McDonald's reported lower profits Tuesday following the hit from its Russia withdrawal, as it keeps a close eye on restaurant traffic amid rising consumer inflation.. As a more affordable restaurant chain, McDonald's is potentially positioned to pick up sales from lower-income consumers.
Surging inflation and severe slowdowns in the United States and China prompted the IMF Tuesday to downgrade its outlook for the global economy this year and next, while warning that the situation could get much worse.. "The world's three largest economies, the United States, China and the euro area are stalling with important consequences for the global outlook," he said at a briefing.
China's biggest tech hub is rushing to stamp out a fresh Covid outbreak, ordering some of the country's biggest manufacturers to operate in a 'closed loop' to reduce infections, state media reported.. While it is expensive and reduces the scale of production, manufacturers -- including Tesla's site south of Shanghai in the past -- have opted to operate in a closed-loop instead of resorting to full shutdown during local Covid flareups.
Higher prices for soda helped Coca-Cola score better-than-expected quarterly profits in spite of higher operating costs and the drag of the strong US dollar in international markets, the company announced Tuesday.. But the beverage giant pointed to a drag from higher operating costs and marketing spending compared to the prior year.
General Motors reported a big drop in second-quarter profits Tuesday due to the grinding semiconductor shortage, although the automaker confirmed its full-year forecast amid strong pricing.. "We have been operating with lower volumes due to the semiconductor shortage for the past year, and we have delivered strong results despite those pressures," said GM Chief Executive Mary Barra in a statement.
British airline EasyJet on Tuesday said it took a sizeable financial hit from sector-wide disruptions, notably staff shortages, but still slashed quarterly losses as demand recovers.. As airport staff shortages spark flight cancellations, EasyJet said in a statement that it booked a one-off charge totalling £133 million ($160 million).
E-commerce giant Alibaba said Tuesday it will seek a primary listing in Hong Kong, potentially giving access to China's vast pool of investors, as mainland officials indicate a long-running crackdown on the tech sector could be coming to an end.. Domestically, Alibaba is still reeling from the tech crackdown as well as China's slowing economy caused by the fallout from strict Covid curbs.
Markets fluctuated in Asia on Tuesday as traders nervously geared up for a slew of earnings from the world's biggest firms and an expected Federal Reserve interest rate hike.. After a mixed performance in New York, Asia struggled to gain traction.
Croatia opens Tuesday a long-awaited bridge linking its southern Adriatic coast including Dubrovnik with the rest of the country, bypassing a narrow strip of Bosnian territory.. As a result, around 90,000 people, including residents in the country's tourism hotspot of Dubrovnik, remained cut off from the rest of the country until now.
President Joe Biden on Monday pushed Congress to pass a bill providing domestic semiconductor manufacturers with $52 billion in subsidies to cut reliance on foreign sourcing for the vital component.. "Congress must pass this bill as soon as possible," he said, citing both the economic and national security "imperative" of securing production of the tiny components needed for everything from smart phones to cars and weapons.
