Newscasts - Europe Today: Euro zone inflation falls below 2%
01/10/2024 11:00
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_0cakrpsg&referenceId=1_0cakrpsg&pageId=Newscasts Source: 'Reuters - Business videos' Description: Inflation in the single currency bloc came in at 1.8% in September, confirming market expectations of an ECB rate cut this month. Short Link: https://refini.tv/4858GwV Video Transcript: Eurozone inflation dips below 2%, strengthening the case for an ECB cut. Welcome to Europe Today. I'm Elena Casas. Inflation in the Eurozone needs to 1.8% in September coming in below expectations as energy costs fall while core inflation was also lower than forecast at 2.7%. PMI data meanwhile, showed September factory activity took a turn for the worse even as manufacturers cut their prices. Manufacturing PMI came in at 45, with Germany’s downturn the sharpest for 12 months. Ahead of those inflation figures, markets opened higher, they had already fully priced in an October rate cut from the ECB, after German inflation came in at a three-year low on Monday. The Euro has been steady above $1.11 as traders sell Dollars on the assumption inflation is now under control globally, and US rates have the furthest to fall. Meanwhile, the British Retail Consortium reported UK shop prices fell at the fastest rate in more than three years in September. Annual shop price deflation came in at 0.6% on the year, but food prices are still rising up by 2.3%. In companies' news, Abu Dhabi's state oil giant ADNOC is to buy German chemicals producer Covestro for EUR14.7 billion in one of the biggest takeovers of a foreign company by a gulf state, as they try to move away from dependence on oil. Greggs has kept to its full year outlook despite reporting slower underlying sales growth in the last quarter. Sales rose 5% in the quarter after gaining 7.4% in the first half. Luxury brand Mulberry has rejected a takeover bid from Frasers group, saying the GBP83 million proposal did not reflect the company's “substantial future potential value.†Mulberry's board says it believes a fresh cash raise of almost GBP11 million will give the brand space to turn sails around. Brent crude has lost over 2% to trade below $70.00 a barrel this morning, despite a major escalation in the Middle East as Israeli ground troops moved into Lebanon. The Israeli military said intense fighting with Hezbollah was taking place in the south of the country, while air strikes hit the southern suburbs of Beirut, and Lebanon's largest Palestinian refugee camp. And that's Europe Today