Sat, Feb 01, 2020 page10

• World Business Quick Take

  • Agencies
  • • 
    • 
    • 

  UNITED STATES

  GDP growth misses target

  The economy last year missed the 3 percent growth target of the administration of President Donald Trump for a second straight year, posting its slowest annual growth in three years as a slump in business investment deepened amid damaging trade tensions. The 2.3 percent expansion last year reported by the Department of Commerce on Thursday suggested the White House and Republicans’ massive US$1.5 trillion tax cut package had provided the economy only a temporary boost. Moderate growth undercuts the argument by Trump and his fellow Republicans that strong growth would pay for the tax cuts, which are expected to help push the federal budget deficit to US$1.02 trillion this year. Growth last year was the slowest since 2016 and followed the 2.9 percent notched in 2018.

  AUTOMAKERS

  VW offers Navistar US$2.9bn

  Volkswagen AG (VW) offered to buy the rest of Navistar International Corp in a US$2.9 billion bid to secure a bridgehead in the the US’ heavy-truck market and step up its challenge to global rivals Daimler AG and Volvo AB. Volkswagen’s Traton SE unit has offered Navistar holders US$35 a share in cash, 45 percent higher than its Thursday closing price. Navistar, which builds International-brand trucks, school buses, defense vehicles and engines, said its board would review the proposal, adding that there is no assurance the deal would take place. Volkswagen already owns a stake of almost 17 percent.

  RETAIL

  Perssons get fortune boost

  Hennes & Mauritz AB (H&M) chairman Stefan Persson just received a hefty retirement gift from investors. Persson, who on Thursday announced he is stepping down in May, added US$1.4 billion to his fortune, as the clothing retailer’s shares rose 9.4 percent in Stockholm. His son Karl-Johan, the CEO, is to take over as chairman and hand the CEO role to chief operating officer Helena Helmersson, making her the first woman to run H&M. The jump in share price reinforces the Perssons’ standing as Sweden’s richest family,with a fortune of more than US$20 billion, according to the Bloomberg Billionaires Index. Stefan Persson, 72, said it was a “natural change” to hand control to his son after two decades as chairman. He said the family, which owns about half of the business, would remain committed owners of the world’s second-largest garment retailer.

  MACROECONOMICS

  France, Italy post declines

  The French and Italian economies unexpectedly shrank at the end of last year, casting a shadow over expectations the eurozone was on a firmer footing. The French economy contracted 0.1 percent amid a decline in exports and a huge drag from companies using up stocks rather than increasing production. All of the economists surveyed by Bloomberg had predicted growth. Without the inventory effect, growth would have been about 0.3 percent, according to Bloomberg Economics. Italy’s GDP fell 0.3 percent, the most in almost seven years. Neighboring Spain fared significantly better at the end of last year, reinforcing its position as one of Europe’s outperformers. Faster-than-anticipated growth of 0.5 percent was driven by buoyant exports and a strong increase in services. France’s unexpected contraction is a sting for French President Emmanuel Macron, who is already facing mass protests and strikes against his pension reforms that have disrupted household spending.
• Most Popular

  • 1

    Taiwan in Time: The breakfast that sparked Taiwan’s semiconductor revolution

  • 2

    Criticism to motivate Yamal: Barca assistant

  • 3

    Xi, Trump differ on outcome of talks

  • 4

    Takaichi vows ‘golden age’ of ties with the US

  • 5

    Trump says he would bring up Taiwan in Xi talk