Fri, Aug 28, 2020 page10

• World Business Quick Take

  • Agencies
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  TRADE

  EU commissioner quits

  EU Commissioner for Trade Phil Hogan stepped down after criticism that he broke COVID-19 regulations in his native Ireland. The resignation was accepted immediately by European Commission President Ursula von der Leyen. Hogan was under pressure over his attendance at a golf dinner last week that was in contravention of pandemic regulations, as well as his behavior during quarantine upon arrival in his home country. The move came a day after the Irish government said that Hogan’s “delayed and hesitant” response impaired public confidence.

  MANUFACTURING

  Rolls-Royce to sell assets

  Rolls-Royce Holdings PLC suffered a record half-year loss after the COVID-19 pandemic grounded jetliner fleets and said it plans to sell assets to build up cash to help it weather the downturn. The pretax loss of ￡5.4 billion (US$7 billion) was swollen by a charge for curbing currency hedges as sales shrink and a writedown of the value of its main jet-engine arm, Rolls-Royce said yesterday. The company said it wants to raise at lease ￡2 billion from disposals within 18 months, identifying Spanish unit ITP Aero, a maker of aircraft and industrial engines and parts, as the asset most likely to be offloaded. Rolls-Royce is also closing sites and cutting jobs as it grapples with a slump that is expected to depress demand for the wide-body engines in which it specializes for years to come. Rolls-Royce chief executive officer Warren East said that 4,000 posts have been eliminated so far out of a potential 9,000 that might need to go.

  E-COMMERCE

  The Hut Group plans IPO

  British e-commerce company The Hut Group Ltd said it plans to sell ￡920 million of new shares in an initial public offering (IPO). Holders of existing shares would reduce their stakes, the company said, without detailing the size of this portion of the offering. If the IPO proceeds, there would be a free float of at least 20 percent and an equity value of ￡4.5 billion before any new capital is raised. At ￡920 million, the listing would be the largest by a British company in London since online rail-ticketing company Trainline PLC debuted in June last year. The Hut Group operates Web sites, including myprotein.com and Coggles.com, which sell beauty and nutrition products.

  SWITZERLAND

  Economy beats forecast

  The nation’s economy saw less damage from a pandemic lockdown than its larger neighbors, recording a smaller-than-expected contraction in the second quarter. While GDP fell 8.2 percent in the three months through June, the most since at least 1980, the decline was less than the 9.7 percent in Germany and the double-digit slumps in France and Italy. The country is still in the throes of a deep recession after virus-related restrictions. Consumer spending fell 8.6 percent in the second quarter and equipment investment plunged almost 12 percent, data published yesterday showed. Manufacturing output shrank 9 percent, although a deeper decline was prevented by growth in the nation’s massive pharmaceutical industry. The economy is forecast to shrink about 6 percent this year, the most since the 1970s, but another government order for businesses to pause operations to contain the virus could worsen the situation.
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