Newscasts - Europe Today: UK inflation on the rise but still below forecast

FTI Consulting

14/08/2024 11:10

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Source: 'Reuters - Business videos'

Description: UK CPI rose to 2.2% in July. However, the rise was less than
predicted by a Reuters poll of economists as services inflation slowed sharply
to 5.2% from June's 5.7%. Sterling fell heavily against the dollar in response
as traders slightly increased bets on two more 25 basis point rate cuts this
year.
Short Link: https://refini.tv/3YIW7oj

Video Transcript:

British inflation is on the rise again, but still comes in lower than market
expectations. Welcome to Europe Today. I'm Peter Devlin. UK CPI rose to 2.2%
in July, after two months at the Bank of England's 2% target. However, the
rise was less than predicted by a Reuters poll as services inflation, a metric
watched closely by rate setters, slowed sharply to 5.2% from June's 5.7%.
Sterling fell heavily against the Dollar in response, as traders slightly
increased bets on two more 25-basis point rate cuts this year. Meanwhile, the
economy in the Euro-zone grew by 0.3% over the second quarter, as despite a
slight contraction in the bloc's largest economy, Germany. But industrial
production for the Euro-zone came in at well below projections, it fell by
0.1% in June. A Reuters poll had predicted a rise of 0.3%. Also missing
expectations was the employment rate, it rose 0.8% on an annualized basis over
Q2. A Reuters poll had forecasted a 1% rise. Onto the markets now and European
shares rose ahead of key US inflation data out later in the day. Shares of
Strawman soared by over 13%, after the dental implant makers announced the
sale of its DR Smile, a liner business. Flutter shares surged by over 12%. It
was after the online betting firm raised its full-year outlook. It has been a
busy morning on the earnings front. UBS reported a net profit in Q2 of $1.14
billion, that easily beat forecasts. These were the first results since UBS
completed its formal legal merger with Credit Suisse in May. It was a
different story for Thyssenkrupp. It made a net loss of EUR54 million in the
third quarter. That was due to higher-than-expected cost for legacy projects
at its plant engineering business. The German conglomerates also revealed it
had halted the sales process of one of its units. Its shares fell heavily in
early trades. And Europe's largest tour operator, TUI beat third quarter
operating profit expectations. Overall, thanks to strong summer travel demands
and a boost from German rival FTI's bankruptcy, it posted earnings before
interest and tax of EUR232 million, a 37% increase from a year earlier. Shares
in Frankfurt surged as a result. Meanwhile, Europe's biggest operator of
energy networks, E.ON posted a 14% fall in first half core profits. However,
it's still maintained its 2024 outlook, but said that regulators in Germany
should ensure higher returns for much needed grid investments. Danish brewer
Carlsberg has lifted its forecast for full year operating profit growth.
That's despite posting weaker than expected sales for the second quarter, a
period that was hit by bad weather in June in particular. That's it from
Europe Today