Page 25 - MIN SOC APRIL 1,2016
P. 25
BUSINESS A25
Friday 1 April 2016
McDonald’s adding 1,500 outlets in China, S.Korea, Hong Kong
BEIJING (AP) — McDon- respond to Asian custom- dards with local insights owned by the company lets to local owners, with
ald’s Corp. said Thursday ers. McDonald’s, based in and expertise from part- a long-term goal of mak-
it plans to open 1,500 new Oak Brook, Illinois, is over- ners who share our vision instead of franchisees. The ing 95 percent owned by
restaurants in China, South hauling its business under and values,” Easterbrook franchisees. The company
Korea and Hong Kong as CEO Steve Easterbrook af- said in a statement. “These company deems those reported earlier that sales
it looks to faster-growing ter acknowledging it failed actions build on our turn- worldwide rose 5 percent
markets to help drive a to keep up with changing around efforts and will ad- “high-growth markets,” at established locations in
global turnaround. tastes. The total number of vance local ownership, en- the final quarter of 2015.
McDonald’s said it is look- global diners visiting its res- able faster decision-mak- which it says have stronger In the high-growth mar-
ing for partners to help fi- taurants fell last year. ing and achieve restaurant kets unit, sales climbed 3
nance that expansion. The “Asia represents a signifi- growth.” McDonald’s cur- expansion and franchis- percent. U.S. sales rose 5.7
company said it also will cant area of opportunity rently has 2,800 restaurants percent and those in Britain
give local managers more for McDonald’s to blend in China, South Korea and ing potential. The compa- and Canada rose 4.2 per-
decision-making power to our global quality stan- Hong Kong, most of them cent.
ny previously announced
plans to identify strategic
partners in two other Asian
markets, Taiwan and Ja-
pan. McDonald’s says it
plans to turn over more
company-owned out-
GE asks US to drop “systemically important” tag for Capital
NEW YORK (AP) — General its assets by 52 percent to A General Electric logo is displayed at a store in Cranberry Township, Pa. General Electric said
Electric Co. asked the U.S. $265 billion, the company Thursday, March 31, 2016, that the company has asked regulators to drop the “too big to fail” tag
to drop the “too big to fail” said Thursday. Financing re- for its capital unit, a remnant of the financial crisis. MetLife just won a major victory over the same
tag for GE Capital, saying ceivables are down 74 per- policy.
that its financing operations cent to $72 billion. Loans
are a shadow of what they secured by real estate are (AP Photo/Gene J. Puskar)
were when the Federal Re- down 77 percent, GE said.
serve placed it under strict Loans to consumers are Lew. company to meet in per- worst financial downturn
oversight in the aftermath down 95 percent, from $72 “As Secretary Lew has stat- son with Council staff, and since the Great Depression,
of the global economic cri- billion to $4 billion. Those ed, there is a clear process evaluates whether any remains to be seen.”
sis almost a decade ago. loans are down to zero in for de-designation,” the changes at the company, “Before the financial crisis,
The company has been the U.S. Treasury said in a press re- or in its regulation or mar- some of the largest, riskiest
in broad retreat over the On Wednesday, the com- lease Thursday. “Each year kets, justify a rescission of nonbank financial com-
past year from its financial pany announced the $485 the Council carefully re-ex- the designation.” panies were not subject to
ventures, largely because million sale of its GE Asset amines each of its previous How fast it will act, with the adequate oversight,” the
of the cost and risk of com- Management. designations, invites each U.S. still recovering from the Council said in its release.
plying with boundaries set “We have completed over
by the Federal Reserve. It’s 80 percent of our project-
shed billions in financial as- ed asset reductions; exited
sets as it returns to its indus- leveraged lending and U.S.
trial roots. consumer lending; exited
GE Capital was listed a nearly all middle market
“systemically important fi- lending; reduced real es-
nancial institution,” by the tate debt by more than 75
Financial Stability Over- percent and real estate
sight Council following the equity by 100 percent; and
financial collapse of 2008, reduced outstanding com-
a company deemed to be mercial paper almost 90
so large and entwined with percent,” said GE Capital
the U.S. financial system Chairman and CEO Keith
that it could threaten the Sherin in a printed state-
entire economy if it failed. ment.
That, General Electric said The Financial Stability Over-
Thursday, has changed. sight Council is chaired by
GE Capital has reduced Treasury Secretary Jacob
US applications for jobless aid rise, but still near lows
JOSH BOAK week average rose 3,500 ket stirred concerns at the show that employers hired job gains have translated
AP Economics Writer to 263,250. The number of start of the year. Applica- roughly 200,000 workers in into more spending at res-
WASHINGTON (AP) — More people receiving unem- tions are a proxy for layoffs, February as the unemploy- taurants and online retail-
Americans sought unem- ployment checks has fallen so the steady lows indicate ment rate held at an eight- ers. Many Americans have
ployment benefits last 6.3 percent over the past that businesses are still look- year low of 4.9 percent. also stepped up their pur-
week, but applications still year to 2.17 million. Weekly ing to hire. KEY DRIVERS: The U.S. econ- chases of homes and cars,
stayed near historic lows claims have now been be- Weekly jobless claims have omy has shown signs of du- which has further aided
that point to a stable job low 300,000 for 55 straight remained below the cru- rability, as financial volatility growth.
market. weeks, the longest streak cial threshold of 300,000 for and economic weakness Still, the manufacturing sec-
THE NUMBERS: Applica- since 1973. more than a year, a level have rocked major trading tor has been struggling be-
tions for jobless aid rose THE TAKEAWAY: Employers that usually corresponds partners such as China, Ja- cause of slipping demand
11,000 to a seasonally ad- are confident that the U.S. with monthly gains in ex- pan and parts of Europe. in foreign markets and a
justed 276,000, the Labor economy will continue to cess of 200,000. Consumers have largely strong dollar that makes
Department said Thurs- grow, after global pressures Economists expect that provided the foundation U.S. goods more expensive
day. The less-volatile four- and an uneven stock mar- Friday’s jobs report will for continued growth. Prior overseas.
