Eurozone: Business Sentiment at 21- Year High in July - Kathrein ...
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• Euro zone has highest growth rate in 21 years in July • Purchasing managers' index rose from 59.5 points to 60.6 points in July compared with the previous month Berlin (APA) - The eurozone economy grew at its fastest pace in 21 years in July. The purchasing managers' index - which combines industry and service providers - rose to 60.6 points in July from 59.5 points the previous month, the IHS Markit institute said Friday on its monthly survey of thousands of companies. Economists had expected 60.0 points. The barometer signals growth from 50 points. "Given the easing of coronary restrictions, the eurozone is enjoying a summer surge in growth," Markit chief economist Chris Williamson said. Business in the service sector was at its best since fifteen years ago. In the industrial sector, however, growth weakened somewhat. In this sector, according to Markit, persistent delivery delays continue to cause major problems, as not only production stalls but also companies' costs continue to skyrocket. This sharp rise in costs has led to a near-record increase in average selling prices for goods and services, which is likely to translate into higher consumer prices in the coming months, the economist explained. The survey results also showed that the delta variant of the coronavirus posed a major risk to the outlook. Further waves of the virus around the world could lead to new delays in global supply chains, resulting in ever-higher prices. Volvo Cars generates more business than Credit card giant American Express before the Corona crisis profits jump in 2nd quarter • Volvo made more sales and profit in the first • A year ago, the US Group was severely half of 2021 than before the crisis impacted by the Corona crisis • Polestar luxury electric subsidiary also • Part of provisions reversed contributes to net profit of 9.6 billion kroner • Day-to-day business also significantly better • No news on the IPO Gothenburg (APA) - Swedish carmaker Volvo, New York (APA) - The continuing economic part of China's Geely Group, made more sales recovery from the Corona crisis has helped the
and profit in the first half of 2021 than before U.S. credit card group American Express to the crisis thanks to the market recovery. Sales significantly higher profits. In the second climbed by a good quarter to 141.1 billion quarter, the company earned 2.3 billion dollars Swedish kronor (13.8 billion euros) compared to ( just under 2 billion euros) on the bottom line. the same period last year, which was very weak due to the pandemic, thanks to increased sales, A year ago, high charges due to the pandemic the company said Friday. had caused the result to collapse to 257 million dollars. At that time, American Express had set That's also more than the Swedes had aside a lot of money for impending credit generated in the first six months of 2019 before defaults. Now it has been possible to reverse a the Corona crisis. Earnings before interest and large part of the risk provisioning, from which taxes (EBIT) were 13.2 billion crowns, an the balance sheet has benefited greatly. operating margin of 9.4 percent. The bottom line was a net profit of 9.6 billion kroner, which But day-to-day business was also much better also included a positive valuation e ect from the again: Group-wide revenues climbed 33 percent luxury electric subsidiary Polestar. to $10.2 billion. A year ago, Volvo, like most automakers, was in In June, according to CEO Stephen Squeri, the red. spending by credit card customers already exceeded the level seen before the Corona There was initially no news on the planned IPO. crisis. In previous quarters, American Express A final decision would depend on market had had to cut back sharply, for example, conditions, and there was no certainty of a because lucrative hotel and flight bookings were listing, it was said. Geely's Chinese had acquired lost due to travel being crippled by the Volvo Cars from U.S. carmaker Ford in 2010 for pandemic. Now, the annual report clearly $1.8 billion (1.5 billion euros). Carmaker Volvo exceeded analysts' expectations. Cars has been separate from Swedish commercial vehicle maker Volvo AB for decades, though Geely also has a stake in the company. Geely owner Li Shufu is also the largest single shareholder in Germany's Daimler Group, with a stake of around 9.7 percent. Russian Central Bank raises interest rates to 6.5 %
• Russian central bank raises interest rates by the most since 2014 Central bank takes action against high inflation • Further interest rate hikes not ruled out: 6 to 7 percent possible in 2022 Moscow (APA) - Russia's central bank is raising its key interest rate by the most since 2014 in the face of stubbornly high inflation. The rate will rise from 5.5 to 6.5 percent, the central bank announced in Moscow. The monetary watchdog expects inflation to range between 5.7 and 6.2 percent this year, then from 4.0 to 4.5 percent in 2022. "We must not resign ourselves to increased inflation expectations, lest they become entrenched at this high level," central bank chief Elvira Nabiullina said in justification. Actually, the central bank is aiming for inflation of four percent. It therefore reserved the right to raise interest rates further. "Currently, we see the key interest rate in the range of six to seven percent next year," Nabiullina said. Higher interest rates make loans for investment and consumption more expensive, which can dampen inflation. It also makes saving more attractive, which can also reduce inflation. It also supports the ruble, which can make imports cheaper. However, higher interest rates can also dampen the upswing. "Our policy will not harm economic growth rates," the central bank chief assured. According to her, the Russian economy has already returned to its pre-Corona level in the past second quarter. For the year as a whole, she expects GDP to grow by 4.0 to 4.5 percent. Monetary policy continues to push the economy, it was said. High inflation is depressing the standard of living of many Russians. It is one of the main concerns for households ahead of parliamentary elections in September, in which the ruling United Russia party is expected to retain its dominance. "A good grain harvest could ensure a sharper drop in food prices," Nabiullina said.
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