The Match Group finds the perfect mate, Greece will need new debt relief and budget deficit drops to a new low for Obama presidency. Read about these and more of the day's top business news stories.
Producer Prices Up More than Expected
U.S producer prices rose for the second consecutive month in June as the cost of gasoline and a variety of other goods rose, CNBC reports. The Labor Department's producer price index for final demand increased 0.4 percent last month after increasing 0.5 percent in May. A 0.7 percent increase in goods prices comprised nearly two-thirds of the increase in last month's PPI. In the 12 months through Junem the PPI fell 0.7 percent after declining 1.1 percent in May. It was the fifth straight 12-month decrease in the index, CNBC notes.
Looks Like Love for PlentyofFish Suitor
New York-based The Match Group, which owns dating websites Match.com, OkCupid and Tinder, said Tuesday that it has acquired Vancouver-based dating website PlentyOfFish for $575 million. The Match Group said the deal is subject to approval from Canada's federal industry minister and is expected to close early in the fourth quarter, the Associated Press reports. Match Group CEO Sam Yagan said it was attracted to PlentyOfFish's consistent growth, and it plans to integrate the Canadian company's mobile app into its existing family of digital and online dating services. PlentyOfFish founder and sole owner Markus Frind said he'll stay on as CEO and plans to concentrate on expanding the company's mobile audience. Eighty percent of PlentyOfFish's traffic now comes from mobile devices, according to the AP.
Greece will Need $94 Billion: IMF
You know that bailout agreement Greece and its creditors announced Monday? The one that requires Greece to enact austere budget cuts and economic reforms? It won’t be enough, the International Monetary Fund says. The Associated Press reports that the IMF figures Greece will need debt relief and 85 billion euros ($94 billion) in new financing through 2018 because its situation has deteriorated since it closed its banks June 29. Earlier this month, the IMF said Greece needed about 60 billion euros through 2018. But it says Greece's debts will peak over the next two years at 200 percent of economic output, much higher than earlier estimates. In other developments, Prime Minister Alexis Tsipras defiantly proclaimed he won't resign despite being pressed to impose more austerity measures in Greece.
2015 Budget Deficit to be Lowest of Obama Presidency
The White House forecast on Tuesday that this year's budget deficit will register at a less-than-earlier forecast $455 billion, the lowest yet of Barack Obama's presidency. The new figure is slightly less than 2014's deficit of $483 billion. During the president’s first term, deficits topped $1 trillion each year, a reflection of the prolonged economic recovery from the worst recession since the Great Depression. The White House predicts 2 percent growth for this year, rising to 2.9 percent next year. It projects the official unemployment rate should drop to 5.1 percent, down slightly from the current national average of 5.3 percent, which is a seven-year low.
China Economy Holds Steady in Q2
China's economic growth in the second quarter held steady at 7 percent, its lowest level since the global crisis, but retail sales and factory output in June improved, the Associated Press reports. The report comes as the world’s second largest economy is struggling to reverse a stock market plunge. Beijing has cut interest rates four times since November and has pumped money into the economy through higher spending on construction of public works, the Associated Press reports.
Celgene to Acquire Receptos
Summit, N.J.-based cancer drug maker Celgene said it will buy Receptos for $7.32 billion in cash, gaining a drug Receptos is studying as a treatment for multiple sclerosis and ulcerative colitis, USA TODAY reports. Celgene reported about $2 billion in first-quarter sales of its drugs, which include the multiple myeloma treatments Revlimid and Pomalyst and breast and lung cancer drug Abraxane. Revlimid, its top seller, is also used to treat severe anemia and mantle cell lymphoma. The acquisition of Receptos is part of a strategy to boost its sales of treatments for inflammatory and immune diseases. In 2014 Celgene launched its first drug in that category, the psoriasis and psoriatic arthritis treatment Otezla. San Diego-based Receptos doesn't have any approved drugs on the market.