Excellent early morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and organization.
Revenues at NatWest Group rebounded in the second quarter, allowing the UK taxpayer-owned bank to announce a fresh round of dividends that will result in a payment of a minimum of ₤ 190m to the Treasury, reports our banking correspondent Kalyeena Makortoff.
The group– previously referred to as Royal Bank of Scotland– stated it prepared to pay investors dividends worth ₤ 347m at 3p per share, with over half scheduled for the federal government, which still holds a 54.7% stake in the lender following its ₤ 45.5 bn state bailout in 2008. The dividend will be welcomed by the chancellor, who has actually been looking for methods to offset a rise in loaning costs connected to the pandemic.
The federal government might be in line for an even bigger payout, nevertheless, as NatWest likewise exposed plans for a ₤ 750m general share buyback this year, and plans to disperse a minimum of ₤ 1bn to shareholders over the next three years.
It came as the bank returned to benefit in the second quarter, having actually swung to a loss of ₤ 1.3 bn in 2015 after it put aside money to cover potential customer defaults throughout the Covid crisis. Pre-tax earnings for the 3 months to June 30 this year surged to ₤ 1.6 bn, easily beating agreement price quotes for ₤ 861m.
Research from the Local Data Company and the British Retail Consortium reveals that more than one in 7 stores are now vacant on UK high streets, retail parks and shopping center, the highest proportion considering that at least 2015, as the Covid-19 pandemic ramped up pressure on already deteriorated sellers, composes our retail reporter Sarah Butler.
Style shops have been struck particularly hard, with a significant shift to online shopping during the pandemic, and a lack of parties, events and nights out to dress up for.
Asian stock markets are sliding again after enjoying some respite the other day, with Japans Nikkei down 1.8%, Hong Kongs Hang Seng losing 1.9% (tech stocks such as Alibaba have actually shed about 10%) and the Australian index falling 0.4%.
Chinas regulative crackdown isnt disappearing and the spread of the delta variant is likewise weighing on markets.
Stock futures are pointing to a lower open in Europe and on Wall Street later on, after the other days gains that took the Eurostoxx 600, FTSE 250, Dow Jones and S&P 500 to fresh record highs. Markets were lifted by strong company results, such as Lloyds Banking Group, Royal Dutch Shell and Anglo American in the UK, and shrugged off disappointing US GDP data and weekly jobless claims.
The question, as we come to the end of the month, is will the healing seen in the past 2 days suffice to see European markets post their 6th succeeding month-to-month gains, asks Michael Hewson, chief market expert at CMC Markets UK.
In the United States, Robinhoods stock market debut failed yesterday. The trading platform, utilized by amateur financiers to play the stock market, priced at the lower end of its cost variety, at $38 apiece and raised $2.1 bn, valuing the business at $32bn. The shares moved 8.4% to $34.82 at the end of their very first trading day in New York, after dropping as much as 12%.
Were getting flash quotes for GDP growth in between April and June from major European countries and the eurozone as a whole this early morning, in addition to eurozone inflation for July. France is anticipated to come out of economic crisis and Germany is set to recover from its 1.8% decrease in the first quarter with a 2% financial growth.
The United States Federal Reserves favored step of inflation, core PCE (the personal usage expenditure cost index), is forecast to rise further, to 3.7% in June from Mays three-decade high of 3.4%.
Fed chair Jerome Powell again asserted today that the inflation surge will be momentary, after the reserve banks choice to leave interest rates and the bond purchase programme the same. However he acknowledged that price increases have actually been stronger than anticipated and might last longer than prepared for.
8am BST: Italy joblessness rate for June (forecast: 10.4%).
8am BST: Spain GDP growth for Q2 flash price quote (2.2%).
9am BST: Germany GDP for Q2 flash (forecast: 2%).
9am BST: Italy GDP for Q2 flash (projection: 1.3%).
10am BST: Eurozone inflation for July.
10am BST: Eurozone GDP for Q2 flash (forecast: 1.5%).
1.30 pm BST: United States PCE cost index for June (projection: 3.7%).