International business briefs: US economy adds more jobs than expected in June

Washington — US job growth was solid in June while the unemployment rate unexpectedly fell to 4.1%, suggesting the labour market remained stable and potentially allowing the Federal Reserve to delay resuming cutting interest rates until September.

Nonfarm payrolls increased by 147,000 jobs last month after an upwardly revised 144,000 advance in May, the labour department’s Bureau of Labour Statistics said in its closely watched employment report on Thursday.

Economists polled by Reuters had forecast payrolls rising 110,000 after a previously reported 139,000 gain in May. Estimates ranged from an increase of 50,000 to 160,000 jobs.

The report was published a day early because of the Independence Day holiday on Friday. Despite the bigger-than-expected rise in payrolls, job growth is slowing, mostly reflecting tepid hiring. Layoffs remain fairly low, with employers generally hoarding workers after difficulties finding labour during and after the Covid-19 pandemic. Reuters

Workers land another bumper pay hike in Japan

Tokyo — Japanese companies agreed to raise wages by an average 5.25% this year, their biggest pay hike in 34 years and the third straight year of robust growth as they grapple with severe labour shortages and seek to shield workers from inflation.

The final figure tallied on Thursday by the Rengo labour union group — Japan’s largest with 7-million members — follows an increase of 5.10% last year and 3.58% the year before — a sharp contrast to prior decades of stagnant wages.

Japan’s biggest business lobby Keidanren also said on Thursday that the average summer bonus payment at major companies this year increased 4.37% from the previous year to a record ¥990,848 ($6,889). Reuters

BlackRock mulls offloading stake in pipeline 

Bengularu — Asset manager BlackRock is in talks with Saudi Aramco to divest its stake in the leasing rights of a natural gas pipeline network back to the state oil major, Bloomberg News reported on Thursday, citing people familiar with the matter.

The stake, which BlackRock acquired in 2021, is likely to be worth billions of dollars, according to the report.

Reuters could not immediately confirm the report. Reuters

Russia’s 2025 car sales expected to decline 

Moscow — Industry group AEB on Thursday said it had lowered its forecast for Russia’s 2025 car sales, but said the market was showing early signs of stabilising and that more government support and lower interest rates could support a recovery.

Russia’s car market collapsed in 2022 as Western carmakers such as Renault and Volkswagen exited the market after the start of Moscow’s full-scale war in Ukraine, paving the way for Chinese carmakers to seize more than half the market in the ensuing recovery.

The Association of European Businesses said it sees Russian car sales falling by 24% compared with 2024 to 1.25- million units. In January, the lobby group had forecasted a 15% drop to 1.4-million units. Reuters

Polestar’s SUV to be made at Volvo site in Slovakia 

Stockholm — Sweden-based electric vehicle maker Polestar said on Thursday its upcoming SUV model Polestar 7 will be manufactured at Volvo Cars’ under-construction factory in Slovakia, making it its first car to be made in Europe.

Polestar said in a statement the two companies, which are both controlled by China’s Geely and its owner Li Shufu, had signed a memorandum of understanding to the effect, and that it plans to launch the model in 2028.

Polestar does not own factories, its cars are produced at factories owned by Volvo Cars and Geely in China and the US One model will also manufactured in South Korea from this year. Reuters

Shein fined for ‘alleged deceptive business practices’

Paris — France’s antitrust agency said on Thursday it had fined Shein €40m for alleged deceptive business practices, after a nearly yearlong probe.

The agency said Infinite Style E-Commerce LTD, which handles sales for the Shein brand, had misled customers about discounts, and that the company had accepted the fine. Representatives for Shein did not immediately respond to requests for comment. Reuters

Telecom Italia to receive a €750m syndicated loan

Milan — Telecom Italia (TIM) is set to receive a €750m syndicated loan backed by Italy’s export credit agency SACE, two sources familiar with the matter said on Thursday.

The five-year facility provided by a pool of banks will benefit from a 70% guarantee under SACE’s Archimede scheme, the sources said, asking not to be named.

It is expected to be finalised as early as this month.

The Archimede programme is designed to support Italian companies investing in strategic sectors such as digital transformation and the green transition. It envisages a maximum exposure of €60bn through 2029, of which €10bn was already taken on by SACE last year, according to the treasury’s multiyear budget plan unveiled in April. Reuters

China’s EV sector will boast only 15 brands by 2030

Beijing — Only 15 out of the 129 brands that sell electric vehicles and plug-in hybrids in China will be financially viable by 2030, as intense competition forces consolidation and some to exit the market, consultancy AlixPartners said on Thursday.

These 15 brands are projected to account for about 75% of China’s EV and plug-in hybrid market by the end of the decade, each averaging annual sales of 1.02-million units, AlixPartners said, without specifying brand names.

However, consolidation in China is expected to proceed more slowly than in other markets, said Stephen Dyer, head of AlixPartners’ automotive practice in Asia, because local governments may continue supporting non-viable brands due to their importance to regional economies, employment and supply chains. Reuters

Currys beats profit estimates on strong demand

Bengaluru — British electricals retailer Currys beat market expectations for annual adjusted pre-tax profit on Thursday, having raised its guidance three times over the year as it navigated cost pressures, driving its shares up nearly 10%.

Currys said its mobile business — which includes smartphones, gaming, computing and related services — remained one of its top-performing categories, with consumers rapidly adopting AI-powered products as prices decline.

“We’re coming up to the Covid-era replacement cycle for laptops. Five years in, people are replacing their laptops,” CEO Alex Baldock said on a media call, noting that rising demand for AI and gaming was also fuelling growth for computing.

The retailer has also been expanding into grooming and pet care products, where it sees opportunities to gain market share. Reuters