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Apple and Amazon Report Mixed Earnings, Highlighting AI Expansion and Challenges in China

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1 year ago

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Tech giants Apple and Amazon reported contrasting September-quarter earnings, revealing a mixed outlook for their businesses amid fierce competition in artificial intelligence (AI) and continued challenges in the Chinese market.

Apple Sees Decline in China Sales Despite Overall Growth

Apple reported a slight drop in sales within Greater China, its third-largest market, extending a downward trend that has lasted over a year. Revenue from the region fell by 0.3% year-over-year, a minor improvement over last year’s 6.5% drop, yet short of the rebound investors anticipated. Apple attributed part of this decline to competition from local smartphone manufacturers and the recent, delayed release of iOS 18.1, which adds AI features to the new iPhone 16.

Apple’s overall revenue, however, reached a record high for the September quarter, rising by 6.1% to $94.93 billion (€87.22 billion), exceeding the estimated 5.7% growth. iPhone sales totaled $46.22 billion (€42.47 billion), up 6% from the same period last year and beating market expectations. Services revenue also continued to grow steadily, reaching $24.97 billion (€22.94 billion), though its growth rate slowed from 14% in the previous quarter to 12%.

Despite strong revenue figures, Apple’s net income was notably impacted by a one-time charge related to the reversal of the European General Court’s State Aid decision, which led to earnings per share of $0.97 (€0.89). Excluding this charge, earnings per share would have increased by 12% to $1.64 (€1.51). Apple also announced a modest outlook for the December quarter, projecting growth in the low-to-mid-single digits, falling short of analysts’ expectations for 7% annual growth.

In a key area, Apple is perceived to be lagging behind its peers in AI development, with limited monetization of its Apple Intelligence applications. Additionally, the company faces potential regulatory challenges in Europe, where new requirements for third-party payment options could affect profitability. Nevertheless, market analysts remain optimistic. “This is just a temporary setback, not the end of the story,” said Oanda’s Josh Gilbert, maintaining confidence in Apple’s long-term value.

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Amazon Beats Market Expectations with Strong Holiday Season Forecast

In contrast, Amazon delivered robust quarterly results, outperforming market expectations in both revenue and profit. The e-commerce giant reported $158.88 billion (€146 billion) in revenue, an 11% increase from last year, exceeding the forecasted $157.2 billion. Amazon’s advertising sales grew by 19% year-over-year to $14.3 billion (€13.14 billion), slightly below projections, while its AI-driven Amazon Web Services (AWS) posted a 19% rise to $27.45 billion (€25.22 billion), solidifying its market leadership in cloud services.

Amazon’s online store sales, its largest revenue segment, grew by 7% to $61.4 billion (€56.42 billion). The company also exceeded analysts’ guidance expectations for the upcoming quarter, projecting revenue of $188.5 billion in the December quarter, driven by strong holiday demand.

CEO Andy Jassy expressed optimism as Amazon heads into the holiday season, teasing new AI-powered features. “As we get into the holiday season, we’re excited about what we have in store for customers,” Jassy said, alluding to upcoming Prime Video events and over 100 new AI capabilities to be showcased at AWS re

later this month.

Despite Amazon’s success, capital expenditures jumped by 81% to $22.62 billion, reflecting a trend among tech companies to boost investments in AI infrastructure. CFO Brian Olsavsky noted that this increase is primarily aimed at supporting the rising demand for advanced technologies, a strategy he said would ultimately benefit Amazon’s growth.

While Apple faces hurdles in China and AI expansion, Amazon’s strong guidance and tech investments suggest a confident outlook as both companies navigate a competitive landscape.

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US States Outpace EU Economies in Wealth Per Capita While Europe Remains Competitive in Total GDP

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April 12, 2026

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A fresh comparison of economic performance between Europe and the United States highlights a widening divide in wealth creation and living standards, with US states consistently outperforming major European economies in GDP per capita, even as Europe remains competitive in overall output.

Data drawn from Eurostat, the US Bureau of Economic Analysis and the International Monetary Fund show that Germany leads all selected economies with a GDP of €4.47 trillion in 2025. California follows closely at €3.76 trillion, reinforcing its position as the largest US state economy and one of the biggest economic units globally.

France ranks third with €2.98 trillion, ahead of Texas at €2.57 trillion. Italy records €2.26 trillion, while New York stands at €2.18 trillion. Spain comes next with €1.69 trillion, followed by Florida at €1.62 trillion. The Netherlands posts €1.18 trillion, and Illinois closes the list at €1.06 trillion.

The ranking shows a striking pattern: European countries and US states alternate throughout the table rather than clustering by region, underscoring how closely matched the two economic systems are in total output.

The picture shifts sharply when measured by GDP per capita. New York leads at €108,444, followed by California at €96,887. Illinois records €83,490, while Texas stands at €82,058, all above the US national average of €79,587. Florida ranks lowest among the US group at €69,706.

By comparison, the Netherlands tops the European group at €62,537. Germany follows at €51,817, then France at €42,671, Italy at €37,162, and Spain at €32,475. The EU average stands at €39,970, significantly below all major US states in the comparison.

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When adjusted for purchasing power standards, the gap remains visible. New York again leads at 108,500 international dollars, followed by California at 90,300. Illinois and Texas remain strong at 89,300 and 87,600 respectively, while the US average stands at 89,599.

In Europe, the Netherlands posts 84,035, Germany 73,553, France 66,061, and Spain again ranks lowest among the group. Italy also falls below the EU average of 64,870.

However, the comparison is not one-sided. Research also shows that severe poverty is more pronounced in the United States than in Western Europe. A University of Oxford researcher noted that it takes about 63 minutes of work in the US to earn the equivalent of one international dollar, roughly double the time required in Germany, France and the United Kingdom.

The findings underline a dual reality: while US states generate higher income per person, European economies maintain stronger relative outcomes in certain measures of social welfare and income distribution.

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Fuel Prices Surge Across Europe as Middle East Crisis Pushes Oil Above $100

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April 10, 2026

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Fuel prices across Europe have risen sharply in recent weeks following the escalation of tensions in the Middle East, with both petrol and diesel costs climbing significantly since late February.

The increase comes as Brent crude oil prices moved above $100 per barrel after a joint strike by the United States and Israel on Iran, triggering concerns about global energy supply. The rise in crude prices has quickly filtered down to consumers across European countries.

According to the European Commission, the average price of Euro-super 95 petrol in the European Union stood at €1.871 per litre at the end of March, while diesel reached €2.076 per litre. Compared to late February, petrol prices are about 15 percent higher, while diesel has surged by around 30 percent.

There are wide differences in fuel prices across EU member states. The Netherlands recorded the highest diesel prices at €2.46 per litre, followed by Denmark and Germany. Other countries with above-average diesel costs include Finland, Belgium, France and Ireland.

At the other end of the scale, Malta reported the lowest diesel price at €1.21 per litre, significantly below the EU average. Hungary, Slovenia and Bulgaria also ranked among the least expensive markets for diesel. In several countries including Spain, Slovakia and Croatia, diesel prices remained below €2 per litre.

Petrol prices show a similar pattern. The Netherlands again recorded the highest price at €2.33 per litre, with Denmark and Germany also among the most expensive. Greece and France reported petrol prices above €2 per litre as well.

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Malta had the lowest petrol price at €1.34 per litre, followed by Bulgaria. Other relatively cheaper markets included Slovenia, Hungary and Spain, where prices remained below €1.60 per litre.

The data also highlights the role of taxation in fuel pricing. Taxes account for a significant portion of costs across Europe, making up more than half of petrol prices and nearly 45 percent of diesel prices on average. The share varies by country, with Slovenia recording one of the highest tax proportions on petrol, while Bulgaria had one of the lowest.

Despite the shift toward cleaner energy, traditional fuels continue to dominate the European vehicle market. According to Eurostat, petrol-powered cars accounted for 66.6 percent of new registrations in 2024, followed by diesel vehicles at 16.9 percent and fully electric cars at 13.5 percent.

The latest rise in fuel costs underscores the continued sensitivity of European energy markets to geopolitical developments, with consumers facing increased expenses as global tensions persist.

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Oil Prices Surge as Strait of Hormuz Closure Shakes Markets

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3 days ago

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April 9, 2026

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The brief sigh of relief across global markets lasted barely a day. Brent crude climbed sharply back towards $100 a barrel on Thursday after Iran moved to close the Strait of Hormuz, sending a clear signal that the fragile Middle East ceasefire was already fracturing.

The global benchmark was trading at $98.61 a barrel in early afternoon dealings, up about 4 percent, after plunging as much as 16 percent the previous day to below $91. That earlier drop had been driven by optimism that a two-week pause in hostilities between the United States and Iran could ease tensions and stabilize energy flows.

Iran’s move to shut the strategic waterway followed Israeli airstrikes on Hezbollah targets in Lebanon, which Tehran described as a violation of the ceasefire. The Strait of Hormuz is a vital route for global energy supplies, carrying roughly a fifth of the world’s oil and gas. Its closure has raised immediate concerns among governments and businesses about supply disruptions and rising costs.

Sultan Al Jaber, chief executive of Abu Dhabi’s state oil company Adnoc, said Iran appeared to be using control of the strait as a political tool rather than ensuring free navigation. Analysts say such actions could deepen uncertainty for industries that rely heavily on stable energy supplies.

Nigel Green, chief executive of financial advisory firm deVere, warned that the situation leaves a significant share of global oil flows exposed to geopolitical risk. For small and medium-sized businesses already dealing with high energy costs, the renewed volatility adds further pressure.

Stock markets reacted negatively to the developments. The FTSE 100 fell 0.2 percent after posting strong gains the previous day, while Germany’s DAX dropped 1.4 percent and France’s CAC 40 declined 0.7 percent. In Asia, major indexes in Japan, South Korea, and China all closed lower.

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Wall Street, which had rallied strongly on Wednesday with the S&P 500 rising 2.5 percent and the Dow Jones Industrial Average gaining nearly 3 percent, was expected to open lower as investor confidence weakened.

US President Donald Trump said American forces would remain in the Gulf until a lasting agreement is secured and respected, warning of serious consequences if the situation deteriorates further.

Meanwhile, Israel intensified its military operations in Lebanon, carrying out its heaviest strikes since the conflict with the Iran-backed Hezbollah group escalated last month. Reports indicate that more than 250 people have been killed in the latest wave of attacks.

The renewed instability highlights the continued vulnerability of global energy markets to geopolitical tensions. With oil prices approaching $100 a barrel once again, businesses are facing renewed uncertainty, particularly in sectors such as manufacturing and logistics that are highly sensitive to fuel costs.

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