Much work ahead: WB
World Bank (WB) president Jim Yong Kim says growth in the global economy is proceeding in a positive way but there still is a lot of work to be done to make sure it lasts. Kim said on Tuesday it was important for the US to solve its budget-debt brawl early next year because any kind of uncertainty has an impact on the global economy, particularly in developing countries. He said some European countries’ economies were bouncing back compared with nine months ago and concern about the slowdown in developing countries’ economies seems to be abating, with China, for example, doing better.
Industrial output weak
Industrial output grew by a weaker-than-expected 2 percent in September from a year earlier, hit by sluggish demand during the normally high-spending religious festival season, data showed on Tuesday. Manufacturing output, which accounts for more than three-quarters of the Index of Industrial Production, edged a meager 0.6 percent higher in September from a year earlier, the government’s statistics unit reported. Consumer price inflation last month also climbed 10.09 percent from 9.8 percent the previous month, fueled by vegetable prices that climbed nearly 46 percent from a year earlier, data showed.
Larger surplus expected
Minister of Finance Jim Flaherty said on Tuesday he expects a much larger budget surplus of C$3.7 billion (US$3.5 billion) when he eventually takes the country out of the red in two years. “We’re on track to get back to balance in 2015,” he said in a statement. He expects a C$17.9 billion deficit this year before reaching surplus in 2015 to 2016. Canada’s debt-to-GDP ratio is expected to fall to a pre-recession level of 27.6 percent two years later, and then continue dropping.
Jobless rate unchanged
The jobless rate stood at 3 percent last month, unchanged from the previous month even as government data showed an increase in job creation from a year ago. However, unemployment among young people aged 15 to 29 rose marginally to 7.8 percent from 7.7 percent in September, Statistics Korea said. The total number of employed people stood at 25.54 million last month, up 476,000 from a year earlier, and higher than the previous month’s year-on-year gain of 463,000.
Twitter to offer customization
Twitter said on Tuesday it would offer its users the ability to create custom “timelines” for fresh perspectives on the Twittersphere. In addition to a standard timeline, users can craft new ones designed to follow new topics on the messaging platform. Twitter last week raised some US$1.8 billion in one of the largest public share offerings in the tech sector.
Starbucks to pay US$2.7bn
An independent arbitrator ordered Starbucks on Tuesday to pay US$2.7 billion for a failed coffee venture with Kraft Foods, after the two split on a coffee supply deal in 2011. Starbucks was found at fault for ending its deal with Kraft, then controlled by food giant Mondelez International, after Kraft had distributed bagged Starbucks coffee to supermarkets and other retailers under contract for 12 years. The money covers both damages and interest and attorneys’ fees, and will go to Mondelez.