THE DAILY BRIEFING

FRENCH DRAG The moribund French economy is holding back the recovery in the eurozone, according to the latest figures.

Markit’s index of activity in the nation – where 50 is the cut off between growth and decline – came in at just 50.5 this month. That was well below the German score of 53.8 and contributed to a score of 53 across the eurozone.

Chris Williamson, chief economist at Markit, said: ‘ Germany and the rest of the region are enjoying more robust expansions by comparison.’ VW WOES Troubled German car giant Volkswagen has posted a net loss of £1.2bn for crisis-hit 2015.

It fell into the red from the £11.4bn profit seen the year before.

VW has also more than doubled the amount it is setting aside to cover the fines and fixes for its emissions scandal from £5.2bn to £12.5bn.

CAKE DEAL Mr Kipling cakemaker Premier Foods is in a relationship with Japanese food group Nissin, after US rival McCormick walked away from trying to buy Premier.

Noodle-maker Nissin owns nearly 20pc of Premier and, under the terms of the relationship agreement, it has the right to appoint a non-executive director to Premier’s board.

Last month, Premier’s chief executive Gavin Darby was criticised by shareholders over his handling of the takeover talks with McCormick. Shares fell 0.64pc or 0.25p to 39p.

TAXING TIMES Offshore tax receipts from the oil and gas industry fell to £35m last year, underlining the crisis gripping the industry following the slump in the price of crude.

HM Revenue & Customs said offshore corporation tax raised £538m in 2015-16, but that was offset by rebates of £503m. The £35m difference compares with tax revenues of around £2bn in 2014-15 and almost £11bn as recently as 2011-12.

EMISSIONS SCANDAL Shares in Daimler fell 5pc after the Mercedes owner said it had been asked by the US Department of Justice to investigate the way it tests emissions.

Investors also baulked at a 9pc slump in first- quarter operating profit, though Mercedes’ sales in China jumped 36.4pc in the quarter, lifting total sales to 483,487 cars.