ADP: US companies added 191,000 workers in March
US companies boosted payrolls in March by the most in three months, adding to evidence the job market is recovering from a blast of harsh winter weather, a private payrolls report showed. The 191,000 increase in employment followed a revised 178,000 gain in February that was stronger than initially estimated, according to the ADP Research Institute. The median forecast of economists surveyed by Bloomberg called for a 195,000 advance. The figures show companies are gaining confidence demand will strengthen from earlier in the year when colder-than-normal temperatures and snowstorms prompted Americans to cut back. Further gains in employment and wage growth will help set the stage for a pick-up in household spending, which accounts for almost 70% of the economy.
Euro zone Q4 economic growth revised down
The euro-area economy grew at a slower pace in the fourth quarter than initially estimated, providing further evidence for the ECB assessment that the currency bloc?s recovery is still fragile. GDP expanded 0.2% in the three months through December, according to data posted on the website of the EU?s statistics office on Wednesday. That?s down from the preliminary measure of 0.3% on March 5. The revision comes as ECB policymakers gather in Frankfurt for their monthly interest-rate decision, to be announced on Thursday.
Russian central bank guv sees growth below 1%
Russia’s central bank said on Wednesday economic growth would “most probably” fall below 1% in 2014 and net capital outflows will be higher than expected. Governor Elvira Nabiullina told a Moscow banking conference the bank did not plan to cut its key lending rate from 7% until its June meeting at the earliest, still concerned by high inflation, which could stay above 5% this year. She said the bank intended to stick to the current exchange rate policy parameters due to high uncertainty, but will continue its transition to a flexible rouble after the situation stabilises.
Rusal sees covenants test in May, still in talks on debt
Russia’s aluminium giant Rusal is still in talks with lenders to amend the terms of syndicated facilities covering $3.7 billion of debt to defer repayments and modify covenants, which are due to be tested in May, it said. The company is also continuing talks with lenders to agree certain forbearances and to agree not to exercise their rights in the case of a covenants breach effective until July 7, Rusal said in an emailed comment to Reuters on Wednesday.
Lufthansa pilots start 3-day strike over early retirement
Lufthansa pilots on Wednesday started a walk-out that has prompted the German carrier to ca-ncel about 3,800 flights, in what could become one of the biggest strikes to hit the airline. The union representing most of Lufthansa’s 5,400 pilots called a three-day strike to underline its demand to keep an early retirement scheme. Lufthansa called for fresh talks on the matter.
China?s COFCO to pay $1.5 bn for stake in Noble arm
China’s largest grain trader COFCO will pay an initial $1.5 billion to buy a 51% stake in Noble Group’s agribusiness, Noble said. The firms plan to form a JV, in which Noble will retain a 49% stake, which will link COFCO’s grain proc-essing and distribution business with Noble Agri’s grain origination and trading business. Noble’s agricultural division made $15.5 billion revenue last fiscal, accounting for about 16% of the company’s total. COFCO and Noble still need to obtain regulatory and shareholder approval and the final price will be adjusted so that when completed the payment will be equi-valent to 1.15 times 51% of the audited book value of Noble Agri for the 2014 financial year.
?Russia state firms may be allowed to cut ?13 dividends?
Russia’s government may allow state firms to cut their dividend payments by calculating them according to Russian accounting standards than international standards to help weather an economic downturn, Vedomosti reported on Wednesday. The newspaper, citing sources familiar with a draft proposal, said the State Property Agency and economy ministry will allow the companies to revert to old accounting ways, seen as less transparent.
