Business
European luxury companies' $240 billion rout is just the beginning
Once seen as Europe's answer to the US "Magnificent Seven" tech megacaps, shares in companies producing high-end clothing, handbags and jewellery are languishing, sapped by a spending slump. Even more ominous are signs that China's rich, who once flocked to upscale boutiques in Paris, Milan and Hong Kong, may not return, their appetite for pricey items extinguished by the economy's downward spiral.
Boeing says it has a deal to avoid a strike by more than 30,000 machinists
Boeing and its largest union have reached a tentative agreement on a new contract, potentially avoiding a strike that could halt aircraft production. The deal includes a 25% pay raise over four years, $3,000 lump sum payments, and reduced health care costs. Union members will vote on the contract by Thursday night.
Starbucks turns to celebrity CEO as it struggles to define itself for era of mobile orders
Starbucks is undergoing a transformation under new CEO Brian Niccol, known for his success at Chipotle. The coffee giant aims to address operational chaos and declining sales by streamlining its menu and improving service times. Niccol's leadership will focus on understanding core customers and simplifying the complex beverage options.
Volkswagen boss says European market shrinking amid tougher competition
Volkswagen's CEO Oliver Blume has announced the need for significant cutbacks in Germany due to a shrinking European market and rising competition from Asia. The company is considering closing factories and ending job guarantees at six plants as part of a 10 billion euro cost-cutting plan.
As Volkswagen weighs its first closure of a German auto plant, workers aren't the only ones worried
Volkswagen is considering closing some factories in Germany for the first time in its history to meet cost-cutting goals. The company needs to save 10 billion euros by 2026 due to a smaller European car market and high costs. This has caused outrage among workers and concern among politicians.
China says "dissatisfied" with new Dutch export controls on ASML chipmaking tools
China has expressed dissatisfaction with the Dutch government's decision to expand export controls on ASML chipmaking equipment. The Netherlands aligned its rules with U.S. restrictions, affecting ASML's DUV lithography tools. Beijing criticized Washington's strategy of pressuring allies to limit China's access to advanced chip technology, urging the Dutch to avoid damaging Sino-Dutch semiconductor cooperation.
Cars talking to one another could help reduce fatal crashes on US roads
Salt Lake City has implemented a system where commuter buses communicate with traffic signals to ease congestion. This is part of a broader plan, supported by a $20 million federal grant, to enable vehicles in Utah, Colorado, and Wyoming to share real-time data on road conditions, aiming to reduce accidents and improve safety.
Indian-origin cosmetics tycoon rescues The Body Shop stores in UK
The Body Shop has been rescued from administration by Indian-origin tycoon Mike Jatania's investment firm Aurea. The deal includes all UK stores and control of outlets in Australia and North America. Jatania plans to invest in product innovation while maintaining the brand's ethical positioning. No UK store closures are planned.
US warns of growing risks of business in Hong Kong
The United States on Friday warned of growing risks for businesses operating in Hong Kong, saying that routine activities could run afoul of the financial hub's new national security regulations. The United States has repeatedly warned that Beijing-led security regulations are putting at risk the openness that allowed Hong Kong to flourish as a trading hub.
China stops short of Africa debt relief but pledges more cash in investments and credit lines
China has pledged $50.7 billion over three years in credit lines and investments to Africa but did not provide the debt relief many African countries sought. The funds will support infrastructure and clean energy projects, aiming to improve trade links and tackle power deficits. However, concerns about debt transparency remain.
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Volkswagen factory threat stress-tests Germany's economic model
German industry faces a crisis as Volkswagen threatens to close factories, challenging the nation's consensual industrial relations model. High labor and energy costs, along with competition from Asian rivals, are pressuring legacy carmakers like VW. Negotiations between management and unions are set to begin next week to find solutions.
Which Volkswagen factories in Germany could be hit by layoffs or closed?
Volkswagen plans to end its job security programme, in place since 1994, due to competition from Asian rivals. This move could impact several German factories, including those in Osnabrueck and Dresden. The programme had previously prevented job cuts until 2029, affecting thousands of workers across various plants.
Is a recession coming? What next for the pound? Your questions answered
All your queries about economic outlooks, currency trends, stock trading, and company earnings, answered. Economists are less worried about a recession now than earlier in the year. Currency volatility has increased, and rate cuts could impact equities differently across industries. Thematic trends and company financial statements also play significant roles.
Hiring halts: Fresh graduates in US left in the lurch
The job market is challenging for recent graduates due to fewer employers hiring. Hiring projections for this year's college graduates are down, particularly in finance and real estate sectors. The Federal Reserve's high interest rates have led to cautious business expansion and hiring, but potential future rate cuts could improve job prospects.
Jobs report will help Federal Reserve decide how much to cut interest rates
Friday's jobs report could be crucial for the economy and the Federal Reserve. If hiring was weak in August, it might lead to a larger interest rate cut. A stronger report would suggest stability, prompting a smaller rate cut. This data could also influence the presidential race, with Trump criticizing the current administration and Harris highlighting economic progress.
Credit Agricole CIB appoints Atul Sodhi as senior country officer for UK
Credit Agricole CIB has appointed Atul Sodhi as senior country officer for the UK, effective September 1. Sodhi, with over 32 years of experience, will oversee business development and strategy in the UK. He has been with Credit Agricole CIB since 1997 and will join the bank’s management committee.
