12072016Wed
Last update: Wed, 07 Dec 2016 07pm

Global Business & Economy

World - Global Business & Economy

South Africa braces for credit review as growth falls JOHANNESBURG: South Africa braced for a potentially damaging credit rating review Friday as Moody's releases its latest assessment amid political tension, reform blockages and weak economic data.President Jacob Zuma has been engulfed by graft scandals and a power struggle with Finance Minister Pravin Gordhan, while growth has fallen to 0.5 percent and unemployment hit a 13-year high.Moody's will issue its updated grading later Friday, before Standard & Poor's makes its key announcement a week later on December 2.S&P currently has South Africa -- the continent's most developed economy -- rated at the lowest investment grade, and a downgrade would put the country's bonds into so-called "junk" status.Moody's currently rates South Africa two levels above junk.Any downward review would further drain investor confidence in the country's prospects under Zuma and the ANC party, which has ruled since the end of apartheid."We are politicising downgrading. That is our problem," the president told ...

World - Global Business & Economy

Japan suffers longest consumer price fall since 2011 TOKYO: Japan's consumer prices fell in October, government data showed Friday, extending the longest string of declines in five years and underscoring its struggles to conquer deflation.The weak inflation data -- core prices excluding fresh food fell 0.4 percent from a year ago -- come several weeks after Japan's central bank pushed back the timeline for hitting its 2.0 percent inflation target. The BoJ's target is a key part of Prime Minister Shinzo Abe's faltering ...

World - Global Business & Economy

IMF sees Georgia GDP growing 2.7pc in 2016, 4pc in 2017 TBILISI: The International Monetary Fund forecasts Georgia's gross domestic product will grow 2.7 percent in 2016 and by 4 percent in 2017, the IMF said on Thursday. The IMF had earlier predicted 3.4 percent growth in Georgia in 2016 and 5.2 percent in 2017, although its representative told Reuters earlier this month that its forecasts could be downgraded. "The Georgian economy has shown resilience and continues to recover from the external shock, although at a ...

World - Global Business & Economy

Brazil loan defaults remain at record in October; lending shrinks BRASILIA/SAO PAULO: Loans in arrears for 90 days or more in Brazil remained at a record high for a third straight month in October, a sign that steps by commercial banks to refinance looming debt maturities are preventing the country's worst credit crunch in two decades from worsening further. The so-called default ratio, a benchmark for delinquencies, came in at the equivalent of 5.9 percent of outstanding non-earmarked loans, unaltered from September, the central bank ...

World - Global Business & Economy

German growth halves on weak trade, uncertainty clouds euro zone outlook BERLIN: Growth in leading euro zone economies slowed over the summer months and an expected German-led rebound at the end of the year may prove too short-lived for the European Central Bank to unwind its monetary stimulus. Germany's quarterly growth rate halved to 0.2 percent in the three months to September even though private consumption and state spending rose, as weak foreign trade slowed overall activity in Europe's biggest economy. Confirming a preliminary reading, the ...

World - Global Business & Economy

Germany 3Q growth confirmed at 0.2 percent BERLIN: Germany's economic growth in the third quarter this year was just 0.2 percent, driven mainly by domestic consumption but dented by foreign trade, the federal statistics office Destatis confirmed on Thursday.Domestic spending rose 0.4 percent and state expenditure by one percent compared to the preceding quarter, but gross investment and imports experienced negligible growth and exports fell by 0.4 percent."Foreign trade had a negative effect on gross domestic product (GDP) growth" in the order ...

World - Global Business & Economy

Mexico central bank cuts 2017 growth outlook, cites possible US risks MEXICO CITY: Mexico's central bank on Wednesday narrowed its 2016 growth forecast, and cut its 2017 outlook, adding it may revise estimates if new US policies have a negative effect on Mexican exports and foreign investment in the country. In its quarterly inflation report, the central bank tweaked its 2016 growth forecast to between 1.8-2.3 percent compared to a previous estimation of 1.7-2.5 percent.It cut its 2017 economic growth outlook to between 1.5-2.5 percent versus ...