Euro Hits 20-Year Low Against Dollar On Recession Risk

A picture taken on June 29, 2021 in Paris shows a passport next to a mobile phone whose screen bears a EU Digital Covid certificate. (Photo by Olivier MORIN / AFP)

 

 

The European single currency sank Tuesday to its lowest level against the dollar since 2002 as data pointed to a growing recession risk in the eurozone.

The euro also dived as investors eyed aggressive interest rate hikes by the US Federal Reserve in its fight against inflation, in contrast with the European Central Bank which plans more modest increases.

Just before 0900 GMT, the shared eurozone unit tumbled to $1.0306, threatening a push towards dollar parity for the first time since the euro’s creation in 1999.

Economic growth in the eurozone floundered in June, a key survey showed Tuesday, hit by soaring inflation.

S&P Global’s closely-watched monthly purchasing managers’ index (PMI), which measures corporate confidence, fell to 52.0 in June from 54.8 in May.

The reading, which was a 16-month low, however remains above the 50-point level signalling expansion.

“Growing fears of a recession are hammering the euro lower, whilst the dollar is soaring on bets that the Fed will keep hiking rates aggressively to tame inflation,” City Index analyst Fiona Cincotta told AFP.

“Today’s PMI data from Europe have highlighted the risk of slowing growth at the end of the second quarter and raise the prospect of a contraction in activity in the coming months.”

Frenchman Wins 200m Euros Lottery Jackpot

In this file photo taken on January 29, 2009 Visitors look at gambling machines at the International Gaming Expo at the Earls Court centre in west London, on January 29, 2009.  SHAUN CURRY / AFP

 

A record jackpot of 200 million euros ($242 million) was won Friday in France by a ticket holder who has 120 days to claim the prize, the EuroMillions lottery said.

The win is the biggest ever scooped by a player of the EuroMillions lottery with the previous record standing at 190 million euros, won a number of times, most recently in October 2019.

Friday’s staggering prize went up for grabs after the jackpot rolled over twice last week.

Players in France have picked up 110 out of 499 Euromillions jackpots — nearly a quarter — since it began in 2004, followed by Britain which has had 108 winners and Spain with 105.

Apart from France, EuroMillions tickets can be bought in Austria, Belgium, Britain, Ireland, Luxembourg, Portugal, Spain, and Switzerland.

 

AFP

Huawei Stakes €70 Million To Produce Better Smartphones

Chinese multinational company; a leading global information and communications technology (ICT) solutions provider; Huawei Technologies has decided to invest 70 million (US$90.6 million) in the smartphone production industry which will span over a five-year period to establish a research and development centre in Helsinki, Finland.

And it is doing that with the aim of its first task being to build software for smartphones and tablets based on Android and Windows Phone 8.

At first, Huawei plans to recruit 30 employees for the centre, with the goal of hiring more than 100 people over five years, the company said in a statement on Monday and initial projects will focus on software development for smartphones, tablets and other types of devices, based on several OS such as Android and Windows Phone 8, Huawei said.

The company has yet to announce its first smartphone based on the latest version of Microsoft’s OS, but is expected to do so soon.

Huawei is currently the world’s fifth largest smartphone vendor in terms of unit sales and currently employs more than 7,000 people across Europe.

Huawei’s long-term plan is to break into the top three and is hoping to take advantage of Nokia’s continuing struggles to make that happen, according to Neil Mawston, executive director at market research company Strategy Analytics.

“Huawei is being a little opportunistic in that it knows there will be a lot of well-qualified Nokia people in the Helsinki area who will be looking for alternative employment,” Mawston said.

The Helsinki R&D centre will join an already established modem and technology design centre in Sweden and a user interface research centre in the U.K.

Huawei has a history of investing in the Nordic countries. Last year the company celebrated the tenth anniversary of its arrival in Sweden, which is the home country of Ericsson, its biggest rival in the mobile network sector.