Closing Wrap - Friday 24.07
Headlines
  • Oil Posts Third Positive Week In Four On Demand Recovery Hopes
  • Gold Climbs To All-Time High, Topping 2011 Record
  • WH Warns China Against 'Tit-For-Tat Retaliation' With Chengdu Consulate
  • EU Eyes COVID-19 Vaccines At Less Than $40, Shuns WHO-Led Alliance
  • India Extends Domestic Flight Restrictions Until 24th November
  • Australia Slams Beijing Over 'Coercive Conduct' In South China Sea
  • US Private Sector Output Stabilises In July But Demand Falters
  • Verizon Beats Estimates On Lockdown Boost To Phone, Internet Services
  • American Express Reports A Surprise Profit But Revenue That Missed, Stock Slips
  • Tesla Sinks As Euphoria Shifts To Scrutiny On Growth, Valuation
Commentary
UK Retail Sales Recovery Extended Into June

UK retail sales in June showed a second month of household spending growth as the British government continued to ease lockdown restrictions.  

 

Headline retail sales outstripped estimates with a 13.9pct rise in June versus May’s 12.3pct gain and the 8.0pct market forecast. Monthly ex-auto fuel sales also beat expectations on a rise of 13.5pct from the 10.6pct increase in the previous month. Annually, sales fell by just 1.6pct in June after May’s 12.9pct plunge. Ex-auto fuel also surprised, up 1.7pct last month after a -9.0pct decline.  

 

The Office for National Statistics (ONS) noted that non-food and fuel stores continued their recovery from the sharp falls experienced at the start of the Covid-19 nationwide restrictions. 

 

The rebound meant May and June's total sales were on par with pre-virus levels, although the results varied depending on store types. (LiveSquawk - Continue Reading)

Ifo German Business Confidence Set To Continue Gains

German managers are expected to express more optimism about both the current situation and the outlook for Europe’s largest economy when Ifo releases its poll results on Monday (08.00 GMT).

 

Ifo’s headline business confidence index is forecast to rise to 89.3 from 86.2 in June, according to economists. The forward-looking expectations component of the index is projected to grow to 93.4 from 91.4, and the current situation gauge is seen moving higher to 85.0 from 81.3.  

 

In June, the main index surged for the biggest one-month gain on record.

 

Andrew Kenningham, chief Europe economist at Capital Economics, said the Ifo’s business climate index recovered more of the ground it lost in March and April as much of the economy was reopened. (LiveSquawk - Continue Reading)

McConnell’s Stimulus Waiting Game Turns Into Race Against Clock

Senate Majority Leader Mitch McConnell waited until a key component of U.S. coronavirus aid was about to expire before drafting the Republican version of the next major relief bill, a decision that is increasingly looking like a significant miscalculation.

 

Soaring numbers of virus cases, rising jobless claims and President Donald Trump’s slumping poll numbers have left McConnell in the rare position of struggling to unite Republicans behind a $1 trillion plan as the $600-a-week federal boost to unemployment insurance expires.

 

It’s a time crunch of their own making. Republicans and Trump squabbled all week over the details of the plan, forcing McConnell to delay the release of the GOP proposal until Monday. That gives Congress almost no time to avoid a lapse in the unemployment aid.

 

The expiration is now less of an inducement to get Democrats to the negotiating table than a potential albatross they will try to drape around the necks of endangered Senate Republicans. (Bloomberg - Continue Reading)

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