UK inflation falls to 7.9% in June, below forecast
Inflation in the UK fell more-than-expected to 7.9 per cent in June, giving the Bank of England some relief ahead of its August 3 monetary policy decision.
The annual inflation rate fell from 8.7 percent in May, the Bureau of National Statistics said on Wednesday. It was below the 8.2 percent that economists polled by Portal had forecast, ending a four-month period of price growth that beat forecasts.
Core inflation, which discounts volatile food, energy, alcohol and tobacco prices, also eased to 6.9 percent after hitting a 31-year high of 7.1 percent the previous month. Analysts expected it to remain unchanged.
Service sector inflation fell to 7.2 percent from a 31-year high of 7.4 percent in May.
Both core and services inflation are closely watched by policymakers to monitor underlying and domestic price pressures and decide on interest rates.
Chinese stocks lead Asian markets to decline on economic concerns
Asian stocks fell on Wednesday as China’s sluggish economic recovery and the government’s slow rollout of stimulus measures weighed on market sentiment.
The Hang Seng index fell 1.2 percent at midday, with Chinese tech stocks like Baidu, Bilibili and JD.com among the biggest detractors. China’s blue-chip CSI 300 index slipped 0.4 percent.
Elsewhere, the Kospi benchmark for South Korean stocks fell 0.3 percent. Japan’s Topix rose 0.7 percent on a weak yen and expectations that the country will maintain its ultra-loose monetary policy.
What to see in Europe today
The Money Macro and Finance Society in London hosts a speech by Bank of England Deputy Governor Sir Dave Ramsden on quantitative tightening © Hollie Adams/Bloomberg
Events: The UK Parliament’s Finance Committee is expected to seek evidence from the Financial Conduct Authority over concerns about its handling of Odey Asset Management and the non-financial misconduct of its founder. The Money Macro and Finance Society in London is hosting a speech by Bank of England Deputy Governor Sir Dave Ramsden on quantitative tightening.
Indicators: Consumer, retail and producer price inflation numbers are expected. According to a Portal poll, UK inflation is expected to have slowed to 8.2 percent in June, down from 8.7 percent in May. The BoE sees a decline of 7.9 percent. The Office for National Statistics is expected to release its House Price Index, a closely watched metric as the housing sector shows signs of slowing amid higher mortgage rates. EU inflation figures are also expected.
Results: Earnings or trading updates are expected from UK financial services group Hargreaves Lansdown and water company Severn Trent.
Chinese e-commerce site Temu is proposing to rival Shein in a US antitrust lawsuit
Online shopping site Temu has accused rival Shein of “unlawful lockout tactics” in the US, fueling a battle between two of China’s biggest e-commerce giants for dominance of the American market.
Temu accused Shein of violating US antitrust laws in a lawsuit filed Friday.
“Shein’s escalating attacks leave us no choice but to take legal action to defend our rights,” the company said, adding that Shein has used fines and exclusivity deals to discourage merchants from doing business with Temu .
Both companies have grown rapidly in the US market, capturing consumer attention with cost-effective designs.
Shein did not respond to a request for comment.
Woodside’s earnings are falling due to falling oil prices and reduced production
Woodside’s Karratha Gas Plant in Western Australia. The company reported quarterly revenue of $3.08 billion, down 10% year-on-year © Woodside Energy via Portal
Woodside Energy, Australia’s largest oil and gas producer, on Wednesday reported worse-than-expected second-quarter sales, citing weak prices and lower production due to maintenance work at facilities in Western Australia.
The company reported quarterly revenue of $3.08 billion, down 10 percent year-on-year and missing UBS’s forecast of $3.33 billion. Oil sales fell 4 percent from the previous three-month period to 48.4 million barrels. Production fell 5 percent to 44.5 million barrels.
Energy prices have cooled as panic over Russia’s invasion of Ukraine and subsequent sanctions eased. China’s slowing growth is forecast to further dampen global fuel demand.
Rio Tinto offers a bullish outlook despite the drag from the China slowdown
Mining giant Rio Tinto said China’s economic recovery slowed in the second quarter as weakness in its export and real estate sectors slowed growth.
The Anglo-Australian company, a major exporter of minerals to China, said it expects iron ore shipments of up to 335 million tonnes, which is at the higher end of the range and offsets the worse outlook for copper and bauxite.
Rio Tinto’s second-quarter production report showed stabilization at its iron ore operations in the Pilbara region of Western Australia and indicated a tripling of copper production from its Oyu Tolgoi mine in Mongolia by the end of the decade.
What to see in Asia today
Shoppers walk past a clothing store in a shopping center in Auckland. New Zealand to release second quarter inflation data on Wednesday © Brendon O’Hagan/Bloomberg
Events: It’s a busy day for the regional shipping industry: Intermodal Asia, a trade fair for transport and container professionals, opens in Shanghai, while the International Marine Contractors Association hosts its annual Asia-Pacific meeting in Singapore. Bank of Thailand Governor Sethaput Suthiwartnarueput holds a press conference on the economy and monetary policy.
Data: New Zealand publishes inflation data for the second quarter. Indonesia releases second quarter investment figures, Malaysia releases June trade numbers and Macau releases June tourist arrivals.
Companies: Adani Green Energy, Adani Power and Adani Transmission are holding their first annual meetings since US-based short seller Hindenburg Research issued a critical report on Adani Group companies. Indian companies Tata Communications and Tata Coffee report their first-quarter results, while Indonesian toll road operator Jasa Marga reports its second-quarter results.
Markets: Indonesian and Malaysian stock exchanges are closed for Muharram, the Islamic New Year.
The Kremlin appoints a Chechen official to head Danone Russia
Russia has hired a senior official from Chechnya to manage Danone assets in the country after President Vladimir Putin nationalized them earlier this week.
Yakub Zakriev, the province’s agriculture minister and reportedly a nephew of her strongman Ramzan Kadyrov, was appointed managing director of Danone Russia on Tuesday, according to company documents.
Danone was just days away from completing the sale of the asset to another potential buyer before Putin ordered the seizure, as well as the confiscation of Danish company Carlsberg’s breweries.
Analysts and insiders say the expropriations announced on Sunday are a prelude to the transfer of foreign assets to regime loyalists who, because of the sanctions, cannot buy them directly.
Panama convicts former president of money laundering
Ricardo Martinelli, former president of Panama and supermarket tycoon, has been convicted of laundering government contracts through a complex plan to buy a media company © Eric Batista/AP
Panama’s former President Ricardo Martinelli was sentenced to 10 years in prison on Tuesday for money laundering, threatening the popular politician’s candidacy for re-election next year.
The supermarket tycoon was convicted of laundering money from government contracts through a complex plan to buy a media company, and was also ordered to pay a $19.2 million fine.
Martinelli said he believes the charges were politically motivated, and his lawyers said Tuesday he would appeal the decision.
Read more about Panama here.
Johnson & Johnson is suing the US government over drug price controls
Johnson & Johnson has sued the US government, challenging a law that gives federal agencies the power to negotiate prices for expensive drugs.
The pharmaceutical company announced Tuesday that it had filed lawsuits against the US Department of Health and Human Services and the Centers for Medicare and Medicaid Services.
Johnson & Johnson said it has objected to what it says “innovation-damaging” provision of the Inflation Reduction Act that allows Medicare — the taxpayer-funded health care system for retirees — to negotiate drug prices.
The company joins Merck, Bristol Myers Squibb and the Pharmaceutical Research and Manufacturers of America lobby group in challenging the new law.
Gucci CEO Marco Bizzarri is leaving the company as part of a management reshuffle
Celebrities like Serena Williams and Awkwafina are fans of Gucci’s Marmont bag, but the label has struggled to grow with industry leader LVMH © Gucci
French luxury group Kering has announced a management reshuffle that will deploy a transitional leader to fix the poor performance of its biggest brand, Gucci.
Francesca Bellettini, who has led an expansion at Yves Saint Laurent since 2013, will become Deputy General Manager to steer the “next phases of growth”.
Gucci boss Marco Bizzarri will step down in September and will be temporarily replaced by chief operating officer Jean-François Palus.
The moves by Kering chairman and CEO François-Henri Pinault on Tuesday aim to give a new direction to the group, which has been struggling to keep up with industry leader LVMH.