FTSE and book gain ground


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A series of manufacturing blitzes for August will today offer a first indication of where global growth is going against the delta variant, with analysts expecting some slippage, particularly in Asia.

In the UK, the pingemia already caused a slowdown in services in July, due to staff shortages and various business disruptions.

Michael Hewson, Chief Market Analyst at CMC Markets UK, said: “Chances are we have seen a PMI spike for France and Germany despite the good readings last month in both countries. [in the UK] have seen a decent rebound in recent months, some sectors are still struggling due to much more cautious consumer behavior than it would have been before the pandemic, suggesting we may see another reading lower of 59.1.

Meanwhile, the FTSE 100 looks set to recover some of the ground lost last week and open 0.4 pc higher, at 7,120.

5 things to start your day

1) JP Morgan boss schedules his first visit to London since the Covid hit: JP Morgan boss Jamie Dimon is preparing to travel to London for the first time since the pandemic struck after snubbing the capital on his last trip to Europe due to UK quarantine rules.

2) Channel 4 fights against privatization with the launch of real-time auctions for advertising space: Channel 4 will quickly start auctioning online advertising on its streaming service as it battles the threat of privatization.

The Glasses box The broadcaster has created a new platform on which businesses can automatically bid for advertising space around the 14,500 hours of programming from its All 4 catch-up service.

3) The cracks appearing in Jacinda Ardern’s “Fortress New Zealand”: Shortage of toilet paper. Masks required. A nation captivated by the movements of a single Covid-19 spreader.

Watching New Zealand’s current news cycle is like stepping into the past. The country was plunged into an instant lockdown last Tuesday after a single case of the virus – the first in six months – was detected in Auckland, the most populous city in the country.

4) PayPal brings its cryptocurrency trading service to the UK: PayPal is set to allow UK users to buy and sell Bitcoin and other cryptocurrencies, making it one of the biggest companies to adopt controversial virtual assets in the UK.

The company’s service will allow customers to choose from four types of cryptocurrency: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, which they can buy, hold and sell later this week.

5) British biotechnology launches a fierce defense against the takeover of Vectura in the tobacco sector: A British biotech helping Vectura develop an inhalable Covid-19 drug strongly defends Philip Morris’ £ 1.1bn takeover of the company, saying blocking the deal would leave the tobacco company ” no other choice than to continue its bad practices ”

What happened during the night

Asian stock markets were trying to pick up the pieces on Monday after last week’s crisis, as coronavirus concerns showed little sign of slowing, while safe-haven flows benefited the dollar ahead of a key update of US monetary policy.

Concerns about the Chinese economy have only intensified in recent weeks, as Beijing’s regulatory crackdown on the tech sector has dealt a double blow to markets.

More than $ 560 billion was wiped off the Hong Kong and mainland stock exchanges last week as funds worried about areas regulators could target next.

The impact was all too evident in the MSCI’s largest Asia-Pacific stock index outside of Japan, which fell 4.8% last week to a nine-month low. By early Monday it had climbed 0.2 pc to the upside, but the gains seemed fragile.

The rot spread to Japan where the Nikkei lost 3.4% last week, its lowest level since January. The bargain hunt helped the index rebound 1.2 pc early on Monday.

Coming today

  • Business: BATM Advanced Communications (Temp worker)
  • Economy: CBI Monthly Industrial Trends Survey (UK); manufacturer, PMI services (UK, EU, US, Asia); Sales of existing homes (WE)
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