Wed, May 31, 2017 page10

• World Business Quick Take

  • Agencies
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  JAPAN

  Household spending drops

  Household spending last month dropped again, official figures showed yesterday, as consumers kept a tight hold on their purse strings despite years of government efforts to boost spending. The data attests to what analysts believe is a broader picture of the world’s third-largest economy — it is picking up steam overall, but tepid consumption continues to act as a drag. Spending by households of two or more people shrank 1.4 percent year-on-year, extending its declining streak of more than a year, data from the Ministry of Internal Affairs shows. The nation’s prospects have been improving on the back of strong exports, with investments linked to the Tokyo 2020 Olympics also giving the economy a shot in the arm.

  FRANCE

  Consumer confidence grows

  Consumer confidence last month hit its highest level since August 2007, statistics showed yesterday, as more people had a positive outlook about their future earnings as the country elected a youthful president with a reformist agenda. Coming in at 102 points, the consumer confidence index broke its long-term average of 100 points for the first time since the global economic crisis struck in the second half of 2007, the national statistics agency Insee said. The survey questions consumers about their perceptions of their personal finances and the general economy. Consumers’ confidence about their personal outlook jumped by four points to reach its long-term average for the first time since September 2007. While the figure for those who judge it a good time to make big purchases dropped by seven points, it still remained above its long-term average, Insee said.

  BANKING

  Commerzbank begins cuts

  Commerzbank AG has sent out early retirement offers to about 3,000 employees, a first key step in the German lender’s move toward cutting 9,600 jobs over four years, two people with knowledge of the matter said. The offer entitles eligible employees born before 1962 to a 30,000 euro (US$34,478) sweetener, the people said, asking not to be identified discussing internal affairs. Some employees have until the end of next month to decide and others until the end of August, the people said. The average salary at the bank last year was about 79,600 euros, based on total salary and wage costs of 3.5 billion euros and 44,267 employees. Chief executive officer Martin Zielke unveiled a turnaround strategy in September last year that calls for automating operations and shedding about one-fifth of the workforce to cut costs after a slump in earnings.

  AVIATION

  Ryanair reports 6% gain

  Ryanair Holdings PLC reported a 6 percent gain in annual earnings with moves by rivals to scale back capacity growth set to stem a slide in fares this year. Net income at Europe’s biggest discount airline increased to 1.32 billion euros in the 12 months ended March 31, from 1.24 billion euros in the same period last year a statement said. The carrier said it is in talks with Boeing Co to add two or three more jets to its existing delivery schedule while extending 10 of the company’s planned lease returns through 2019. While Ryanair has cut costs and slashed prices to undercut rivals and maintain market share amid a glut of capacity on European routes, the slide in fares should ease as supply better matches demand. That is expected to spur an increase in earnings of 8 percent to between 1.4 billion euros and 1.45 billion euros in fiscal 2018, the Dublin-based airline said.
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