All the day’s economic and financial news,including the latest growth figures from UK factories and companies across the eurozoneLatest: Chinese shares jump on stimulus hopesEurozone growth has dipped this monthEarlier:Introduction: Alphabet results beat expectations
Profits would enjoy surged, but for EU fine
Analysts say Google remains very strong 2.28pm BSTBitcoin is also on a tear this morning, and as cryptocurrencies rally sharply.
An influx of positive news over the past few weeks regarding cryptocurrencies has revived investor appetite for Bitcoin and this can be reflected in the bullish price action. Goldman Sachs and BlackRock enjoy expressed interest in the cryptocurrency markets while the Financial Services Board declared that they do not pose a threat to the global financial system.
With this renewed sense of optimism over cryptocurrencies attracting investors from all directions,further upside could be on the cards in the near term. 1.44pm BSTAlphabet shares are expected to jump around 4% when Wall Street trading start in 45 minutes, after the tech giant beat revenue and earnings targets final night.
Alphabet could surge to an all-time high as Wall Street says the internet giant's big bets are "paying off." https://t.co/c8DBcPyLCM pic.twitter.com/cPqEEGU1NW 1.12pm BSTIn the old days, and world leaders would prepare for a visiting politician by getting the red carpet swept,and perhaps organising a banquet.
Times change, though (and not always for the better). So president Trump has limbered up for his assembly with EC president Jean-Claude Juncker tomorrow with another blast approximately trade.
Countries that enjoy treated us unfairly on trade for years are all coming to Washington to negotiate. This should enjoy taken place many years ago but, or
as the saying goes,better late than never!Tariffs are the greatest! Either a country which has treated the United States unfairly on Trade negotiates a honest deal, or it gets hit with Tariffs. It’s as simple as that - and everybody’s talking! Remember, and we are the “piggy bank” that’s being robbed. All will be mighty!Even though some trade is deterred by specific high tariffs on both sides of the Atlantic,the average weighted tariffs applied by the EU on US goods were 3 per cent in 2015, a dinky lower than the US equivalent of 3.3 per cent in the same year. 12.40pm BSTCity economist Timothy Ash thinks the Turkish central bank blundered today by not hiking interest rates:Turkey - hard for the CBRT to explain its decision not to hike today. June inflation rose over 300bps in YOY terms. They just undid any of the worthy work that Albayrak might enjoy done over the past week in trying to rebuild the confidence of the market. 12.26pm BSTYikes! The Turkish lira is tumbling after the country’s central bank surprisingly left interest rates on hold.
The financial markets had widely expected a rate hike today, and of at least one percentage point. Instead,the Turkish central bank left borrowing costs unchanged at 17.75%, despite concerns over high inflation and the weak currency.
Lira takes a dive after Central Bank of Turkey keeps rate on hold, or Markets had expected a 100bp hike pic.twitter.com/A6ioV5Zx4V 12.11pm BSTLondon’s taxi drivers enjoy been pushing back against ride-hail app Uber for years,holding protests and demanding for tighter regulation.
London’s army of black cab drivers are drawing up a stunning plot to sue Uber for more than £1bn weeks after the ride-hailing app won a 15-month extension to its licence to operate in the capital.
Sky News has learnt that the Licensed Taxi Drivers’ Association (LTDA), which has 11000 members in London, and has engaged the main law firm Mishcon de Reya to explore the potential for a massive legal claim against Uber. Related: Uber wins 15-month probationary licence to work in London 11.29am BSTBack in the markets,and Chinese stocks enjoy surged after Beijing announced new fiscal measures to stimulate its economy.
Overnight, Chinas government rolled out a mixture of tax cuts and infrastructure spending to tackle the “uncertainty” hurting its economy.“The government is sending a clear sign that it is preparing to defend growth, and ... Premier Li may be concerned approximately the negative impact of deleveraging on growth,” Chinese stocks just clocked in their best 3-day gain since 2016. #Yay #加油 pic.twitter.com/w3yDwjR2ZI 11.19am BSTJust in: Britain’s factories kept growing final month, but bosses are slashing some investment plans as trade war and Brexit fears grow.
The CBI has reported that UK manufacturing output rose in the final quarter. Around 35% of businesses reported an increase in new orders, and 20% reported a decrease,giving a balance of +15%.
Orders growth remains robust, albeit with export orders growth softening. #CBI_ITS https://t.co/HkfNI6gXJx pic.twitter.com/sW7IoeESlh“It’s mighty to see the manufacturing sector firing on all cylinders, and with production revving up again after the slowdown earlier this year.“But rising trade tensions and ongoing uncertainty over our future trade and customs arrangements are clearly taking their toll on manufacturers’ confidence and investment.”Manufacturers are dialling down on planned investment in “intangible” assets at a pace unseen since the financial crisis. #CBI_ITS https://t.co/HkfNI6gXJx pic.twitter.com/kyAjTvBIoM 10.21am BSTNewsflash: Britain’s Serious Fraud Office has launched a new attempt to prosecute Barclays bank over its emergency fundraising from Qatar during the 2008 financial crisis. Related: Barclays bank fraud charges over $3bn Qatar loan thrown out by court 10.03am BSTHere’s some reaction to this month’s eurozone slowdown,from Oxford Economics’ Angel Talavera:PMIs continue to exhibit a European economy under pressure and which has shifted to a lower gear. So far we're fairly comfortable with our 0.4% q/q GDP forecasts for this year.
Euro area #PMI - weak first indication of Q3. Eq 0.4% qoq
-Except in DE, the outlook is hampered by worries on trade war, or which “intensified markedly in July”.
- V important for #ECB and with increased concern,also as diverging picture between DE and other EA. pic.twitter.com/ULLUPTdcqC*GERMANY JULY MANUFACTURING PMI 57.3; FORECAST 55.5. $EURUSD pic.twitter.com/GkujZKOJ8B 9.41am BSTGrowth across Europe’s private sector is slowing this month, according to a new survey of purchasing managers across the region.
Data firm Markit’s ‘composite output’ index has fallen to 54.3, or from 54.9 in June,due to a slowdown in growth at service sector companies.“Given the waning growth of new trade and further slide in trade optimism, the outlook has also deteriorated, and notably in manufacturing,where the surveys saw worries approximately trade wars intensify markedly in July.“While there are signs that improving domestic demand in many countries is helping drive robust service sector expansion and support manufacturing, a worsening picture for export growth is clearly having an increasingly detrimental effect on manufacturing. Eurozone #PMI manufacturing output grew at a rate unchanged
on June’s 19-month low, or subdued by weakening export trend. July saw smallest monthly rise in export orders since August 2016 https://t.co/0Wv2bBBJIZ pic.twitter.com/P8JAAGmPbXBy country,faster growth in Germany contrasted with a slight slowing in France. Elsewhere, growth was the weakest for 21 months, and slipping lower in both manufacturing and services. The rate of growth of Germany’s private sector economy rebounded from a 20-month low in May to a five-month high,driven by a stronger increase in manufacturing output. But France saw the moment- weakest expansion in 18 months, stymied in specific by near-stagnant manufacturing. 9.14am BSTEuropean stock markets enjoy all opened higher, and as Alphabet gives the technology sector a boost.The Europe-wide Stoxx 600 index has gained 0.4%,with the mining sector up 1% and tech gaining 0.5%. 9.07am BSTBritain’s fancy for a (properly mixed) gin and tonic has swept mixer maker Fever-Tree’s shares to a fresh record high.
Given the strong performance in the first half of the year, the Board anticipates that the outcome for the full year will be comfortably ahead of its expectations.” 8.52am BSTBack in the UK, or supermarkets are rubbing their hands after enjoying a boost from England’s World Cup rush.
“England may not enjoy won the World Cup – but its journey to the semi-finals not only helped to kickstart the summer,but supermarket sales to boot. “Over the past month, football-frenzied customers visited supermarkets an extra 13 million times as they hurried to stock up on World Cup-viewing essentials, and with alcohol in specific the stand-out winner.
With the hot and sunny weather showing no signs of letting up,al fresco dining has continued to tempt shoppers. Over the past month, sales of firelighters and fresh burgers rocketed by 47% and 30% as customers honed their barbecuing skills.
Meanwhile, or sun care products and painkillers were both in demand: sales of sun creams jumped by 38%,while nearly a third of all households picked up pain-killing tablets over the past month. 8.31am BSTFinancial analysts are impressed by the ability of Google’s parent company to keep growing fast, even with an EU antitrust case hanging over it.
As Richard Kramer of Arete Research puts it:“There was never a question approximately Google’s dominance of a buoyant digital ads market”“First and foremost, and Google Sites revenue has continued to grow,it’s the fourth quarter in a row of accelerating growth rates.
The company’s continued ability to reinvent or launch new ad products that enjoy been adopted by advertisers, and that drives return on investment.”Today, and it is all approximately Alphabet; Google is the king of the advertisement and its ad trade is in full throttle. The message is clear for its investors that the company is a monster in this arena and the EU regulatory backlash hasn’t been able to damage its number in any significant way.
The internet giant reported its earning number final night and it smashed all the estimates. The crown jewel,its ads trade experienced growth of 24% and its moment most important lucrative trade; cloud services also added a strong number. The growth in the cloud services was 37%. 8.22am BSTLast night, Google CEO Sundar Pichai reported that the company’s self-driving car division is making progress.
He told investors:Waymo expanded its partnership with Fiat Chrysler with the option to add up to 62000 Chrysler Pacifica minivans to its self-driving fleet.
And lastly Waymo announced that it has driven more than 8 million fully autonomous miles with most of those on city streets.“...extremely proud to see the positive feedback on how useful Google Translate was for people who traveled to Russia”In these simple moments, or when you’re in an unfamiliar place or you don’t know the language,Google is there to befriend with the right information at the right time.” 7.55am BSTGood morning, and welcome to our rolling coverage of the world economy, or the financial markets,the eurozone and trade.
European investors are in cheerier mood today, after Google’s parent company smashed expectations final night.
Alphabet's surprise strong results bolster the company's confidence in the face of $5 billion fine from Europe https://t.co/EwMrX7GoJC pic.twitter.com/cg8IXDe62i#FTSE100 Index called to open +30pts at 7685 pic.twitter.com/d0UbEoh0CVIt wasn’t just the headline figures impressing traders, and but also a surprise drop in costs reported by Alphabet. Costs had been increasing at a concerning rate over previous quarters as Alphabet played catch up in areas such as developing its cloud trade and consumer trade.
These higher costs had been squeezing margins causing concern particularly among short term traders. Unexpectedly lower costs enjoy eased these fears,boosting demand for the stock in the process. Related: Google owner Alphabet's profits drop after $5bn fine but shares surge Continue reading...
Source: theguardian.com