Fri, Mar 02, 2018 - Page 10 News List

World Business Quick Take

Agencies

MACROECONOMICS

RBI may turn hawkish

The Reserve Bank of India (RBI) might become more vigilant on inflation as economic growth strengthens, increasing the risk of monetary tightening. The government on Wednesday raised its growth forecast for the year ending next month to 6.6 percent from the 6.5 percent it predicted in January. The economy expanded 7.2 percent last quarter from a year earlier, beating the 7 percent median estimate in a Bloomberg survey and the previous quarter’s 6.5 percent. Inflation accelerated to 5.21 percent in December last year before easing slightly in January.

MACROECONOMICS

US’ Q4 growth trimmed

US economic growth in the final three months of last year was revised down slightly to annual growth of 2.5 percent, as businesses spent less on investment and restocking shelves than the US Department of Commerce’s initial estimate of 2.6 percent. The fourth-quarter advance followed faster increases of 3.1 percent at a seasonally adjusted annual rate in the second quarter and 3.2 percent in the third quarter, the department reported on Wednesday.

ENERGY

Exxon drops Rosneft

Exxon Mobil Corp on Wednesday said it is abandoning joint ventures with Rosneft PJSC after international sanctions against Russia paralyzed a historic drilling project. Irving, Texas-based Exxon decided to exit the ventures late last year and said it would lead to an after-tax loss of US$200 million this year. The investment came to a standstill in 2014 after the Russian energy sector was targeted by US and EU sanctions amid conflicts in Crimea and Ukraine.

AUTOMAKERS

Peugeot posts record profits

French automaker PSA Peugeot Citroen yesterday said that its profits raced to new records last year even if its newly acquired Opel and Vauxhall brands weighed on earnings. The group said in a statement that its net profit rose 11.5 percent to a record 1.929 billion euros (US$2.4 billion), while operating profit climbed 23 percent to 3.991 billion euros and sales grew 20.7 percent to 65.2 billion euros.

BANKING

RBS may cut more jobs

Royal Bank of Scotland Group PLC (RBS) chief financial officer Ewen Stevenson signaled further job cuts in an interview, as Britain’s biggest government-owned lender accelerates its investment in technology. Stevenson said that restructuring costs of £2.5 billion (US$3.45 billion) announced last week were in part related to the disposal of properties and “data centers,” which are a legacy of the past. He did not give a target for potential job reductions at the company, which shut 259 branches in December last year, as customers increasingly access their accounts online.

RETAIL

Carrefour falls into red

Carrefour SA on Wednesday said it fell into a loss last year, as competition among retailers in France intensified, reinforcing the need to push forward with an overhaul it announced last month. Penalized by exceptional items, including costs related to an old chain of stores in France, the food and goods retailer said it suffered a net loss of 531 million euros. Sales rose 3 percent last year to 88.24 billion euros. However, on a like-for-like basis, the growth rate slid to 1.6 percent from 3 percent in 2016, Carrefour said.

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