Page 25 - at

BUSINESS A25
Poland’s currency
regains lost ground
after downgrade Associated Press
WARSAW, Poland (AP)
— Poland’s currency re-
gained some lost ground
Monday after a sharp drop
last week when one major
rating agency cut the na-
tion’s debt rating.
Polish economists and poli-
ticians have criticized the
lowering of the rating by
Standard & Poor’s as ill-
informed, while European
Union president, Donald
Tusk, a Pole, said it was “ex- modest, and he said they
aggerated and unjust.”
The zloty was trading at
around 4.455 to the euro at
midday, rebounding from
4.48 in early trading. The
Warsaw Stock Exchange’s
WIG index fell to 1,700.85,
down from 1,735 at the
close on Friday.
Standard and Poor’s an-
nounced Friday that it was
cutting Poland’s debt rat-
ing to BBB plus from A mi-
nus, with a negative out-
look, sending the zloty div-
ing on international mar-
kets.
S&P said the downgrade
was due to policies of the
new right-wing govern-
ment that is introducing
sweeping changes to Po-
land’s legislation that have
a negative effect on the
independence of some
key institutions.
Two other rating com-
panies left their view un-
changed: Fitch affirmed
its rating for Poland at A-
with a stable outlook while
Moody’s made no change
to its A- rating with a stable this year, and the govern-
outlook on Friday.
Analyst Marcin Kiepas of
the Admiral Markets in-
vestment group said S&P’s
downgrade may be seen
as an “indication for for-
eign investors that situation
in Poland may get compli-
cated.”
However Finance Minister
Pawel Szalamacha insisted
the lowering of the rating
was “in conflict with Po-
land’s data” because the
national economy and fi-
nance are stable, with a
good outlook.
“We will prove our credibil-
ity,” said Szalamacha who
had previously suggested
Poland will seek to have
the rating reversed.q
Tuesday 19 January 2016
French president declares economic emergency
ANGELA CHARLTON tion” the 35-hour work- French growth or reduce nesses that hire young peo-
week. With his country un- chronic unemployment, ple. He stressed the need
PARIS (AP) — French Presi- der a state of emergency which has been around to integrate youth from
dent Francois Hollande since extremist attacks in 10 percent for years. His France’s troubled suburbs,
pledged Monday to rede- November, Hollande did chances of winning a po- including minorities who
fine France’s business mod- not seek to assume any tential second term may face job discrimination, into
el and declared what he new emergency powers hinge on whether jobs the global economy. High
called “a state of econom- over the economy. pick up before next year’s unemployment in France’s
ic and social emergency,” In an annual speech presidential vote. Hollande North African and African
unveiling a 2-billion-euro to business leaders, Hol- stressed the urgency of communities is seen as one
($2.2 billion) plan to revive lande laid out plans for updating France’s labor- of the factors driving some
hiring and catch up with a training half a million jobless friendly business model in youths to violent extremism
fast-moving world econo- workers, greater use of ap- an increasingly border-free, or the drug trade. Some
my. prenticeships, and aid for online economy. The mea- measures will be included
The measures he proposed, companies that hire young sures included a loosening in draft economic reform
however, are relatively workers. Hollande’s Socialist of France’s rigid working laws the government is pre-
government has struggled time rules, and a bonus of senting to parliament in the
would not “put into ques- to boost long-stagnant 2,000 euros to small busi- coming weeks.q
Russian ruble hits new low as oil weakens
MOSCOW (AP) — The Rus- People walk at a street passing an exchange booth in Moscow, Russia, Monday, Jan. 18, 2016.
sian ruble, battered by The Russian ruble, battered by weak oil prices, on Monday dropped to new low and broke an all-
weak oil prices, on Mon- time record against the euro.
day fell to an all-time low
against the euro and (AP Photo/Ivan Sekretarev)
dropped to its lowest
level in more than a year percent from the federal All Russian ministries are to cutting 500 billion rubles
against the dollar. budget, which was drafted expected to present their ($6.3 billion) in government
The Central Bank set the with oil prices of $50 a bar- proposed cuts by the end expenses, Finance Minister
official exchange rate at rel in mind. of the month with a view Anton Siluanov said.q
over 85 rubles to the euro
on Monday. The national
currency declined by 2
percent to 79.1 rubles to
the dollar in Moscow, its
lowest trading level since
December 2014.
Oil, the mainstay of the
Russian economy, recently
plummeted to under $30 a
barrel, a 13-year low. The
ruble is also under pressure
from economic sanctions
that the West imposed on
Russia for its involvement in
the Ukraine crisis.
Russia is running a budget
deficit of 3 percent of GDP
ment is looking to cut 10
Daimler AG’s truck business to return to Iran
DAVID McHUGH Group to arrange a “com- Mercedes-Benz brand, sanctions. The company
prehensive re-entry” into cooperation on engine estimates that Iran needs
AP Business Writer the country where Daimler production, and establish- to replace 56,000 commer-
started doing business in ment of a sales arm. Plans cial vehicles over the next
FRANKFURT, Germany the 1950s. also include setting up a three to five years.
Daimler Trucks head Wolf- representative office, and Germany’s Economy Minis-
(AP) — Daimler AG says its gang Bernhard said that sales of Daimler’s Mitsubishi ter Sigmar Gabriel said Sun-
“there is a huge demand FUSO brand trucks in coop- day that the nuclear deal
truck business is returning for commercial vehicles eration with Mayan, part of offers a chance “to open a
in Iran” and that “we plan the Dubai-based Mammut new chapter” in German-
to Iran as Berlin and Tehran to quickly resume our busi- Group. Iranian business relations
ness activities in the market Daimler’s business in Iran and plans to chair a joint
look at restoring economic there.” started in 1953 and it sold economic commission in
Plans include a joint ven- up to 10,000 vehicles a year Tehran in May. He has cau-
ties after a landmark deal ture for local production there, but was interrupted tioned that restoring ties is
of trucks under Daimler’s from 2010 to 2016 by the “a long-term process.”q
to curb Iran’s nuclear ac-
tivities led to the lifting of
sanctions.
Stuttgart-based Daimler
announced Monday that it
had signed letters of intent
with local partners Iran Kho-
dro Diesel and Mammut