Headlines

German retail sales were significantly weaker than forecast, symbolizing the woes in the sector as consumer confidence remains sluggish, the Wall Street Journal reported. Sales were down 1.9% on month in February, adjusted for seasonal and calendar effects, a fourth month of declining sales, data from German statistics agency Destatis showed Thursday. Economists had, instead, expected sales to rise 0.5%, according to a poll by the Wall Street Journal. Sales were 2.7% below the same level of last year.

The European Central Bank (ECB) is likely to start off with a "moderate" interest rate cut this spring, which should come independently of the U.S. Federal Reserve's timeframe, ECB policymaker Francois Villeroy de Galhau said on Thursday, Reuters reported. A growing number of ECB policymakers have supported rate reductions, with a June meeting shaping up as the most likely time for action, although there is also a meeting in April. Villeroy said at a speech at Paris Dauphine University that it was not of "existential importance" whether or not this cut occurred in April or in June.

New Zealand has entered its second recession in 18 months after the latest round of GDP figures confirmed its economy contracted in the last quarter of 2023, the Associated Press reported. The country’s economy shrank by 0.1% in the quarter to December, and 0.7% in per capita terms, the New Zealand’s official statistics agency, Stats NZ, announced on Thursday. The latest slip follows a 0.3% contraction in the September quarter, which fulfills the technical definition of a recession. It is New Zealand’s second recession event in the past 18 months.

The U.K. economy sank into a recession in the final six months of 2023, marking it out as one of the weakest performers among developed nations, hit by high inflation and interest rates that stifled household spending, official data confirmed Thursday, the Wall Street Journal reported. U.K. gross domestic product shrank 0.3% between October and December, matching prior data from the Office for National Statistics published in February.

Restructuring Brazilian low-cost carrier Gol swung to a net loss of R1.1 billion ($221 million) in the fourth quarter, the first results it has disclosed since entering bankruptcy protection in January, FlightGlobal reported. The loss compared to a net profit of R231 million for the same period in 2022 and reflects the R1.1 billion impact of foreign exchange losses and other one-off items during the fourth quarter.

Canada’s economy made a solid start to the new year with growth in the first two months tracking well ahead of the Bank of Canada’s forecast, reinforcing expectations the central bank will once again stick to the sidelines at its coming policy meeting, the Wall Street Journal reported. The expansion in January was the strongest in a year, bolstered by a recovery with public sector strikes ending in Quebec and backed by increased activity across many segments of the economy.

Multiple bidders have put in offers to buy the business and assets of bankrupt Swedish textile recycler Renewcell, the company’s bankruptcy trustee said Thursday, BoF reported. The process has been closely watched by many in the industry, keen to see a business that represented one of fashion’s most advanced prospects to meet increasing demand for circular fibres revived. The nature of the bids and the names of the bidders were not disclosed. A final closing is expected mid-April following a review process.

The new bankruptcy law coming into effect on May 1, 2024, in the UAE is expected to lead to more successful restructuring of insolvent businesses, ensuring a safer and more vibrant entrepreneurial ecosystem in the UAE, the Khaleej Times reported. The latest law per Federal Decree-Law No. 51/2023 introduces important enhancements to the UAE’s bankruptcy framework, including the establishment of a dedicated bankruptcy court, a new preventive settlement procedure, and increased liability for management.

The collapse of Baltimore's Francis Scott Key Bridge is likely to lead to a multi-billion dollar insurance loss, the chairperson of commercial insurance market Lloyd's of London said on Thursday, Reuters reported. The massive Singapore-flagged container ship Dali sailing out of Baltimore Harbor bound for Sri Lanka reported losing power and the ability to maneuver before plowing into a support pylon of the bridge on Tuesday.

In a sign of easing tensions between Australia and China, China said Thursday that it would lift the tariffs it placed on Australian wine more than three years ago, the New York Times reported. The tariffs, which were first imposed in 2020 amid a nasty diplomatic spat between Australia and China, had all but vaporized the country’s biggest overseas market, worth 1.2 billion Australian dollars or around $800 million at its peak. Australian winemakers faced desperate hardship and were stuck with a surfeit of big-bodied red wines.