BERLIN: Germany’s jobless rate fell to a new record low in September and the number of unemployed people fell far more than expected but retail sales disappointed, sending mixed signals about the state of Europe’s largest economy.
The unemployment rate dropped to 5.6 percent, the lowest level since reunification in 1990, after 5.7 percent in August, data on Friday from the Federal Labour Office showed. Economists polled by Reuters had expected it to hold steady.
The jobless total fell by 23,000 to 2.506 million in seasonally adjusted terms. That compared with the consensus forecast in a Reuters poll for a fall of 5,000 and was a steeper drop than that projected by even the most optimistic economist, who had expected a fall of 15,000.
“The economic cycle in Germany is moving toward its peak stage and that’s giving the labor market a further boost,” said Joerg Zeuner, chief economist at state development bank KfW.
An economic upturn in Europe has boosted exports and corporate investment, suggesting further rises in employment and noticeable wage rises — including beyond 2017, he said. But he added there were risks for the economy, with a further strong appreciation of the euro chief among them.
That could potentially hurt exporters in an economy traditionally propelled by exports but more recently driven by consumers who are benefiting from record employment, increased job security, rising real wages and ultra-low borrowing costs.
Other data published on Friday showed retail sales unexpectedly fell on the month in August and posted a smaller increase on the year than forecast, putting a slight dampener on hopes that a consumer-led upswing will continue at full steam.
The volatile indicator, which is often subject to revision, showed retail sales decreased by 0.4 percent on the month in real terms. That compared with the Reuters consensus forecast for a 0.5 percent rise and followed a 1.2 percent drop in July.
On the year, retail sales jumped by 2.8 percent, matching the previous month’s increase but undershooting a Reuters consensus forecast for an increase of 3.2 percent.
Adding to the mixed picture, a GfK survey published on Thursday showed the cheerful mood among German shoppers had clouded unexpectedly heading into October.
Nonetheless, the outlook for the economy remains bright overall. Institutes on Thursday hiked their growth forecasts to 1.9 percent this year and 2 percent next year, while also saying Germany would have record budget surpluses over the next two years.
— Reuters
Jobless drop, retail sales fall paint mixed picture of German economy
Jobless drop, retail sales fall paint mixed picture of German economy

Israel-Iran battle continues into fourth day with more civilian deaths on both sides

- At least 5 killed and dozens more wounded in Israel as Iran fires new wave of missile attacks on Monday
- American consulate in Tel Aviv suffers minor damage as Iranian missile lands nearby
- Israel says Iranian missiles are “clearly targetting” civilian sites
DUBAI: Iran fired a new wave of missile attacks on Israel early Monday, triggering air raid sirens across the country as emergency services reported at least five killed and dozens more wounded in the fourth day of open warfare between the regional foes that showed no sign of slowing.
Iran announced it had launched some 100 missiles and vowed further retaliation for Israel’s sweeping attacks on its military and nuclear infrastructure, which have killed at least 224 people in the country since last Friday.
The attacks raised Israel’s total death toll to at least 18, and in response the Israeli military said fighter jets had struck 10 command centers in Tehran belonging to Iran’s Quds Force, an elite arm of its Revolutionary Guard that conducts military and intelligence operations outside Iran.

Powerful explosions, likely from Israel’s defense systems intercepting Iranian missiles, rocked Tel Aviv shortly before dawn on Monday, sending plumes of black smoke into the sky over the coastal city.
Authorities in the central Israeli city of Petah Tikva said Iranian missiles had hit a residential building there, charring concrete walls, shattering windows and ripping the walls off multiple apartments.
The Israeli Magen David Adom emergency service reported that two women and two men — all in their 70s — were killed in the wave of missile attacks that struck four sites in central Israel.
“We clearly see that our civilians are being targeted,” said Israeli police spokesman Dean Elsdunne outside the bombed-out building in Petah Tikva. “And this is just one scene, we have other sites like this near the coast, in the south.”
The MDA added that paramedics had evacuated another 87 wounded people to hospitals, including a 30-year-old woman in serious condition, while rescuers were still searching for residents trapped beneath the rubble of their homes.
Iran tells Qatar, Oman it won't negotiate ceasefire with US while under Israeli attack
Israel and Iran launched fresh attacks on Sunday, killing and wounding civilians and raising concerns of a broader regional conflict, with both militaries urging civilians on the opposing side to take precautions against further strikes.
Israel warned that the worse is to come. It targeted Iran's Defense Ministry headquarters in Tehran and sites it alleged were associated with Iran's nuclear program, while Iranian missiles evaded Israeli air defenses and slammed into buildings deep inside Israel.
An Iranian health ministry spokesperson, Hossein Kermanpour, said the toll since the start of Israeli strikes had risen to 224 dead and more than 1,200 injured, 90 percent of whom he said were civilians. Those killed included 60 on Saturday, half of them children, in a 14-story apartment block flattened in the Iranian capital.
German Chancellor Friedrich Merz said he hoped a meeting of the Group of Seven leaders in Canada on Sunday would reach an agreement to help resolve the conflict and keep it from escalating.
Iran has told mediators Qatar and Oman that it is not open to negotiating a ceasefire with the US while it is under Israeli attack, an official briefed on the communications told Reuters on Sunday. The Israeli military, which launched the attacks on Friday with the stated aim of wiping out Iran’s nuclear and ballistic missile programs, warned Iranians living near weapons facilities to evacuate.
Oil and gas important in times of conflict, Saudi Aramco CEO says

KUALA LUMPUR: The importance of oil and gas can’t be underestimated at times when conflicts occur, something that was currently being seen, the head of Saudi oil giant Aramco told an energy conference on Monday.
Aramco CEO Amin Nasser delivered his speech to the Energy Asia Conference in Kuala Lumpur by a video link.
Oil prices jumped last week after Israel launched strikes against Iran on Friday that it said were to prevent Tehran from building an atomic weapon. The fighting intensified over the weekend.
“(History has) shown us that when conflicts occur, the importance of oil and gas can’t be understated,” Nasser said.
“We are witnessing this in real time, with threats to energy security continuing to cause global concern,” he said, without directly mentioning the fighting between Israel and Iran.
Nasser also said that experience had shown that new energy sources don’t replace the old, but added to the mix. He said the transition to net-zero emissions could cost up to $200 trillion, and renewable sources were not meeting current demand.
“As a result, energy security and affordability have at last joined sustainability as the transition’s central goals,” he said.
Aramco is a key part of the Saudi economy, generating a bulk of the Kingdom’s revenue through oil exports and funding its ambitious Vision 2030 diversification drive.
Spaniards turn water pistols on visitors in Barcelona and Mallorca to protest mass tourism

- About a thousand Spaniards marched to demand a rethink of an economic model they believe is fueling a housing crunch and erasing the character of their city on Sunday
- The marches were part of a coordinated effort by activists concerned with the ills of overtourism across southern Europe’s top destinations
BARCELONA: Protesters used water pistols against unsuspecting tourists in Barcelona and on the Spanish island of Mallorca on Sunday as demonstrators marched to demand a rethink of an economic model they believe is fueling a housing crunch and erasing the character of their hometowns.
The marches were part of the first coordinated effort by activists concerned with the ills of overtourism across southern Europe’s top destinations. While several thousands rallied in Mallorca in the biggest gathering of the day, hundreds more gathered in other Spanish cities, as well as in Venice, Italy, and Portugal’s capital, Lisbon.
“The squirt guns are to bother the tourists a bit,” Andreu Martínez said in Barcelona with a chuckle after spritzing a couple seated at an outdoor café. “Barcelona has been handed to the tourists. This is a fight to give Barcelona back to its residents.”
Martínez, a 42-year-old administrative assistant, is one of a growing number of residents who are convinced that tourism has gone too far in the city of 1.7 million people. Barcelona hosted 15.5 million visitors last year eager to see Antoni Gaudí’s La Sagrada Familia basilica and the Las Ramblas promenade.
Martínez says his rent has risen over 30 percent as more apartments in his neighborhood are rented to tourists for short-term stays. He said there is a knock-on effect of traditional stores being replaced by businesses catering to tourists, like souvenir shops, burger joints and “bubble tea” spots.
“Our lives, as lifelong residents of Barcelona, are coming to an end,” he said. “We are being pushed out systematically.”
Around 5,000 people gathered in Palma, the capital of Mallorca, with some toting water guns as well and chanting “Everywhere you look, all you see are tourists.” The tourists who were targeted by water blasts laughed it off. The Balearic island is a favorite for British and German sun-seekers. It has seen housing costs skyrocket as homes are diverted to the short-term rental market.
Hundreds more marched in Granada, in southern Spain, and in the northern city of San Sebastián, as well as the island of Ibiza.
In Venice, a couple of dozen protesters unfurled a banner calling for a halt to new hotel beds in the lagoon city in front of two recently completed structures, one in the popular tourist destination’s historic center where activists say the last resident, an elderly woman, was kicked out last year.
‘That’s lovely’
Protesters in Barcelona blew whistles and held up homemade signs saying “One more tourist, one less resident.” They stuck stickers saying “Citizen Self-Defense,” in Catalan, and “Tourist Go Home,” in English, with a drawing of a water pistol on the doors of hotels and hostels.
There was tension when the march stopped in front of a large hostel, where a group emptied their water guns at two workers positioned in the entrance. They also set off firecrackers next to the hostel and opened a can of pink smoke. One worker spat at the protesters as he slammed the hostel’s doors.
American tourists Wanda and Bill Dorozenski were walking along Barcelona’s main luxury shopping boulevard where the protest started. They received a squirt or two, but she said it was actually refreshing given the 83 degree Fahrenheit (28.3 degrees Celsius) weather.
“That’s lovely, thank you sweetheart,” Wanda said to the squirter. “I am not going to complain. These people are feeling something to them that is very personal, and is perhaps destroying some areas (of the city).”
There were also many marchers with water pistols who didn’t fire at bystanders and instead solely used them to spray themselves to keep cool.
Crackdown on Airbnb
Cities across the world are struggling with how to cope with mass tourism and a boom in short-term rental platforms, like Airbnb, but perhaps nowhere has surging discontent been so evident as in Spain, where protesters in Barcelona first took to firing squirt guns at tourists during a protest last summer.
There has also been a confluence of the pro-housing and anti-tourism struggles in Spain, whose 48 million residents welcomed record 94 million international visitors in 2024. When thousands marched through the streets of Spain’s capital in April, some held homemade signs saying “Get Airbnb out of our neighborhoods.”
Spanish authorities are striving to show they hear the public outcry while not hurting an industry that contributes 12 percent of gross domestic product.
Last month, Spain’s government ordered Airbnb to remove almost 66,000 holiday rentals from the platform that it said had violated local rules.
Spain’s Consumer Rights Minister Pablo Bustinduy told The Associated Press shortly after the crackdown on Airbnb that the tourism sector “cannot jeopardize the constitutional rights of the Spanish people,” which enshrines their right to housing and well-being. Carlos Cuerpo, the economy minister, said in a separate interview that the government is aware it must tackle the unwanted side effects of mass tourism.
The boldest move was made by Barcelona’s town hall, which stunned Airbnb and other services who help rent properties to tourists by announcing last year the elimination of all 10,000 short-term rental licenses in the city by 2028.
That sentiment was back in force on Sunday, where people held up signs saying “Your Airbnb was my home.”
‘Taking away housing’
The short-term rental industry, for its part, believes it is being treated unfairly.
“I think a lot of our politicians have found an easy scapegoat to blame for the inefficiencies of their policies in terms of housing and tourism over the last 10, 15, 20 years,” Airbnb’s general director for Spain and Portugal, Jaime Rodríguez de Santiago recently told the AP.
That argument either hasn’t trickled down to the ordinary residents of Barcelona, or isn’t resonating.
Txema Escorsa, a teacher in Barcelona, doesn’t just oppose Airbnb in his home city, he has ceased to use it even when traveling elsewhere, out of principle.
“In the end, you realize that this is taking away housing from people,” he said.
One dead, 36 injured after 6.1-magnitude earthquake in Peru

- A 6.1-magnitude earthquake struck Peru on Sunday, leaving one person dead and 36 injured as the tremor triggered landslides, officials said
LIMA: A 6.1-magnitude earthquake struck Peru on Sunday, leaving one person dead and 36 injured as the tremor triggered landslides, officials said.
The quake hit shortly before noon and was centered around 30 kilometers (20 miles) from Callao, a port city next to the capital Lima, the National Seismological Center said. The US Geological Survey put the magnitude at 5.6.
Peru said the tremor had not generated a tsunami warning.
A man died in Lima when a wall fell on the car he was driving, the National Police said.
In addition, the Emergency Operations Center reported 36 injuries in Lima.
President Dina Boluarte called for “calm” from citizens, noting that there was no tsunami warning for the South American country’s Pacific coastline.
The TV channel Latina showed footage of landslides in several areas of the capital city.
The quake also prompted a suspension of a major football game being played in Lima. The city’s subway service was also halted.
Peru is home to 34 million people and lies on the so-called Ring of Fire, a stretch of intense seismic and volcanic activity around the Pacific basin.
Peru averages at least 100 detectable earthquakes every year.
The last big one, in 2021 in the Amazon region, had a magnitude of 7.5, left 12 people injured and destroyed more than 70 homes.
A devastating quake in 1970 in the northern Ancash region of Peru killed around 67,000 people.
Punjab to unveil new budget today, pledges ‘people-friendly’ spending amid economic pressures

- Punjab, home to over half of Pakistan’s 240 million population, contributes roughly 60 percent to GDP
- Punjab’s budget for fiscal year 2024–25 was about $19.6 billion, with development outlay of $3 billion
ISLAMABAD: Pakistan’s Punjab province, the country’s most populous and economically crucial region, will present its budget for the 2025–26 fiscal year today, Monday, with officials promising a “people-friendly” plan, Radio Pakistan reported.
Punjab Finance Minister Mujtaba Shuja-ur-Rehman is scheduled to table the budget in the provincial assembly in Lahore after the cabinet’s formal approval.
Punjab’s budget is seen as politically significant for the ruling Pakistan Muslim League-Nawaz (PML-N) of Prime Minister Shehbaz Sharif, which faces tough economic and governance challenges nationwide.
“This budget reflects Chief Minister Maryam Nawaz Sharif’s vision to prioritize people’s welfare and accelerate development projects across the province,” Rehman was quoted as saying by state-run Radio Pakistan.
Punjab, home to over half of Pakistan’s 240 million people, plays a dominant role in the national economy, contributing roughly 60 percent of the GDP. It also receives the largest share of federal funds under the National Finance Commission (NFC) Award. Last year, Punjab’s budget for FY2024–25 was about $19.6 billion, with a development outlay of $3 billion.
Officials have said the upcoming budget will maintain a focus on infrastructure upgrades, agriculture support and social welfare schemes to help shield the population from rising prices.
Local media reports suggest the government could announce new initiatives in education, health care and urban transport, along with efforts to address power shortages in rural areas.