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STOCKHOLM — Budget fashion group H&M has slashed prices to shift unsold summerwear, in the latest sign the Swedish company is struggling to keep pace with rivals as young buyers move online.

Seemingly unstoppable for decades, H&M has been hit by tougher competition in the past couple of years from cut-price brick-and-mortar rivals. It is also trying to improve its e-commerce offering to counter new online-only players.

H&M entered its third quarter with higher-than-usual inventories that needed to be sold before autumn collections arrived. On top of that, overall demand has been sluggish in some of its key markets, such as Germany. 

“The rapid shift from online to offline in the young value fashion market has been one factor behind disappointing sales trends in the past couple of years,” said Societe Generale analyst Anne Critchlow, who has a “sell” rating on H&M’s shares.

“In most countries, online is not yet integrated with the stores and free delivery and free returns are not available.”

Sales at H&M, the world’s second-largest clothing retailer after Zara owner Inditex, reached 51.2 billion crowns ($6.4 billion) in its June-to-August financial quarter against a forecast 51.6 billion in a Reuters poll.

Local-currency growth was 4 per cent, just below forecast.

H&M said the aggressive summer markdowns had led to an improved inventory position ahead of the fourth quarter and that autumn sales were off to a good start.

H&M’s shares, which have tumbled from all-time highs near 370 crowns in 2015, were up 2.2 per cent to 218.10 crowns at (14:00 GMT). 

The company has launched several independent and mostly higher-end brands in recent years to broaden its customer base in the face of growing competition in its budget segment, but the core H&M chain still accounts for the bulk of its sales. 

H&M is also intensifying efforts to catch up with services offered by pure-online players such as Asos and Zalando as shopper behaviour and expectations transform even faster than H&M had expected.

It is now testing “click-and-collect” —    picking up items bought online in stores — in Britain, and rolling out faster delivery options and online returns in stores in some markets.

RBC Capital Markets Richard Chamberlain with an “outperform” rating on H&M, said he expects sales and gross margin trends to improve next year helped by the online improvements.

WASHINGTON — Rising fuel and shelter costs drove up US consumer prices in August, a sign inflation could be gaining pace after remaining stubbornly sluggish for months, according to government data released on Thursday.

The new figures come the week before the Federal Reserve is due to review benchmark US interest rates and could boost the position of those who support a third rate increase this year, although that would be unlikely to happen before December.

The Consumer Price Index (CPI), which tracks the cost of household goods and services, jumped 0.4 per cent last month, its biggest increase since January and a tenth of a point higher than the consensus forecast.

The energy index rose 2.8 per cent, driven in large part by a 6.3 per cent jump in gasoline prices, while costs for shelter rose 0.5 per cent, its biggest monthly gain in ten years.

On a 12-month basis, the index rose 1.9 per cent over the same month in 2016, up from 1.7 per cent last month.

Economists had been flummoxed in recent months as inflation and wage gains remained tepid despite steady job growth and economic expansion. The Fed initially wrote off stagnant and falling prices, attributing them to a series of one-off “idiosyncratic” figures, but even they were starting to look deeper.

“The spell has been broken,” Ian Shepherdson of Pantheon Macroeconomics wrote in a client note, noting that the important categories of rent, and owners’ equivalent rent, had surged.

The Labour Department also reported that hotel stays had their largest one-month price increase in 26 years, adding 5.1 per cent.

“We expect core inflation to pop higher over the next few months as prices rise for both goods and services in short supply after the hurricanes,” Shepherdson said.

Officials said it was unclear how much Hurricane Harvey was responsible for rising fuel prices in the report, but the storm certainly interrupted the flow of survey responses from some areas in Texas.

Harvey made landfall in southeast Texas on August 26, causing much of US oil production and refining capacity to shut down, driving up prices in different regions of the country. But that information did not necessarily make it into the CPI report.

Excluding the volatile food and fuel categories, core CPI was up just 0.2 per cent, in line with analyst expectations.

The year-over-year core was steady at 1.7 per cent, where it has been for the past three months.

Labour Department officials said that year-to-date, however, CPI had risen only 1.4 per cent, slower than the 1.6 per cent gain in the January-to-August period last year.

In other notable moves, college tuition and fees fell 0.3 per cent in August, the largest drop in 17 years, while prices for roasted coffee fell 2.4 per cent in August, the biggest decline in 15 years.

At around $830 billion, Apple Inc.'s stock market value on the day of its newest iPhone launch towers over its next-largest rival and has Wall Street asking: Will it be the first listed company to crack the Big T?

 If history is any guide, the unveiling on Tuesday of the iPhone X — the 10-year anniversary edition of Apple's ubiquitous device — signals that the $1 trillion milestone could well be breached within the year.

Apple shares on average have gained around 33 per cent in the year following each of its previous iPhone launch events, dating back to the first one on January 9, 2007. It has gained in the following year after seven of the 10 announcements while falling in three.

From their current level, Apple shares need to gain roughly 20 per cent to sport the world's first 13-digit market cap. (Some analysts and the Saudi royal family have pegged global oil giant Saudi Aramco's value at $2 trillion or more, but there will be no public record to confirm that until after its initial public offering next year.)

 Of the 38 Wall Street analysts covering Apple, two already have price targets for the stock that see it driving above the $1 trillion level.

Brian White of Drexel Hamilton, whose $208 price target for the shares is highest on the Street and would equate to a $1.075 trillion market value at the current number of shares outstanding, came away from Tuesday's event convinced the stock has further to run.

"We continue to believe Apple's stock will not only benefit from the upcoming iPhone cycle but also the company's capital distribution initiative, attractive valuation and potential new innovations," White wrote in a note to clients. "As such, we do not believe Apple's run will end with today's iPhone event but still has attractive upside potential."

 Morgan Stanley's Katy Huberty said in a note to clients after Tuesday's event that the augmented reality features in Apple's new phone lineup "has the potential to become the next killer app that accelerates smartphone upgrades and drives increased services monetisation and growth".

 Her current price target of $182, which is 13 per cent above Tuesday's closing price of $160.86, would equal a market value of about $940 billion, but Huberty has a "bull case" target of $253 on the stock, or just over $1.3 trillion at current shares outstanding.

Apple shares are up 52 per cent in the last year.

Since Apple first announced the iPhone product line in January 2007, its stock has gained more than 1,200 per cent and delivered a total return, including reinvested dividends, of more than 1,375 per cent. Its annualised total return of 28.7 per cent in that period is nearly three times that of the Nasdaq Composite Index and almost four times what the benchmark S&P 500 has delivered.

And while at nearly $1,150, the new 256 gigabit iPhone X may seem like an eye-popping price, it is no more expensive — relative to Apple's stock price — than the first iPhone in 2007. The top-end version of the first generation iPhone, at $599, was worth a bit more than seven Apple shares at the time, around the same as today in nominal terms.

Insights and tips from travel specialists, Wego - the largest and most popular travel marketplace in the Middle East, covering Jordan,UAE,Saudi Arabia, and more.

Over 7,500 kilometers of coastline means India is packed with seaside gems. There are shimmering, white-sand beaches that would give any in Thailand a run for their money. Surf-washed party towns spill into the Indian Ocean and hippy retreats for yogis and sunbathers are kissed by the Arabian Sea.

Perhaps one of these five top spots will be enough to tempt you to cross into the subcontinent for some beach bliss…

Palolem, Goa

Palolem is the beach of choice for many a traveller to India. With its rambunctious row of bamboo restaurants and bars, its rolling Indian Ocean surf, its swaying groves of coconut trees and prime location in the heart of South Goa, there's plenty to love. It's much quieter than the throbbing resort towns to the north, too, which means there's loads of scope for lazy days of sea kayaking, sunbathing and munching on tikka-infused, fresh fish curries.

Radhanagar, Andaman and Nicobar Islands

Heading out to the far-flung Andaman and Nicobar Islands deep in the Bay of Bengal might mean adding a couple of extra legs to your journey, and a tad more bureaucracy with travel permits, but just one glimpse of paradisiacal Radhanagar Beach is sure to make it all worth the effort.

Home to sand so white it glows like magnesium, and seas of a pearly turquoise-blue, it's that real tropical beauty you've been waiting for. You'll find it on Havelock Island, where elephants often stroll the shores and jungle-clad mountains rise and fall on the horizon.

Varkala, Kerala

The whitewashed waves of the Indian Ocean forever crash against the ochre-hued sands of Varkala. The cliffs stand tall, and the fishermen bob on the swells from morning to night.

One of the hippest hangouts in all of Kerala, this beachside resort is a real looker. It's walled in by high bluffs to the back, and has a smattering of relaxed beach bars with their own deckchairs along the shore.

Nearby, the river town of Paravur also has some more deserted sand stretches, not to mention access to the world-famous Keralan Backwaters.

Tarkarli, Maharashtra

Far away from the hustle and bustle of Mumbai, sun-kissed Tarkarli can reveal a totally different side to Maharashtra state. It runs for a whopping 8 kilometers up the edge of the Arabian Sea, shimmering with its light-yellow sands that are broken only by the presence of the occasional fishing hut or wood-carved canoe.

Aside from watching the local folk haul in their daily catch as the sun sets dramatically on the horizon, SCUBA diving in the kaleidoscopic coral reefs of the Malvan Marine Sanctuary should be top of the menu.

Gokarna, Karnataka

If you're after the same glowing yellow sands and stooping groves of coconut palms that Goa has, but don't want to deal with the booming seasonal crowds, untrodden Gokarna could just be the choice for you.

Arcing their way around the Indian Ocean coast, the sands here encircle a ramshackle temple town of mysterious Hindu stupas and incense-scented shrines. Yogis and meditators, surfers and sunbathers all share the shoreline, which is broken into a number of separate beachfronts: lively Gokarna Beach itself, powdery Kudle Beach, and rustic Om Beach with its bamboo shacks and boulders.

DUBAI/CAIRO — Egypt is considering rejecting 59,000 tonnes of French wheat purchased by state grain buyer GASC due to the presence of poppy seeds, the second cargo to come under such scrutiny and raising fresh uncertainty over the country’s import policy.

The world’s biggest wheat importer threw the international grains market into confusion in 2015 by rejecting a cargo that contained the common wheat fungus ergot, triggering a row over policy in Cairo that is still simmering and worrying traders.

Egypt’s agricultural ministry said on Sunday its quarantine authority was examining seeds in the French cargo.

“If they prove to be poppy seeds, a decision will be taken to reject the shipment and transfer the case to the general prosecutor,” spokesman Hamid Abdel Dayim told Reuters.

That would be the second case transferred to the general prosecutor in less than a month after a 63,000 tonnes Romanian wheat cargo was rejected by quarantine and is now under review by the prosecutor’s office for re-export.

The back-to-back cases have raised red flags among traders, who called poppy seeds “the new ergot” and an attempt by Egypt’s agriculture quarantine service to tighten import rules after losing its fight to ban the fungus last year.

Transgrain France, a supply company responsible for the French cargo, said it seemed strange for “quarantine to suddenly discover this type of seed for the first time in decades” and said quarantine may have confused the seeds with another type of poppy found in France but which is not toxic.

Tougher inspections

In December 2015, the rejection of a French wheat shipment purchased by GASC for containing ergot set off a nearly year-long row over import requirements as Egypt’s quarantine authority imposed a ban on any trace level of the fungus.

Trading companies said the requirement was impossible to guarantee and boycotted state tenders, effectively cutting Egypt off from global grains markets.

Egypt spends billions of pounds each year on wheat and bread subsidies to secure food for tens of millions of its poorest. The political sensitivity of the availability and price of the staple makes ensuring supplies a top government priority.

Following the boycotts, Egypt scrapped its zero-ergot policy and came into line with international standards to win back traders to its tenders. It also stopped sending Egyptian quarantine inspectors abroad to check on grain shipments and started using private companies instead.

But the new system was successfully challenged in court by a group of quarantine inspectors who argued it had allowed contaminants hazardous to plants and animals into the country.

The government has not implemented the court order and is appealing the decision, leaving the new system in limbo.

“The agricultural quarantine is trying to put more pressure, they want delegations to travel abroad again,” one Cairo-based trader said.

Traders also said inspection companies abroad at ports of origin were being more meticulous in searching for poppy seeds to avoid problems when shipments arrive in Egyptian ports.

“There are currently two Romanian cargoes at ports of origin that have been told to change their wheat supply for the presence of poppy seeds,” another trader said.

“They are nervous now with what is happening,” he added.

FRANKFURT AM MAIN — Hundreds of thousands of car enthusiasts are set to flock to Frankfurt’s IAA motor show in few day where auto giants hope to show off their electric prowess as scandal-plagued diesels take a backseat.

Two years after “dieselgate” crashed the last IAA party, when Volkswagen’s public admission that it had cheated on diesel emissions tests embarrassingly coincided with the fair, organisers are hoping to turn the page by focusing on the cleaner cars of the future.

But as more automakers have come under suspicion and concern about diesel pollution has grown, industry expert Stefan Bratzel expects the mood at this year’s 10-day extravaganza to be “mixed”.

“On the one hand, the auto industry is enjoying its best years ever in terms of sales and profits, but on the other it’s wondering what’s going to happen in future,” said Bratzel of Germany’s Centre for Automotive Management.

“Diesel and its harmful emissions are a topic of hot debate right now, especially in Germany, creating an image problem for the entire industry.”

German Chancellor Angela Merkel, eyeing a fourth term in a September 24 general election, will on Thursday formally open the 67th International Motor Show, in what promises to be a more politically charged event than in past years.

Dieselgate has wormed its way into the German election campaign as voters fret over the resale value of their cars and over diesel bans mooted by some cities.

While Merkel has said she had been “angered” by the cheating scam, she has also been careful not to demonise a sector that is the backbone of the German economy and employs more than 800,000 people.

“Diesel, and the internal combustion engine, will exist for many, many years to come,” she said in a recent interview.

But other countries are not so sure. Both France and Britain have announced plans to ban the sale of new diesel and petrol cars by 2040 to clamp down on harmful emissions.

“All this uncertainty surrounding diesel and gasoline engines will hang over the trade show,” predicted Flavien Neuvy, auto expert at France’s Observatoire Cetelem.
No shows

Automakers around the world are responding to the challenges by dramatically shifting focus to electric and automated vehicles, belatedly joining a race started by Silicon Valley giant Tesla to take zero-emission cars into the mainstream.

In the run-up to the IAA, which alternates each year with the Paris Motor Show, German luxury carmaker BMW and Britain’s Jaguar Land Rover became the latest manufacturers to promise electric or hybrid models across all their brands in coming years.

In Frankfurt, fairgoers will get a chance to get up close and personal with BMW’s first electric Mini, while Volkswagen plans to show off an updated concept of its self-driving ID Crozz, an SUV crossover, and Daimler hopes to wow with its Mercedes-AMG hybrid “supercar”.

But lovers of gas-guzzlers need not despair, as the IAA is promising plenty of traditional fare as well with a string of urban SUVs lining up to steal the limelight, including Renault’s budget Dacia Duster.

Despite all the buzz, the year’s most-talked about car will be conspicuously absent from the Frankfurt convention centre: Tesla’s Model 3.

The much-hyped model aims to be the first electric car for the masses with a starting price around $35,000 and a battery range of 354 kilometres.

“We’re not a traditional carmaker,” Tesla said about skipping the IAA.

But it joins a string of other noticeable no-shows, continuing a trend seen at other car shows in recent years. 

Fiat Chrysler, Nissan, Peugeot and Volvo are all staying away from Frankfurt, as companies search for more innovative and less costly ways to engage with customers.

“Car shows, like cars, need to keep reinventing themselves,” Matthias Wissmann, chief of Germany’s VDA auto industry federation, told AFP.

BENGALURU — Amazon.com Inc. said on Thursday it was searching for a location to build its second headquarters in North America that would cost more than $5 billion and house up to 50,000 staff.

The e-commerce company, which is headquartered in Seattle, said it was seeking proposals from local and state government leaders and would select the location next year.

Amazon's workforce has exploded to more than 380,000 from under 25,000 since it moved to Seattle in 2010, as it rapidly expanded to become a global retailer — selling everything from groceries to appliances.

The company's total revenue has grown to $136 billion at the end of last year from $34 billion in 2010. Amazon recently snatched up Whole Foods Market for $13.7 billion.

Amazon said the new headquarters should ideally be located in a metropolitan area with more than 1 million people, potentially giving the company a shopping list of more than 50 cities to choose from.

The project would initially need more than 4.6 hectares and up to 74.3 hectares beyond 2027, Amazon said.

"We want to find a city that is excited to work with us and where our customers, employees, and the community can all benefit," Amazon said.

Amazon is looking for a favorable tax structure and local government subsidies, incentives that have attracted other companies like Taiwan-based Foxconn to build facilities in the United States.

Foxconn plans to build a $10 billion liquid crystal display factory in Wisconsin. The state's Republican-controlled government had voted to approve a bill aimed at establishing a $3 billion incentive package for the plant.

Amazon expects the new headquarters to be a "full equal" to its Seattle office, Chief Executive Jeff Bezos said in a statement.

The Seattle campus is spread across 75.2 hectares in 33 buildings and employs more than 40,000 people.

Amazon's shares were up 1 per cent at $978 on Thursday morning.

HANOI — Vietnam and Egypt agreed on Wednesday to nearly triple trade to $1 billion, including with ship-building and IT contracts, as Egypt seeks to kickstart its sputtering economy and forge ties with fast-growing Asian nations.

Egyptian President Abdel Fattah Al Sisi is in Hanoi for a two-day visit — the first ever by an Egyptian leader — aimed at drumming up business ties with the country.

"We discussed means to reinforce bilateral ties in many areas, in particular in economics, especially in light of Vietnam's achievements in the fields of industry and commerce," Sisi told reporters. 

Egypt's economy tanked after a 2011 revolution that toppled longtime president Hosni Mubarak, and though growth has steadily recovered, reaching 4.3 per cent last year from 1.8 per cent in 2011, it is still hampered by high inflation.

Last year the International Monetary Fund approved a $12 billion loan to prop up the ailing economy. 

Vietnam's President Tran Dai Quang called for more trade with Egypt after officials signed nine agreements on Wednesday, including in the areas of transport, fisheries and investment.

"We are determined to bring bilateral trade volume to $1 billion in the future," Quang said, adding they would focus on ship-building, IT, seaports, manufacturing and agro-processing.

Egypt is Vietnam's second biggest trading partner in Africa, though trade has faltered in recent years, hitting $316 million last year from $395 million in 2014.

Sisi's visit comes as Vietnam courts international investment from new allies in Africa and the Middle East.

Analysts say Hanoi is looking to drum up trade deals after the US pulled out of the Trans-Pacific Partnership in January, a major blow to Vietnam which was set to gain enormously from the 12-nation pact. 

Vietnam is one of Asia's fastest growing economies, clocking more than 5 per cent annual growth over the past five years. 

Sisi will attend a business forum on Thursday before departing. 

Insights and tips from travel specialists, Wego - the largest and most popular travel marketplace in the Middle East, covering Jordan, Kuwait, Egypt, and more.

Tumbling down from the spiked tops of snow-mantled Svaneti, where the Greater Caucasus Mountains come dressed in spruce forests and topped with moss-growing stone towers, Georgia's backcountry rarely fails to draw a gasp.

It's a land of mist-plumed summits and glaciers, of deep valleys filled with woods, and dusty canyons that spill over into the sloshing sky-blue waters of the Black Sea. And that's without even mentioning the incredible cityscapes: Tbilisi, buzzing with nightlife; Batumi, peppered with palm trees; Telavi, the gateway to the ancient Kakheti wineries. Yep, there are plenty of reasons why you should explore Georgia right now… 

The mountains

Whether you come to don the salopettes and hit the ski slopes, or wax down the walking boots and head out on ancient caravan routes through the peaks, you can rest assured that Georgia has you covered. Much of the country is given over to mountain ranges, with the craggy tops of 5,000-meter-high summits soaring to the clouds in the Greater Caucasus in the north, and the lower ridges of the Lesser Caucasus rising in the south.

Winter sees the cable cars and pistes of resorts such as Bakuriani and Gudauri come to life, while spring heralds the beginning of the hiking season in Upper Svaneti – a mosaic of alpine valleys, fir forests, and carved rock gorges aplenty.

The people

There are plenty of reasons Georgia is famed for its hospitality. It might be the perennial smile worn on the faces of the rustic country folk, going about their business between the crumbling stone towers of Mazeri. It might be the slosh of the local wines in that are uncorked behind the cellar doors of Kakheti region, always clinked with a happy gaumarjos (cheers). It might be the excited way in which the locals of Tbilisi talk about their country; enthralled with its intricate past; excited and inspired for its future.

Because Tbilisi can't be beaten

Straddling the undulating banks of the Kura River, Tbilisi is a city that pulses with life.

The old medieval walls of Narikala Fortress tower on the ridges above the town, standing watch like something out of Game of Thrones. They survey the maze-like mix of cobbled streets and carved Orthodox churches that is Old Tbilisi – the place to go for a taste of real history.

Other districts are imbued with elegant Art Nouveau mansions, bubbling Turkic hammams, grand neo-classical palaces, and even relics of the old Russian tsars. There's oodles to see.

NEW YORK — The US dollar rose broadly on Wednesday on speculation the European Central Bank (ECB) could step in to weaken the euro and after strong US economic data boosted expectations for a solid US jobs report on Friday. 

The euro was on track for its biggest daily percentage drop against the dollar in nearly four weeks, of about 0.6 per cent, putting it back below $1.2 after touching a more than 2-1/2-year high of $1.2069 on Tuesday. It last traded at $1.1906.

Analysts said traders were starting to suspect that ECB President Mario Draghi could be growing more concerned about the euro's rise, despite making no mention of the currency's strength at a central bank gathering in Jackson Hole, Wyoming last Friday. 

Draghi's omission of commentary on the euro that Friday had contributed to the currency breaking past the critical $1.2 level on Tuesday. The euro is up more than 13 per cent against the dollar this year.

"The euro has gone way too fast, too quickly," said Dean Popplewell, chief currency strategist at Oanda in Toronto. "People are starting to sit back and wonder: 'what is the ECB going to do about inflation still being below expectations in Europe?'"

The ECB is set to hold a policy meeting next week. 

The dollar also gained after the Commerce Department said its second estimate of US gross domestic product showed that it increased at a 3 per cent annual rate in the second quarter, its quickest pace in more than two years.

The ADP National Employment Report showed US private-sector employers hired 237,000 workers in August for the biggest monthly increase in five months, also boosting the greenback and driving expectations for a solid US August non-farm payrolls figure.

The dollar touched a two-week high against the yen of 110.43 yen after the US data, rising further off a 4-1/2-month low of 108.25 struck Tuesday following North Korea's launch of a ballistic missile over Japan. 

The dollar index, which measures the greenback against a basket of six major currencies, was last up 0.6 per cent at 92.799 after temporarily hitting a more than 2-1/2-year low of 91.621 on Tuesday. 

"Even if you have a small positive surprise [in non-farm payrolls], even around 200,000, that may extend the bid tone for the dollar," said Mazen Issa, senior currency strategist at TD Securities in New York. 

The dollar index pared gains slightly after US President Donald Trump dismissed any diplomatic negotiations with North Korea, saying "talking is not the answer".