Reuters Insider - UK Day Ahead: Inflation, ZEW, IMF World Economic Outlook

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18/07/2016 23:02

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 Source:             Thomson Reuters                                   
                                                                       
 Description:        Brace for the latest inflation reading from the   
                     UK. The ZEW survey may show that the improving    
                     sentiment among German analysts and investors has 
                     stalled. Plus, the IMF's latest World Economic    
                     Outlook.                                          
 
 
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Transcript (May be auto-generated)

                 Good afternoon. I'm Angeline Ong and welcome to exclusive insight into Tuesday. 
The UK and European economy in focus tomorrow. First up, inflation numbers from 
Britain are expected to have risen to 0.4% year-on-year from 0.3%. Now, core 
CPI, which strips out food and fuel prices, is seen rising to 1.3% from 1.2% 
year-on-year. Then, at 10AM, we'll get the latest reading on German business 
sentiment. The ZEW Survey showed German analysts and investors improved 
unexpectedly in June. 

But the positive mood may not hold in July as the impact of Brexit is felt. 
Meanwhile, the news flow tomorrow will no doubt also be dominated by France and 
the unfolding tragedy in Nice last week. Before the tragic attacks, consumer 
confidence had been improving ahead of that. This, no doubt, will be welcome 
news for President Francois Hollande - less than a year away from the French 
presidential election in which he is yet to say whether or not he'll run. Well, 
earlier, we spoke to Nike Parsons, Head of Research UK and Europe and Global 
Co-Head of FX Strategy at National Australia Bank. We began by asking him what 
his economic outlook was for France after the Nice attacks. The recovery is 
broadly based. Its household consumption, its business investment, France has 
always had very export-oriented industries. So I think the broad-based nature of
the recovery does bode well, and I think it's unlikely to be derailed by last 
week's appalling tragedy. To company news now and shares in Phillip Morris are 
smoking ahead of its results tomorrow. Its shares up more than 20% in the last 
12 months, that's because with all this Brexit-related uncertainty - low oil 
prices and market volatility - Phillip Morris and some cigarette makers are 
considered safe bets now. We'll also get results from Microsoft, Goldman Sachs, 
and Lockheed Martin; plus, a trading update from Royal Mail. Let's take a look 
at how markets stand as we head into the close: the FTSE 100 is up around 0.5% 
while the FTSEurofirst 300, which was higher in the day, has now turned lower by
about 0.10%. Earlier on in the day, stocks were boosted by a jump in ARM 
Holdings stock after Japan's SoftBank agreed to buy the British chip designer. 
The troubled stocks under pressure though after the failed coup in Turkey. Plus,
brace for the International Monetary Fund's latest world economic outlook update
tomorrow. The IMF said in June that Brexit will hurt near term economic growth 
for the UK and the rest of Europe, plus, it will hit output globally. Don't 
forget as well, in April, the IMF cut its 2016 global growth forecast for the 
fourth time in a year, bringing it down to 3.2% from 3.4% due to weakening 
global demand and geopolitical risks. And that's it for now. I'm Angeline Ong, 
and this is Reuters