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You can find the current article at its original source at https://www.theguardian.com/business/live/2019/apr/26/us-gdp-growth-donald-trump-slowdown-daimler-rbs-business-live
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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) | |
| Newsflash: stricken retail chain Debenhams has revealed the first 22 stores which will close following its plunge into administration. | |
| The closures will hit high streets across the country, from Kirkcaldy in Scotland to Folkestone on the English south coast, via Birmingham, London’s Wandsworth, Southport and Slough. | |
| Here’s the list: | |
| Altrincham | |
| Ashford | |
| Birmingham Fort | |
| Canterbury | |
| Chatham | |
| Eastbourne | |
| Folkestone | |
| Great Yarmouth | |
| Guildford | |
| Kirkcaldy | |
| Orpington | |
| Slough | |
| Southport | |
| Southsea | |
| Staines | |
| Stockton | |
| Walton | |
| Wandsworth | |
| Welwyn Garden City | |
| Wimbledon | |
| Witney | |
| Wolverhampton | |
| And here’s Zoe Woods’ news story on what it means for shoppers, and more than a thousand staff: | |
| Debenhams to close 22 stores: full list | |
| Some snap reaction to the rise in UK mortgage approvals: | |
| UK Finance reports 42k mortgage approvals for house purchase in March, up 9%y/y, though UKF notes Mar-18 was a weak month. Comes off the back of HMRC reporting UK transactions up 0.4%y/y in March & the various house price indices between 1%y/y & -1%y/y. Still just bumping along. pic.twitter.com/6mPav19Nuf | |
| UK new mortgage approvals / RICS new buyers via @PantheonMacro One word: Yikes. pic.twitter.com/Iyil8Pv26Q | |
| Newsflash: The number of new mortgages approved in the UK has hit a nine-month high. | Newsflash: The number of new mortgages approved in the UK has hit a nine-month high. |
| UK Finance, which represents British lenders, reports that 39,980 loans for house purchases were approved in March. | UK Finance, which represents British lenders, reports that 39,980 loans for house purchases were approved in March. |
| That’s up from 39,207 in February, and 37,773 a year earlier. | That’s up from 39,207 in February, and 37,773 a year earlier. |
| #UnitedKingdom UK Finance Mortgage Approvals at 39.980K https://t.co/8XGCSGaZNz pic.twitter.com/8ooBETDHPm | #UnitedKingdom UK Finance Mortgage Approvals at 39.980K https://t.co/8XGCSGaZNz pic.twitter.com/8ooBETDHPm |
| They also report that consumer credit growth picked up in March, to an annual rate of 4.1% up from 3.5% in February. That’s the fastest gain since June 2018. | They also report that consumer credit growth picked up in March, to an annual rate of 4.1% up from 3.5% in February. That’s the fastest gain since June 2018. |
| That doesn’t completely square with Royal Bank of Scotland’s warning today that Brexit uncertainty is hitting demand..... | That doesn’t completely square with Royal Bank of Scotland’s warning today that Brexit uncertainty is hitting demand..... |
| Disappointing factory output data from Japan overnight is fuelling concerns over the global economy. | Disappointing factory output data from Japan overnight is fuelling concerns over the global economy. |
| Industrial production fell by 4.6% year-on-year in March, the steepest decline since May 2015 (and the second monthly fall in a row). | Industrial production fell by 4.6% year-on-year in March, the steepest decline since May 2015 (and the second monthly fall in a row). |
| Carmakers, machinery producers and metal fabricators all contributed to the fall. | Carmakers, machinery producers and metal fabricators all contributed to the fall. |
| Economist had expected a smaller annual decline, of around 3.8%. | Economist had expected a smaller annual decline, of around 3.8%. |
| Output fell by 0.9% month-on-month, also worse than expected. | Output fell by 0.9% month-on-month, also worse than expected. |
| Given the scale of Japan’s manufacturing sector, it’s not a great sign.... | Given the scale of Japan’s manufacturing sector, it’s not a great sign.... |
| Japan Industrial production -4.6 YoY (expected -3.8%) fastest drop since May 2015. MoM -0.9% (expected 0.00%) Another bad news for Asia Export and domestic economies pic.twitter.com/a2avoZcgHE | Japan Industrial production -4.6 YoY (expected -3.8%) fastest drop since May 2015. MoM -0.9% (expected 0.00%) Another bad news for Asia Export and domestic economies pic.twitter.com/a2avoZcgHE |
| Japan's stocks look pressured by a weaker USD and some poor data where industrial production dropped at the fastest pace since 2015. | Japan's stocks look pressured by a weaker USD and some poor data where industrial production dropped at the fastest pace since 2015. |
| Daimler isn’t the only carmaker struggling right now -- Volvo and PSA have also posted falling profits in the last quarter. | Daimler isn’t the only carmaker struggling right now -- Volvo and PSA have also posted falling profits in the last quarter. |
| Here’s the FT’s take: | Here’s the FT’s take: |
| Daimler has reported a slump in first quarter earnings, as the German company joins other global carmakers plagued by falling sales in China and flat markets in the Europe and the US. | Daimler has reported a slump in first quarter earnings, as the German company joins other global carmakers plagued by falling sales in China and flat markets in the Europe and the US. |
| The Stuttgart-based parent of Mercedes-Benz said earnings before interest and tax fell 16 per cent to €2.8bn from €3.3bn a year earlier. The result was ahead of an analyst forecast, provided by Refinitiv, of €2.6bn. | The Stuttgart-based parent of Mercedes-Benz said earnings before interest and tax fell 16 per cent to €2.8bn from €3.3bn a year earlier. The result was ahead of an analyst forecast, provided by Refinitiv, of €2.6bn. |
| Revenue in the quarter eased slightly to €39.7bn from €39.8bn the same period a year earlier, and was higher that forecasts of €39.14bn. Net income fell 9 per cent to €2.1bn but also beat analysts’ estimates of €1.9bn. | Revenue in the quarter eased slightly to €39.7bn from €39.8bn the same period a year earlier, and was higher that forecasts of €39.14bn. Net income fell 9 per cent to €2.1bn but also beat analysts’ estimates of €1.9bn. |
| RBS and Just Eat have helped to pull the FTSE 100 down this morning. | 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 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% | 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. | 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. | 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 East blames several factors, including “unseasonably warm weather in February; and Easter falling entirely in Q2 this year.” |
| They’ve got a point about Easter. But does hot weather really deter people from ordering a kebab?! | They’ve got a point about Easter. But does hot weather really deter people from ordering a kebab?! |
| Just Eat may also be suffering some indigestion after gobbling up rival HungryHouse at the end of 2017. | 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. | 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. | 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. | 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: | 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. | 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 | 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. | 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 |