NEW YORK // The US has fallen deeper into recession according to the latest data as the number of people filing for unemployment benefits hit a 26-year high and consumers cut spending for the fifth consecutive month.
Elsewhere, Germany became the latest country to approve a new spending programme to jolt its economy while retailers in Britain were hoping for the traditional rush to the sales today to lift poor pre-Christmas spending figures.
Germany announced plans for a second stimulus package, to be capped at ?25 billion (Dh128.65bn), to help Europe's biggest economy weather a growing recession.
So far, however, increased spending in economies around the world has yet to boost confidence among businesses, investors or consumers.
Data on Wednesday showed that US consumers cut spending last month as their incomes shrank, pointing to a prolonged recession for the world's largest economy.
New orders for long-lasting manufactured goods fell 1 per cent last month, following a steeply revised plunge of more than 8 per cent the month before, while the number of US workers filing for jobless benefits for the first time soared by 30,000 in the week ending last Saturday. Nearly two million US workers have lost their jobs this year, driving the unemployment rate to 6.7 per cent.
"I don't think we are going to have a major reassessment of the economic situation based on today's data," said Daniel Katzive, the director of global foreign exchange at Credit Suisse in New York. "All in all, the scenario remains pretty weak."
Many leading companies are also struggling to keep their businesses afloat, resorting to cutting jobs or work days, or reducing benefits to counter weakening demand.
For others, the crisis has become too much.
In Britain, the retailer, Zavvi, which sells CDs, DVDs, games and books, became the fourth high-profile victim of the crisis in less than 24 hours as it fell into administration. Zavvi was formed 15 months ago from a management buyout of the Virgin Megastore division of the Virgin Group. It joined Woolworths, the tea merchant, Whittard, and the menswear store, The Officers Club, on the growing list of casualties from a severe downturn in consumer spending.
Several major retailers brought forward their traditional post-Christmas sales to slash prices by as much as 90 per cent. "Retailers are offering discounts on an unprecedented scale to encourage customers in," said Richard Dodd, the spokesman for the British Retail Consortium. "The battle between retailers is on for every pound that customers have to spend."
Tesco, Britain's biggest retailer by far, began a new wave of discounts, including 70 per cent off some of its clothing lines. The Homewares chain, B&Q, was offering 50 per cent off its kitchens and bathrooms, with discounts of up to 75 per cent on some other items, while the department stores, John Lewis and Marks&Spencer, and the chemist chain Superdrug were among many retailers which started online sales on Wednesday evening and Christmas Day itself.
"I think some retailers will be daring to breathe a sigh of relief because it's clear that customers have left their spending very late rather than cancelled it entirely," Mr Dodd said. "But it won't be until we see the final figures that we know what people are actually spending."
Zavvi employs about 2,400 permanent staff and 1,050 temporary staff in Britain and Ireland, although the company's operations in Ireland are not subject to the insolvency proceedings. Thousands of more jobs are thought to be at risk at other retail stores.
The global credit crisis has taken a harsh toll on the British retail sector. The Insolvency Service has reported the collapse of 356 companies in the third quarter, a 39 per cent increase compared with the same period last year. Among the bigger names were ceramics stalwart Royal Worcester and Spode, the queen's tailor Hardy Amies and the MFI furniture group.
Germany's intended stimulus plan was smaller than the ?40bn measures originally reported for new projects and was unlikely to ease pressure on the chancellor, Angela Merkel, who has been attacked by politicians and economists who want her government to do more to boost the economy.
Poland's central bank said it was likely to cut rates further next year, while in Russia, a central bank source confirmed that authorities devalued the rouble for the seventh time in a month.
"The situation may be exacerbated by a growth in protests, arising from the frustration of workers over the non-payment of wages or those threatened with dismissal," the deputy interior minister, Mikhail Sukhodolsky, said.
* Reuters, Associated Press
Mohammed bin Zayed Majlis
COMPANY PROFILE
Company name: Blah
Started: 2018
Founder: Aliyah Al Abbar and Hend Al Marri
Based: Dubai
Industry: Technology and talent management
Initial investment: Dh20,000
Investors: Self-funded
Total customers: 40
Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
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The%20specs
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World Cricket League Division 2
In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
UAE fixtures
Thursday, February 8 v Kenya; Friday, February 9 v Canada; Sunday, February 11 v Nepal; Monday, February 12 v Oman; Wednesday, February 14 v Namibia; Thursday, February 15 final
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
The specs: 2018 Chevrolet Trailblazer
Price, base / as tested Dh99,000 / Dh132,000
Engine 3.6L V6
Transmission: Six-speed automatic
Power 275hp @ 6,000rpm
Torque 350Nm @ 3,700rpm
Fuel economy combined 12.2L / 100km
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Ipaf in numbers
Established: 2008
Prize money: $50,000 (Dh183,650) for winners and $10,000 for those on the shortlist.
Winning novels: 13
Shortlisted novels: 66
Longlisted novels: 111
Total number of novels submitted: 1,780
Novels translated internationally: 66
Sholto Byrnes on Myanmar politics
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Sheer grandeur
The Owo building is 14 storeys high, seven of which are below ground, with the 30,000 square feet of amenities located subterranean, including a 16-seat private cinema, seven lounges, a gym, games room, treatment suites and bicycle storage.
A clear distinction between the residences and the Raffles hotel with the amenities operated separately.
PROFILE OF HALAN
Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
Based: Cairo, Egypt
Sector: transport and logistics
Size: 150 employees
Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
MOTHER%20OF%20STRANGERS
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Company%20profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20JustClean%3Cbr%3E%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%20with%20offices%20in%20other%20GCC%20countries%3Cbr%3E%3Cbr%3E%3Cstrong%3ELaunch%20year%3A%3C%2Fstrong%3E%202016%3Cbr%3E%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%20160%2B%20with%2021%20nationalities%20in%20eight%20cities%3Cbr%3E%3Cstrong%3E%3Cbr%3ESector%3A%3C%2Fstrong%3E%20online%20laundry%20and%20cleaning%20services%3Cbr%3E%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3E%2430m%20from%20Kuwait-based%20Faith%20Capital%20Holding%20and%20Gulf%20Investment%20Corporation%3C%2Fp%3E%0A
MATCH INFO
Brescia 1 (Skrinia og, 76)
Inter Milan 2 (Martinez 33, Lukaku 63)
