Newscasts - Europe Today: German recovery hopes in doubt on dismal data

BMW Industries

27/08/2024 10:48

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Source: 'Reuters - Business videos'

Description: Germany's economy fell back into contraction in the second
quarter, while consumer sentiment is set to deteriorate in September. European
shares moved higher on Tuesday following a subdued start to the week.
Short Link: https://refini.tv/3Xj12Lg

Video Transcript:

German data disappoints again with no recovery insight. Welcome to Europe
Today. I'm Peter Devlin. German consumer sentiment is set to tumble going into
September. The GfK index fell to -22.0 points falling below forecasts of
-18.2. Rising unemployment, job cuts and insolvencies have driven down income
expectations, delaying hopes of an economic recovery. Final GDP rating for the
second quarter confirmed the German economy fell back into contraction,
shrinking by 0.1% compared with the previous three-month period. Traders will
now be awaiting the release of the flash August CPI print on Thursday.
Meanwhile, in the UK, prices in Britain's shops fell for the first time in
three years. A BRC survey said shop prices dropped by 0.3% in August, after a
0.2% increase in July. Non-food goods dropped as summer sales of clothes and
household goods pushed down prices. Food prices registered the smallest rise
since November 2021 as with the introduction of new price cuts. The yields on
10-year gilts rose to the highest since early August this morning, up around
four-basis points at last check. Turning to markets now and European shares
moved higher on Tuesday following a subdued start to the week. The FTSE 100
returned from a bank holiday in the green, led higher by miners and energy, as
copper prices touched a six-week peak. Despite the German data, the DAX moved
higher shares of Continental rose after UBS raised the stock to buy from
neutral. We're looking to France’s CAC rose as President Macron will
continue consultations on appointing a viable PM. Meanwhile, in corporate news
this morning, BMW and Toyota are reportedly upgrading their partnership in
fuel-cell vehicles. Nikkei reported the two automakers are set to officially
announce the news next week. While British business supplier Bunzl raised its
annual profit forecast. The company said the acquisitions have paid off, while
demand for its own brands are staying strong. Shares of Bunzl soared this
morning and were the top gainer on the FTSE. Dozens of workers at British
retailer Next have won a six-year legal fight for equal pay. And Employment
Tribunal ruled that next discriminated against women by paying lower rates
than its warehouse workers. That claim entitles back pay for up to six years,
that's totaling over GBP30 million. And Ryanair CEO Michael O'Leary said he
does not expect double digit declines in average fares in Q2, but a fall of 5%
looks reasonably accurate. I was an interview with Reuters with CEO
O’Leary. And oil steadied after a three-day rally, as a threat of a halt
of Libyan supply countered still weak demands. That's it for Europe Today