Car crash
Euro sales slip
The European car makers are back in the doldrums after the brief respite of improved sales in July was rapidly reversed with a 5 per cent decline in European Union car sales in August. German giant Volkswagen was fingered as the main culprit after it reported a 17.5 per cent slump in sales, which was exacerbated by hail stone damage to several thousand cars at its Wolfsburg headquarters that held up their sale. Total EU car sales in the year to date are running at their lowest level since records began in 1990 and have declined in six out of eight months so far this year. In stark contrast, UK sales are motoring ahead with August showing a 10.9 per cent rise in new car sales, the 18th consecutive months of improving sales.
Inflation eases
But housing hots up
Inflation in the UK has begun to ease once again as smaller increases in the price of petrol and clothing led the Consumer Prices Index (CPI) measure to fall to 2.7 per cent in August, down marginally from 2.8 per cent in July. Economists are predicting further falls in the coming months towards the 2 per cent level notwithstanding any further spikes in oil in the meantime. Meanwhile, soaring house prices in the South East and London are driving up overall house price inflation with the average price now 3.3 per cent ahead of last year and house prices in England now having surpassed their 2008 peak. But strip out London's 9.7 per cent rise and the 2.5 per cent seen in other areas of the South East, and the overall rise was a more modest 0.8 per cent.
Super rich
Wealthy rise
The collective wealth of the 400 richest people in America has surpassed the size of the Russian economy, according to the latest Forbes magazine survey of US wealth. In a continuation of the sharp rebound from the financial crisis, the 400 richest Americans have a combined wealth of $2trn, up from $1.7trn last year. In a sign of the continued concentration of wealth, all 400 in the list are billionaires with a minimum of $1.3bn required to make the bottom of the list. Bill Gates continues to top the list, for the 20th year in a row, with a worth of $72bn, followed by Warren Buffett, who is now worth $58.5bn.
Shale bonanza
Fields analysis
Despite the success of shale oil extraction in the US, the potential for the extraction of shale oil outside of America is potentially huge, according to a survey of the world's most prospective shale oil fields. The US is believed to be sitting on 40bn barrels of oil equivalent in its shale formations, particularly the Bakken in North Dakota and Eagle Ford in Texas, but the 23 best prospective fields outside of the US could contain 175bn barrels of oil equivalent and could produce five million barrels a day during the 2020s. The most promising fields appear to be in Argentina, North Africa and Siberia.
Tesco tablet
On its way?
Retailer Tesco is strongly rumoured to be on the verge of releasing details of it first own-brand tablet computer which would likely take on the competition at the low cost end of the market. With a release date rumoured to be early next week, Tesco is said to be planning to retail a basic tablet around the £99 level in a bid to pick up share in a market which is still showing impressive growth credentials, and releasing it in late September gives Tesco time to build up momentum ahead of the Christmas shopping season. The device is expected to be made by a Chinese partner and is priced to compete with the likes of the Kindle Fire.
Obama tests
Budget fight ahead
President Obama has had a testing few weeks, firstly on foreign policy with the will he, won't he attack Syria debate, then this week Larry Summers, widely believed to be Mr Obama's choice for the next chairman of the Federal Reserve, withdrew his candidacy and he now faces two major budgetary battles with Congress over the next month. Firstly, a deal has to be reached by the end of September to approve a new budget or again the US faces the prospect of parts of the government shutting down. Then a further deal needs to be secured by mid-October to increase the debt ceiling or the country faces a technical default. Persuading Republicans to get on board will be no easier than it was the last time the US faced a budgetary crisis.
