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| Markets await US GDP report, as Daimler hit by auto slowdown - business live | Markets await US GDP report, as Daimler hit by auto slowdown - business live |
| (32 minutes later) | |
| RBS and Just Eat have helped to pull the FTSE 100 down this morning. | |
| The blue-chip index has shed 18 points, or 0.25%, in a fairly subdued session so far. | |
| The French and German markets are both flat, while Italy’s FTSE MIB is down 0.3% | |
| Online takeaway firm Just Eat is also propping up the FTSE fallers this morning, after reporting slower growth in the UK. | |
| UK takings only rose by 7% in the last quarter, down from 17% during 2018. | |
| Just East blames several factors, including “unseasonably warm weather in February; and Easter falling entirely in Q2 this year.” | |
| Just Eat may also be suffering some indigestion after gobbling up rival HungryHouse at the end of 2017. | |
| Outside the UK, orders surged by 40% to 29.5 million, helping Just Eat to pledge that trading is still on track. Shares are down 3% this morning, though. | |
| Shares in Royal Bank of Scotland have fallen over 5% at the start of trading, after warning that Brexit uncertainty is hurting demand. | |
| Despite beating forecasts this morning with profits of £707m in the last quarter (down from £808m) RBS is the worst-performing FTSE 100 stock, down 11.3p at 238.5p. | |
| Investors may be concerned that the political crisis in Westminster is damaging confidence, after RBS told them that: | |
| While we retain the outlook guidance we provided in the 2018 Annual Results document, we recognise that the ongoing impact of Brexit uncertainty on the economy, and associated delay in business borrowing decisions, is likely to make income growth more challenging in the near term. | |
| RBS first-quarter income falls less than expected Bank says Brexit uncertainty will weigh on revenue in coming months | |
| German carmaker Daimler has joined the ranks of auto firms suffering from weak demand in China, and a lacklustre global economy. | German carmaker Daimler has joined the ranks of auto firms suffering from weak demand in China, and a lacklustre global economy. |
| Daimler has reported that pre-tax earnings shrank 16% last year, from €3.3bn to €2.8bn. It’s been hit by a double-whammy of rising raw materials costs and weaker demand. | Daimler has reported that pre-tax earnings shrank 16% last year, from €3.3bn to €2.8bn. It’s been hit by a double-whammy of rising raw materials costs and weaker demand. |
| Total sales fell by 4% in the last quarter, with its Mercedes-Benz division suffering a 7% decline. Crucially, sales fell by 3% in China, a crucial markets for the company. | Total sales fell by 4% in the last quarter, with its Mercedes-Benz division suffering a 7% decline. Crucially, sales fell by 3% in China, a crucial markets for the company. |
| Daimler Chief Executive Officer Dieter Zetsche warned that conditions are tough: | Daimler Chief Executive Officer Dieter Zetsche warned that conditions are tough: |
| “Achieving the financial targets for 2019 has not become easier since the first quarter. | “Achieving the financial targets for 2019 has not become easier since the first quarter. |
| “We now have to work hard to achieve our targets for 2019. | “We now have to work hard to achieve our targets for 2019. |
| Good morning and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| Donald Trump likes to boast about creating one of the greatest economies in America’s history. Today we discover how the US is actually performing on his watch. | Donald Trump likes to boast about creating one of the greatest economies in America’s history. Today we discover how the US is actually performing on his watch. |
| New GDP figures for the first quarter of 2019 are expected to show moderate growth, at an annual rate of around 2.3% (or almost 0.6% on a pure quarter/quarter basis). | New GDP figures for the first quarter of 2019 are expected to show moderate growth, at an annual rate of around 2.3% (or almost 0.6% on a pure quarter/quarter basis). |
| That would be fractionally higher than in Q4 2018, where growth was revised down last month, and rather short of Trump’s goal of 3% growth. | That would be fractionally higher than in Q4 2018, where growth was revised down last month, and rather short of Trump’s goal of 3% growth. |
| Growth could have been held back by the president’s belligerent trade policies, and by the Federal government shutdown at the end of last year. On the other hand, the sugar rush from Trump’s tax cuts may not have totally faded, supporting consumer spending. | Growth could have been held back by the president’s belligerent trade policies, and by the Federal government shutdown at the end of last year. On the other hand, the sugar rush from Trump’s tax cuts may not have totally faded, supporting consumer spending. |
| The figures come out at 1.30pm BST, so markets may be quiet in the meantime. | The figures come out at 1.30pm BST, so markets may be quiet in the meantime. |
| America’s tech companies are certainly doing well. Last night Amazon reported that profits have doubled in the last quarter to $3.6bn, hours after Microsoft became the third US company valued at over $1tn following its own strong results. | America’s tech companies are certainly doing well. Last night Amazon reported that profits have doubled in the last quarter to $3.6bn, hours after Microsoft became the third US company valued at over $1tn following its own strong results. |
| Microsoft becomes third listed US firm to be valued at $1tn | Microsoft becomes third listed US firm to be valued at $1tn |
| Amazon makes $1bn a month as growth slows | Amazon makes $1bn a month as growth slows |
| But as today’s GDP report will show, there’s more to America than Silicon Valley.... | But as today’s GDP report will show, there’s more to America than Silicon Valley.... |
| Also coming up: | Also coming up: |
| Royal Bank of Scotland is reporting results, a day after announcing the departure of CEO Ross McEwan. | Royal Bank of Scotland is reporting results, a day after announcing the departure of CEO Ross McEwan. |
| It has posted a net profit of £707m - ahead of forecasts, but down on last year’s £808m. The bank also warns, though, that Brexit is clouding business. | |
| RBS earnings: £707 million for Q1 net profit, vs £792 million last year https://t.co/rwX57UIKFW | RBS earnings: £707 million for Q1 net profit, vs £792 million last year https://t.co/rwX57UIKFW |
| UK Finance will report how many new mortgages were taken out in March. But the City may be wary after last month, when the industry body initially said demand had hit a five-year low, before discovering a blunder in the numbers. | UK Finance will report how many new mortgages were taken out in March. But the City may be wary after last month, when the industry body initially said demand had hit a five-year low, before discovering a blunder in the numbers. |
| Presumably today’s figures have been checked very carefully.... | Presumably today’s figures have been checked very carefully.... |
| The agenda | The agenda |
| 9.30am BST: UK Finance mortgage approvals figures for March | 9.30am BST: UK Finance mortgage approvals figures for March |
| 1.30pm BST: US GDP for Q1 2019 | 1.30pm BST: US GDP for Q1 2019 |