Unemployment in Eurozone reaches new record high
The number of unemployed in the 17-nation eurozone reached a record high in September as the bloc’s nascent recovery failed to generate jobs, official data showed. The ranks of the jobless swelled by 60,000 to a record 19.45 million, according to Eurostat, the European Union’s statistics agency. Though the unemployment rate remained steady at 12.2 per cent, the previous month was revised up from 12 per cent.
“The latest figures put a dent in hopes that the labour market may have reached a turning point,” said analyst Ben May of Capital Economics. A sharp and unexpected drop in inflation also cast doubts over the recovery of the eurozone, which just emerged from recession, and put pressure on the European Central Bank to act. The euro dropped sharply, from above US$1.3700 before the news to about US$1.3615 in afternoon trading.
By contrast, the Federal Reserve in the US this week hinted it might start tightening its monetary policy in coming months as growth proves robust and the labour market improves. Ernst & Young analyst Marie Diron said economic activity in the eurozone will remain slow and unemployment high until the bloc finishes cleaning up its banking sector to restore confidence and boost lending.
“A stable unemployment rate is as good as it gets for the eurozone in the current environment,” she said. “Businesses are not yet confident enough about the growth outlook to switch to creating jobs.” The ECB has already cut its key interest rate to a record low to spur lending. But banks, companies and households are still too afraid to lend or borrow money.
The ECB may be pushed into action eventually if the inflation rate keeps dropping. Eurostat said the annual inflation rate fell to 0.7 per cent in October from 1.1 per cent a month earlier, marking its lowest level in about four years. The ECB is tasked with keeping inflation close to, but below two per cent.
“Latest developments reinforce our view that the ECB will end up cutting interest rates from 0.5 per cent to 0.25 per cent sooner or later,” said IHS Global Insight’s analyst Howard Archer, adding the ECB might take such action as early as in December. While other analysts think a rate decrease is unlikely in coming months—not least because of resistance from powerful ECB players such as Germany’s central bank—the ECB still has other means at its disposal.
It can, among other things, provide more cheap loans to banks to improve their finances and encourage them to lend. It already issued such loans three times, helping stabilise the financial system, and ECB President Mario Draghi hinted several times in recent months that the central bank might consider issuing another round. A particularly gloomy stat was on youth unemployment—it rose to 24.1 per cent from 24 per cent in August.
It was lowest in Germany and Austria, with 7.7 per cent and 8.7 per cent, and highest in Europe’s southern economies, which have been hit hard by the debt crisis and government austerity measures. They were around 57 per cent in Greece and 56 per cent in Spain. The overall unemployment rate showed similar disparities. Germany and Austria had low rates of five per cent. By contrast, joblessness was 26.6 per cent in Spain. In Greece, where the latest figures available were for July—it stood at 27.6 per cent.
The unemployment rate for the wider 28-nation European Union remained unchanged in September at 11 per cent.
Source-AP
Barclays suspends currency traders
UK bank Barclays has suspended six traders as part of a probe into suggestions that currency markets could have been rigged, the BBC has learnt.
On Thursday, Royal Bank of Scotland suspended two traders in connection with the investigation.
The Financial Conduct Authority (FCA) probe is said to be at an early stage.
Of the six, some work in London and some in other parts of Barclays' global business, the BBC's chief economics correspondent Hugh Pym said.
Regulators around the world, including the UK's FCA, are investigating the currencies market and Barclays, RBS, Citigroup, Deutsche Bank and UBS have all confirmed that regulators have been in contact with them over the currency probe, though there is currently no evidence of wrongdoing.
On Friday, JP Morgan Chase added that it was also being questioned.
"These investigations are in the early stages and the firm is co-operating with the relevant authorities," JP Morgan said.
Citigroup issued a statement saying: "Government agencies in the US and other jurisdictions are conducting investigations or making inquiries regarding trading on the foreign exchange markets."
The global foreign exchange market is worth more than $5tn a day, and London is the most important hub, accounting for about 40% of all foreign-exchange trading.
Suspicions of exchange rate manipulation centre on a one-minute window of trading at 16:00 every day that is used to set exchange rates.
The suggestion is that traders colluded to push through high volumes of trades in the run-up to and during the window to influence rates.
"If some of the big players in the market got together and put through some very large trades - billions of dollars each - then that could affect the market," said Mark Taylor, a former forex trader who is now dean of Warwick Business School.
Regulators around the world, including the UK's FCA, are investigating the currencies market and Barclays, RBS, Citigroup, Deutsche Bank and UBS have all confirmed that regulators have been in contact with them over the currency probe, though there is currently no evidence of wrongdoing.
On Friday, JP Morgan Chase added that it was also being questioned.
"These investigations are in the early stages and the firm is co-operating with the relevant authorities," JP Morgan said.
Citigroup issued a statement saying: "Government agencies in the US and other jurisdictions are conducting investigations or making inquiries regarding trading on the foreign exchange markets."
The global foreign exchange market is worth more than $5tn a day, and London is the most important hub, accounting for about 40% of all foreign-exchange trading.
Suspicions of exchange rate manipulation centre on a one-minute window of trading at 16:00 every day that is used to set exchange rates.
The suggestion is that traders colluded to push through high volumes of trades in the run-up to and during the window to influence rates.
"If some of the big players in the market got together and put through some very large trades - billions of dollars each - then that could affect the market," said Mark Taylor, a former forex trader who is now dean of Warwick Business School.
Source-BBC
Sony shares plunge as it cuts profit forecast
Shares in Japanese electronics giant Sony plunged 11% to 1,668 yen on the Tokyo Stock Exchange after the firm cut its profit forecast.
The firm lowered its full-year profit forecast by 40% on Thursday as it reported a loss for the July-to-September quarter.
The company has been hurt by slowing demand and falling prices for key products such as TVs and game consoles.
Its cinema division was also hurt during the quarter by some flops.
The firm now expects to make a net profit of 30bn yen ($305; £190m) in the financial year to 31 March 2014, down from its earlier forecast of 50bn yen.
The cut came as the firm said its loss in the three months to the end of September widened 25% from a year ago to 19.3bn yen.
Its earnings were impacted by the poor showing of some high-profile movies including White House Down.
Meanwhile, its TV division - which has struggled in recent years - also posted a loss of 9.3bn yen during the period,
At the same time, a drop in prices resulted in its Game division reporting an operating loss of 800m yen during the period, compared to an operating profit of 2.3bn yen during the same quarter a last year.
Analysts said that with some of the key divisions continuing to struggle, investors were worrying whether the firm will be able to turn around its fortunes.
Source-BBC
RBS shares lose 7% after it decides against 'bad bank' split
Royal Bank of Scotland shares have lost 7.5% following news the 81% state-owned bank will not split itself into separate so-called good and bad banks.
RBS will create an internal "bad bank", ring-fencing £38bn of poor quality assets, such as loans it does not expect to see repaid.
However, some have questioned whether RBS would have been better splitting off its bad assets.
One leading figure who will look hard at the ring-fence plan is the Conservative MP Andrew Tyrie , who chairs the Treasury Committee and presided over a report this summer that recommended that the government should look in detail at the case for splitting the good and bad assets.
He told the BBC's World at One programme he would be looking into the reasoning behind the government's decision.
"The question... is whether this restructuring is enough to turn RBS round in reasonable time. I hope so but I remain concerned that it might not," he said.
RBS's shares were among the heaviest fallers on the FTSE 100 share index in Friday trading, down more than 7% at 340p.
RBS's chief executive, Ross McEwan, said he was pleased to end the good bank/bad bank debate because "the uncertainty had hung over the business for far too long" and had taken up too much management time.
Source-BBC
China's manufacturing activity at 18-month high
China's manufacturing activity grew at its fastest pace in 18 months in October, adding to signs of a recovery in the world's second-largest economy.
The official Purchasing Managers' Index (PMI), a gauge of the sector's health, rose to 51.4 from 51.1 in September.
Manufacturing is a key driver of China's growth and a PMI reading above 50 indicates expansion in the sector.
The data comes just weeks after China reported its economic growth picked up speed in the July-to-September period.
Its economy grew 7.8% in the quarter from a year earlier, up from the 7.5% expansion recorded in the previous three months.
The pick up in the pace of growth was the first in three quarters.
Official figures released last month also showed growth in industrial output, retail sales and fixed asset investment.
Jay Z Adds His 1st Ever Men’s Cologne To Barneys Collection Amid Controversy
No official word on if Jay Z gathered all the facts on the recent allegations of racial discrimination placed on Macy’s and Barneys yet, but it seems as if his working relationship with them is intact.
According to Women’s Wear Daily (WWD) Jay Z will add his first ever cologne to his upcoming Barneys collection.
The cologne, called Gold went through 3,200 possible names and according to Donald J. Loftus, president of Parlux Ltd., the name was chosen when Jay Z grabbed the cologne and said “This is the sh**; it’s gold.”
The fragrance will be promoted through a few outlets and intriguingly will feature a Macys window display of Jay Z transforming into a gold chain. The fragrance will be available on November 20th at Barneys NY and then released nationwide afterwards at prices between $39 and $79.
According to a lawsuit filed by Turkish immigrant Ayla Gursoy, Macy’s security guards had an arrest quota of five per week and had a “race code system” to “facilitate its targeting of Middle Eastern, African-American/black and other nonwhite shoppers.”
Source-AllhipHop
Brian McKnight performs in Jamaica
R&B singer Brian McKnight promises a soulful performance on November 2nd at the National Indoor Sports Centre in St Andrew, Jamaica.
The American artiste is headliner for the LIME-sponsored event. Lovers' rock singer Romain Virgo and dub poets NoMaddz are also on the show.
"I am very spontaneous during my performances and Jamaica continues to be one of my favourite places, so I will be pouring out my heart through songs," McKnight told Splash.
McKnight became famous during the 1990s when the singer-songwriter returned to soul music. Some of his more popular songs are One Last Cry, Still, The Only One For Me and Anytime.
Emcee for the event is ZJ Sparks of Zip & RTC FM.
Source-Splash
Lady Gaga's performance on X Factor draws complaints
Around 200 people contacted the broadcasting watchdog about her outfit of shells and flesh-coloured underwear.
"We will assess all the complaints received on this issue before deciding whether to investigate," said a spokesman.
Another 60 viewers have complained directly to ITV about the singer's appearance, before the 9pm watershed.
An ITV spokeswoman said: "We do not believe Lady Gaga's performance was inappropriate for the family audience of the X Factor Results show, which has an established tradition of featuring performances from the biggest music stars.
"Lady Gaga is well known for her highly individual performance style."
In 2010, The X Factor final featured Christina Aguilera in a routine which was described as being "at the very margin of acceptability" by Ofcom.
A report said the "sexualised" pre-watershed scenes led to 2,868 complaints to the media regulator after Aguilera wore a short black dress while her female dancers wore suspenders, bra tops, fishnet stockings and basques.
Sunday night's results show saw girl group Miss Dynamix become the latest act eliminated from the competition after the judges voted to keep 17-year-old Hannah Barrett in the competition.
Chris Brown checks into rehab
Chris Brown has checked into a rehab facility in Malibu, Los Angeles.
A representative for the singer announced that Brown, 24, decided to go to a clinic to "gain focus and insight into his past and recent behaviour".
It comes a day after he was released from jail following his arrest after a man accused him of punching him in Washington DC.
The singer is on five years' probation for attacking his ex-girlfriend Rihanna in 2009 before the Grammy Music Awards.
The representative's statement added that rehab would help the singer "continue the pursuit of his life and his career from a healthier vantage point".
Brown's attorney, Mark Geragos, said the singer checked in at an unspecified facility to be treated for anger issues on Tuesday.
"He just decided he wanted to take some time off and do some introspection," he said.
The lawyer added that Brown's decision to enter rehab was not an acknowledgement of wrongdoing in the Washington case.
On Tuesday night the Grammy Award-winning singer tweeted: "In order to go where u have never gone u have to be willing to go where u never been!!!!"
The singer and his bodyguard were arrested early on Sunday morning after getting into a row at The W Hotel in Washington.
According to court documents, the man told police he'd tried to push his way into a picture Brown was taking with a woman and her friend.
Parker Adams, 20, from Maryland, claimed he was punched by both Brown and his bodyguard Chris Hollosy before Brown boarded his tour bus.
The star is due back in court on 25 November.
Brown was initially charged with felony assault, which was reduced to a misdemeanour on Monday.
He was then released from jail.
Brown was cleared of hit-and-run charges in August after the judge ruled the singer and a woman, whose Mercedes he hit with his Range Rover, had reached an agreement over the case.
The singer faces up to four years in prison should a judge decide to revoke his probation again.
Probation officials would need to investigate the new arrest for it to become an issue in California, which could happen before Brown's next probation progress hearing on 20 November.
Katy Perry tops US album chart in worst week since 90s
Katy Perry has topped the US album chart in its worst week for sales since the early 1990s.
Prism, the singer's fourth studio album, went to number one in the Billboard 200 chart on Wednesday despite overall sales for the week being the lowest since 1991.
The album sold 286,000 copies in its first week, according to figures from Nielsen SoundScan.
It is the biggest sales week by a female artist this year.
But the opening week sales of Prism did not come close to the year's biggest debuts, led by Justin Timberlake's The 20/20 Experience, which opened with 968,000 copies in March.
New albums from Jay Z, Kanye West and Daft Punk also opened with bigger sales earlier this year.
Overall album sales for the week ending 27 October fell to a record low of 4.5 million units, the lowest album total since Nielsen SoundScan started analysing American chart music sales in 1991.
Album sales have generally been lower this year compared with last year, partly because of listeners finding new digital platforms to consume music and often for free.
Katy Perry's album came ahead of Miley Cyrus' Bangerz, which sold 270,000 copies in its first week earlier this month.
Other new albums this week in the top 10 of the Billboard 200 chart include X Factor USA girl group Fifth Harmony at number six with their Better Together EP, hip hop DJ Khaled at seven with Suffering from Success and rockers AFI with Burials at number nine.