Sun, Aug 13, 2017 - Page 14 News List

World Business Quick Take

Agencies

AUTOMAKERS

Tesla extends bond offering

Tesla Inc increased its debut bond deal to US$1.8 billion as it seeks to finance production of the Model 3, which the electric car maker has staked its future on. The eight-year bonds are to have a yield of 5.3 percent, greater than initial talk of 5.25 percent, according to a person with knowledge of the matter, who asked not to be identified because the sale is private. Elon Musk’s company boosted its offering from the original US$1.5 billion. The 5.3 percent coupon is a record low for a bond of its rating and maturity, compiled by Bloomberg showed. The debt offering is Tesla’s first of nonconvertible bonds.

RUSSIA

Economy grows 2.5% in Q2

The economy expanded 2.5 percent in the second quarter, up from 0.5 percent in the first quarter, as the country gradually recovers from two years of crisis, the Russian Federal State Statistics Service (Rosstat) said on Friday. GDP grew 2.5 percent in the second quarter, compared with the same period last year, Rosstat said in a statement. The figure is slightly lower than the government’s assessment of 2.7 percent, but much more positive than most economists had predicted. The government has set a target for the whole year of 2 percent growth.

INDIA

Growth at risk of slowing

The economy is at risk of slowing down in the current fiscal year, the government said in a mid-year economic survey on Friday. In February, the government had forecast GDP growth of between 6.75 percent and 7.5 percent for 2017-2018. However, on Friday it warned that there were several factors, including the appreciation of the rupee and the introduction of a new goods and services tax, that could hit growth. Growth slowed to 6.1 percent in the fourth quarter ended March, and experts have predicted a further slowdown in the economy as businesses adjust to the new tax launched last month.

BANKING

BMPS posts US$3.78bn loss

Italy’s troubled Banca Monte dei Paschi di Siena SpA (BMPS) on Friday said that it lost more than 3.2 billion euros (US$3.78 billion) in the first half of this year, after the EU approved a bailout for the stricken lender. CEO Marco Morelli had last month warned that he anticipated losses due to write-downs on bad loans. Founded in Siena, Italy, in 1472, BMPS has been in deep trouble since the eurozone debt crisis and is now to be owned by the Italian state, which has ended up with a 70 percent stake.

RETAIL

Wilko warns of possible cuts

Wilko Retail Ltd, the high-street households goods chain, has warned almost 4,000 of its employees that they could lose their jobs in a shake-up that is to strip out a layer of management. The potential job losses cap a brutal week for British retail workers, with Asda Stores Ltd placing 3,257 employees into consultation and J Sainsbury PLC announcing plans to ax more than 1,000 head office jobs. Wilko, which last month recorded an 80 percent drop in full-year profits, said it had placed 3,900 staff working as stock supervisors, till supervisors and assistant managers, into consultation, which could lead to redundancy.

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