17/10/2025

BIZ & FINANCE FRIDAY | OCT 17, 2025

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UK economy returns to growth, but only just tax increases in Reeves’ budget.

India says priority is consumers after Trump comments on stopping Russian oil NEW DELHI: India said yesterday that its energy priority was the interest of its citizens, after US President Donald Trump said New Delhi had promised it will stop buying Russian oil. New Delhi neither confirmed nor denied it was shifting policy towards Russia. “It has been our consistent priority to safeguard the interests of the Indian consumer in a volatile energy scenario,” Indian Foreign Ministry spokesman Randhir Jaiswal said in a statement. “Our import policies are guided entirely by this objective.” Indian Prime Minister Narendra Modi has previously defended buying oil from Russia, a historic partner of India, despite Moscow’s invasion of Ukraine. Trump in August raised tariffs on Indian exports to the United States to 50%, with Trump’s aides accusing India of fueling Russia’s war in Ukraine. “Ensuring stable energy prices and secured supplies have been the twin goals of our energy policy,”Jaiswal added. “This includes broad-basing our energy sourcing and diversifying as appropriate to meet market conditions.” India, one of the world’s largest crude oil importers, relies on foreign suppliers for more than 85% of its oil needs. New Delhi traditionally relied on Middle East nations. But since 2022, it shifted sharply toward discounted Russian crude, taking advantage of a buyer’s market created by Western bans on Moscow’s exports. “Where the US is concerned, we have for many years sought to expand our energy procurement,” Jaiswal said. “The current administration has shown interest in deepening energy cooperation with India.” – AFP

automation and electrification, while orders in India were down 7%. ABB’s results give an insight into the health of the broader industrial economy, with its products used to electrify and control buildings, mines and data centres. Bank Vontobel analyst Mark Diethelm said the results were “a touch ahead of expectations” on all measures, as short-cycle demand helped ABB, referring to smaller scale products which have shorter lead times, such as motors and drives. The results were the first since ABB said it would sell its robot business to SoftBank Group in a US$5.4 billion deal. – Reuters GDP would expand by 0.1% in August. In the three months to August, growth picked up slightly to 0.3% from 0.2% in the three months to July, boosted by public health service work while consumer-facing services shrank, the ONS said. BoE policymakers, who held interest rates at 4% in September, are trying to steer their way between stubbornly high inflation and weak growth. Governor Andrew Bailey said on Tuesday that the jobs market was softening and inflation pressures were cooling after official data showed unemployment rose to its highest since 2021 and private sector wage growth slowed. Monetary Policy Committee member Alan Taylor, also speaking on Tuesday, said the British economy risked a “bumpy landing”, partly due to the impact of US President Donald Trump’s trade tariffs. Data published earlier this week showed weak growth in retail sales, partly reflecting worries about possible tax increases in Reeves’ budget on Nov 26. – Reuters

ZURICH: ABB is seeing a “robust” market situation with so far little impact on customer demand from the uncertainties caused by US tariffs, the Swiss engineering company said yesterday, as it reported its third quarter results. ABB, which makes factory robots, as well as motors and drives for factory production lines, said operating earnings before interest, tax and amortisation (EBITA) rose 12% to US$1.74 billion for the three months to the end of September. The figure was slightly above forecasts for US$1.70 billion expected in a company-compiled consensus of analysts. Revenue at the company, which also makes electrification systems used in data centres, rose o GDP expands 0.1% in August, revised July data shows 0.1% fall LONDON: Britain’s economy returned to growth in August when it expanded by a marginal 0.1% from July, official data showed yesterday, offering a little bit of relief to Finance Minister Rachel Reeves as she prepares her November budget. However, gross domestic product in July was revised to show a 0.1% fall from June having previously been seen as unchanged, the Office for National Statistics said. Britain’s economy is on course to have the second-fastest growth among the Group of Seven nations in 2025 after the United States, the International Monetary Fund said this week. But at 1.3%, its annual pace of expansion is not enough to avoid the need for

11% to US$9.08 billion, beating forecasts for US$8.88 billion, while orders rose 12%. Chief executive Morten Wierod said he was seeing a “robust overall market situation” with customers still spending on electrical power and automation. “US tariff-related market uncertainties remain, but so far we have not seen any material impact on demand or profitability,”Wierod said. ABB’s orders in the US increased 27% during the quarter, with steep growth in all business areas, while business boomed in Brazil with orders 38% higher. In contrast, China suffered a 4% drop in new business due to a steep decline in process Fergus Jimenez-England, an associate economist with the National Institute of Economic and Social Research, a think tank, said early indicators for September pointed to limited growth in the third quarter. “Regaining momentum hinges on restoring business confidence and reducing uncertainty, which the government can support by setting aside a larger fiscal buffer in the upcoming budget,” Jimenez-England said. Sanjay Raja, chief UK economist at Deutsche Bank, said the data showed that the services and construction sectors were in a “pre-budget funk” and he thought growth in the third quarter would be about half the Bank of England’s estimate of 0.4%. “The UK economy has yet to see the full ramifications of the US.trade war. “Budget uncertainty is hitting its peak too – likely dampening discretionary household and business spending.” Economists polled by Reuters before yesterday’s data release had forecast that

Robot maker ABB shielded from tariffs in ‘robust market’

Nestle to axe 16,000 jobs as new CEO targets sales growth BERN: Nestle will axe 16,000 jobs as it tries to raise sales volumes, new chief executive Philipp Navratil said yesterday, as the world’s largest packaged food company reported better-than-expected sales growth thanks to pricing-led upticks in coffee and confectionery. Navratil, the former head of more efficient, Navratil said there would be 12,000 white collar job cuts, in addition to a further 4,000 headcount reduction as part of ongoing initiatives in manufacturing and supply chain. Nestle employs around 277,000 people worldwide. The Swiss maker of KitKat

chocolate bars, Nespresso coffee and Maggi seasoning has been fighting to reignite stalling sales growth and arrest a steep share price slide as costs have risen and debt levels have climbed amid rising investor pressure. Navratil said driving RIG-led growth was Nestle’s top priority and that it would raise its costs savings target to 3 billion Swiss francs (RM15.9 billion) from 2.5 billion francs by the end of 2027. “We are fostering a culture that embraces a performance mindset, that does not accept losing market share, and where winning is rewarded,” Navratil said in a statement. “The world is changing, and Nestlé needs to change faster.” – Reuters

Nespresso, replaced Laurent Freixe, who was fired in September as chief executive over an undisclosed relationship with a direct report. Nestle has endured an unprecedented period of managerial turmoil, with Chairman Paul Bulcke stepping down early to make way for former Inditex chief Pablo Isla two weeks later. A 1.5% rise in real internal growth (RIG) – a measure of sales volumes – in the third quarter, well above analysts’ expectations of a 0.3% rise, may offer Navratil breathing space as he looks to make his mark following his sudden promotion. As Nestle tries to become

The Nestle logo on the facade of its headquarters in Vevey, western Switzerland. – AFPPIC