Starbucks sales surge as coffee drinkers return to cafes
NEW YORK (AFP) - Coffee drinkers returned to Starbucks cafes in a big way last quarter, fueling a surge in sales and better-than-expected profits, according to results released on Tuesday (July 27). The coffee chain, which has invested in improving its smartphone app to facilitate online orders, raised its full-year profit forecast on the heels of the strong results, with showed key benchmarks posting big gains in the third quarter ending June 27. "As the Great Human Reconnection continues to unfold, our partners are rising to the occasion, ready to meet our customers wherever they need us to be," said chief executive Kevin Johnson in an earnings release. But shares fell in after-hours trading, with CNBC pointing to the reduced outlook for China sales. Global comparable sales growth, which in the pre-pandemic era was considered strong which it showed increases in the high single digits, surged 73 per cent in the latest three months, reflecting the dramatic change in conditions due to the availability of coronavirus vaccines and the economic reopening. The chain scored profits of US$1.1 billion (S$1.5 billion), compared with a loss of US$678.4 million in the same period of 2020. Rev...
US sees biggest annual inflation jump since 2008
WASHINGTON (AFP) - The United States saw its biggest surge in inflation in more than a decade last month, according to government data released on Tuesday (July 13), hitting consumers and challenging the White House and Federal Reserve narrative that the price spike will fade in the coming months. As widespread Covid-19 vaccinations allowed the world's largest economy to relax pandemic restrictions, Americans have resumed spending and travelling but have faced rising prices for used cars, gasoline, hotels and airline fares. That trend could undermine already-tentative support for President Joe Biden's economic plan, including his massive jobs and infrastructure proposals. The consumer price index (CPI) spiked 5.4 per cent in the 12 months ended in June, not seasonally adjusted, the highest rate since August 2008, the Labour Department said. While the reopening is a boon to businesses, they are facing supply bottlenecks such as a global shortage of semiconductors that has hampered auto production, and also surges in demand, including from rental car companies rushing to rebuild their fleets. After sinking in the midst of the pandemic shutdowns, energy prices have rebounded, aided by...
Australia home prices surge at fastest pace since 2003 in February
SYDNEY (BLOOMBERG, REUTERS) - Australian home prices climbed by the most since August 2003 in February as record low borrowing rates and government incentives lure more buyers into the market, raising fears of overheating. Nationwide house values surged 2.1 per cent last month, CoreLogi data released on Monday (March 1) showed. Capital city prices gained 2 per cent, led by Sydney and Melbourne. “Australia’s housing market is in the midst of a broad-based boom,” said Tim Lawless, head of research at CoreLogic. The rapid gains have been “spurred on by a combination of record-low mortgage rates, improving economic conditions, government incentives and low advertised supply levels.” While housing prices are surging from Singapore to Canada and the US, a return to boom times in Australia threatens to swell an already worrisome pile of household debt and make it harder for young people to get a foot on the property ladder. Sydney is the world’s third-least affordable housing market, and Melbourne the sixth, according to a report last week. The nation’s property values have taken off again after the central bank slashed interest rates to a record low and said they’ll stay there for at lea...