Fri, Aug 10, 2018 - Page 10 News List

World Business Quick Take



Growth slows to 6% in Q2

Economic growth slowed sharply in the second quarter and fell well short of expectations as a result of policy decisions that included the shutdown of Boracay Island, officials said yesterday. The 6 percent expansion in the April-to-June period was the weakest in three years and ended a run of 10 consecutive quarters in which the economy grew at least 6.5 percent. Forecasts in a Bloomberg News survey put growth at 6.6 percent. “The slowdown is partly due to policy decisions undertaken that are expected to promote sustainable and resilient development,” Secretary for Socioeconomic Planning Ernesto Pernia said. “We are referring to the temporary closure of Boracay,” he added. The holiday island was shuttered in April for a six-month clean up on the orders of President Rodrigo Duterte, who branded the popular island a “cesspool” sullied by tourism-related businesses flushing sewage into the sea.


JD invests in delivery branch

Dada-JD Daojia has raised US$500 million from existing backers Inc (京東) and Walmart Inc to quicken the growth of its delivery network across China. The logistics company said it intends to use the funds to invest in supply chain technology and serve merchants on its platform, which connects scooter-riding drivers in about 400 cities with about 1.2 million online merchants and delivers everything from packages to groceries. Walmart’s Chinese-based supermarkets are one of Dada-JD Daojia’s (京東到家) key clients.


Adidas reports strong sales

Germany sporting goods firm Adidas yesterday said the FIFA World Cup in Russia and strong e-commerce sales lifted net profit in the second quarter, keeping the company on track to meet its goals for the year. Net profit at the Bavaria-based company more than doubled to 396 million euros (US$459.13 million) between April and June, up from 158 million in the same period last year. Group revenues climbed four percent to 5.3 billion euros year-on year, powered by brisk demand in the key North American and Chinese markets, as well as by online sales. A major growth driver in the second quarter was the World Cup, which helped drive a double-digit increase in sales in Russia alone. Looking ahead to the full year, Adidas said it expects a 10 percent increase in worldwide currency-adjusted sales fueled by North America and the Asia-Pacific region.


IKEA opens first India store

Band music and loud cheers yesterday greeted hundreds of customers as Swedish furniture giant IKEA opened its first store in India, five years after it received approval to invest in the country’s single-brand retail sector. The store in the southern city of Hyderabad, India’s information technology hub, is spread over 5 hectares. IKEA Group chief executive Jesper Brodin said that the company’s involvement with India began more than three decades ago with the sourcing of products. The company’s vast array of goods available at one place gives it an advantage in India. The Indian furniture market is mostly unorganized and composed of small and medium-sized businesses. IKEA plans to open 25 stores in India by 2025. It said that its Indian operation employs 950 people and plans to hire another 15,000 as it expands operations.

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