An interesting article in the FT highlights how price falls may affect companies’ costs, as well as what companies can charge for their products. The mantra is highly agreeable: in any economic climate the key for any business remains whether it can maintain its margin, i.e. the difference between costs and revenues. Very simple but very true!
The news from Europe’s companies also supports a more positive scenario than the gloomy prognostications from the European Central Bank and elsewhere would suggest. Metro, Europe’s fourth-largest retailer by sales, said on Tuesday that Christmas trading had been strong and sales of consumer electronics were the highest since 2006. Amazon announced it had created 6,000 new jobs in Europe in 2014 to respond to booming demand, and had every expectation that this would continue into 2015. Fiat Chrysler is even reopening idled plants in Italy and taking on new workers.