Wed, Aug 06, 2014 page15

• World Business Quick Take

  • Agencies
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  ECONOMY

  Eurozone PMI climbs

  Eurozone business expanded at the second-fastest pace in three years last month as a buoyant service industry offset a lackluster performance in manufacturing, surveys showed on Tuesday. Markit’s Purchasing Managers’ Index (PMI) for the eurozone’s service industry leaped to 54.2 from June’s 52.8, although that was down from a flash reading of 54.4. That helped drive up the Composite PMI, which is based on surveys of thousands of companies across the region and is seen as a good indicator of growth, to 53.8 from June’s 52.8. Markit said the data suggested the bloc’s economy was growing at a quarterly rate of 0.4 percent.

  AUTOMAKERS

  Toyota beats profit forecast

  Toyota Motor Corp yesterday reported a better-than-expected rise in quarterly profit as vehicle sales grew in North America and Europe, offsetting a drop in Japan. The Japanese maker of the Prius hybrid, Camry sedan and Lexus luxury model said the April-June profit grew nearly 5 percent from a year earlier to ￥587.77 billion (US$5.7 billion). Quarterly sales rose 2 percent to ￥6.39 trillion. However, Toyota lowered its vehicle sales forecast for this year, saying it now expects to sell 110,000 fewer vehicles worldwide than the plan announced in January. Even then, it will still reach the 10 million vehicle industry milestone at 10.22 million vehicles, up 2 percent from last year. Toyota, the world’s top automaker, sold 2.24 million vehicles in April-June.

  ECONOMY

  Moody’s bleak on France

  Credit ratings agency Moody’s said on Monday that France’s efforts to tackle its high deficit are likely to fall short of targets set for this year and next. France’s stated plan to cut spending and taxes to trim 18 billion euros (US$24 billion) from the deficit this year and 50 billion euros next year is “broadly positive” for competitiveness, Moody’s said in a statement. However, the ambition of the plan, that most of the cuts are unspecified, the political unpopularity of reduced healthcare spending and weak growth all underline the “significant implementation risk,” it said. That goes to supporting Moody’s negative outlook for France’s sovereign rating of “Aa1,” it added.

  MANUFACTURING

  Siemens deal cleared

  The European Commission in Brussels on Monday cleared German engineering giant Siemens’ 950 million euro acquisition of some of Rolls-Royce’s specialist gas turbine operations. Siemens announced in May that it would buy the “aero-derivative gas turbine and compressor business” of the British company, which would strengthen its position in the oil and gas industry. Rolls-Royce is renowned for its aircraft engines, but has also developed them for use across various industries.

  FAST FOOD

  Scandal eats at McDonald’s

  McDonald’s Corp said on Monday that a scandal over a meat supplier in China is hurting sales in the region and its global sales forecast for this year is “at risk.” The world’s biggest hamburger chain said in a regulatory filing that there’s been “significant negative impact” in China, Japan and other affected markets. These regions make up about 10 percent of the company’s revenue. Yum Brands Inc. had also warned last week that the bad publicity has “shaken consumer confidence” and resulted in “significant, negative impact” at its KFC and Pizza Hut chains in China.
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