Newscasts - Europe Markets Briefing: IMF upgrades UK growth forecast ahead of budget
22/10/2024 15:49
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_bb5zp1me&referenceId=1_bb5zp1me&pageId=Newscasts Source: 'Reuters - Business videos' Description: The International Monetary Fund on Tuesday raised its forecast for British economic growth this year, by the most in the G7 after the U.S. European markets fell, as investors assessed the latest earnings releases, with major banks to report this week. Short Link: https://refini.tv/4e27f3s Video Transcript: UK economy receives a hefty upgrade from the IMF. Welcome to your Europe Markets Briefing. I'm Peter Devlin. The IMF boosted its growth expectations for the UK by the most in the G7 after the US. The forecaster now sees the British economy expanding at 1.1% this year compared with the prior forecast of 0.7%. So, over the two-year period, the UK is projected to be the third-fastest growing economy. Meanwhile, the IMF also cuts its forecast for the German economy for this year and the next. Europe's largest economy is expected to stagnate this year as the IMF highly persistent weakness in manufacturing. German 10-year bond yields rose to its highest in almost two months today, as doubts about the speed of central bank rate cuts pushed down prices. European markets were lower today as investors assessed earnings from bellwether firms across the region. So far, about 47% of MSCI European companies have reported results below expectations, but only 27% have beats. Shares of Tizen Corp have dropped after Carlisle dropped out of an ongoing process for the conglomerates worship division. So, keeping with earnings and Deutsche Bank and Lloyds will kick off reporting for the European bank tomorrow. The numbers are expected to show continued profitability with robust investment banking activity offsetting weak demand for loans. One analyst we spoke to earlier did highlight how the upcoming budget could affect UK's largest mortgage lender. Yes. I mean over the long term; the banks would be pleased if the labor government does get UK GDP growth on a stronger track. And it is clearly a government that is looking to generate growth partly through the housing market. And again, Lloyds is a major player in mortgages. So, you think it is a potential beneficiary there. The one thing the banks will want to see is a windfall tax. Nothing has been muted about that, but the government is looking for ways of raising income. Roche is due to publish its third quarter results tomorrow. The Swiss drug maker raised its full year earnings forecast back in July after exceeding expectations. Investors will be on watch for updates on roaches at three early-stage obesity and diabetes drug candidates. And the luxury sector will be tested again, as Kering is due to reports. Citigroup downgraded the French goods company this week, citing degrading China demand as well as reduced recovery opportunities. On the economic calendar tomorrow, the flash estimate for Eurozone consumer confidence will be released. The October print is expected to rise to -12.5 in October from the previous print of -12.9, that would mark two months of consecutive increases. And finally, oil prices gained after advancing by almost 2% on Monday. Traders continue to track tensions in the Middle East as US Secretary State Antony Blinken arrived in Israel to revive its ceasefire talks. That is, your Europe Markets Briefing