i figure INTC's earnings will be better than expectd and supply a reason to bounce otmorrow.. syas nothing of the fact that earnings are apicture of the past and we are interested in the future.. of course INTC won't say a word about that.
inflation? what inflation?
Top Financial News
Tue, 12 Oct 1999, 7:23am EDT
Consumer Prices Rise in France and U.K., a Sign Growth Sparking Inflation
By Simon Packard and Molly Schuetz
European Economies: Consumer Prices Rise in France and the U.K.
Paris, Oct. 12 (Bloomberg) -- Consumer prices rose in
France and Britain in September, a sign faster economic growth
and rising energy costs are starting to quicken inflation in
Europe's second- and third-largest economies.
French prices rose 0.2 percent in the month, lifting the
annual inflation rate to 0.6 percent from 0.5 percent, based on
European Union standards. Prices in Britain increased 0.4
percent, the biggest gain since April, leaving the annual rate
at 2.1 percent, excluding interest payments on home loans.
''There is a modest rising trend in inflation in Europe,
due to rising energy costs,'' said Keith Edmonds, an economist
at IBJ
International Plc.
European bond yields rose to 21-month highs as the reports
kept alive expectations for higher interest rates from the
European Central Bank and the Bank of England in coming months.
''The ECB may be obliged to raise rates soon,'' said Marc
Touati, chief economist at Natexis Banques Populaires.
Economic growth in France and the U.K. has outstripped that
of Germany, Europe's largest economy, which today reported that
consumer prices declined 0.2 percent last month. The economies
of France and Britain expanded 0.6 percent in the second
quarter, while German growth ground to a halt.
Interest Rates
In France, the increase in September prices was led by a
1.2 percent rise in energy costs, as well as a 2.5 percent jump
in prices for fresh food and clothing. Energy and clothing
prices also led the increase in the U.K.
The Bank of England raised its benchmark interest rate by a
quarter point to 5.25 percent last month, and analysts
anticipate at least one more move before the end of the year.
Rates are seen rising even though annual inflation, at 2.1
percent, held below the central bank's 2.5 percent target for a
sixth month.
Bank of England Deputy Governor Mervyn King, in a speech
yesterday, defended the central bank's decision to raise rates
in September and hinted that further increases could be
necessary.
In the 11-nation euro region, recent comments from ECB
officials have sparked expectations for a rate increase as well,
perhaps at the Nov. 4 policy meeting, even though annual
inflation, at 1.2 percent in August, is still well below the
central bank's 2 percent annual ceiling.
The ECB left its benchmark refinancing rate unchanged at a
record low 2.5 percent on Thursday.
In France, unadjusted inflation figures showed prices rose
a greater-than-expected 0.2 percent in the month and 0.7 percent
from a year ago. Analysts surveyed by Bloomberg News expected to
see a 0.1 percent gain in the month and a 0.6 percent increase
from a year earlier.
Supermarket Wars
In the U.K., inflation was held in check somewhat by
reductions in prices for non-seasonal food, which fell 0.3
percent during the month in the face of ''strong competition,''
the Office for National Statistics said.
U.K. retailers are cutting prices as they contend with Wal-
Mart Stores Inc., which has discounted the prices of more than
2,000 goods at the Asda Group Plc retailer it acquired this
year. U.S.-based Wal-Mart also plans to discount 4,000 items by
year's end.
Tesco Plc, the biggest U.K. supermarket, announced a round
of price cuts earlier this month and J Sainsbury Plc said in
June it will cut 1,100 store-manager jobs and widen its product
line in a move to counter Tesco, whose profit has been gaining
on price cuts.
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