US companies hired far fewer workers than expected last month, while the country?s trade deficit hit its widest point in two years in April, suggesting trade remained a drag on economic growth this quarter. But the data on Wednesday nevertheless suggested the economy was growing solidly, with payroll growth still fairly robust and demand for imports surging Private employers added 179,000 jobs to their payrolls in May, the ADP National Employment Report showed. That compared to 215,000 jobs in April and was below economists? expectations for a gain of 210,000 jobs in May. It was released ahead of the government?s comprehensive employment report on Friday. The ADP report does not have a good record predicting non-farm payrolls. In a second report, the commerce department said the trade gap increased 6.9% to $47.2 billion as imports hit a record high. It was the largest deficit since April 2012 and followed a $44.2 billion shortfall in March. When adjusted for inflation, the deficit increased to $53.8 billion from $50.9 billion in March.
US Q1 productivity weakest in six years
US non-farm productivity fell at its sharpest pace in six years in the first quarter as harsh winter weather depressed output, leading to a jump in labor-related production costs. The Labor Department on Wednesday revised productivity data to show it tumbling at a 3.2% annual rate. That was the biggest drop since the first quarter of 2008. It had initially been reported falling at a 1.7% rate. The drop in productivity, which mirrored a decline in economic growth during the same period, is likely temporary. Economists had expected productivity, which measures hourly output per worker, would be revised down to show it contracting at a 2.7% pace. It increased at a 2.3% pace in the fourth quarter.
Tesco under pressure as sales slide worsens
Britain?s biggest retailer Tesco recorded its worst quarterly UK sales drop in 40 years on Wednesday, ratcheting up the pressure on boss Phil Clarke to show his turnaround plan can counter the challenges of the grocery industry. British consumers are shopping around to save money, wasting less and turning to fast-growing discounters such as Aldi and Lidl or Waitrose and Marks & Spencer at the top end of the market. The once-mighty Tesco has posted two straight years of profit decline. With its key measurement of underlying sales at British stores down 3.8% in its first quarter, Clarke is accelerating an investment programme to rebuild the 95-year-old group and is cutting prices to try to woo back shoppers.
Haythorne, Liu co-heads of HSBC AsiaPac banking
HSBC Holdings has named Martin Haythorne and Che Ning Liu as co-heads of banking for Asia Pacific, according to an internal memo, taking on roles that involve managing the bank?s relationships with top clients in the region. Haythorne and Liu will take over on September 1 the role previously held by Russell Julius, who is transferring to London, according to the internal memo seen by Reuters on Wednesday. The two executives will report to Robin Phillips, global head of banking, and Gordon French, head of global banking and markets in Asia Pacific, the memo said. An HSBC spokesman in Hong Kong confirmed the moves. Phillips himself moved from Hong Kong to London last July as part of a global reorganisation that created a separate ?product neutral? client coverage division within the British lender.
Pemex ends 25-year partnership with Repsol
Mexico?s national oil company Pemex sold most of its stake in Spain?s Repsol for 2.09 billion euros ($2.9 billion), ending a quarter-century partnership and freeing up cash to invest in its own energy sector. Pemex?s exit as one of Repsol?s top three shareholders ends a relationship that had become increasingly fractious in recent years due to disagreements on policies ranging from top management to the handling of Repsol investments in Argentina. The sale comes five days before Mexican President Enrique Pena Nieto makes his first official visit to Spain and as the Latin American country opens up its energy sector to private investment for the first time since 1938. Pemex sold 7.86% of Repsol to unspecified private investors on Wednesday at 20.10 euros each, a 3.7% discount to the Spanish company?s closing price on Tuesday.