Reuters Insider - Reuters Today: UK retail sales rebound in May, borrowing above forecast

BWA

19/06/2020 11:45

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Source: Reuters Insider

Description: British retail sales rebounded much more strongly than expected
last month but public borrowing came in at a record high, as the country
gradually relaxed its coronavirus lockdown.
Short Link: https://refini.tv/3fERjXi

Video Transcript:

Britain’s retail sales staged a strong rebound during May. Overall sales
rose 12% after a disastrous 18% fall in April. Shops have begun to reopen
albeit with restrictions on customer numbers still in place. The polling firm
GfK says UK consumer confidence is now at its highest since the lockdown
began. Meanwhile, UK borrowing has soared to more than 100% of GDP. The
government borrowed a record GBP55 billion in May, taking overall debt levels
to their highest in more than 50 years. The Office for Budget Responsibility
has said that, even if the economy starts to recovery quickly, it’s
likely the borrowing could rise to 14% of GDP this year. European equity
stuttered at the open on lingering concerns about a second wave. On Thursday,
400 workers at an abattoir in Germany tested positive for the disease while
there’s been a resurgence in some parts of the United States and China.
Oil prices rose after OPEC and its partners pledged to meet their commitments
on cutting supplies. Prices were also underpinned by two major oil traders
Trafigura and Vitol who said demand is recovering well. The Swiss bank UBS has
raised its forecast for Brent to $45 by the end of the year. EU leaders will
hold a virtual meeting later today to discuss the bloc’s budget and
recovery fund. The commission has proposed a sum of EUR750 billion to get the
region’s economies up and running again. But some countries are opposed.
The Netherlands and Austria are among the countries dubbed the “frugal
four”. But Germany’s Chancellor Angela Merkel has said actions to
approve the deal is needed now. The British government will switch to Apple
and Google technology for its test and trace app. It’s ditching its
current system in a U-turn for the troubled program. The current app, being
tested on the Isle of Wight, has technical issues and is not ready for roll
out across the rest of the UK. 

We are working on it is the answer. We’re not going to put the data on
this, I’m afraid, because I’m absolutely determined that, whilst
this technology can help, it’s got to be working effectively. And the
central point of test and trace is actually the fact that, when you are
identified as at risk, you then isolate and asking people to isolate for two
weeks is a big thing.

Let’s take a look at some companies in the news then and Germany’s
Wirecard is on the brink after its auditor EY refused to sign off the payment
provider’s 2019 accounts - around EUR1.9 billion is unaccounted for and
investors are calling for heads to roll. Because the accounts have not been
verified, bond holders could demand repayment by as early as today. The
company says it may be a victim of a massive fraud. BASF, the world’s
largest chemicals maker, says it’s preparing to rebuff an unsolicited
takeover approach or an attack by activist investors. The company says
it’s at risk from a bid because of the decline in market values. Shares
have fallen 20% this year, wiping around EUR49 billion off its market cap. And
finally, it’s the end of an era for one village in southern France. It
bid “au revoir” to the last convoy of parts for the Airbus A380
Superjumbo. Trucks carrying three fuselage sections squeezed through the
village of Levignac on their way to Toulouse where the planes are assembled.
The components have been snaking their way through the narrow streets since
2004. Airbus has now discontinued the model.

First of all, I think that this is an important milestone of the Airbus
history. This is the aircraft that brought all the four European partners
together, so it was an accelerator of the history of Airbus. It was also mean
to accelerate in terms of innovation and we’re all convinced that Airbus
would not be today what it is with the 380