Business
Euro zone factory prices slump to nearly 4-year low in October
BRUSSELS – Euro zone producer prices fell more than expected in October, data showed on Tuesday, with the annual inflation rate at a nearly 4-year low in a fresh sign of a sharp fall in inflationary pressures.
Prices at factory gates in the 17 countries using the euro declined 0.5 percent in October against September, the EU’s statistics office said on Monday, the first monthly decline in five months.
Economists polled by Reuters had forecast a decrease of 0.2 percent.
Changes in producer prices, unless absorbed by retailers, eventually translate into changes in the consumer price index, which the European Central Bank wants to keep below, but close to 2 percent. Consumer inflation was 0.9 percent year-on-year in November.
The year-on-year figure for producer prices showed a 1.4 percent drop in October, its lowest since December 2009, after a 0.9 percent fall in September.
The monthly drop was strongly driven by a 1.4 percent fall in costs or energy, followed by a 0.2 percent decrease in prices of non-durable consumer goods.
Prices in only three countries of the bloc – Estonia, Cyprus and Malta – were flat or rising on the month in October and the annual reading was in the positive territory only in Estonia, Ireland, Malta and Finland.
France, the euro zone’s second largest economy saw a 0.3 percent drop on the month, putting the annual rate at -1.4 percent, its lowest since December 2009, according to the Eurostat data.
Inflation in the 9.5 trillion euro economy remains well below the European Central Bank’s official target of close but below 2 percent despite a pick-up in consumer prices in November.
Economists polled by Reuters expected the ECB to stay put on rates on Thursday after a surprise cut its main refinancing rate to a record low of 0.25 percent at it November meeting, with the market expecting new growth and inflation forecasts.
– REUTERS
Nokia has reported a net loss of €68 million for the first quarter of 2025, a sharp decline from the €438 million profit recorded during the same period last year.
The Finnish telecoms equipment maker attributed the downturn to global trade disruptions and recently imposed tariffs by the United States.
The company’s net sales dropped slightly to €4.4 billion, down by one percent year-on-year.
READ ALSO: Trade War: China Strikes Back Wth 125% Tariffs On U.S. Goods
Tariff-related challenges were highlighted by Nokia’s President and CEO, Justin Hotard, who acknowledged the broader economic pressures affecting the industry.
“We are not immune to the rapidly evolving global trade landscape,” Hotard stated. “However, based on early customer feedback, I believe our markets should prove to be relatively resilient.”
He also noted the potential short-term financial impact, saying, “Based on what we see today, we currently expect a EUR 20 to 30 million impact on our comparable operating profit in the second quarter from the current tariffs.”
Earlier this month, U.S. President Donald Trump introduced a 10 percent tariff on global imports, while pausing plans for steeper duties, including a proposed 20 percent levy on products from the European Union.
Despite the quarterly setback, Nokia expressed confidence in its growth prospects.
The company is looking to its Network Infrastructure, Cloud and Network Services, and Mobile Networks divisions to drive sales in the year ahead.
In a sign of continued momentum in the mobile segment, Nokia also announced on Thursday that it had extended its contract with T-Mobile US.
The company said it is continuing “to see positive signs of stabilization” in Mobile Networks.
The pull of market forces which moved the hands of the Nigerian National Petroleum Company Limited (NNPC Ltd) to reduce the price of Premium Motor Spirit (petrol) to N880 per litre in Lagos and N935 in Abuja appears to be a source of torture to independent markets.
Biztellers reports that the latest price review on Easter Monday saw NNPC retail outlets in Lagos drop from N925 to N880, while those in Abuja adjusted from N950 to N935.
The NNPC Ltd’s price reduction came barely a week after the Dangote Refinery lowered its ex-depot price from N865 to N835 per litre.
ALSO READ: BREAKING: Again, Dangote Cuts Petrol Price To N835 per Litre
In addition, the $20bn refinery also directed its partners like MRS, Heyden, and Ardova to sell a litre of petrol at the rate of N890 instead of N920 in Lagos, N900 in the South West, N910 in the South-South, and N920 in the North East.
Consumers can smile because with the reaction, the NNPC Ltd’s new price in Lagos is N10 lower than what the Dangote Refinery is selling at, which might lead to another reaction, as the price war between the two companies.
Though some NNPC Ltd’s retail outlets were observed selling at the old rate in Lagos, it was gathered that they were given the liberty to exhaust old stock before adjusting to the new prices.
Market sources are of the view that the current price war was ignited by the Federal Government’s implementation of the Naira-for-crude policy.
Gold soared to a record high of $3,500 an ounce on Tuesday, as mounting fears over a potential U.S. recession and escalating tensions between President Donald Trump and the Federal Reserve drove investors toward the traditional safe-haven asset.
The precious metal briefly touched an all-time high of $3,500.10 an ounce before retreating slightly to trade at $3,467.87.
READ ALSO: JUST IN: Vatican Discloses Cause Of Pope Francis’ Death
The rally marks the latest in a string of record-breaking gains for gold, fueled by a weakening U.S. dollar, sharp declines across global stock markets, and growing concerns over the health of the world economy.
Market sentiment took another hit this week after President Trump ramped up his trade war with China, slapping fresh tariffs on the world’s second-largest economy and intensifying fears of prolonged economic disruption.
Gold has surged more than 30 percent since the start of the year as investors seek refuge from mounting market volatility.
“The rally reflects ongoing recession fears in the U.S. economy and heightened political tensions, especially as President Donald Trump continues to attack Federal Reserve Chair Jerome Powell,” said Rania Gule, senior market analyst at trading group XS.com.
Concerns about the Fed’s independence were further stoked Monday, when Trump publicly lashed out at Powell on social media, branding him a “major loser” for not cutting interest rates — a move the president has repeatedly demanded.
The sharp criticism follows Trump’s recent suggestion that he might attempt to remove Powell from his post.
‘Na Dreadlock Dey Cause Insecurity?’ – Daddy Showkey Slams Gov Bago Over Arrest Order
$1bn Crypto Fraud: Court Authorizes EFCC To Arrest Six CBEX Promoters
Jude Okoye Freed After Two-Month Detention Over Alleged N1.38bn Fraud
Obi, Kwankwaso Helped Tinubu In 2023, Will Do The Same In 2027, Says Nigerian Activist
Ibas Makes First Appearance At NEC Meeting As Rivers Sole Administrator
