International News 29/08
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German Economy Shrinks 0.1% in Second Quarter
In the second quarter of 2024, Germany's economy contracted by 0.1% compared to the previous three months. This decline followed a slight improvement in the previous quarter and was attributed to a slowdown in the spring, according to Ruth Brand, president of the German statistics office. However, in the first quarter of 2024, Germany's gross domestic product (GDP) saw a 0.2% increase on a quarterly basis. Following adjustments for price and calendar effects, the German Federal Statistics Office has revised the annualised growth rate for the second quarter to 0.0%, representing an improvement from the previously reported figure of -0.1%.
https://internasional.kontan.co.id/news/ekonomi-jerman-menyusut-01-pada-kuartal-ii
SK Innovation agrees to merger to help loss-making battery unit
The shareholders of SK Innovation, the parent company of South Korea's largest oil refiner and battery maker, have approved a merger with its energy affiliate, SK E&S. The merger is designed to enhance the financial stability of the loss-making battery unit, SK On, by establishing a company with assets valued at 100 trillion won (approximately $75.35 billion). SK E&S, an unlisted company, operates a profitable city gas utility business and a liquefied natural gas (LNG) power generation unit. The company reported an operating profit of 1.3 trillion won (approximately $939.37 million) in 2023. Conversely, SK On, the battery manufacturer, has encountered challenges in the form of declining shipments of electric vehicle batteries, resulting in an absence of profitability since its separation from SK Innovation in 2021. In 2023, the parent company, SK Innovation, reported a consolidated operating profit of 1.9 trillion won.
Misses target, Pinduoduo's stock capitalisation evaporates US$55 billion
PDD Holdings, the Chinese e-commerce company, has seen its shares fall by more than 28% after failing to meet revenue targets. The fall in share price resulted in a market capitalisation loss of nearly $55 billion, marking PDD's biggest one-day share price drop since its US listing in 2018. The company said that domestic e-commerce competition in China, as well as uncertainty in the global environment, contributed to the disappointing results. PDD's co-chief executive, Chen Lei, acknowledged that the company is facing new challenges and is entering a high-value development phase that will require increased investment. PDD's second quarter revenue was reported at 97.06 billion yuan, falling short of the estimated 100 billion yuan. The company's operating expenses increased due to investment in marketing and promotions, while general and administrative expenses tripled due to personnel-related costs.