US producer prices rise 0.8% in May

Producer prices in the US rose at their fastest pace in more than a year in May, a further sign that companies are regaining pricing power after a period in which they were forced to discount goods.

The 0.8 per cent increase in the producer price index for finished goods was above Wall Street expectations of a 0.6 per cent increase.

The core producer price index, which excludes volatile food and energy items, rose by 0.3 per cent, above the consensus forecast of 0.2 per cent, driven largely by higher prices for cars and trucks.

Separately, the labour department reported that new jobless claims dropped by 16,000 last week to 346,000 - although it warned that the public holiday for the funeral of former president Ronald Reagan might have affected the figures.

In another sign of strength, the Conference Board reported a boost in its index of leading indicators, suggesting growing momentum in the economy.

Larger-than-expected gains in producer prices, together with signs of inflation in the pipeline as the prices of intermediate goods rise, will add to concerns in some quarters that the Federal Reserve is too sanguine on the outlook for inflation. - (Financial Times Service)

MinMet takes over Goldquest

MinMet , the gold mining and exploration company, has completed a reverse takeover of Goldquest Mining Corporation, previously Wellington Cove Explorations Ltd.

The company has acquired all of the issued and outstanding shares of Goldquest (Panama), a Panamanian holding company, from Dormant Minerals AB, a subsidiary of MinMet.

Goldquest Panama controls a number of exploration projects in the Dominican Republic.

CPL purchases Thornshaw

Recruitment firm CPL has completed the purchase of Thornshaw Scientific recruitment agency for an undisclosed sum.

CPL chief executive Ms Anne Heraty said: "The acquisition of Thornshaw Scientific addresses the evolving demands from companies in the pharmaceutical sector, for specialist recruiters with expert industry knowledge."

Oakhill meets expectations

Trading in Oakhill Group performed broadly in line with expectation in the early part of the year, according to chairman Mr Dan O'Donohoe.

Speaking at the group's annual general meeting yesterday, he pointed out that the performance did not represent a full half year.

GE Capital appoints chief

GE Capital Woodchester, which provides specialist finance solutions, has appointed Ms Rosheen McGuckian as chief executive.

She replaces Mr Seán Webb, who has been appointed chief commercial officer in its UK home lending business.

Ms McGuckian is a former director of Drury Communications and previously worked for ESB Power Generation. She became communications director for GE Consumer Finance Europe based in Dublin two years ago.

EU textile firms fear China threat

European textile firms, fearful of a flood of Chinese imports, said yesterday they want a special monitoring system to be put in place and for trade barriers to be raised if necessary.

Ahead of the launch of a media campaign to get the attention of EU policymakers, lobby group Euratex said European clothing makers feared the forthcoming end of the current system of global import quotas at the end of this year.