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Good morning.
The euro is on course for an eighth straight week of losses against the dollar, as investors respond to the widening gap between the ailing economy in the eurozone and stronger growth in the United States.
The currency has lost more than 5 percent since mid-July to trade at $1.07. The continued decline reflects growing doubts about whether the European Central Bank will raise interest rates again at its meeting next week amid widespread signs that the eurozone economy is heading for contraction.
Yesterday’s figures showed that industrial production in Germany – the traditional engine of growth in the eurozone – fell for the third consecutive month in July. Meanwhile, US jobless claims unexpectedly fell, the latest sign of resilience in the labor market. This is likely to encourage the US Federal Reserve to keep interest rates at a higher level for a longer period, thus enhancing the attractiveness of the dollar. Here’s more from analysts on the growing transatlantic discrepancy.
Here are the other things I’m tracking today and over the weekend:
Economic data: Germany publishes last month’s consumer price index today.
United kingdom: Today marks the first anniversary of the death of Queen Elizabeth II.
G20 summit: World leaders meet in New Delhi tomorrow. US President Joe Biden will push for a larger international bank to combat China’s growing influence, while his British counterpart Rishi Sunak will urge Indian Prime Minister Narendra Modi to “call out” Russia over its war in Ukraine.
How much do you follow the news this week? Take our test.
Five more stories top
1. EXCLUSIVE: The Treasury is set to increase UK state pensions by more than 8 per cent next year This is due to the “triple lock”, which raised the incomes of retirees more quickly than the wages of workers. Since 2010, the triple lock has ensured that the state pension rises each year in line with inflation, average income, or by 2.5 percent, whichever is higher. Read the full story.
2. Investors lost $200 billion in Apple’s market value due to fears of a crackdown on government iPhones in China. It casts a shadow over the launch of its latest smartphones next week. Prior to the reported restrictions, analysts expected the iPhone 15 to help make Apple the largest smartphone maker by volume for the first time. Here are other problems facing the tech giant.
3. EXCLUSIVE: Goldman Sachs is preparing to let go of employees deemed to be underperformers Another round of cuts could take place as early as next month. The bank has already cut thousands of jobs this year in an effort to save costs after a slowdown in investment banking and losses in its consumer banking business. These are the people who are likely to lose their jobs.
4. Germany is pressing the EU to delay tariffs on electric car sales with the UK, Supporting calls from Rishi Sunak’s government to defer fees for three years. The bloc is set to impose a 10 percent fee on electric vehicles shipped through the Canal from January if they contain batteries made outside Europe. That is why Berlin changed its position.
Dig deeper: After months of fruitless lobbying to deter imports of Chinese electric cars, European carmakers are preparing to face competition from their newest rivals.
5. Ryan Salama, former CEO of FTX, pleaded guilty On criminal charges related to the collapse of the cryptocurrency exchange. He is the fourth former FTX executive to strike a deal with prosecutors, further impeaching founder Sam Bankman-Fried less than a month before his trial begins. Here is our report on the court hearing.
Someone in the news
© Carsten Snijbjerg/Bloomberg
In 2017, Lars Froergaard Jørgensen, president of Novo Nordisk, called for an expensive trial of the weight-loss drug Wegovy. His gamble paid off. Positive preliminary data from the trial published last month sent shares of the Danish pharmaceutical group higher, eventually overtaking French luxury group LVMH on Monday. Here’s more about the man who dethroned Europe’s most valuable company.
We read too. . .
Rugby World Cup: France is preparing to host millions of spectators for the event, a major test of security and preparation ahead of next summer’s Olympic Games.
War in Ukraine: Talks between Russia and Ukraine pose a moral hazard not only in Kiev but also for weak states globally, writes Andreas Umland of the Swedish Institute of International Affairs.
The gender gap: The importance of children in the income gap between men and women remains mind-boggling, writes Somaya Keynes.
College of Business Administration: Student-led mentoring programs are among the initiatives implemented by elite institutions in France that aim to promote social diversity.
Today’s chart
Brent crude this week surpassed $90 a barrel for the first time this year after Saudi Arabia and Russia extended supply cuts, threatening to become another headache for US President Joe Biden as he puts his record on the economy – and thwarting inflation – at the center of attention. Try to get re-elected.
![Line chart for regular gasoline, $/gallon showing price hikes at gas stations during Biden's term](https://www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fd6c748xw2pzm8.cloudfront.net%2Fprod%2Fe9f6c420-4dca-11ee-923a-a3b0ebae3269-standard.png?dpr=1&fit=scale-down&quality=highest&source=next&width=700)
Take a break from the news
Giorgio Armani isn’t going anywhere. While Valentino, Gucci, and Versace have all been sold to foreign investors, he remains the sole shareholder in the company that bears his name. “Everyone tells me I should retire and enjoy the fruits of what I’ve built, but I say no… No, absolutely not,” the 89-year-old designer and CEO told the Financial Times.
![Giorgio Armani in Venice](https://www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2F68a02e09-db85-4ed7-adb3-8f8058ca9f6e.png?fit=scale-down&source=next&width=700)
Giorgio Armani in Venice: Not the retired type
Additional contributions from Benjamin Wilhelm W Gordon Smith