As a result of talks between the head of European Commission and US President, Donald Trump agreed to refrain from tariffs on import of cars, Reuters informs. Parties also started discussing possible reduction of other barriers, including recently imposed duties on steel and aluminum.
Germany's business confidence fell in July for the second month, as companies worry about future of country's export amid growing trade tensions between the US and Europe, Bloomberg reports.
Index of Ifo institute fell to 101,7 from 101,8 in June. This is the lowest value of the index since March 2017.
World shares demostrate today mixed behavoir, while investors review reports of corporations and wait results of talks between the US and EU. World All-Country MSCI Index gained 0,1%.
US dollar fell in relation to major peer. Bloomberg Dollar Spot lost 0,2%.
South Korean company LG Display Co Ltd, which is a key supplier of Apple, cut its investment plans by $2,7 billion by 2020, Reuters informs. Among reasons are concerns over global market for smartphones.
Almost one out of three representatives of millenials thinks that cash instruments, including saving accounts and certificates of deposit, are the best way for investing money they won’t need for the next ten years, Bloomberg reports. To compare, older generation prefers investing money into equities, and only 21% into cash.
Protectionism starts weighing on global economy, Bloomberg informs.
Last signs of this influence already appeared in recent reports on companies’ activities in Japan, Europe of US. Many manufacturers faced higher costs for raw materials, others with pressure on earnings.
Swiss chocolate brand Lindt & Spruengli AG is planning new investments in the US, in order to compete more successfully with Hershey Co. and Mars Inc. on this market, Bloomberg reports. Size of investments will reach $200 million francs.
During last year living standards in the UK grew in slowest pace since 2012, Bloomberg reports. Revenue recovery that took place after crisis now reversed its direction in case of poorest 30% of country's families.
As Bloomberg reports today, European shares grew together with US futures after row of positive corporate earnings reports. China's efforts to support its economy resulted in growth of high risk assets in Asia. Besides other measures, China plans to increase infrastructure spendings. As a result, Shanghai Composite Index showed the highest three day growth in two years.
Such giants in commodity sector as Exxon Mobil Corp., Freeport-McMoRan Inc. and Archer-Daniels-Midland Co., will most likely report earnings at forecasted level or higher, Bloomberg reports. Some of them benefited from cost cuts and some from growing prices. However, investors are more concerned about what will happen with profit of these corporations till the end of this year. Trade conflicts might restrict global growth, while supply problems in some markets eased.
Fast rate of global economy growth and rising oil prices will result in increase in air travel costs in 2019, Reuters informs with the reference to reports of Carlson Wagonlit Travel (CWT) and Global Business Travel Association (GBTA). Air fares will grow up 2,6%, hotel rooms rise will be up to 3,7%.
Sales of US houses unexpectedly fell in June, Reuters reports. They have demonstrated decline three months in a row, since constant shortage of properties resulted in record price growth.
