Week 30 2017

Week 30 2017

July 24 – 28 July

 

24 July

 

It is a curious irony of 2017 that, despite all of the anti-trade sentiment that bubbled up among voters in the US and other advanced economies in 2016, so many governments around the world this year are eager to conclude new trade deals. And that they are eager to do so quickly.

 

Canada’s dollar has strengthened to a fresh two-year high against the greenback today, highlighting disparity between tighter monetary policy cycle in Canada and political jitters in the neighbouring US.

 

Gemalto shares fell 20 per cent to their lowest level in more than five years, after a profit warning raised fresh concerns about the effect of slowing smartphone sales on the world’s largest Sim card manufacturer. 

 

Brussels has pledged to crack down on environmental rule breaking by Europe’s car industry, as a sector already hit with more than €5bn in EU antitrust fines faces another major cartel investigation.

 

25 July

 

Alphabet executives were forced to defend the way businesses in its portfolio, such as YouTube, Maps and Android, are bundled together, as analysts quizzed them on the impact of a record-breaking €2.4bn EU fine.

 

Global markets started the week on a broadly cautious note as participants kept a wary eye on political developments in Washington and awaited the outcome of a meeting of the Federal Reserve’s policy-setting Open Markets Committee.

 

Big retailers and construction companies may be fined for labour abuses committed by smaller firms further down the supply chain, the government’s first labour enforcement tsar has suggested.

 
 
The International Monetary Fund has warned the European Central Bank against a premature end to its aggressive crisis-era monetary policies, saying there needs to be more sign of inflation along with the region’s economic recovery.

 

26 July

 

Growth in the UK economy edged up in line with forecasts in the second quarter, in figures that will underscore Britain’s loss of economic momentum after a sharp growth slump at the start of the year.

 

When KKR, the US private equity firm, was bidding for Panasonic Health, a less than core division of the Japanese consumer electronics conglomerate in 2013, it was the only company that turned up at the auction without a Japanese partner.

 

Investors bet against the house on Tuesday after Wynn Resorts said its second-quarter earnings missed estimates by a penny even as business rebounded in Macau, a former Portuguese colony that is now world’s largest casino hub.

 

Seven years after Steve Jobs publicly berated the widely used Flash internet media software, the late Apple co-founder is getting his way. The software — long a necessity of online life, though known to many internet users only from the moments when they can’t play a video because they don’t have it installed — will be phased out in 2020.

 

27 July

 

The Federal Reserve signalled it is ready to start unwinding its crisis-era stimulus programme as soon as its next meeting, suggesting that the central bank remains confident in the US outlook even as it acknowledges weak inflation readings.

 

ITV made a rare appearance at the top of the FTSE 100 leaderboard as hit shows such as Love Island and signs of easing advertising pressures rekindled some investor affection for the broadcaster.

 

France’s Peugeot and Germany’s Daimler posted record results on Wednesday, signalling that Europe’s strengthening economic recovery is boosting manufacturing and raising expectations for car sales on the continent this year.

 

Boeing shares leapt to an all-time high after the US aerospace and defence group delivered a significantly better than expected performance in the second quarter and boosted guidance for full-year earnings and cash flow.

 

28 July

 

The rate of US growth picked up steam in the second quarter, but wage growth undershot estimates, underscoring the economy’s patchy performance of late.

 

Three Asian bond sales pulled in a single day. In other economic cycles, it would be the sort of event that might help a reporter win a name for spotting early signals of far bigger trouble. But there are few signs the failures were a harbinger of something more serious.

 

Mike Ashley’s Sports Direct has increased its stake in the lossmaking retailer French Connection to 27 per cent, just below the point at which it would be required to make a takeover offer.

 

A treatment AstraZeneca hoped would replace chemotherapy for some lung cancer patients was no better at preventing the disease from getting worse in clinical tests, dealing a major blow for one of the company’s most promising drugs and wiping £10bn off the value of its stock.