Newscasts - Europe Today: German investor morale darkens more than expected
13/08/2024 11:06
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_fbjka8nq&referenceId=1_fbjka8nq&pageId=Newscasts Source: 'Reuters - Business videos' Description: Germany's ZEW economic research institute revealed that investor sentiment darkened more than forecast on July, hit by a high degree of uncertainty across Germany's main export markets. Short Link: https://refini.tv/4cjGHKl Video Transcript: German economic sentiment weakens further. Welcome to Europe Today. I am Thomas Warner. German investor morale darkened more than expected in August, the ZEW economic research institute said on Tuesday. The reading of 19.2 points was well below the 32 points forecast. The institute says that economic expectations are still affected by a high degree of uncertainty. The UK government data, meanwhile, showed that British pay growth dropped to its lowest in nearly two years during the second quarter at 5.4%. Sterling rose against the US Dollar immediately after the data was published. And investors scaled back their bets on a September Bank of England rate cut to around 35% from 38% on Monday. UK CPI figures due on Wednesday morning are expected to show that inflation rose back above the bank's 2% target in July, reaching 2.3%. July data from market researcher Kantar this morning suggested the UK grocery inflation rose for the first time in 17 months. Trading in European shares struggled to get off the ground this morning. Investors awaiting for US Producer Price Index data that is due at 12:30 GMT today. Here in Europe, though, utilities and the banks did make some slight gains early on but any wider advance was curtailed by two particularly troubled starts. Tecan Group is on track for its worst day in more than 30 years, down 16% on a surprise cut to its full-year guidance. The Swiss life science equipment maker now says that revenues will drop by a mid-single-digit percentage amid weakening demand for its products. And the shares in Sweden's Fortnox fell 13% after CEO Tommy Eklund announced that he is stepping down with immediate effect. The accounting solution firm is on track for its worst day in five months. Elsewhere, HelloFresh reported better-than-expected second-quarter core earnings on Tuesday. The German meal-kit maker got a boost from its new ready-meal segment which grew 45%. Growth in demand for its meal-making kits has tapered off since the end of the COVID lockdowns. German tanker gearbox maker RENK also beat expectations with a record order intake of EUR419 million in the second quarter. Rising defense spending by NATO countries is supporting the entire defense sector. Rheinmetall last week also reported a record order book following defense electronics specialist HENSOLDT the month before. And the world's biggest jewelry-maker Pandora raised its full-year growth outlook after the bell on Monday. It has so far proven more resilient to consumer belt tightening than luxury groups like LVMH and Burberry. Oil prices fell in early trading, snapping a five-day streak of gains. Markets have refocused on demand concerns after an outlook downgrade from OPEC on Monday. The International Energy Agency, meanwhile, maintained its 2024 demand forecast today but has cut its outlook for 2025 on concern about consumption in China. And that is it from Europe Today