Taxes hurting growth: EC
The country’s fiscal policy has “reached the limits of acceptability,” with high company taxes weighing on growth, the head of the European Commission (EC) told French television late on Monday. Even though the country’s proposed budget is “overall satisfactory,” Jose Manuel Barroso told the LCI network: “Today, the fiscal policy in France has reached the limits of acceptability. The commission on Friday is to give its evaluation of each country in the eurozone in a new measure implemented as part of the effort to stabilize the area.
Inflation hits three-year low
The rate of inflation in Europe’s biggest economy slowed to its lowest level in more than three years last month on falling oil prices, official data showed yesterday. The cost of living rose by 1.2 percent this month on a 12-month basis, compared with 1.4 percent in September, the federal statistics office Destatis said in a statement. It was the lowest level since August 2010.
News Corp posts profit
News Corp, the publishing and newspaper segment of the recently split media empire of Rupert Murdoch, announced a modest profit on Monday in its first post-breakup results. It said the net profit for shareholders was US$27 million, which compared with a loss of US$92 million for the same operating segments a year earlier. Revenues fell slightly to US$2.07 billion, compared with US$2.13 billion in the prior year.
Vodafone profts on tax credit
British mobile phone giant Vodafone yesterday said that it surged back into first-half profit on a huge taxation credit, and pledged to invest after the sale of its US division. Earnings after taxation stood at ￡17.95 billion (US$28.6 billion) in the six months to September 30, boosted by a tax credit of almost ￡15 billion, it said in a results statement. The London-listed group yesterday said that it will invest ￡7 billion to boost businesses in key European and emerging markets, following its gigantic US$130 billion deal to sell its US joint-venture stake to partner Verizon. That compared with its previous plans to invest ￡6 billion.
Pandora beats forecasts
Pandora A/S, the Danish maker of charm bracelets, reiterated its full-year forecasts after posting higher third-quarter profit than analysts estimated. Net income for the three months ended Sept. 30 rose to 612 million kroner (US$110 million) from 380 million kroner a year earlier, the Glostrup, Denmark-based company said in a statement yesterday. “The overall growth continues to be driven by an increasing demand for Pandora’s products launched in the last 12 months,” chief executive officer Allan Leighton said in the statement, adding that store openings added to the growth.
Hyundai tech officer resigns
Hyundai Motor Co’s chief technology officer resigned after a series of recalls dented the South Korean automaker’s reputation for quality. Kwon Moon-sik, who was president of the research and development division, quit on Monday, along with two other executives over a chain of quality issues, the Seoul-based company said in a statement yesterday. The resignations follow a series of recalls this year in the US, China, and most recently, the call back of its upscale Genesis sedan in South Korea over a faulty brake system.