in Jordan, “which do exist”, she noted, adding that “Petra Engineering Industries is a perfect example of what Jordanians can achieve when they make efficient use of the human resource present in this country, and rely on their own capacities and achievements and not on the state to give them a job”, she said.

According to Siefker-Eberle, the region is highly attractive for investment, Jordan in particular, with more than 60 per cent of its youth population under 30 years of age.

OXON HILL, Maryland — President Donald Trump on Saturday renewed criticism of the Federal Reserve and said the US central  (Fed) bank’s tight monetary policy was contributing to a strong dollar and hurting the United States’ competitiveness.

“We have a gentleman that likes a very strong dollar at the Fed,” Trump said at the annual Conservative Political Action Conference in Oxon Hill, Maryland. “I want a strong dollar, but I want a dollar that’s great for our country not a dollar that is so strong that it is prohibitive for us to be dealing with other nations.”

Trump, who has made the economy a key part of his political platform, has repeatedly criticised the Fed and its chairman, Jerome Powell, whom he appointed to head up the Fed, for raising interest rates.

The US central bank, after raising interest rates four times last year, has signalled recently that it will be “patient” before tightening monetary policy further, in a nod to rising concerns about the economic outlook amid financial markets volatility, slowing global growth and a trade war between the United States and China.

“We have a gentleman in the Fed that loves quantitative tightening. We want a strong dollar, but let’s be reasonable,” Trump said. “Can you imagine if we left interest rates where they were... if we didn’t do quantitative tightening, this would lead to a little bit lower dollar.”

A weaker currency generally makes a country’s exports more competitive. 

Powell has said he will not be swayed by political pressure and gave a clear assertion of the Fed’s independence in early January when he said that he would not resign even if Trump asked him to do so. That followed reports in mid-December that Trump had discussed with his advisers the feasibility of firing Powell after the Fed raised rates again.

Quantitative easing was the term applied to the Fed’s extraordinary measure of buying massive quantities of US government bonds to help stimulate economic growth during the financial crisis. The measure was undertaken to lower long-term lending rates after the Fed had dropped its benchmark overnight lending rate to zero. 

The Fed has been trimming its $4 trillion balance sheet by as much as $50 billion a month, which investors say has been tightening financial conditions.

The Fed’s benchmark overnight lending rate currently is within a range of 2.25 per cent to 2.50 per cent. 

DETROIT — Tesla Inc.'s move to dismantle its network of high-end showrooms as part of a plan to launch the long-awaited cheaper version of its Model 3 sedan has pushed the electric carmaker into uncharted territory for an industry that has long relied on physical stores to move the metal.

Retailers from Amazon to Apple to traditional automakers have trumpeted the benefits of physical stores, and Apple and automakers also rely heavily on advertising, which Tesla has eschewed, making the electric carmaker an outlier in its dependence on the web.

As Tesla pushes to broaden its appeal and drive up sales with the arrival of the $35,000 Model 3, the impact of the store closings announced on Thursday will play out over time, answering questions about whether a national physical footprint is necessary in an increasingly digital world, analysts and investors said on Friday.

"Customers are becoming increasingly comfortable making purchases online, and that is especially true for Tesla," Chief Executive Elon Musk said in an e-mail to employees, which CNBC posted online. 

However, some analysts and investors question whether Tesla closing most of its 250 stores was the panicked decision of a company seeking to build the lower-cost model profitably. Shares in Tesla closed 7.8 per cent lower to $294.79 on Friday. 

It was only last month that Musk said a $35,000 version that could be sold profitably was perhaps six months away. And in the company's annual report released last month, Tesla talked about growing its network of stores.

"There's a bit of a leap of faith that's required to have confidence that the moving from a physical distribution model to an online distribution model will succeed," Tom Vandeventer, portfolio manager with Tocqueville Opportunity Fund, said in a telephone interview. He has owned Tesla stock in the past and still follows the company closely.

"People like to go to car showrooms and kick the wheels and sit in the car," he added. 

However, Musk pointed out in the e-mail that 78 per cent of all Model 3 orders were placed online and 82 per cent of customers bought such models without ever taking a test drive. He said shifting to an online sales model, cutting jobs and reducing spending on marketing will allow Tesla to offer the lower vehicle price. Tesla also said on Thursday it now expects to record a loss in the first quarter. 

To overcome any remaining hesitation, Musk said Tesla would make it easier for customers to return a car within seven days or 1,609 kilometres for a full refund. 

"Given its seeming abruptness, it does not appear that yesterday's announcement was made from a position of strength," Bernstein analyst Toni Sacconaghi Jr. said in a research note titled, "The $35k Model 3 — Genius or Desperation?" 

Vandeventer still likes Tesla's innovative, forward-thinking nature, but worries about the short term.

"Cutting prices is more often a sign of weakness unless you are Amazon," he said. "And only Amazon is Amazon." 

Adding to the pressure Tesla faces is the growing level of competition from Chinese electric carmakers as well as established players like Volkswagen's Audi and Porsche brands, and Jaguar Land Rover.

Meanwhile, US dealers remain sanguine about their position in the sales chain.

"We still believe that the franchised dealer model is by far the best way to sell, distribute and service new vehicles," National Automotive Dealers Association spokesman Jared Allen said. "The vast majority of consumers want to do some combination of both online and traditional shopping for new vehicles."

Since unveiling the Model 3 in 2016, Musk has been promising a $35,000 version. A lower-priced Model 3 is seen as critical to Tesla's long-term viability as it needs to reach more customers who can afford the vehicles to offset slowing sales of costlier sedans.

The lower price could expand the Model 3 market by about 600,000 cars in the United States alone, based on historical sales figures for similarly priced sedans, Baird analyst Ben Kalo said in a research note. However, the lower-cost model also could squeeze profit margins at a time when Tesla has said it is targeting 25 per cent margins for the vehicle sometime this year.

BARCELONA — Chinese telecoms giant Huawei racked up a slew of deals to sell 5G equipment at the world’s top mobile fair in Spain, despite Washington’s campaign to convince its allies to bar the firm from their next-generation wireless networks.

The famously secretive company launched a media offensive at the Mobile World Congress which wraps up in Barcelona on Thursday against US accusations that its cheap equipment used in telecommunications infrastructure across the globe is a Trojan horse for potential Chinese state spying and sabotage.

The United States considers the matter urgent as countries around the world prepare to roll out fifth-generation, or 5G, networks that will bring near-instantaneous connectivity that can enable futuristic technologies such as self-driving cars.

On Sunday on the eve of the start of the fair, which companies usually reserve to unveil their new devices, top Huawei officials held several press conferences and meetings with reporters where they strenuously rejected Washington’s claims.

“We need to be more transparent, and that means speaking out more often,” Huawei’s president for western Europe, Vincent Ping, told reporters on Monday.

‘No backdoors’ 

The highlight of the media offensive came on Tuesday when one of Huawei’s rotating chairmen, Guo Ping, delivered a keynote speech where reiterated the company’s position that there are no “backdoors” in its 5G tech that could allow Beijing to spy on countries.

“The US security accusation against our 5G has no evidence. Nothing. The irony is that the US cloud act allow their entities to access data across borders,” he told a packed auditorium, speaking in English.

This argument was echoed by several telecoms operators and government delegations at the trade fair.

“Security is a matter of concern if it has been proven. But for now, we just hear speculations from the US about Huawei over questions of security,” Malawi’s minister for communications technology told AFP.

“Huawei is quite aggressive in this industry and they are a step ahead of the other players. We just want to appreciate all the questions of security as a matter of concern but we need that countries as US show us the problems in order to help us.”

Nick Read, the head of Vodafone, the world’s second largest mobile operator, said Washington “clearly needed” to share the evidence it has against Huawei with European authorities so they can decide whether or not to use the Chinese firm’s tech.

Washington sent a large delegation of its own to the trade fair, which draws some 100,000 people from across the telecoms industry, to press its case with industry executives and its foreign counterparts.

‘Insult to our industry’ 

But it appears to have failed to dissuade other countries. 

Huawei announced it had signed 10 commercial contracts or partnership agreements for 5G with 10 telecoms operators, including Switzerland’s Sunrise, Iceland’s Nova, Saudi Arabia’s STC and Turkey’s Turkcell.

“This is an insult to our industry. We do know how to run tests and protect our networks, we always have,” Turkcell Chief Executive Officer Kaan Terzioglu told AFP when asked about Washington’s campaign against Huawei.

“I am very happy with what Huawei is providing us and I don’t differentiate where tech is coming from. We never work with a single provider, we use mainly Ericsson and Huawei and we are very happy with those vendors.”

Huawei’s 5G equipment is seen as being considerably more advanced than that of its rivals such as Sweden’s Ericsson or Finland’s Nokia.

The company won eight awards at the fair from industry association GSMA for its contributions to the mobile industry.

Huawei, however, has not managed to convince US operators to use its equipment.

Three of the biggest US telecoms operators are involved in major deals that require regulatory approval, which will make it hard for them to defy Washington’s opposition to the use of Huawei equipment, a telecoms specialist who asked not to be named said.

Sprint has launched a bid to buy Time Warner, while Sprint and T-Mobile are trying to merge and do not want to anger the US administration, the source added.

HANOI — Vietnamese carriers signed $21 billion in aviation deals with US firms on Wednesday as US President Donald Trump met with top leaders in Hanoi ahead of his summit with North Korea’s Kim Jong-un.

Trump has urged Hanoi to narrow its gaping trade gap with Washington as part of his “America First” clarion call, urging Vietnam to buy more made-in-USA goods.

The communist country’s aviation sector has boomed in recent years, thanks to a rapidly expanding middle class with growing appetites — and budgets — for air travel.

Three of Vietnam’s top airlines signed several deals for planes, engines and maintenance contracts on Wednesday as Trump met with the country’s top leaders in Hanoi ahead of his much-anticipated second summit with Kim later on Wednesday.

Budget carrier Vietjet — famed for its bikini-clad air hostesses — signed an agreement for 100 Boeing 737 jets worth $12.7 billion, along with training and support contracts, the airline said. 

“We are pleased to expand our partnership with Vietjet and to support their impressive growth with new, advanced airplanes,” Boeing CEO Kevin McAllister said in a statement from the airline.

A senior White House official said the budget carrier will also buy 215 engines made by CFM, a joint venture between America’s GE Aviation and France’s Safran Aircraft Engines.

Startup Vietnamese carrier Bamboo Airways, which made its inaugural flight only last month, will buy 10 787 Dreamliners from Boeing as it looks to grow its nascent fleet and expand its routes to international destinations.

“Vietnam and the US economic and trade relations have seen rapid expansion. Non-stop air routes between the two countries are of essence accordingly,” said Trinh Van Quyet, the chairman of FLC Group, the airline’s parent company.

Bamboo said on Wednesday it wants to start flying to the US later this year or early in 2020.

Direct US routes 

There are currently no direct flights between Vietnam and the US, though the US Federal Aviation Administration has granted Vietnam a “category 1” ranking, paving the way for nonstop travel between the two countries. 

Meanwhile, state carrier Vietnam Airlines signed a $100 million maintenance contract with Sabre Corporation. 

The bundle of deals was praised by the White House, which under Trump’s direction has also been urging its former wartime foe to buy more military equipment.

“These deals will support more than 83,000 American jobs and provide increased safety and reliability for Vietnamese international travellers,” a senior White House official said after the deals were signed.

Vietnam’s aviation sector has soared in recent years, with passenger numbers jumping from 25 million in 2012 to 62 million last year.

But growth is expected to start tailing off, analysts say, in the face of increasingly squeezed airport capacity and tough competition across the region, in particular from budget airlines such as AirAsia and TigerAir. 

Wednesday’s aviation deals came ahead of Trump’s summit with Kim, with the leaders set to meet at the historical Metropole hotel.

LONDON — The Bank of England (BoE) on Tuesday said it was preparing to give lenders greater access to cash borrowing in its latest move to help bring financial stability ahead of Brexit.

"The Bank will increase the frequency of existing market-wide sterling [cash loans]... from monthly to weekly over the weeks surrounding the planned EU withdrawal date," the BoE said in a statement.

"This change will apply from March and will run until end April."

The BoE added: "This is a prudent and precautionary step, consistent with the bank's financial stability objective, to provide additional flexibility in the bank's provision of liquidity insurance in the coming months."

Updating a panel of cross-party British MPs on Tuesday on BoE forecasts and policy, BoE Governor Mark Carney insisted that the liquidity announcement was "part of normal contingency planning" and that commercial banks were functioning well.

"We are not seeing any liquidity stresses in the market," Carney said.

The central bank carried out the same measure ahead of and following Britain's referendum on leaving the EU in June 2016.

Britain is on course to leave the European Union on March 29, although there has been increasing talk of a possible delay.

"The Bank of England is today announcing a temporary amendment to its liquidity insurance facilities," the BoE said on Tuesday. 

"The Bank will increase the frequency of existing market-wide sterling operations, Indexed Long-Term Repos [ILTRs]."

In ILTR operations, financial institutions can offer assets to the BoE in return for six-month cash loans. 

This helps banks and the wider financial industry keep ticking over during periods of market turbulence. 

Similar lending was also carried out in 2008 during the global financial crisis.

Tuesday's announcement comes a day after the BoE said that authorities in Britain and the United States had agreed to maintain how multi-trillion dollar financial transactions are carried out between the two countries after Brexit.

The agreement concerns trades of derivatives — securities whose value is based on an asset such as currencies, stocks and commodities.

Meanwhile also on Tuesday, Britain's Prime Minister Theresa May faced mounting pressure from her own government to delay Brexit after the main opposition Labour Party raised the prospect of a second referendum.

May has steadfastly argued that she must keep the prospect of Britain crashing out the bloc without an agreement on March 29 on the table in order to wrest essential concessions from Brussels.

But her talks with European leaders on Sunday and Monday in Egypt achieved no breakthrough and the 46-year relationship is approaching a messy breakup that could wreak havoc on global markets and create border chaos.

NEW YORK — General Electric (GE) announced on Monday it will sell its Biopharma unit to Danaher for $21.4 billion in cash as it reduces debt amid an ongoing corporate turnaround effort.

The transaction allows the company to slim down further, and covers instruments and software that support research and development of biopharmaceutical drugs, a business that comprises about 15 per cent of the revenues of GE’s health sector.

Shares of GE rocketed higher after the announcement. The industrial giant was thrown out of the benchmark Dow Jones stock index in 2018 amid a prolonged slump in its power business that badly hit share price.

“Today’s transaction is a pivotal milestone,” said GE Chief Executive Lawrence Culp. “It demonstrates that we are executing on our strategy by taking thoughtful and deliberate action to reduce leverage and strengthen our balance sheet.”

“A more focused portfolio is the right structure for GE, and we have many options for maximising shareholder value along the way,” Culp said.

Culp, who served as chief executive of Danaher from 2001 to 2014, was tapped to lead GE in September.

GE’s Biopharma business — under GE Life Sciences — garnered revenues of about $3 billion in 2018, compared with about $17 billion for GE health assets not included in the deal, which includes radiology and other diagnostic imaging systems.

GE had previously planned to monetise about half its healthcare business, perhaps through a publicly-floated spin-off. Some analysts expressed concerns that divesting healthcare could harm the company’s cash position.

Culp told Bloomberg the company was shelving a plan for a public offering, at least for now with the Danaher deal.

Washington-based Danaher said it plans to run GE Biopharma as a stand-alone unit within its life sciences business. It will finance the transaction with $3 billion from an equity offering.

“We expect GE Biopharma to advance our growth and innovation strategy,” said Danaher Chief Executive Thomas Joyce, adding that the assets will bolster “end-to-end bioprocessing solutions that help enable breakthrough development and production capabilities”. 

Shares of GE jumped 15.1 per cent to $11.71 in early trading, while Danaher gained 8.5 per cent to $123.08.