Sun, Jul 31, 2016 - Page 14 News List

World Business Quick Take



GDP drop worst since 2009

The economy suffered its worst contraction in more than seven years in May, mainly due to massive wildfires in the oil-sands region of Fort McMurray, the government said on Friday. GDP fell 0.6 percent in May from April, the largest monthly decline since March 2009, Statistics Canada said. The contraction was mainly due to lower non-conventional oil extraction, mostly from the oil-sands region, as companies were forced to temporarily shutter production as a consequence of the wildfires. The impact of the wildfires also hit the manufacturing sector, where output fell 2.4 percent, the steepest drop since January 2009, when the global economy was in recession following the US financial crisis.


Economy contracts in Q2

The economy contracted in the second quarter for the first time in three years as growth in the services industry slowed and exports fell. GDP declined 0.3 percent from the first three months, according to preliminary figures released by the national statistics institute on Friday. The median forecast of 13 economists surveyed by Bloomberg was for a contraction of 0.1 percent. GDP climbed 2.4 percent year-on-year, in line with estimates. The institute is scheduled to release final growth figures on Aug. 22.


Jobless rate rises to 11.3%

The unemployment rate rose to 11.3 percent in the second quarter, official data said on Friday, as a drawn-out recession continued taking its toll. The figure stood three percentage points higher than the same period last year, government statistics institute IBGE said. Latin America’s largest economy entered recession in 2014. It remains in a deep slump, weighed down by the fallout of a massive corruption scandal centered on state oil giant Petrobras.


SABMiller upbeat on offer

The board of brewer SABMiller on Friday said it intends to recommend that shareholders accept Anheuser-Busch InBev’s revised £79 billion (US$104.48 billion) takeover offer, clearing the way for a shareholder vote on the deal. The decision by SABMiller to recommend the deal comes only hours after AB InBev swept past the last regulatory hurdle for the deal when Chinese regulators gave the go-ahead for AB InBev to sell SABMiller’s stake in China Resources Snow Breweries Ltd (CRB, 華潤啤酒).


Alliance eyes Argentina

The Renault-Nissan Alliance said it is to invest US$800 million in Argentina. Renault-Nissan chairman and chief executive officer Carlos Ghosn announced the investment on Friday after meeting with Argentine President Mauricio Macri. Ghosn said the plan would create about 1,000 direct and about 2,000 indirect jobs. About US$600 million from the investment is to go toward launching a first line of fabrication for about 70,000 pickup trucks, including Nissan’s NP300 Frontier and Renault’s Alaskan. The automaking alliance also plans to invest US$100 million in the production of Renault’s Sandero, Sandero Stepway and Logan models. The remaining US$100 million is to go to the production of a new model.

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