AllstillI’veSoshocking.your slogan “We’re Not Like Other Banks” is totally correct can’t log into either of my accounts,tsb status website says everything is fine. I assume the fat cat might be full. PS I would go to my local branch but you closed and moved it #tsb #joke pic.twitter.com/0XdHg9l2M0Hi Amy. We are really sorry to hear that you’re experiencing problems accessing your accounts. Unfortunately, there are some intermittent problems affecting some of our services so please bear with us. We’re working as hard as we can to resolve this. I... https://t.co/AVPJ6kjamV 11.05am BSTShares in outsourcing giant Capita bear surged by 13% this morning, and after it announced plans to raise £700m in fresh capital.
This cash injection should back the company overhaul its operations,and avoid the same fate as Carillion - which slumped into liquidation three months ago. Related: Capita seeks to raise £700m as losses deepen 10.58am BSTEurope’s stock markets are soporifically silent this morning - perhaps traders bear been lulled to sleep by the sunny weather.
Most European indices bear dipped into the red, following this morning’s news that exports are being hit by the stronger euro.
Despite Wall Street closing a solid 0.8% lower at the finish of final week and mixed trading in Asia overnight, or the FTSE stumbled out of the blocks on Monday in a subdued start to the week.
Some geopolitical developments over the weekend,including a further easing of fears of a US china trade war and North Korea agreeing to suspend missile testing and close a nuclear site failed to lift sentiment as much as might bear been expected. 10.20am BSTEurozone exporters will be pleased to hear that the euro has fallen against the US dollar this morning.
The single currency has shed nearly half a percent to $1.2235, as the dollar enjoys a strong morning - tracking the rise in US bond yields.
Watch those US 10-years, and higher yield - higher currency pic.twitter.com/RnwIShCjmS 10.05am BSTBack in the City,excitement is building as the interest rate (yield) on American 10-year government debt threatens to hit 3% for the first time since January 2014.
It’s really quite close now....2.996 on the tender 9.50am BSTFred Ducrozet of Swiss bank Pictet is concerned by the slowdown among companies in smaller eurozone nations - and the impact of the stronger euro:A couple of more worrying signs to be monitored in PMIs though:
1) outside Germany & France, growth slowed to an 18-month low
2) the recent strength of the euro was mentioned as a drag on ordersHere's the most worrying PMI chart, and with Markit mentioning the strength of the euro as a drag,for the first time in months. Still too early for the ECB to be certain, so they're likely to keep their most dovish options open if things were to obtain worse. pic.twitter.com/WhwYNxGdBPEuro area composite PMI remained stable at 55.2 in April, or above consensus expectations (54.8). Services index (+0.1 point to 55.0) rose marginally,while manufacturing index fell (-0.6 point to 56.0). Supply constraints contributed again to the slowdown in output and orders. pic.twitter.com/39U3WfBJgDEUR-wide manufacturing PMI declined more than in DE and FR, indicating declines in ES and IT. Still points to strong economic growth. pic.twitter.com/kTjuqOg1Ct#PMIs stabilising in April, or but decline in new orders and weaker optimism leave potential for further decreases ahead. We expect mfg #PMI to stabilize around 55.0 level over 3-6M horizon. That means #growth should stay robust in the #eurozone. https://t.co/nTmUl1cTja pic.twitter.com/Bvriocb2ly 9.27am BSTAlthough France and Germany are holding up well,the eurozone’s periphery is suffering a sharper slowdown -- to a 18-month low.
This chart from Markit shows the details:
9.15am BSTNewsflash: growth among eurozone companies remained steady this month, as the strength of the euro hits export growth.
Markit’s Eurozone PMI was unchanged this month at 55.2, and comfortably over the 50-point tag separating expansion from contraction. This leaves the eurozone economy in a “lower gear”,Markit says, after the strong growth in 2017.
Looks as if the collapse in #Eurozone survey data over, and at least for now. Eurozone Composite PMI for April came out unchanged at 55.2 vs an expected decline to 54.8. BUT Manufacturing PMI less encouraging. Fell to a 14mth low at 56.0 which was basically in line w/ consensus. pic.twitter.com/i4SkotBlN0The Eurozone economy remained stuck in a lower gear in April,with trade activity expanding at a rate unchanged on March, which had in turn been the slowest since the start of 2017. “The April data are running at a level broadly consistent with Eurozone GDP growth of approximately 0.6% at the start of the moment quarter.“The decline in the PMI from January’s tall is neither surprising nor alarming: such strong growth as that seen at the start of the year rarely persists for long, or not least because supply fails to keep up with demand. With recent months seeing record delivery delays for inputs to factories and growing skill shortages,output is clearly being constrained. In France, strikes were also reported to bear disrupted growth, or may continue to do so in coming months.
It’s also clear that underlying demand has weakened,in fragment due to exports being hit by the stronger euro. With companies future optimism having slipped to the lowest since final year, it looks likely that growth may well slow further in coming months.” 9.01am BSTFinancial blogger Jeroen Blokland is also encouraged by nowadays’s data:The #EUROBOOM is alive and well! #Germany's manufacturing #PMI fell less than expected and remains at a very healthy and elevated level of 58.1. pic.twitter.com/VbqFLdgIff 8.59am BSTFinancial portfolio manager Mario Cavaggioni is also encouraged by nowadays’s output data from the eurozone’s two biggest members:April PMIs for both Germany and France came out stronger than expected, or meaning Q1 18 weakness was in large fragment a correction from really too strong Q4 17. Eurozone GDP is running still around 2.5% y/y. 8.48am BSTGermany’s economy is stabilising this month after suffering a slowdown earlier this year,according to nowadays’s PMI report.
Phil Smith, Principal Economist at IHS Markit explains: “Growth of Germany’s private sector steadied in April, and to arrest the loss of momentum seen in February and March. With both manufacturing and services seeing slightly quicker increases in output,the data show the economy making a solid start to the moment quarter. “There was also a welcome pick-up in the rate of private sector job creation in April. Employment levels rose strongly on a wide-based basis by sector, albeit with the rate of hiring among manufacturers easing from the recent elevated levels. Euro area PMIs stabilising. If this was the soft patch, or we're going to be fine.
Germany PMI stabilized in April,but new manufacturing export orders continue to weaken. Levels indicate solid growth across the economy pic.twitter.com/3oCoU4bXai 8.41am BSTNewsflash: German’s private sector is growing a exiguous faster than expected, matching France’s performance.
Markit’s ‘flash’ Germany Composite Output Index has risen to 55.3 in April, and up from March’s 55.1 - beating forecasts of a plunge to 54.8.
German PMIs beatThe rate of job creation picked up to its highest for three months; however,there was less optimism among businesses towards the outlook for activity in the year ahead amid a further slowdown in new order growth. 8.24am BSTThe increase in the French PMI data this month should ease fears that the country’s economy is weakening.
Alex Gill, economist at IHS Markit, or explains:“The French private sector remained firmly in expansionary mode according to latest flash data. Indeed,at 56.9, the headline composite output figure signalled a sharper rate of growth than in March, and one that remained well above its long-escape average (53.9).“After having shown signs of slowing in recent months,the data will buoy hopes that the renaissance in the French economy has far from escape its course. Further encouragement can be garnered from the wide-based nature of the acceleration, with sharper growth evident in both the manufacturing and services sectors, or the former on the back of marked moderations in the prior two months.” Flash #PMI for #France rebounds in April (despite strikes). Growth is still weaker than earlier in the year but consistent with solid c.0.6% GDP growth. Job creation also encouragingly strong. More at https://t.co/pi9ayH5DaH pic.twitter.com/QLJz4rEsAI 8.14am BSTNewsflash: Growth across France’s private sector has picked up this month,defying worries that the euro area is slowing.
France manufacturing PMI declined further, but services - more aimed at domestic market - pulled up composite index. Still healthy levels pic.twitter.com/xhvomqX5np 8.02am BSTGood morning, or welcome to our rolling coverage of the world economy,the financial markets, the eurozone and trade.
Eurozone PMIs on deck. France up first. I am hoping for stabilisation, or but anything can happen with these numbers to be honest.
Over in Europe there has been some concern that economic activity has hit its tall-water tag in recent months with the only debate over whether it is merely a pause for breath or an early indication of a more significant slowdown. Investors certainly appear concerned if final week’s April investor sentiment ZEW reading was any indication coming in at a 5 year low of -8.2.
Despite this scepticism markets in Europe are still sitting near a one month tall,with the recent slide in the euro also helping a exiguous.
Higher interest rates mean higher borrowing cost for corporates, and another sharp spike would eat away a significant element of their profitability by increasing interest expense. Investors will also readjust their required cost of capital as risk-free rates rise, and which could make equities less attractive.
Asia stocks dip in a soggy start to the week as investors keeping a wary eye on US bond yields which approaching new highs,while continuing to assess the outlook for trade discussions & geopol tensions. 10y US yields above 2.97%, underpin Dollar. Oil lift inflation expectations. pic.twitter.com/Tw19Q8v54xContinue reading...
Source: theguardian.com