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EARNINGS

Sharp fall in earnings for ball bearings giant

Swedish ball bearing manufacturing SKF on Wednesday reported a 77 percent drop in earnings for the second quarter, blaming weak sales and restructuring costs.

Net profit in the April-June period came to 314 million kronor ($40.2 million) against 1.34 billion kronor in second quarter 2008.

Analysts polled by Dow Jones Newswires had foreseen a profit figure of 348 million kronor for the world’s largest ball bearing maker.

SKF said it had detected “signs of a levelling off” in the sales slump and predicted that demand would be “relatively unchanged” in the third quarter.

Second quarter sales fell 12 percent from same period last year to 14.2 billion kronor.

The company, which said it had reduced its payroll by 3,800 people since the third quarter of 2008, announced an additional 900 job cuts at the end of June in Sweden, France, Britain and India.

SKF put the second-quarter costs linked to the job cuts at 480 million kronor.

At the end of June, the company employed nearly 42,000 people worldwide.

SKF shares were showing a gain of 1.3 percent at 98.25 kronor in mid-morning trade on an overall market that was 0.7 percent.

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EARNINGS

It’s official! Switzerland is the most expensive country in the world

While anyone living in Switzerland might not have needed the reminder, a new study shows the cost of living in Switzerland is the highest of anywhere in the world.

It's official! Switzerland is the most expensive country in the world
Photo: FABRICE COFFRINI / AFP

Switzerland topped the list well ahead of Norway in second place, with Iceland, Japan and Denmark rounding out the top five. 

The rankings, put together by CEO World magazine, took into account rent, groceries, purchasing power, restaurants and the cost of living in 132 countries across the globe. 

European countries featured prominently in the top 20, while countries in Asia and the Caribbean were also prominent. 

Switzerland top of the list

Not only did Switzerland top the overall list, but it also ranked highly in several individual metrics, making the cost of living there officially the highest in the world. 

READ: Everything you need to know about the cost of living in Switzerland

Groceries in Switzerland are also more expensive than anywhere in the world, ranking a full 30 points higher than second-placed South Korea. 

But if you’re looking to avoid the grocery shop, eating out in Switzerland is also more expensive than anywhere else in the world. 

The only bright light in the rankings is Switzerland’s national purchasing power – which is also top of the list – perhaps explaining why the Swiss love to travel or even just shop abroad. 

This is of course more beneficial elsewhere, with the benefits of the country’s excellent purchasing power somewhat eroded by high prices at home. 

Photo: CEO World

In fact, the only metric Switzerland doesn’t top is rental costs. That’s not to say renting in Switzerland is cheap, but it trails Hong Kong, Singapore and Luxembourg on the international rent index. 

READ MORE: Eight things you need to know before renting in Switzerland 

Least expensive countries

Among the least expensive countries, central Asian nations rank highly. Pakistan is officially the least expensive, followed by Afghanistan, India and Syria. 

The least expensive European country on the list is Kosovo (124th) followed closely by Georgia (123rd). Romania is the least expensive European country on the list, in 99th place. 

Top ten most expensive countries as per CEO World magazine

1. Switzerland

2. Norway

3. Iceland

4. Japan

5. Denmark

6. Bahamas

7. Luxembourg

8. Israel

9. Singapore

10. South Korea

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