The markets this morning
European stocks fell before seeing some rebounds so far this morning as more worrying data shows there is much work to be done in the Eurozone. Inflation is now at a 5 year low in the bloc and output is down in many of the Eurozone countries along with high unemployment. The ECB will meet next week and forecasters expect stimulus to boost the flagging economy. The situation is worsened by continued unrest in Ukraine; the latest development is satellite data from NATO suggesting Russian troops have crossed the border. That rising tension has also affected Asian markets today. They were edging up after positive data on the US economy yesterday but the Ukraine issue has stifled gains. This was further compounded by weak data from Japan.
Personal income and spending data from the US government at 8.30am ET
University of Michigan consumer sentiment report at 9.55am ET
Malaysian Airlines restructures after disastrous year
Many wondered if the unprofitable Malaysian Airlines would survive, and that was before two major disasters hit the firm this year. Now its majority investor, a state owned fund, has announced a plan to turn it around with a 30 per cent reduction in the workforce and a $1.9 billion investment to restructure the business and make it profitable by 2017. The fund will take the company private in the short-term before relisting the (hopefully) invigorated airline in three to five years time. Read the full story.
Abercrombie to shrink
The appetite for logos emblazoned across clothing appears to be in decline, at least for Abercrombie and Fitch. After reporting further sales decline the firm is now focusing on making its clothing trendier and that includes smaller logos. Experts say that today’s fashion conscious teens want to buy things that are cool, individual and adaptable. They want to buy fashion that can be worn in a variety of ways, and a huge logo across the front limits that! It’s a tough time for fashion especially in the teens market. Where the coolest clothing was once essential, now it’s more important to have the latest technology… perhaps Apple can come up with the i-T-shirt? Read the full story.