Relapse feared even as German retail rebounds

FRANKFURT: German retail sales posted their first rise since April last month, but economists warned headwinds could stall a sustained rebound in consumption in Europe's biggest economy.

Retail sales gained 0.7 percent in July from the previous month, provisional data released Tuesday by the national statistics office showed.

In June, retail sales had fallen by 1.3 percent on a monthly basis, the Destatis office said in an upwards revision of the previous month's data.

Destatis based its seasonally adjusted figures on seven German states which represent around 76 percent of all retail sales in the country.

On an annual basis, sales fell by 1.0 percent in July, it said.

The data showed that sales of food products gained 0.1 percent on the year, while sales of items such as household appliances, cosmetics and books had fallen by 1.5 percent, Destatis said.

Auto sales were not included in the statistics.

"After two months of decline, German retail sales finally increased again in July," ING senior economist Carsten Brzeski commented.

"This increase is good news and confirms that the recovery will accelerate in the third quarter," he added.

Germany has rebounded with unexpected speed from its worst recession in more than six decades, edging back to growth in the second quarter of this year with an expansion of 0.3 percent.

Brzeski nonetheless noted that retail sales figures had to be taken with caution since they were often revised by significant amounts.

Figures on German unemployment, a key influence on consumer spending, were to be released later in the day.

Brzeski also felt that private consumption had only limited potential to be a major source of growth.

"Finding a way to lower the savings rate and to open the consumers' wallets will be one of the main challenges for the new government after the elections" on September 27, he said.

UniCredit economist Alexander Koch added that with a German car-scrapping bonus tapering off, "the continuing negative outlook for the labor market should increasingly gain the upper hand towards year-end.

"Hence, even after the end of the general recession, a delayed consumer recession remains probable," he warned.

Fulbari Resort’s Dashain fest offer till October 31

KATHMANDU: Fulbari Resort, Pokhara, has announced an attractive Dashain-Diwali Festive Package especially for Non Resident Nepalis, Indian tourists and local Nepali clientele valid till October 31.
“It is our new approach and endeavour to boost domestic and international tourism to Pokhara,” Fulbari Resort representatives said.
It has offered ‘One complimentary double deluxe room for a couple with breakfast for 2-nites’ as lucky draw prizes on daily/weekly basis in the various shopping malls and supermarkets.
This unique resort which has been rated as ‘one of the great hotels of the world’ has upgraded its facilities, services and ambience and it has a casino, golf course and spa not to mention its strong presence in the South-East Asian and Far East markets.

Qatar, Chinese firm sign gas deal

DOHA: State-owned firm Qatar Petroleum (QP) said it has signed a gas exploration and production-sharing deal with CNOOC Middle East, a unit of China National Offshore Oil Corp (CNOOC).

Exploration will take place in a bloc measuring around 5,649 square kilometres (2,181 square miles) in the waters off the eastern shore of the peninsula, the firm said late on Monday.

Under the deal, CNOOC will spend 100 million dollars to fund exploration and drilling wells. The deal spans 25 years, with up to five years dedicated to exploration.

"This is one of a series of deals QP plans to sign with other international oil firms to explore and develop oil and gas sources in Qatar," Qatari Oil Minister Abdullah al-Attiyah was quoted as saying at the signing ceremony.

The Gulf Arab emirate is among the world's top exporters of liquefied natural gas.