Tue, Oct 31, 2017 page10

• World Business Quick Take

  • Agencies
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  SUB-SAHARAN AFRICA

  IMF forecasts 3.4% growth

  Economic growth is expected to rise to 3.4 percent in sub-Saharan Africa next year, from 2.6 percent this year, the IMF said in a report yesterday, adding that rising debt and political risks in larger economies would weigh down future growth. Nigeria and South Africa are the biggest economies in sub-Saharan Africa, but both nations have been clouded by political uncertainty linked to the tenure of their leaders. The IMF said a good harvest and recovery in oil output in Nigeria would contribute more than half of the growth in the region this year, while an uptick in mining and a better harvest in South Africa, as well as a rebound in oil production in Angola will add to growth. However, political uncertainty loomed large in Nigeria, where Nigerian President Muhammadu Buhari is afflicted by illness, causing speculation about whether he is well enough to run Africa’s biggest economy.

  COMMODITIES

  New metal futures proposed

  Buoyed by rebounding trading volumes and signs that commodities are attracting more investors, the London Metal Exchange is considering starting a nickel sulfate contract as part of a trio of new products that take advantage of growing demand for battery metals, chief executive Matthew Chamberlain said. The launch is 18 months away at best, he said in an interview on Friday, ahead of the metal industry’s annual gathering in London. “Electric vehicles are clearly the growth story for our industry,” Chamberlain said.

  BANKING

  Indian merger called off

  The proposed merger between IDFC Group and Shriram Group will be called off as talks between the two parties have failed, people with knowledge of the matter said. Some shareholders of IDFC Ltd were not happy with the valuation proposed, the people said, asking not to be identified because the details are private. The IDFC board met yesterday to discuss second-quarter results, as well as the merger, the people said. A deal to combine Shriram Capital and the group would have created a financial conglomerate with a universal bank and the ability to provide a range of financial products from insurance to vehicle finance.

  DEALMAKING

  M&A appetite remains high

  The appetite for mergers and acquisitions (M&A) remains near a record high as firms try to adapt to fast technological changes — and despite a welter of geopolitical concerns, a survey of executives found yesterday. In its half-yearly report on M&A, EY found that 56 percent of firms are planning a deal within the next 12 months. That is unchanged from an April survey, but far above the survey’s long-run average. The survey showed that the high degree of potential M&A activity runs parallel to rising expectations for the world economy, with all major economies growing synchronously. About 99 percent of global executives believed the M&A market will improve or remain stable this year.

  BANKING

  Mizuho may slash workforce

  Japanese bank Mizuho Financial Group is considering slashing its global workforce by about one-third over a decade, reports said, as it looks to replace clerical jobs with artificial intelligence and other technology. The lender is looking at chopping 19,000 jobs from its current roster of around 60,000 employees in Japan and overseas by March 2027, the Yomiuri Shimbun said on Sunday. It is also eyeing the closure of as many as 30 branches in Japan, out of a total of around 800, the Asahi Shimbun said.
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