"Suffering" German economy avoids recession in third quarter

The German economy escaped a recession in the third quarter as consumers, state spending and construction led to a 0.1 percent quarterly expansion, defying expectations of another contraction in Europe's largest economy. Annually, gross domestic product expanded 0.5 percent from July through September after a 0.3 percent expansion in the previous three months, according to seasonally adjusted figures from the Federal Statistics Office.

Andreas Scheuerle, Deka bank analyst said "The German economy got away with a black eye: the technical recession could be avoided." He also said that it was too early to give them the all-clear. 

Burberry anticipates profit impacts of new designer

Burberry's investors are yet to see if new designer Riccardo Tisci's ranges are popular with customers, after the luxury brand said on Thursday that its full-year results missed expectations. Chief Executive Marco Gobbetti said Tisci's first two collections and limited editions had built "brand heat" for the 163-year-old British label.

But the relatively small amount of product in store at the end of the financial year was not enough to ignite sales, which were flat in the year leading up to March 30. Adjusted operating profit fell 6% to $562 million, hit by foreign exchange movements and investment in new products. 

Gobbetti said "We need to get the products in the stores to start to see the reaction of customers."

Daimler to cut jobs to save $1.1 billion

Daimler said on Thursday that it plans to cut jobs to save $1.1 billion by the end of 2022, as the German luxury carmaker concentrates on switching to greener vehicles. The Mercedes-Benz maker has also been impacted by expensive recalls, a slowing global market and a $957 million-dollar fine for having sold vehicles that exceeded legal emissions limits. 

In a statement, the company said "By the end of 2022, Mercedes-Benz Cars plans to save more than 1 billion euros in personnel costs. To this end, jobs are to be reduced."

The company statement did not include how many jobs would be slashed overall in the car sector. Mercedes-Benz Cars and Vans employs around 175,000 people worldwide but redundancies are expected to be in management and administrative roles.

The Sueddeutsche Zeitung said in a report last week that Daimler anticipated cutting 1,100 jobs worldwide. The company said it was faced with "ongoing high investment" to conform to global emissions regulation. 

A whole new TV world

Disney+ went live this week with an eye-popping 10 million subscribers signing up to the streaming service in the first 24 hours. Shares reached an all time high and lifted the markets. In fact, Disney was the best performer on the Dow Jones Industrial Average and the S&P 500 indices.

Stalemate

Global financial markets are largely fixated on the US - China trade talks which seem at a standstill.

Just one month after agreeing in principle on the so-called phase one of a trade deal, there is still no clarity over tariff schedules or apparent requirements for China to buy fixed quotas of US agricultural products, all holding investors back. "If we still in an impasse by net week, patience may start wearing thin though" said Jeffrey Halley at OANDA.

Gold

The continued trade talks deadlock stabilized the gold price which rose 0.5 percent , nearly $20 higher than the lows from earlier this week. Further bad news will be good news for gold, but the market seems to be taking a long term view, which could limit the downside.

Ferrari Unveils the Roma

In Italy, supercar maker Ferrari unveils the Roma, a record fifth new model this year as it expands its range as part of a strategy increase market share and ultimately become a fully fledged luxury brand.

The company called the car "a contemporary representing of the carefree, pleasurable way of life that characterized Rome in the 1950s and 1960s."

Ferrari's goal is to deliver 10,000 cars in 2019. Expect more details on price, spec and availability from the launch in Rome on Thursday. Meanwhile in the US, Donald Trump said he would make a decision soon on whether to impose tariffs on cars and auto parts imported into the United States but gave no other details.