Page 24 - ARUBA TODAY

Tuesday 21 February 2017 BUSINESS
A24

US retail sales rise in January, led by gas and restaurants

JOSH BOAK in holiday shopping on- boost retail sales. partment report released 12 percent over the past
AP Economics Writer line and at auto dealers. “Sales are growing at a Wednesday. The retail sales year as more Americans
WASHINGTON (AP) — But Americans spent more decent clip, but the surge report does not adjust its prefer to shop via their
Americans increased their than normally expected in consumers’ confidence figures for prices. computers and phones.
spending at gasoline sta- last month at clothiers, since the election is yet Purchases at restaurants Over the past 12 months,
tions and restaurants in department stores, elec- to translate into stronger and bars climbed 1.4 per- total retail sales have risen
January, boosting retail tronics outlets and sport- spending,” said Ian Shep- cent. Building materials a solid 5.6 percent. The
sales even though auto ing goods retailers. herdson, chief economist stores saw a slight 0.3 per- greater spending likely re-
buying fell. The gains point to contin- at Pantheon Macroeco- cent gain. flects the improving job
Retail sales rose a season- ued economic growth. nomics. But sales at auto dealers market. Employers added
ally adjusted 0.4 percent, But they also indicate that Higher gas prices drove a slipped 1.2 percent, a sharp 227,000 workers in January,
down from a solid 1 per- improving consumer senti- 2.3 percent sales increase at pull back after jumping 2.9 while the unemployment
cent gain in December, ment after President Don- service stations last month. percent in December. rate ticked up slightly to
the Commerce Depart- ald Trump’s presidential Gasoline prices climbed 7.8 Sales at non-store retail- 4.8 percent because more
ment said last week. election, especially opti- percent between January ers such as internet outlets people started looking for
Overall sales pulled back mism among Republicans, and December, according were flat in January, al- jobs and were counted as
from a December bump has yet to significantly to a separate Labor De- though they have climbed unemployed.q

World stocks mostly rise as US remains shut for holiday

KELVIN CHAN interest rates. Last week,
AP Business Writer Fed chief Janet Yellen in-
HONG KONG (AP) — Glob- dicated the Fed is likely to
al stocks mostly rose Mon- speed up the pace of its
day, though Wall Street re- interest rate rises if the job
mained shut for a holiday, market remains healthy
as investors awaited key and inflation stays on track.
reports this week, Also due this week: a Ger-
including economic data, man business confidence
corporate earnings and index on Tuesday, U.S. new
minutes from the Federal home sales on Friday and
Reserve’s last meeting. earnings from big compa-
KEEPING SCORE: In Europe, nies such as British bank
Germany’s DAX gained 0.6 HSBC.
percent to 11,827.62 and ANALYST VIEW: “The Fed
Britain’s FTSE 100 was flat minutes on Wednesday
at 7,299.86. France’s CAC are likely to be the data
40 shed 0.1 percent to highlight this week,” said
4,864.99. Greek bonds rose Kathleen Brooks, research
after eurozone finance director at City Index. How-
ministers moved a step ever, Fed officials are “un-
closer to freeing up more likely to commit to a March
rescue loans for the coun- rate hike,
try. A woman walks by an electronic stock board of a securities firm in Tokyo. Global stocks mostly especially because the
U.S. markets set record rose Monday, though Wall Street remained shut for a holiday, as investors awaited key reports this Fed has worked its way into
highs on Friday but re- week, including minutes from the Federal Reserve’s last meeting. (AP Photo/Koji Sasahara) a corner where it is now
mained closed for trading dependent on the Trump
on Monday for Presidents’ administration’s fiscal plans
Day. await the Federal Reserve’s utes from its January policy vide new insight in the U.S. before it can change
WEEK AHEAD: Markets release Wednesday of min- meeting, which might pro- central bank’s views on policy.”q

Unilever shares slide after Kraft Heinz withdraws $143B bid

NEW YORK (AP) — Shares The deal would have com- tions. The fact that it bid supermarket shelves, but head of the consumer
in Unilever, the owner of bined Kraft Heinz products for all of Unilever and not shifting tastes are partly products unit at consulting
brands like Hellman’s, Lip- such as Oscar Mayer, Jell- just its food business indi- driving deal-making in the firm AlixPartners, said last
ton, and Knorr, are down O and Velveeta with Uni- cates that Kraft Heinz is po- food industry. week.
sharply after rival Kraft lever’s stable of brands, tentially open to acquiring Part of the challenge is the Instead, major packaged
Heinz withdrew a $143 bil- which include food as well other packaged consumer proliferation of smaller food food companies are be-
lion takeover offer. as other consumer goods goods, one analyst said. makers marketing products ing forced to dig deeper
The companies said Sun- like Dove soap and Vase- Unilever, which has a head that seem more whole- to find cost efficiencies or
day in a joint press release line. The merged company office in London and mul- some, which makes it hard- tap into new markets, Gar-
that Kraft Heinz has “amica- would have rivaled Nes- tiple stock listings, rejected er for the established com- field said. That can include
bly” abandoned the offer. tle as the world’s biggest the offer on Friday, but de- panies to drive up sales mergers that result in con-
Shares in Unilever slumped packaged food maker by spite that, Kraft Heinz said simply by selling more of solidated manufacturing
6.5 percent on Monday to sales. at the time that it was still well-known products or by systems, or that give com-
41.91 euros in Amsterdam, Analysts say Kraft Heinz, interested in the deal. raising prices, as they have panies access to distribu-
one of the places they’re co-headquartered in Chi- Such acquisitions might not in the past. tion networks in regions of
listed. They’d jumped 14 cago and Pittsburgh, is still lead to big changes that “That obviously has its lim- the world where they don’t
percent on Friday. in the market for acquisi- customers would notice on its,” said David Garfield, have a big presence.q