Global growth to slow
Global growth is expected to lag this year and next, but for the first time in a long time, it is not all Europe’s fault. That is the view of a leading international economic body, which said on Tuesday that a slowdown in emerging economies and the potential for another US budget crisis are the main sources of concern for the global economy. In its half-yearly forecast, the Organisation for Economic Co-operation and Development lowered its forecast for global growth this year to 2.7 percent and 3.6 percent for next.
Commerce secretary resigns
Feared Secretary of Commerce Guillermo Moreno has quit. Moreno was a pitbull for President Cristina Fernandez. He tried to jail economists for publishing independent inflation numbers, and broke up board meetings of the opposition Grupo Clarin. Executives have accused him of blocking their imports, freezing their prices and making their corporate lives miserable until they agreed to support the government’s economic policies. Presidential spokesman Alfredo Scoccimarro says Fernandez accepted the resignation on Tuesday.
Yahoo boosts buyback
Yahoo boosted its share buyback plan by US$5 billion, returning more cash to shareholders as chief executive Marissa Mayer seeks to revive growth at the largest US Internet portal. Yahoo is also to raise US$1 billion in convertible debt funding maturing in 2018, the Sunnyvale, California-based company said in a statement on Tuesday. Yahoo has made US$5.3 billion in buybacks since January last year, including US$1.7 billion in the third quarter, the company said on its earnings conference call on Oct. 15.
GSK to sell part of shares
British drugs firm GlaxoSmithKline (GSK) yesterday announced that it would sell one-third of its shareholding in South African company Aspen for ￡425 million (US$685 million). “GSK has agreed to the sale of 28.2 million ordinary shares in Aspen Pharmacare Holdings Ltd” via a placing of shares to institutional investors, it said in a statement. Following settlement of the sale, GSK will hold 56.5 million ordinary shares in Aspen, representing 12.4 percent of the issued share capital.
Johnson & Johnson settles
Johnson & Johnson on Tuesday said that it would pay US$2.5 billion to settle thousands of lawsuits brought by hip replacement patients who accuse the company of selling faulty implants that led to injuries and additional surgeries. The agreement presented in US District Court in Toledo, Ohio, is one of the largest for the medical device industry. It resolves an estimated 8,000 cases of patients who had to have the company’s metal ball-and-socket hip implant removed or replaced. The deal provides about US$250,000 per patient and covers those who had their implants removed or replaced before Aug. 31 this year.
Trader jailed for scheme
A former trader was sentenced to two-and-a-half years in prison on Tuesday for an unauthorized purchase of about US$1 billion in Apple Inc stock that eventually led to the demise of financial services firm Rochdale Securities. David Miller, 41, was sentenced by US District Judge Robert Chatigny in Hartford, Connecticut, seven months after pleading guilty to wire fraud and conspiracy.