1 Eurozone industrial production falls (Phillip
Inman in The Guardian) Industrial production in the eurozone slumped in August
by 0.5%, according to official figures that illustrate the impact of falling
demand for Europe’s cars and machine tools in China and the east Asia. The
latest figures showed an even bigger drop in the year-on-year growth rate to
just 0.9% growth when a rise of 1.8% had been expected.
The weak figures are expected to put pressure on the
European Central Bank to expand its stimulus programme when it meets next week
in Malta. ECB boss Mario Draghi has hinted that €60bn a month of bond purchases
under its quantitative easing plan until September 2016 could be increased in
size or extended at the meeting on 22 October.
A 1.1% fall in Germany was more than offset by a
1.6% rise in France, but the weight of declines among Europe’s smaller
countries dragged down the total for the currency bloc’s 19 members. A 4.3%
decline in the Czech Republic’s industrial output spearheaded a long list of
fallers that included the Netherlands, down 1.5%, Denmark (-1.1%) and Spain
(-1.3%).
The situation in Germany is unlikely to improve in
the next few months, according to analysts who say recent surveys and the
Volkswagen scandal will only add to Berlin’s recent woes. The ZEW surveys of
economic expectations among business leaders plunged from 12.1 to 1.9 points.
2 Wal-Mart predicts lower profits (BBC) Shares in
the world's biggest retailer, Wal-Mart, have plunged after it cut its profit
forecast. The company said it expected earnings per share to drop by between 6%
and 12% in the next financial year. The announcement sent shares of the company
tumbling by 8%, their biggest fall in six years.
Wal-Mart said the lower profit forecast was because
it was investing in e-commerce as well as increasing employee wages. The
retailer's spending efforts are in part a reaction to slowing sales, and
competition from online retailers like Amazon. It is also spending more to
train and retain employees. In April, the company raised its base salary to $9 per
hour and will increase it to $10 next year.
Wal-Mart has blamed the fall in part on the strong
dollar affecting overseas sales, something that has also affected other US
retailers. Profits for the company dipped over the summer as sales in its UK
supermarket chain, Asda, declined.The retailer also announced it would
repurchase $20bn in shares from investors.
3 World’s most powerful cities (Cleofe Maceda in
Gulf News) London is the most powerful city in the world, according to a new
survey. The Mori Memorial Foundation’s Institute for Urban Strategies has released
the results of its latest Global Power City Index (GPCI) 2015 report, which
rates 40 global metropolises according to their desirability or power to
attract human capital and businesses from around the world.
The cities representing Europe, Africa, Asia, North
America and Latin America were assessed according to six key strengths :
economy, research and development, cultural interaction, livability,
environment and accessibility.
London, which has held the top spot every year since
hosting the 2012 Olympic and Paralympic Games, emerged as the overall winner
for 2015, followed by New York, Paris, Tokyo and Singapore in the top five.
Completing the top ten list are Seoul, Hong Kong, Berlin, Amsterdam and Vienna.
London took the top spot for cultural interaction
and did consistently well in most of the other key indicators, ranking second
in economy, third in research and development, and second in accessibility. The
city, however, needs to improve its livability, taking only the 19th spot in
the same category.
In the economy category, which took into account
gross domestic product, wage level, total employment, corporate tax rate and
total market value of shares on stock exchanges, among others, Tokyo topped the
list, making it the most economically powerful city in the world.
In terms of research and development, New York is a
clear powerhouse to reckon with. For livability, Paris emerged as the clear
winner, while Geneva emerged as the winner in terms of environment. In terms of
accessibility, Paris earned the highest score.
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