Tue, Jul 19, 2022 page10

• World Business Quick Take

  • Agencies
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  NEW ZEALAND

  Inflation at 32-year high

  Inflation in the second quarter of this year rose to a 32-year high of 7.3 percent year-on-year, official figures released yesterday showed. The main drivers were rising fuel, food and housing costs, said Stats NZ, putting inflation at a level last seen in 1990. “Supply chain issues, labor costs, and higher demand have continued to push up the cost of building a new house,” said Jason Attewell of Stats NZ. Earlier this month, the central bank raised its benchmark interest rate to its highest level in six years and said further rises could follow.

  INDIA

  Growth forecast reduced

  Morgan Stanley cut its forecast for the country’s annual growth to 7.2 percent for this year, as tighter financial conditions and a slowdown in global trade have pressured major economies around the world. The brokerage’s forecast, down from its previous projection of 7.6 percent, comes after the country’s economic growth slowed to the lowest in a year in the first three months of this year at 4.1 percent. The revised target is in line with the Reserve Bank of India’s view. For the next year, Morgan Stanley expects the annual GDP to touch 6.4 percent. The country’s annual consumer inflation, which touched multiyear highs in the past few months, eased marginally to 7.01 percent last month. The brokerage expects more respite ahead.

  RETAIL

  H&M to leave Russia

  Swedish retailer Hennes & Mauritz AB (H&M) is to start winding down its operations in Russia, having halted all sales in the country in March after Russia’s attack on Ukraine. The Stockholm-based company expects to book costs of 2 billion kronor (US$190 million) from the process, of which about 1 billion kronor would have a cash-flow effect, it said in a statement. H&M’s Russian business accounted for about 4 percent of its 199 billion kronor in sales during the past financial year. The company has operated in the country since 2009.

  MALAYSIA

  7-Eleven might exit drugs

  Convenience store operator 7-Eleven Malaysia Holdings Bhd is weighing exiting its pharmacy chain, people with knowledge of the matter said. The Kuala Lumpur-listed company is working with an adviser on the potential divestment of Caring Pharmacy Group Bhd, which is attracting interest from some Japanese parties, the people said. The company could seek a valuation for the retailer of about US$400 million in a deal, one of the people said. 7-Eleven Malaysia is the biggest 24-hour convenience store operator in the Southeast Asian nation. The company started offering franchising programs to local entrepreneurs in 2009 after the number of stores in its network crossed 1,000 the same year.

  DELIVERY

  Deliveroo cuts forecast

  Deliveroo PLC slashed its projections for sales growth this year after the value of transactions on its platform grew more slowly in the latest quarter, reflecting an increasingly cautious view of economic performance and mounting challenges facing consumers. The London-based food delivery company said in a statement yesterday that gross transaction value (GTV) was projected to rise 4 to 12 percent this year, after previously forecasting growth of 15 to 25 percent. That reduction comes after GTV rose 2 percent year-on-year in the second quarter in constant currency, a slowdown compared with a 12 percent expansion in the first quarter.
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