
RBNZ Says Aging Population May Weigh on Neutral Official Cash Rate Over Time
'We expect an aging population to put downward pressure on the neutral interest rate, but other factors may offset its impact,' the RBNZ said in a report published Tuesday in Wellington. Any impacts are likely to be gradual over decades, it said.
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Yahoo
an hour ago
- Yahoo
AstraZeneca unveils $50 billion US investment as pharma tariff threat looms
By Maggie Fick and Ahmed Aboulenein WASHINGTON (Reuters) -AstraZeneca plans to spend $50 billion to expand manufacturing and research capabilities in the U.S. by 2030, it said on Monday, the latest big investment by a pharmaceutical company reacting to President Donald Trump's tariff policy. The investment will fund a new drug manufacturing facility in Virginia and expand research and development (R&D) and cell therapy manufacturing in Maryland, Massachusetts, California, Indiana and Texas, it said in a statement. It will also upgrade the Anglo-Swedish drugmaker's U.S. clinical trial supply network and support ongoing investment in novel medicines. On Monday, AstraZeneca said the expansion supports its ambition to reach $80 billion in annual revenue by 2030, with half coming from the U.S. The U.S. accounted for more than 40% of AstraZeneca's annual revenue in 2024, and the company had been prioritising the market - the world's largest, worth $635 billion - before Trump's return to office. The move to scale up its U.S. footprint is the latest by a drugmaker as Trump threatens to impose import tariffs on the industry and seeks to boost domestic manufacturing. The sector has historically been spared from trade disputes. Trump has called on pharma companies to make more of the medicines they sell in the U.S. within the country, rather than importing active ingredients or finished medicines. CEO Pascal Soriot announced the plans in Washington. U.S. Commerce Secretary Howard Lutnick's department is leading a probe into pharmaceutical imports that could pave the way for new tariffs. "For decades Americans have been reliant on foreign supply of key pharmaceutical products. President Trump and our nation's new tariff policies are focused on ending this structural weakness," said Lutnick in a statement issued by AstraZeneca. While Trump has repeatedly threatened tariffs on the sector, he signalled earlier this month that companies would be given a year to 18 months to "get their act together" before any levies take effect. The company said that the timing and location of the announcement was linked to the U.S. policy environment, though some of the spending would have occurred regardless so that the infrastructure for future medicines was in place. The pledge is in addition to the $3.5 billion in investments the company announced in November 2024, the statement said. PLEDGES The $50 billion pledge matches the commitment announced by Swiss rival Roche in April and exceeds new spending plans unveiled this year by Eli Lilly & Co, Johnson & Johnson, Novartis, and Sanofi. Also present at the announcement was Virginia State Governor Glenn Youngkin, a vocal Trump ally who has defended the administration's tariff policies. The new Virginia facility - the company's largest single manufacturing investment - will produce active ingredients for AstraZeneca's experimental weight-loss medicines, including its oral GLP-1 candidate and an oral PCSK9 inhibitor for cholesterol management, it said. The company said the investment could create tens of thousands of new jobs, but declined to give specifics. It employs about 18,000 people in the U.S. and has a global workforce of about 90,000. The effort to strengthen its U.S. ties comes after years of criticism of the UK business investment climate. In January it scrapped plans to invest 450 million pounds ($607.1 million) in its vaccine manufacturing plant in northern England, citing a cut in government support. Earlier this month, The Times reported the company was considering moving its stock market listing from London, where it is the exchange's most valuable company worth 159 billion pounds, to the U.S. The company declined to comment. The company rejoined the leading U.S. drug lobby group earlier this year, roughly two years after leaving it. ($1 = 0.7415 pounds) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data


Fast Company
2 hours ago
- Fast Company
OpenAI and the UK form partnership to expand AI research, infrastructure
Britain and ChatGPT maker OpenAI have signed a new strategic partnership to deepen collaboration on AI security research and explore investing in British AI infrastructure, such as data centres, the government said on Monday. 'AI will be fundamental in driving the change we need to see across the country – whether that's in fixing the NHS (National Health Service), breaking down barriers to opportunity or driving economic growth,' Peter Kyle, secretary of state for technology, said in a statement. 'This can't be achieved without companies like OpenAI, who are driving this revolution forward internationally. This partnership will see more of their work taking place in the UK.' The government has set out plans to invest 1 billion pounds in computing infrastructure for AI development, hoping to increase public compute capacity 20 fold over the next five years. The United States, China and India are emerging as front runners in the race to develop AI, putting pressure on Europe to catch up. The partnership with OpenAI, whose tie-up with Microsoft once drew the scrutiny of Britain's competition regulator, will see the company possibly increase the size of its London office, and explore where it can deploy AI in areas such as justice, defence, security and education technology. In the same statement, OpenAI head Sam Altman praised the government for being the first to recognise the technology's potential through its 'AI Opportunities Action Plan' – an initiative by Prime Minister Keir Starmer to turn the UK into an artificial intelligence superpower. The Labour government, which has struggled to increase economic growth meaningfully in its first year in power and has since fallen behind in polls, has said that the technology could increase productivity by 1.5% a year, worth an extra 47 billion pounds ($63.37 billion) annually over a decade. ($1 = 0.7417 pounds)


Fast Company
3 hours ago
- Fast Company
Domino's Pizza Q2 sales exceeds estimates—thanks to new items
BY Domino's Pizza surpassed analysts' expectations for second-quarter U.S. same-store sales on Monday, driven by new items on the menu and promotions, amid persisting macroeconomic uncertainties, sending shares up about 5% in early trade. The world's largest pizza chain introduced items such as the parmesan-stuffed crust pizza to its list, and attracted value-conscious consumers through deals under its rewards program. These efforts helped offset the impact from U.S. President Donald Trump's fluctuating tariff policies and the resulting trade tensions. Consumer spending has declined in recent months due to rising inflation and uncertainty surrounding Trump's policies, prompting customers to seek value offerings rather than expensive dine-out options, which has benefited pizza chains like Domino's. 'In the U.S., both delivery and carry out grew, driving meaningful market share gains,' Domino's CEO Russell Weiner said. Domino's posted a 3.4% rise in same-store sales in the U.S. for the quarter ended June 15, exceeding analysts' average estimate of a 2.21% rise, according to data compiled by LSEG. That marked its first beat in five quarters. 'Domino's has a competitive advantage relative to peers in the sector from the discounts they offer that are difficult to match profitably,' said Northcoast Research analyst Jim Sanderson. The company's online sales grew, aided by discounts and its DoorDash partnership, which doubled third-party delivery sales to about 5%, according to M Science analyst Matt Goodman. Momentum from third-party aggregators and discounts will help drive Domino's sales ahead of peers, Sanderson added. International same-store sales grew 2.4%, also ahead of the estimate of 1.71% growth, while quarterly revenue rose 4.3% to $1.15 billion, in line with estimates. Domino's posted quarterly earnings per share of $3.81, compared with the estimate of $3.95. The company said price hikes on the ingredient packs supplied to outlets reduced the gross margin for its U.S. company-owned stores by 2%. —Neil J Kanatt and Waylon Cunningham, Reuters