German central bank chief ‘skeptical’ of stimulus move

BERLIN (AFP) ― The head of Germany’s central bank on Saturday voiced his “skepticism” about the ECB’s decision to launch a trillion-euro bond-buying program in a bid to ward off deflation and boost the eurozone economy.“I regard this decision with skepticism,” the Bundesbank President Jens Weidmann told the German daily Bild.Weidmann is a member of the the European Central Bank’s council of governors that approved of the stimulus plan known as quantitative easing but he did not agree with the de

Jan. 25, 2015

eBay to cut thousands of jobs

The Ebay logo and website in Tiskilwa, Illinois. (Bloomberg)NEW YORK (AFP) ― Online retail giant eBay will slash 2,400 jobs ― seven percent of its workforce ― in the current quarter as it restructures and prepares to spin off its PayPal finance unit, it said Wednesday.California-based eBay unveiled the move as it announced its profit in the fourth quarter rose to $936 million on $4.9 billion in revenue. The job cuts will be across eBay’s three divisions: Marketplaces, Enterprise and PayPal.The r

Jan. 22, 2015

Obama launches Democrats’ middle class push in 2016

WASHINGTON (AFP) ― The economic successes U.S. President Barack Obama touted in his speech to Congress Tuesday were not just taunts to Republicans; he was helping Democrats build an early strategy for keeping the White House in 2016.With the clock winding down on his two-term presidency, Obama proclaimed America’s economy to be back on steady footing after years of post-recession malaise, and he unveiled a plan to help the middle class that he clearly hopes will carry on into another Democratic

Jan. 22, 2015

Chinese premier says economy not headed for ‘hard landing’

DAVOS (AFP) ― China’s Premier Li Keqiang sought Wednesday to allay fears over the Asian giant’s growth outlook, telling business and government elites gathered in Davos that the economy is not heading for a sharp slowdown.A day after China posted the weakest growth in almost a quarter of a decade, Li vowed to push on with structural reforms which he said would deliver “quality growth” rather than just a high top-line figure.“What I want to emphasize is that regional or systemic financial crises

Jan. 22, 2015

Why cheaper fuel won’t mean lower airfares anytime soon

DALLAS (AP) ― Airlines will save billions this year thanks to cheaper jet fuel, but they aren’t likely to share the bounty with passengers ― not while so many flights are already full.Instead, the airlines will use their windfall to pay down debt and reward shareholders.Airline CEOs worry that oil prices could just as easily go higher. They hope consumers benefiting from cheaper gasoline will splurge on airline tickets. But the biggest reason airfares aren’t falling: Planes are plenty full at cu

Jan. 21, 2015

Google, Fidelity invest in SpaceX

HAWTHORNE, California (AP) ― SpaceX has raised $1 billion from Google and Fidelity in a deal that values the spaceship manufacturer at about $10 billion.The infusion announced Tuesday will give Google Inc. and Fidelity Investments a nearly 10 percent stake in SpaceX, a Hawthorne, California, company that employs more than 3,000 people.Although privately held SpaceX didn’t reveal any concrete plans, the money could help founder Elon Musk realize his hopes to fly people to Mars within the next 12

Jan. 21, 2015

BOJ cuts inflation outlook, maintains record stimulus

Bank of Japan Gov. Haruhiko Kuroda. (Bloomberg)Japan’s central bank cut its inflation forecast and kept its unprecedented monetary easing unchanged as tumbling oil prices handicap efforts to reflate the world’s third-biggest economy. The Bank of Japan will increase the monetary base at an annual pace of 80 trillion yen ($674 billion), it said in a statement in Tokyo Wednesday, as forecast by all 33 economists surveyed by Bloomberg News. The BOJ lowered its inflation projection to 1 percent for t

Jan. 21, 2015

Swiss franc ‘nuclear explosion’ spreading

Credit Suisse Group AG and Saxo Bank A/S joined an increasing number of European financial companies warning that the Swiss central bank’s surprise decision to abolish its currency ceiling may dent earnings. Credit Suisse, Switzerland’s second-biggest bank, indicated Monday that currency swings may hurt profit. Denmark’s Saxo Bank said some clients might not be able to settle unsecured amounts, which might cause undisclosed losses. The full force of the decision won’t be known for months and is

Jan. 21, 2015

CEOs: U.S. more attractive to investors than China

DAVOS, Switzerland (AP) ― Amid growing concerns over the global economy, the United States has overtaken China as the No. 1 investment destination among chief executives around the world, a survey found Tuesday.That’s the first time the U.S. has topped the list since accounting and consulting firm PricewaterhouseCoopers, or PwC, first started asking the question five years ago. Global investors appear encouraged by the U.S. economy’s vital signs at a time when China’s growth is slowing and execu

Jan. 21, 2015

Iran: ‘No threat’ from oil at $25

OPEC has no immediate plan to cut its output target for crude, and Iran is strong enough to withstand a deeper slump in prices even if the country must sell at $25 a barrel, Oil Minister Bijan Namdar Zanganeh said. “If the oil prices drop to $25 a barrel, there will yet again be no threat posed to Iran’s oil industry,” Zanganeh told reporters Monday at a conference in Tehran, according to the state-run Fars news agency. Brent crude traded below $50 Monday in London. Oil has fallen about 30 perce

Jan. 20, 2015

Swiss franc surge casts shadow on Geneva’s luxury watch fair

GENEVA (AFP) ― Geneva’s luxury watch show where shopowners search out such brands as Cartier and Piaget opened Monday under a cloud as the franc surged after the Swiss central bank abandoned its bid to hold down its value.The fair in Geneva, attracting only professionals, aims to draw 14,000 visitors in just four days from the world over.On opening day, participants at the annual Salon International de la Haute Horlogerie were putting up a brave front, saying consumers would be willing to pay hi

Jan. 20, 2015

China growth lowest in 24 years

BEIJING (AFP) ― China’s gross domestic product grew 7.4 percent in 2014, official data showed Tuesday, slumping to a 24-year low with authorities describing the slower pace as the “new normal” for the world’s second-largest economy.The figure announced by the National Bureau of Statistics was slower than the 7.7 percent seen in 2013, but exceeded the median forecast of 7.3 percent in an AFP survey of 15 economists.Growth in the final quarter of the year also came in at 7.3 percent year-on-year,

Jan. 20, 2015

Swiss brace for impact of strong franc

GENEVA (AFP) ― An overheated Swiss franc could have “dramatic” consequences for the country’s economy, a top official said Sunday, as the country’s business and tourism sectors braced for tumbling sales. The franc has jumped around 15 percent against the euro since the Swiss central bank stunned markets Thursday with its bombshell decision to abandon the minimum rate of 1.20 francs against the European common currency.The Swiss National Bank had since September 2011 been defending the exchange r

Jan. 19, 2015