06272016Mon
Last update: Mon, 27 Jun 2016 02pm

Global Business & Economy

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Loan growth in eurozone private sector picks up: ECB FRANKFURT: Growth of loans to the private sector in the euro area edged up slightly in May, European Central Bank data showed on Monday. For the ECB, the statistics are a key indicator of the economic health of the single currency area, as borrowing is a main financing source for corporate investment which in turn should boost the eurozone's currently weak economy.In May, approved loans rose 1.1 percent from a year ago, slightly faster than growth of 1.0 percent in April, an ECB statement said.When certain strictly financial transactions are stripped out, the growth in loans also increased, with credit accorded to households and companies up 1.0 percent in May after a rise of 0.8 percent in April. The ECB has launched a raft of policy measures to get credit flowing, most significantly a massive programme to buy public sector bonds to pump liquidity into the system.The ECB recently beefed ...

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China May industrial profit growth slows to 3.7pc y/y BEIJING: Profits of Chinese industrial companies rose 3.7 percent in May from a year earlier, slowing from April's pace and adding to concerns that the world's second-largest economy may be losing some momentum.A return to profit growth in the first quarter and a strong jump in March in particular had fueled hopes that China's economy was perking up, but data since then has suggested it may be stabilising at best."The continued slowdown in May profit ...

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India's relaxation of foreign investment rules credit positive: Moody's MUMBAI: India's decision to relax foreign direct investment in sectors including defence, aviation, and retail is a positive development for the country's sovereign ratings, said Moody's Investors Service on Monday."The announcement is credit positive because it demonstrates a continuation of reform momentum and paves the way for private investment and a boost in productivity," said Moody's.India announced last week sweeping reforms to rules on foreign direct investment and easier terms for investors in sectors ranging ...

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Bangladesh gets $150mn from World Bank for health DHAKA: The World Bank said on Sunday it has approved $150 million in additional financing to help improve Bangladesh's health systems and services, bringing its total support for health projects in the country to $508.9 million. The support will help the government address health sector challenges, including sustaining and improving immunisation coverage, improving deliveries for pregnant women at public health facilities and tackling multi-drug resistant tuberculosis, the World Bank said in a statement. Bangladesh has ...

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Chinese firms may 'wait and see' on UK investment after Brexit TIANJIN: Chinese companies may want to "wait and see" the impact of Britain's vote to leave the European Union before they invest in the country, the head of China's top economic planner said on Sunday. However, the impact of the referendum on China's economy will be limited, said Xu Shaoshi, chairman of the National Development and Reform Commission, at the World Economic Forum in the northern city of Tianjin. Copyright Reuters, 2016 ...

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Saudi, UAE see little Brexit impact on their banks DUBAI: Financial authorities in Saudi Arabia and the United Arab Emirates on Saturday downplayed the impact of Britain's vote to leave the European Union on their banks.Authorities in both countries, whose currencies are pegged to the US dollar, said they were keeping an eye on the impact of the Brexit vote, but that their banks' exposure is limited."Due to the limited connection between the UAE financial system and that of the UK, the channels through ...

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IMF calls for urgent action as Mozambique's growth dips JOHANNESBURG: The International Monetary Fund has called for urgent action to stem Mozambique's deteriorating economic performance, after revelations of $1.4 billion in hidden debt saw donor nations suspending aid to the country.In a statement released Friday, the IMF recommended "an urgent and decisive package of policy measures to avoid a further deterioration in economic performance".Mozambique's growth is forecast to drop to 4.5 percent this year -- down from 6.6 percent last year -- while rising ...