Newscasts - Europe Today: Euro zone business activity surprisingly strong

CTS Eventim AG & Co KGaA

22/08/2024 11:30

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Source: 'Reuters - Business videos'

Description: Despite manufacturing remaining weak all across Europe's largest
economies in August, the S&P PMI composite number came in at 51.2, stronger
than expected. France's service sector was a stand out performer. But Europe's
largest economy Germany struggled and remains in contraction. Meanwhile, in
the UK, the composite number of 53.3 exceeded expectations thanks to better
performances by both the services and manufacturing sectors.
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Video Transcript:

Euro zone business activity surprisingly strong. Welcome to Europe Today. I'm
Leah Mishkin. Despite manufacturing remaining weak all across Europe's largest
economies in August, the S&P PMI Composite number came in at 51.2, stronger
than expected. France’s service sector was a standout performer, but
Europe's largest economy, Germany struggled and remains in contraction.
Meanwhile, in the UK, the composite number of 53.3 exceeded expectations,
thanks to better performances by both the services and manufacturing sector.
Let's take a look at the markets now, European shares opened a bit higher with
investors waiting for consumer confidence data for the Euro zone and US PMI
and initial jobless claims figures. The retail sector rose to the top, helped
by a 5.3% gain in JD Sports. The British sportswear retailer reported a 2.4%
rise in second quarter underlying sales. Taking a look now at crude oil,
prices have slipped for a fifth session. Investors are worried about the
global demand outlook, concerns about China's economy also kept prices in
check. Shares in Deutsche Bank rose 2.5% after the bank reached settlements
with more than half the plaintiffs who had accused the lender of underpaying
them in the acquisition of Postbank years ago. Germany's largest lender said
it would release provisions it had set aside for potential future payouts,
lifting third quarter earnings. Meanwhile, Aegon lost 4% after the Dutch
insurer said its key capital generation metric fell in the first half of the
year, 5% year-on-year to $655 million. The reason, the company says high
mortality in the US, its main market. Still, Aegon beat market expectations
and the group said it's on track to meet its 2024 guidance. Staying in
corporate news, Swiss Re posted a 17% rise in net profit in the first six
months of the year to $2.1 billion. The reassurance company attributes it
primarily to low natural disaster claims and strong investment income. Shares
of CTS Eventim rose to the top of the STOXX 600, up almost 8%. The German
ticketing group lifted its earnings forecast for 2024 and posted strong Q2
results. Meanwhile, UK recruiter Hays posted lower annual profits 47% below
year growth levels. Still, the results were in line with market view.
Macroeconomics and political uncertainties extended hiring periods. Looking
now at Bavarian Nordic, shares jumped 12% at the open after its Q2 results
beat expectations on Wednesday, it disclosed it had received a contract to
supply 440,000 doses of its smallpox and mpox vaccines to an undisclosed
European country. And one final note, central bankers from around the world
are in Jackson Hole for day one of the economic symposium. US Federal Reserve
Chair Jerome Powell is expected to give remarks on Friday. We'll bring that to
you as it develops on Reuters.com. And that is Europe Today