On Saturday, Trump said he would impose additional sanctions against Iran in a bid to prevent the country obtaining nuclear weapons.World Politicsread more
Tensions between the U.S. and Iran will likely escalate in the near future, a former adviser to the Iranian government said on Monday.Energyread more
Chinese vice commerce minister said Monday that Beijing would like the U.S. to cancel "inappropriate" actions against Chinese companies.China Economyread more
Eldorado Resorts has agreed to merge with Caesars Entertainment in a cash and stock deal that values its peer at about $18 billion including debt, people familiar with the...Casinos and Gamingread more
A decisive win for Turkey's main opposition party in a re-run of a mayoral election in Istanbul this weekend has prompted hopes for economic and political change.Europe Politicsread more
Sixteen Asia Pacific countries have been negotiating the Regional Comprehensive Economic Partnership since 2013, with India's reluctance to open up its markets a major...Asia Economyread more
The secretary of State said he was traveling to Saudi Arabia and the United Arab Emirates to make sure that the U.S. is "strategically aligned" with its allies.Politicsread more
Experts say Facebook's cryptocurrency project Libra has been a catalyst for the price of bitcoin going higher.Technologyread more
Goldman Sachs helped state firm 1MDB to raise $6.5 billion in 2012 and 2013, and collected higher-than-typical fees of $600 million for the deals.Financeread more
Ekrem Imamoglu of the Republican People's Party beat President Tayyip Erdogan's handpicked candidate by almost 800,000 votes.World Politicsread more
Value investing has become increasingly irrelevant thanks to central banks and technology, according to AB Bernstein.Investingread more
U.K. supermarket chain Tesco on Wednesday reported a sharp fall in first-quarter sales, hurt by price cuts and subdued consumer spending.
First quarter same-store sales, excluding fuel, fell 3.7 percent.
In a news release, Tesco, which is the grocery market leader in Britain, described the results as "in line with last year's exit rate, despite the significant reduction in untargeted promotions and deflationary impact of investment in lower prices."
The latest supermarket share figures from Kantar Worldpanel, published on Tuesday for the 12 weeks ending May 25, 2014, show a slowdown in grocery market growth to 1.7 percent—the lowest level for at least 11 years.
"To date, it is unclear whether these price cuts are part of normal industry price investment or something more material and the fact that the food commodity price index supports lower food inflation has not helped clarify the issue," said Deutsche Bank analysts Niamh McSherry and James-G Collins in a report on Tuesday.
Tesco Chief Executive Philip Clarke said on Wednesday that Tesco sales had been hit by the supermarket's own price cuts. He warned investors in a news call not to count on sales improvements in the next few quarters and said he had "never seen sales fall like this before".
"Since February, we have cut prices on the products that matter most, cut home delivery charges and made Grocery Click & Collect free," Clarke said in the news release.
"As expected, the acceleration of our plans is impacting our near-term sales performance. The first quarter has also seen a continuation of the challenging consumer trends in the U.K., reflecting still subdued levels of spending in addition to the more structural changes taking place across the retail industry."
In common with its "big four" peers, Tesco is also being pressured by Aldi and Lidl at the budget end and Marks & Spencer and Waitrose at the premium end.
Tesco shares closed around 1.3 percent lower on Wednesday.
Deutsche Bank said Tesco's results were in line with its expectations. It held its "buy" rating on Tesco stock, with a price target of £3.42.
"We expect little share price reaction to these numbers and no changes to consensus earnings forecasts," said Deutsche analyst James-G Collins in a research note.
"Management signaled in April that U.K. sales would be held back through most of this year by its U.K. price reductions (which began at exactly the start of the first quarter) and associated reduction in couponing activity... hence we did not expect an improved like-for-like trend."