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IFX - Infineon Technologies AG News Story

€31.62 1.0  3.3%

Last Trade - 14/05/21

Large Cap
Market Cap £35.44bn
Enterprise Value £38.65bn
Revenue £8.61bn
Position in Universe 37th / 1053

Reuters Insider - UK Week Ahead: Trade, Sterling, Earnings, PMI

Mon 5th August, 2019 10:24am
Click the following link to watch video:
Source: Reuters Insider

Description: The U.S.-China trade war is likely to dominate after global
stocks took a pounding, prompted by U.S. President Donald Trump's new tariff
threat. Sterling set to remain in focus as UK Prime Minister Boris Johnson's
government ups the 'no-deal' Brexit rhetoric. Big name corporates reporting
include HSBC, Commerzbank and Rolls-Royce. Brace for global services PMIs.
Short Link:

Video Transcript:

Good afternoon. I'm Angeline Ong and welcome to your insight into the week
ahead. Trade likely to top the agenda once more. US President Donald Trump is
due to make a statement on trade with the EU later this Friday, Bloomberg says
citing the White House. Well, market watchers should take heed. As on Thursday
he surprised them by announcing the imposition of 10% tariffs on $300 billion
in Chinese goods. So there were no surprises as to how the market reacted to
that news. Well over 500 of the 600 majors on the STOXX 600 fell on Friday.
The FTSE and the DAX also suffered sharp losses. Take a look at how some of
the most trade-sensitive stocks performed. Let's have a look at ArcelorMittal,
Infineon there, down. Daimler, Glencore also down, taking a beating there
after that trade news. The British Pound will likely continue to make
headlines, the weakest ahead as well. The Pound holding near a 30-month low.
It had quite a torrid week as Prime Minister Boris Johnson's new government
upped the rhetoric around a no-deal Brexit. Then, they saw his working
majority slashed to one seat after a by-election on Thursday.
Bank of England Governor Mark Carney speaking a day after the UK central bank
cut its growth forecasts for Britain's economy, warned that a no-deal Brexit
was now a "significant possibility". Carney also said it's not helpful to
downplay the challenges ahead. 

And the economics of no deal are that the rules of the game for trade
exporting to Europe or importing from Europe fundamentally change. And there
are some very big industries in this country where that, which is, highly
profitable becomes not profitable. It becomes uneconomic.

And not helping sentiment either was UK construction PMI data showing a third
straight monthly contraction. The report's issuer - IHS Markit - said that
construction companies have started to respond to lower workloads by cutting
back on buying also in staffing. Construction accounts for 6% of the UK
economy. On the corporate diary in the coming week, the earnings deluge begins
to wind down but we still have the likes of HSBC, Intercontinental, and Rolls
Royce on Tuesday. Commerzbank, Unicredit, and Continental on Wednesday
and Merck and Adidas on Friday. While on the economic front, look out for a
service sector PMI business survey from around the world on Monday. Any signs
of weakness will be pounced on by investors, given the dour economic news out
of the Eurozone of late. On Wednesday, look out for industrial output numbers
from Germany, trade figures from France, and from China on Thursday. We also
get the UK's RICS housing survey for July and on Friday, it's Germany and
Italy's turn to hand in their trade balance figures. Meanwhile, Britain
releases GDP and industrial/manufacturing output data. And that's it for now.
I'm Angeline Ong, and this is Reuters
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