Reuters Insider - UK Day Ahead: French consumer spending growth likely slowed in July
28/08/2020 11:57
Click the following link to watch video: https://share.insider.thomsonreuters.com/link?entryId=1_4nbzmpjz&referenceId=1_4nbzmpjz&pageId=ReutersNews Source: Reuters Insider Description: Consumer spending in France is likely to come in 2% higher in July - slower than the previous month, but a sign of a return to normal levels. GfK releases its measure of consumer confidence in Germany Short Link: https://refini.tv/2EtK4UT Video Transcript: Britain's services firms hemorrhaged jobs at their fastest pace in more than 10 years in the three months to August. The CBI survey is the latest sign of mounting unemployment as the government's coronavirus job protection scheme is wound down. The Bank of England has said it expects the unemployment rate to almost double to 7.5% by the end of 2020. Many economists think it will go higher than that. British car production rose sharply in July, but it's still well-below last year's level. More than 85,000 cars are manufactured, more than in June, but 21% fewer than in July last year. This Society of Motor Manufacturers and Traders says production in the first six months of the year was the lowest since 1954. The jet engine-maker, Rolls-Royce, says it will sell at least GBP2 billion worth of assets to shore up its balance sheet. Among the disposal will be its Spanish unit, ITP Aero. The company reported a loss of GBP5.4 billion in the first half of 2020. CFO Stephen Daintith has resigned. He says he will remain in his role to support an orderly transition. Britain's lockdown has hammered businesses of all kinds. Advertisers among them, as companies cut marketing budget. But Thursday saw the world's biggest ad firm, WPP, beat forecasts. And in a sign of confidence, it's also resumed to paying a dividend. The German online takeaway food group, Delivery Hero, is acquiring online grocery services, InstaShop, after almost doubling its revenues in the first half of 2020. InstaShop, launched in 2015, operates in the United Arab Emirates, Qatar, Bahrain, Egypt, and Lebanon. A cautious mood prevailed in European equity markets on Thursday, as investors looked to a virtual meeting of central bankers and finance ministers for clues about further stimulus. Banks have the hardest time, along with miners. Both sectors are especially sensitive to the economic headwinds right now. The European Union's Trade Commissioner, Phil Hogan, has resigned. It came after days of pressure over allegations he breached COVID-19 guidelines during a trip to his native island. Commission President Ursula von der Leyen has appointed Vice President Valdis Dombrovskis to the role on a temporary basis. It is up now to the Irish government to present suitable candidates for a commissioner of Irish nationality. As in the past, I will invite the Irish government to propose a woman and a man. Executive Vice President Valdis Dombrovskis will assume at interim responsibilities for trade matters. And at the latter stage, I will decide on the final allocation of portfolios in the college of commissioners. On the corporate diary on Friday, wage talks between Deutsche Post management and labor union ver.di begin. Ver.di has demanded a 5.5% pay increase for 12 months for around 140,000 employees. The current wage deal runs out on August 31 and ver.di could call for industrial action if no new agreement is struck. On the economic front, French consumer spending growth probably slowed to around 2% in July from 9% in June, as the retail trade slowly returns to normal. French GDP numbers are also due on Friday. Expect to see a near-14% contraction for the second quarter. Retail sales data is due for Spain and the economic weekends with GfK's measure of consumer confidence in Germany