French and German factories still struggling – business live | The business



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Good morning, and welcome to our continued coverage of the world economy, the financial markets, the eurozone and business.

Is Europe's economy still in the rut, or turn a corner? Investors will get new clues today when IHS Markit data publishes its "flash" searches of purchasing managers in France, Germany and the rest of the eurozone this month.

March was rather bleak, with euro zone factories suffering their biggest drop in production in six years, with trade conflicts between the US and China causing global waves.

Reminder: Last month's PMI report was dragged down by a drop in production

Reminder: Last month's PMI report was dragged down by a drop in production Photo: IHS Markit

These new PMI reports, until 9:00 am, May show that activity is increasing in April. That would be a welcome signal, especially after China posted stronger-than-expected growth yesterday (6.4% in the first quarter of 2019).

Germany's industrial PMI is expected to rise to 45.2 from 44.1, which is still a low number, indicating that factories remain contracted. But the service sector is likely to continue to grow (with a PMI around 55, down from 55.4 in March).

The French data is not expected to shine. The PMI of France's mill is quoted to rise from 49.7 to 50 – which would show stagnation. Service PMI could rise from 49.1 to 49.8 (a small contraction).

Jasper Lawler of London Capital Group explains why investors will be watching:


There is a sense in the markets that the global economy is just beginning to stabilize. Traders will pay special attention to Germany's manufacturing sector, which has contracted sharply in recent months.

Investors are slowly starting to believe that the second quarter could be an improvement over the first, economically. However, more economic data are needed to confirm these suspicions. Today's Eurozone and US PMI data can help a lot to confirm or refute these beliefs.

Also coming today

The latest UK retail sales figures are released. They should show that British consumers spend less in stores in March, with retail sales (excluding fuel) dropping 0.3%.

Konstantinos Anthis, head of research at ADSSexplains:


Brexit's uncertainty over the past month, as the UK was struggling to get an EU extension, should be reflected in the numbers of consumer spending.

In the city, good giant consumer Unilever and pest control company Rentokil are releasing financial results. Both announced a solid sales growth.

Chris Bailey
(@Financial_Orbit)

UK RNS today # 1 –

Unilever – underlying sales + 3.1% with 1.2% of volume and 1.9% of price with underlying sales in emerging markets + 5.0%. Even lower sales growth half the range of 3-5% for the fiscal year, but better noise around margin / cash flow


April 18, 2019

Chris Bailey
(@Financial_Orbit)

UK RNS Today # 3 –

Polimetal – equivalent gold production + 27% in the first quarter and reiterates the FY prospects. The implementation of the Pox-2 project

Rentokil – Good start to the year & # 39; with a 4% growth in organic revenue driven by Pest Control


April 18, 2019

The board of the chain of pizzerias Domino faces a shareholder revolt over its remuneration policies in its AGM today.

In addition, the Pinterest will be floating on Wall Street.

CNBC Street Signs
(@StreetSignsCNBC)

Nowadays #StreetSignsEurope:
– Eurozone Flash PMIs in April
Weakness in Asian markets
– Pinterest / Zoom IPOs with Richard Clode, @JHIAdvisorsUS
– Retail sales in the UK
– Easter Trends with @Fortnums
@nbctracie previews of Mueller Report launch


April 18, 2019

Schedule

  • 9h BST: Euro Zone PMIs for production and services in April
  • 9h30 BST: research on credit conditions of the Bank of England
  • 9h30 BST: Retail sales from UK to March
  • 1:30 PM BST: US retail sales in March

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