Newscasts - Europe Today: UK economy stagnates unexpectedly in growth challenge for government
11/09/2024 11:00
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_mosgpmus&referenceId=1_mosgpmus&pageId=Newscasts Source: 'Reuters - Business videos' Description: 10-year gilt yields edged lower, as the UK economy unexpectedly stagnated for a second consecutive month in July. The economy was mainly held back by weakness in construction and manufacturing, with a little expansion in the key services sector. Short Link: https://refini.tv/3TpcwKR Video Transcript: UK economy stagnates unexpectedly in a growth challenge for the new government. Welcome to Europe Today. I am Ludovica Brignola. 10-year gilt yields edged lower as the UK economy unexpectedly stagnated for a second consecutive month in July. The economy was mainly held back by weakness in construction and manufacturing with a little expansion in the key services sector. GDP showed no change in July, while economists polled by Reuters had expected a 0.2% month-on-month expansion. Separate trade data showed a sharp fall in goods exports to both EU and non-EU countries. The FTSE 100 was little changed but European stocks opened higher on Wednesday as global markets focus on the latest US inflation data set to be released later in the day. Investors eyes will be on the ECB as well, which begins a two-day rate-setting meeting today, while investors also digest some major deal news. Well, let us take a look at some of it then. Italy's second largest bank, UniCredit, has acquired a 9% stake in German bank Commerzbank, saying it will further explore value-creating opportunities. UniCredit is now one of Commerzbank's largest shareholders and the purchase follows speculations in recent years that the Italian lender could be interested in taking over the German bank. Commerzbank shares jumped as much as 18% today. Britain's largest real estate portal, Rightmove, has rejected a GBP5.6 billion cash-and-stock takeover proposal from Australia's REA Group. It said the bid undervalued its prospects. Shares in REA, which is 62% owned by Rupert Murdoch's News Corp, fell 2.5%. Abu Dhabi National Oil Company is expected to make a formal offer to acquire German chemicals firm Covestro for about EUR14.4 billion, including debt, as the Financial Times reported. Zara-owner Inditex has reported a rebound in recent sales of its first autumn-to-winter collection, which offsets a slowdown in sales in the first half of the year. The world's biggest fashion retailer reported an 11% rise in sales between August 1 and September 8. The fashion company has fought to stay ahead of rivals such as H&M and Chinese SHEIN by investing in logistics and technology. Its shares were up 4%. And that is it from Europe Today