| 19.2°C Dublin

GAP shares drop after posting same-store sales for August

Close

GAP CEO Glenn Murphy has been working to maintain sales growth as the choppy economic recovery restrains shoppers' appetites for new fashions.  Photo credit: Andrew Burton/Getty Images

GAP CEO Glenn Murphy has been working to maintain sales growth as the choppy economic recovery restrains shoppers' appetites for new fashions. Photo credit: Andrew Burton/Getty Images

Getty Images

GAP CEO Glenn Murphy has been working to maintain sales growth as the choppy economic recovery restrains shoppers' appetites for new fashions. Photo credit: Andrew Burton/Getty Images

Shares in clothing firm GAP fell the most in almost a year after posting same-store sales for August that trailed analysts' estimates as demand dropped at its namesake clothing chain.

GAP shares dropped 4.3pc in early New York trading. The San Francisco-based retailer's shares had gained 19pc this year prior to the decline.

CEO Glenn Murphy has been working to maintain sales growth as the choppy economic recovery restrains shoppers' appetites for new fashions. The August performance at the GAP chain will likely hurt its gross margin for the current month, the company said.

Dollar dips on job woes

The dollar fell after a US government report showed employers added the fewest jobs this year in August, damping speculation the Federal Reserve will raise interest rates sooner than anticipated.

Data showed the US economy added 142,000 jobs, versus a Bloomberg survey forecast of 230,000.

The yen rose from its weakest level in almost six years and the euro gained from almost a 14-month low. The currencies had fallen on Thursday after the Bank of Japan maintained its unprecedented stimulus and the European Central Bank cut interest rates.

VW abuses in Brazil

Volkswagen spied on Brazilian union activists in the 1980s and passed sensitive information about wage demands and other private discussions to the country's military dictatorship, according to newly-uncovered documents.

The company covertly monitored its own workers as well as prominent union leaders of the era. One of VW's targets was Luiz Inacio Lula da Silva, who went on to become Brazil's president from 2003 to 2010.

The documents were recently discovered in government archives by a 'truth commission' that, at the request of Brazil's current president, is investigating abuses that occurred during the 1964-1985 regime.

UK foreign bank rules

Foreign banks can operate as branches in the UK but only if they hold minimal deposits and meet other safeguards under new Bank of England (BoE) rules partly aimed at making it easier for Chinese wholesale banks to set up shop in London.

The move marks a change of tack by UK regulators, who since the 2007-09 financial crisis have put pressure on foreign bank branches to become subsidiaries that are more accountable to local supervisors.

Irish Independent