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France must take “credible” steps to tackle its high deficit, its new finance minister said Thursday, shortly before a major credit ratings agency gives its verdict on the country’s sovereign debt.Antoine Armand spoke to AFP on the sidelines of the Annual Meetings of the International Monetary Fund and the World Bank in Washington ahead of a Moody’s decision, expected Friday, on France’s credit rating. The IMF forecasts that France’s public deficit will be 6.0 percent this year, and remain there through 2029.But these figures do not include France’s recent budget proposal, which predicts a deficit of less than three percent in five years’ time. Vitor Gaspar, who heads the IMF’s Fiscal Affairs department, told reporters on Wednesday that the IMF was “waiting for more clarity coming from actual enacted measures in France.”Asked about these calls for clarity, Armand said additional details of his government’s plans would be forthcoming.”It’s normal for the IMF to need a line-by-line breakdown to understand our trajectory,” he told AFP. “And additional spending savings will be documented in the parliamentary debate.”  “The work we’ll be doing over the coming months will be to monitor and fine-tune our public spending in order to make these savings,” he added. Brussels has already rebuked France for breaking its budget rules, placing the country under formal procedure in July because its deficit is above the three percent limit eurozone members are supposed to adhere to. “Our partners have a fairly accurate analysis of the French situation, which I have shared with them since my appointment,” Armand said, adding that France’s economy was “robust,” with the lowest unemployment rate for 40 years. At the same time, “public finances are a cause for concern,” he said. Armand noted that one of the key planks to boost growth in the government’s new budget rested on convincing French consumers to spend more of the money they earn. “In a world where the French have saved a lot, if we reduce our deficits, dissaving (spending more money than is earned) will generate consumption and growth,” he said, adding that lower interest rates would help support business investment.The US ratings agency Moody’s is set to deliver its verdict on French government debt later Friday, amid concerns it could downgrade France from its current Aa2 rating, Moody’s third-highest credit score. Asked if he feared France’s credit rating was under threat, Armand replied: “We’ll see.” “Our debt is sustainable, it is bought, it is financed, it is viewed with a certain quality,” he said. “If we want this to remain the case in the future, we need to straighten out our accounts and reduce our public spending.””We don’t decide France’s policy on the basis of rating agencies,” he added. 

Germany promised to dramatically boost the number of skilled Indians it permits to work in the country as Prime Minister Narendra Modi hosted Chancellor Olaf Scholz in New Delhi on Friday.The German leader is on his third visit to India since last year, bringing several cabinet ministers for discussions between the leaders of the world’s third- and fifth-largest economies. His administration agreed to increase the number of visas granted annually to skilled Indian workers to 90,000, up from 20,000.”The message is that Germany is open for skilled workers,” Scholz said. Modi hailed the agreement as an economic boon to both countries. “When India’s dynamics and Germany’s precision meet, when Germany’s engineering and India’s innovation meet… a better future is decided for the Indo-Pacific and the entire world,” he said. India and Germany first signed a migration agreement two years ago to facilitate mobility for professionals and students.Berlin has also pledged to make its visa application process less bureaucratic and to improve the recognition of Indian professional qualifications in Germany. Scholz arrived in India late on Thursday, following a state visit in February 2023 and the G20 summit in New Delhi later that year.India’s foreign ministry said this week that the partnership between both countries had “deepened” over the years.Germany and India are defence partners, and naval forces from both sides undertook a “maritime partnership exercise” earlier this week in the Indian Ocean. The maiden exercise was aimed at “further strengthening the maritime connect between the two nations and interoperability between the navies”, a statement from India’s navy read Thursday. – ‘More cooperation’ -“We also want to deepen our cooperation on defence and agree to bring our militaries closer together,” Scholz said. “Our overall message is clear: We need more cooperation not less.”But the two countries diverge over ties with Russia and its war with Ukraine. While Germany strongly backs Kyiv, Modi this week attended a BRICS summit where he embraced Russian President Vladimir Putin.In contrast to Germany, Modi’s government has maintained its longstanding ties with Moscow even as it also courts closer security partnerships with its Western allies.While in New Delhi, Scholz said reports that Russia could soon send North Korean troops to fight in Ukraine were “very worrying”. “It is serious and, of course, something that escalates the situation further,” he said.”At the same time, it also shows that the Russian president is in dire straits. He has now allied himself with countries whose behaviour he once strongly criticised.”Scholz’s visit also covered India’s ambitious programme to scale up production of “green hydrogen”, a clean energy source in demand in Germany as Russian oil and gas supplies have shrunk and Berlin seeks to meet its climate goals.Representatives of both countries agreed on a bilateral “Green Hydrogen Road Map” on Friday, the details of which have yet to be published.Scholz and his team are expected to travel to Goa on Saturday to inspect naval vessels before returning to Germany in the evening.

Global stock markets diverged on Friday in a quiet end to a week’s trading dominated by earnings updates.Wall Street’s main indices rose at the opening bell, with a dip in the yield on US government bonds helping give equities a boost.Focus this week has been on earnings as major companies worldwide report on their third-quarter performances.But a rise on US bond yields — at least partially due to worries that a return to the White House by Donald Trump would lead to tax cuts that fuel inflation — have acted as a headwind.Next week will see five of the “Magnificent Seven” tech stocks reporting earnings, including Alphabet (Google), Amazon, Apple, Meta (Facebook) and Microsoft.Key US monthly jobs numbers come out on Friday.”This could prove a big test for the markets, while also being a driver of sentiment as we head towards year-end,” said Trade Nation analyst David Morrison.In Europe, London edged higher as investors awaited the first budget of Britain’s new Labour government on Wednesday, expected to include tax rises on businesses.Meanwhile, shares in British bank NatWest jumped nearly five percent before paring gains as investors welcomed the lender’s strong increase in profits, with income higher thanks to interest rates remaining elevated.Frankfurt also edged higher after data showed Germany’s business confidence rebounded in October.That ended a four-month streak of declines and offered some rare good news for Europe’s beleaguered top economy.Mercedes-Benz stock shed 1.3 percent after the German luxury carmaker said group profits slumped more than 50 percent, hit by weakness in the key Chinese market. In Asia, Shanghai and Hong Kong markets rose amid hopes of stronger growth in China following the country’s recent attempts to stimulate its stalling economy. Crude futures climbed and the dollar was mixed versus main rivals heading into the weekend break.Tokyo’s stock market closed down and the yen dipped against the dollar ahead of Japan’s national elections on Sunday.Independent analyst Stephen Innes pointed to uncertainty over the vote and an upcoming Bank of Japan policy meeting as complicating the outlook for Japanese equities.”Between election jitters and BoJ chess moves, Tokyo markets are probably in for a busy opening on Monday.””Oil prices have shifted higher, with Brent crude heading towards $75 a barrel… as concerns about the Middle East stay in focus,” noted Susannah Streeter, head of money and markets at stockbroker Hargreaves Lansdown.- Key figures around 1330 GMT -New York – Dow: UP 0.4 percent at 42,560.36 pointsNew York – S&P 500: UP 0.6 percent at 5,843.20New York – Nasdaq Composite: UP 0.7 percent at 18,544.96London – FTSE 100: UP less than 0.1 percent at 8,273.47Paris – CAC 40: FLAT at 7,502.02Frankfurt – DAX: UP 0.2 percent at 19,476.50Tokyo – Nikkei 225: DOWN 0.6 percent at 37,913.92 (close)Hong Kong – Hang Seng Index: UP 0.5 percent at 20,590.15 (close)Shanghai – Composite: UP 0.6 percent at 3,299.70 (close)Euro/dollar: DOWN at $1.0828 from $1.0832 on ThursdayPound/dollar: UP at $1.2992 from $1.2972Dollar/yen: UP at 152.10 yen from 151.83 yenEuro/pound: DOWN at 83.34 pence from 83.47 pence Brent North Sea Crude: UP 1.2 percent at $75.29 per barrelWest Texas Intermediate: UP 1.3 percent at $71.11 per barrelburs-rl

Japanese shares ended down on Friday but Chinese markets gained in disjointed Asian trade, after Wall Street cheered strong results from electric car giant Tesla.US futures were holding steady after Elon Musk’s company surged nearly 22 percent on the back of higher earnings following a streak of disappointing results, helping to lift the Nasdaq and S&P 500. The Dow, however, was pulled lower by disappointing results from IBM and Honeywell.In Asian trade on Friday, Tokyo stocks closed more than half a percent lower, while Hong Kong and Shanghai saw healthy gains. Stephen Innes of SPI Asset Management pointed to uncertainty over elections this weekend and an upcoming Bank of Japan meeting as complicating the outlook for Japanese equities.”And let’s not forget USD/JPY blowing past the 150 mark. Finance Minister Katsunobu Kato is ringing the alarm bells, warning of ‘one-sided’ moves in the yen. Still, BOJ Governor (Kazuo) Ueda seems to be in no rush to do anything drastic,” he said.”Between election jitters and BOJ chess moves, Tokyo markets are probably in for a busy opening on Monday.”Chinese markets, meanwhile, were recovering from their losses of the previous day, encouraged by a rebound in real estate sales, which fuelled optimism about economic growth.Taipei, Seoul, Sydney, Bangkok and Manila were also higher, but Singapore, Jakarta, Mumbai and Wellington lost ground.Paris, London and Frankfurt were all down.In the United States, Treasury yields have pushed higher in recent days, although they retreated on Thursday, with uncertainty on trading floors growing less than two weeks ahead of US elections in which the outcome is still far from clear.Observers say some dealers are eyeing a win for Donald Trump and policies such as tax cuts that could stoke inflation.That, along with a strong run of US economic data and remarks from Federal Reserve officials backing a cautious approach to easing monetary policy, has seen expectations for rate cuts whittled back.US equities were “somewhat mixed at the close” and “for a change, the US dollar has actually lost value”, said Phil Dobbie on National Australia Bank’s Morning Call podcast.- Key figures around 0830 GMT -Tokyo – Nikkei 225: DOWN 0.6 percent at 37,913.92 (close)Hong Kong – Hang Seng Index: UP 0.5 percent at 20,590.15 (close)Shanghai – Composite: UP 0.6 percent at 3,299.70 (close)London – FTSE 100: DOWN 0.2 percent at 8,256.05Euro/dollar: DOWN at $1.0827 from $1.0832 on ThursdayPound/dollar: UP at $1.2975 from $1.2972Dollar/yen: UP at 152.00 yen from 151.83 yenEuro/pound: DOWN at 83.45 pence from 83.47 pence West Texas Intermediate: DOWN 0.2 percent at $70.05 per barrelBrent North Sea Crude: DOWN 0.2 percent at $74.23 per barrelNew York – Dow: DOWN 0.3 percent at 42,374.36 (close)

Japanese shares fell but Chinese markets gained in a disjointed start to Asian trade on Friday, after Wall Street cheered strong results from electric car giant Tesla.Elon Musk’s company surged nearly 22 percent after higher earnings ended a streak of disappointing results and helped lift the Nasdaq and S&P 500, while the Dow was pulled lower by disappointing results from IBM and Honeywell.European indices rose overnight, with investors anticipating interest rate cuts, while oil prices climbed then fell in more volatile trade for the crude market.”US shares are somewhat mixed at the close” and “for a change, the US dollar has actually lost value”, said Phil Dobbie on National Australia Bank’s Morning Call podcast.US Treasury yields have pushed higher in recent days, although they retreated on Thursday. Uncertainty on trading floors is also heightened less than two weeks ahead of US elections, with the outcome still far from clear.Observers say some dealers are eyeing a win for Donald Trump and policies such as tax cuts that could stoke inflation.That, along with a strong run of US economic data and remarks from Federal Reserve officials backing a cautious approach to easing monetary policy, has seen expectations for rate cuts whittled back.In Asian trade on Friday morning, Tokyo stocks fell one percent, while Hong Kong rose 0.5 percent and Shanghai was up 0.2 percent. Taipei and Seoul were also higher, but Singapore, Bangkok and Jakarta lost ground. Sydney rose 0.2 percent while Wellington was flat.Inflation for Tokyo city slowed in October, data showed ahead of a national election on Sunday and a central bank policy decision on October 31.”The Bank of Japan meets next week, and we’ve been saying almost ad nauseam that the case for further normalisation of policy has been made,” National Australia Bank’s Ray Attrill said.The Tokyo inflation data means that “the Bank of Japan — its nose might be growing while it says it — could say, ‘look, there’s reason for us to be sitting on our hands a little bit longer’, irrespective of the view that the proximity to the elections has pretty much ruled out any move out at the October meeting”, Attrill added.- Key figures around 0200 GMT -Tokyo – Nikkei 225: DOWN 1.0 percent at 37,770.93Hong Kong – Hang Seng Index: UP 0.5 percent at 20,595.30Shanghai – Composite: UP 0.2 percent at 3,285.44Euro/dollar: DOWN at $1.0823 from $1.0832 on ThursdayPound/dollar: DOWN at $1.2968 from $1.2972Dollar/yen: UP at 151.88 yen from 151.83 yenEuro/pound: DOWN at 83.46 pence from 83.47 pence West Texas Intermediate: UP 0.3 percent at $70.40 per barrelBrent North Sea Crude: UP 0.3 percent at $74.60 per barrelNew York – Dow: DOWN 0.3 percent at 42,374.36 (close)London – FTSE 100: UP 0.1 percent at 8,269.38 (close)

Wall Street stocks finished mostly higher Thursday as markets cheered strong results from Tesla and as US Treasury bond yields pulled back.Elon Musk’s electric vehicle company piled on nearly 22 percent after reporting higher earnings, ending a streak of disappointing results.Deutsche Bank called Tesla’s profit margins “impressive,” adding that Musk’s commentary on 2025 sales was also encouraging.While Tesla’s performance helped lift the Nasdaq and S&P 500, the Dow was pulled lower by disappointing results from IBM and Honeywell.Boeing meanwhile dropped 1.2 percent after a machinist union voted by almost two-thirds to reject the company’s latest contract offer, extending a nearly six-week strike.Analysts said the vote further clouds the company’s turnaround prospects under new CEO Kelly Ortberg.European indices rose, with investors anticipating interest rate cuts, while oil prices climbed then fell as the crude market continued to experience volatile trading.With the US presidential election still seen as a coin toss less than two weeks out, there was plenty of uncertainty on trading floors, though observers said some dealers were eyeing a win for Donald Trump and policies such as tax cuts that could stoke inflation again.That, along with a strong run of US economic data and remarks from Federal Reserve officials backing a cautious approach to easing monetary policy, has seen expectations for rate cuts whittled back.US Treasury yields have pushed higher in recent days, although they retreated somewhat on Thursday.The monetary policy outlook would appear different in Europe, where analysts are betting on the possibility of bumper rate cuts in the eurozone and Britain.This comes after Bank of England Governor Andrew Bailey said UK inflation was falling quicker than expected, and as eurozone economic data continues to weaken.Business activity in the single-currency bloc ticked lower for the second consecutive month in October, a closely watched survey showed Thursday.The HCOB Flash Eurozone purchasing managers’ index published by S&P Global registered a figure of 49.7 compared to 49.6 in September. Any reading above 50 indicates growth, while a figure below 50 shows contraction.The latest PMI data for Britain on Thursday showed its “economy struggled” at the start of the fourth quarter, said Kathleen Brooks, research director at traders XTB.- Key figures around 2050 GMT -New York – Dow: DOWN 0.3 percent at 42,374.36 (close)New York – S&P: UP 0.2 percent at 5,809.86 (close)New York – Nasdaq Composite: UP 0.8 percent at 18,415.49 (close)London – FTSE 100: UP 0.1 percent at 8,269.38 (close)Paris – CAC 40: UP 0.1 percent at 7,503.28 (close)Frankfurt – DAX: UP 0.3 at 19,443.00 (close)Tokyo – Nikkei 225: UP 0.1 percent at 38,143.29 (close)Hong Kong – Hang Seng Index: DOWN 1.3 percent at 20,489.62 (close)Shanghai – Composite: DOWN 0.7 percent at 3,280.26 (close)Euro/dollar: UP at $1.0832 from $1.0782 on WednesdayPound/dollar: UP at $1.2972 from $1.2921Dollar/yen: DOWN at 151.83 yen from 152.76 yenEuro/pound: UP at 83.47 pence from 83.44 pence Brent North Sea Crude: DOWN 0.8 percent at $74.38 per barrelWest Texas Intermediate: DOWN 0.8 percent at $70.19 per barrelburs-jmb/nro

Europe’s main stock markets rose solidly Thursday thanks to well-received earnings updates and the prospect of more regional cuts to interest rates.Major Asian indices closed mixed after sizeable losses on Wall Street Wednesday, with US Treasury yields climbing on concerns that inflation risked rising again.Oil prices jumped 1.5 percent as the crude market continued to experience volatile trading.”Higher oil prices and some good corporate results helped UK stocks to strong gains,” noted AJ Bell investment director Russ Mould.London’s benchmark FTSE 100 index features oil giants BP and Shell.Shares in Barclays, meanwhile, gained 3.3 percent in midday deals after the bank said net profit increased 23 percent in the third quarter compared to one year earlier.In Paris, shares advanced in luxury goods group Hermes thanks to rising sales and amid hopes of a pickup in demand as China stimulates its economy.With the US presidential election still seen as a coin toss less than two weeks out, there was plenty of uncertainty on trading floors, though observers said dealers were eyeing a win for Donald Trump and policies such as tax cuts that could stoke inflation again.That, along with a strong run of US economic data and remarks from Federal Reserve officials backing a cautious approach to easing monetary policy, has seen expectations for rate cuts whittled back.Traders had previously been confident that the central bank would follow up last month’s bumper 50-basis-point cut with another at its November meeting and a smaller one in December.But those expectations have diminished, as seen with Treasury yields rising.The situation would appear different in Europe, where analysts are betting on the possibility of bumper rate cuts in the eurozone and Britain.This after Bank of England governor Andrew Bailey said UK inflation was falling quicker than it had expected, and as eurozone economic data continues to weaken.Business activity in the single currency bloc ticked lower for the second consecutive month in October, a closely watched survey showed Thursday.The HCOB Flash Eurozone purchasing managers’ index published by S&P Global registered a figure of 49.7 compared to 49.6 in September. Any reading above 50 indicates growth, while a figure below 50 shows contraction.The latest PMI data for Britain on Thursday showed its “economy struggled” at the start of the fourth quarter, said Kathleen Brooks, research director at traders XTB.Eyes will be on Tesla when Wall Street reopens after the electric carmaker reported a jump in profits late Wednesday.The company, led by Elon Musk, said third-quarter profit accelerated 17 percent to $2.2 billion from a year earlier.- Key figures around 1045 GMT -London – FTSE 100: UP 0.6 percent at 8,305.90 pointsParis – CAC 40: UP 0.8 percent at 7,556.00Frankfurt – DAX: UP 0.7 at 19,504.40Tokyo – Nikkei 225: UP 0.1 percent at 38,143.29 (close)Hong Kong – Hang Seng Index: DOWN 1.3 percent at 20,489.62 (close)Shanghai – Composite: DOWN 0.7 percent at 3,280.26 (close)New York – Dow: DOWN 1.0 percent at 42,514.95 (close)Euro/dollar: UP at $1.0803 from $1.0787 on WednesdayPound/dollar: UP at $1.2972 from $1.2929Dollar/yen: DOWN at 151.87 yen from 152.65 yenEuro/pound: DOWN at 83.27 pence from 83.41 pence Brent North Sea Crude: UP 1.5 percent at $76.10 per barrelWest Texas Intermediate: UP 1.5 percent at $71.86 per barrel

Taiwanese chipmaking giant TSMC halted shipments to a customer this month after its semiconductors were sent to China’s Huawei, a Taipei government official told AFP, potentially breaching US sanctions.Taiwan Semiconductor Manufacturing Company is the world’s largest contract manufacturer of chips used in everything from Apple iPhones to Nvidia’s cutting-edge artificial intelligence hardware.Huawei, the world’s leading equipment maker for fifth generation mobile internet networks, has been embroiled in a tech war between Beijing and Washington. The United States slapped sanctions on Huawei in 2019, and expanded them the following year, over fears its technology could be used for Beijing’s espionage operations. Huawei denies the allegations.The sanctions cut Huawei off from global supply chains that gave it access to the US-made components and technologies crucial to manufacturing powerful AI systems. The restrictions prevent TSMC from selling semiconductors to Huawei.But, TSMC discovered on October 11 that chips made for a “specific customer” had ended up with the Chinese company, a Taiwanese official with knowledge of the incident told AFP on the condition of anonymity.TSMC “immediately activated its export control procedures”, halting shipments to the customer and “proactively” notifying US and Taiwan authorities, the official said.In a statement on Wednesday, TSMC said it was a “law-abiding company” and had not supplied Huawei since mid-September 2020 in compliance with export controls. “We proactively communicated with the US Commerce Department regarding the matter in the report,” TSMC said, apparently referring to media reporting of the incident.”We are not aware of TSMC being the subject of any investigation at this time.”Taiwan’s economic ministry told AFP on Thursday that TSMC had informed them about the incident, but had not identified their client.”There was already an interaction and a contractual partnership in place, so it’s an old client,” the ministry said. They had been a client since before the 2020 deadline for companies to comply with the export controls, and “no shipments have been made since October 11”, it said.- Self-sufficiency -Bloomberg reported Tuesday that Canadian research firm TechInsights had found an advanced processor made by TSMC inside Huawei’s latest AI chip.Huawei did not respond to AFP’s request for comment.The company told Bloomberg that it hadn’t “produced any chips via TSMC after the implementation of the amendments made by the US Department of Commerce” to its trade restrictions targeting Huawei in 2020.The incident highlighted the lack of visibility into China’s domestic chip industry, said Chiang Min-yen, a non-resident fellow at the Research Institute for Democracy, Society, and Emerging Technology.”External parties lack sufficient information to understand which companies are actually under Huawei’s influence,” Chiang told AFP.In response to US export restrictions, Beijing has turbo-charged a drive for self-sufficiency in chips, with plans to pump billions of dollars into the sector.Huawei last year unveiled the Mate 60 Pro, a high-performance smartphone equipped with a chip that experts say would be impossible to produce without foreign technologies.That sparked debate about whether attempts to curb China’s technological advancements have been effective.

Asian markets mostly fell Thursday following steep losses on Wall Street as a spike in US Treasury yields led investors to scale back their expectations on interest rate cuts.With the US presidential election still seen as a coin toss less than two weeks out, there was plenty of uncertainty on trading floors, though observers said dealers were eyeing a win for Donald Trump and policies that could stoke inflation again.That, along with a strong run of economic data and remarks from Federal Reserve officials backing a cautious approach to easing monetary policy, has seen expectations for rate cuts whittled back.Traders had previously been confident that the central bank would follow up last month’s bumper 50-basis-point cut with another at its November meeting and a smaller one in December.But those expectations have diminished as Treasury yields push higher to 4.24 percent, compared with 3.73 percent in September.Observers said there is concern that a win for Trump over Democratic rival Kamala Harris could see him introduce tax cuts, ramp up trade tariffs and push for more deregulation.This has fuelled the so-called Trump trade, in which investors jockey for positions to prepare for such an eventuality.Sentiment has been “weighed down by the move up in yields and push back on Fed rate cut expectations”, said National Australia Bank’s Rodrigo Catril.”Solid economic momentum as well as Fed messaging emphasising a gradual and deliberate approach to further policy easing is making the market nervous,” he added. “Then once you add the upcoming US election alongside its associated uncertainty (higher or lower taxes?, more or less regulation?, new trade war?), taking some chips off the table makes sense.”All three main indexes on Wall Street finished well down, with the Nasdaq losing more than one percent.Hong Kong led the retreat in Asia, similarly shedding more than one percent, while Shanghai, Sydney, Seoul, Taipei, Bangkok, Mumbai, Jakarta and Manila were also lower.But Tokyo, Singapore and Wellington rose, along with London, Paris and Frankfurt.The dollar held gains after a drop in rate cut expectations pushed it up against its peers, bringing it to a near three-month high against the yen and a two-and-a-half-month high against sterling.Dealers will be keeping tabs on Tokyo ahead of next week’s Bank of Japan policy decision, which is expected to see it hold tight on borrowing costs, having hiked twice this year.Gold extended Wednesday’s drop from a record high as bonds offer better returns than the precious metal, which does not provide interest.And oil prices rose more than one percent, clawing back much of the previous day’s drop as dealers try to assess the demand outlook and the crisis in the Middle East amid fears about Israel’s plans to retaliate against Iran for this month’s missile attack.- Key figures around 0710 GMT -Tokyo – Nikkei 225: UP 0.1 percent at 38,143.29 (close)Hong Kong – Hang Seng Index: DOWN 1.3 percent at 20,489.62 (close)Shanghai – Composite: DOWN 0.7 percent at 3,280.26 (close)London – FTSE 100: UP 0.7 percent at 8,316.35Euro/dollar: UP at $1.0798 from $1.0787 on WednesdayPound/dollar: UP at $1.2968 from $1.2929Dollar/yen: DOWN at 152.21 yen from 152.65 yenEuro/pound: DOWN at 83.25 pence from 83.41 pence West Texas Intermediate: UP 1.7 percent at $71.94 per barrelBrent North Sea Crude: UP 1.5 percent at $76.09 per barrelNew York – Dow: DOWN 1.0 percent at 42,514.95 (close)

French luxury group Hermes posted Thursday a jump in third quarter sales, bucking the overall gloom in the sector caused by falling sales in China.The luxury house, famous for its leather bags and silk scarves, saw overall sales rising 10 percent to 3.7 billion euros ($4.0 billion) in the July to September period.China is the world’s biggest spender in the luxury sector, accounting for half of global sales. But as its post-pandemic recovery falters, consumption has flagged, sending jitters through the industry.”Hermes stands out from other big groups” Hermes’ chief financial officer Eric du Halgouet told journalists.Its main competitors, the world’s top luxury group LVMH and Kering (Gucci and Yves Saint Laurent) have both reported falling third quarter sales, drops of 4.4 percent and 15 percent respectively.In Hermes’s greater China region, which includes Macao and Taiwan, the “there was no reversal in the trend” of sales growth, said du Halgouet.The greater Asia region, which excludes Japan, posted 0.6 percent quarterly growth “despite the downturn in traffic in Greater China observed since the end of the Chinese New Year, and a high base in the third quarter last year,” the company said in a statement.Du Halgouet said the drop in footfall in Chinese stores was being made up for in increased spending per client, in particular on jewellery, leather goods and ready-to-wear clothing. Hermes also recently opened a 1,000 square-metre (10,800 square-foot) boutique in Shenzen and has plans to open two others in Shenyang and Beijing.The luxury group saw double-digit sales gains in its other major markets, including an 11 percent rise in the Americas and 18 percent increases in Europe and Japan.Du Halgouet said that sales in these regions were continuing at the same tempo as the fourth quarter got underway in October.Sales of leather goods, Hermes’s top segment, rose by 12.7 percent to 1.57 billion euros.Clothing and accessories rose by 12.1 percent to 1.13 billion euros.While CEO Axel Dumas evoked last month in a Financial Times interview the possiblity of Hermes launching into haute couture, du Halgouet said it wasn’t a project for the company in the short term but which could be added to the group’s overall strategy.