US Briefing - Thursday 30.07
Headlines
  • US Covid-19 Deaths Top 150,000; Records in Texas, Florida
  • Democrats Reject Trump’s Push For Short-Term Covid-19 Aid Deal
  • ECB’s Vasiliauskas: Wouldn't Rush To Discuss Additional ECB Measures
  • Eurozone July Economic, Industrial Confidence Rise & Beat Estimates
  • German July Unemployment Shows A Surprise 18K Fall (est +41K)
  • German Q2 GDP Slumps 10.1% Q/Q Worse Than The 9% Fall Expected
  • German July Regional CPI Drop Sharply; National Print At 1300BST
  • UK's Hancock: New Countries May Be Added To Quarantine List In Few Days
  • China Needs 'Explosive' Buying To Meet US Farm Import Target
  • Australia Sets Daily Record For Covid-19 Infections
  • Saudis Seen Cutting Oil Price As Fresh Supply Meets Demand Slump
  • Qualcomm Shares Rise On Strong Forecast, Huawei Agreement
  • UPS's Stock Soars After Big Q2 Profit And Revenue Beats
  • ArcelorMittal Sees Steel Market Improving; Fresenius, VW Weigh On Dax
  • Total Makes Surprise Q2 Profit As Trading Gains Offset Oil Slump
  • Lloyds Falls On Q2 Loss As Bad Loan Provisions Higher Than Expected
  • ABInBev Soars As Beverage Maker Sees June Volumes Rebound Strongly
Commentary
US Expected To See Worst Economic Contraction Since Great Depression

The worst of the Covid-19 pandemic’s economic hit on the US economy fell in April at the start of the second quarter, according to survey data and regional reports, after which the country slowly re-emerged from lockdown with mixed results.

 

On Thursday, the first look at US second-quarter GDP growth is expected to show a 34.4pct contraction as economists predict America experienced its worst economic slump since the Great Depression. The US economy had already entered recession in February (First-quarter GDP -5pct), several weeks ahead of the World Health Organisation (WHO) declaration of a Covid-19 global pandemic.

 

In a note, Veronica Clark and Andrew Hollencrost of Citi Research said, “Data released so far confirm a substantial contraction in second-quarter real GDP. However, after bottoming in late April reopening led to a pickup in production and hiring in May and June, consistent with the robust rebound we had been forecasting.”

(LiveSquawk – Continue Reading)

German GDP Plummets in Q2; July Jobless Numbers Drop Unexpectedly

Frankfurt, 30 July 2020 (LS NEWS) – Economic activity in Germany fell at a record pace in the second quarter, but a surprising drop in the number of unemployed this month offered another sign that Europe’s largest economy is reviving following the elimination of many government restrictions designed to curb the spread of Covid-19.

 

Quarter-on-quarter GDP plunged 10.1pct, the worst decline since Germany began reporting quarterly growth results in 1970, according to preliminary data from Germany’s Federal Statistics Office. The contraction was worse than both the market forecast of a 9.0pct decrease and the 2.2pct drop in the first quarter.

 

 The second-quarter contraction means that Germany remained in recession; the country’s quarterly growth rate has been negative since the final three months of 2019. The annual non-calendar adjusted growth rate of -11.7pct in the second quarter was also a record drop. Analysts had expected -10.9pct following the -1.9pct reading in the first three months of this year.

(LiveSquawk - Continue Reading)

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