New car sales in EU rise as Bank of Japan cuts forecast for economic growth – business live | Business
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Car sales in the EU increased by 10% in June, and are up 25% in the first half of the year compared to the same period in 2020, according to the Association of European Automobile Manufacturers (ACEA). Sales reached nearly 5.4 million vehicles – still 1.5 million units below the pre-Covid volume recorded in the first six months of 2019.
Germany posted the strongest growth with an increase of 24.5%, followed by Spain (+ 17%) and Italy (+ 12.6%). In France, on the other hand, sales of passenger cars fell 14.7% in June.
The region’s 27 markets have shown fairly similar results so far this year, with strong year-on-year gains in most countries between January and June, including the top four: Italy (+ 51%), Spain (+ 34%), France (+ 28.9%) and Germany (+ 14.9%).
The Bank of Japan kept its monetary policy unchanged but lowered its growth forecast to 3.8% for the current year until March 2022, compared to 4% estimated in April. He remained convinced that the world’s third-largest economy was heading for a moderate recovery and raised his growth forecast for next year to 2.7% from 2.4%.
The BOJ also revised its consumer inflation forecast upwards to 0.6% from 0.1% this year, due to rising energy costs and commodity prices.
Today, Nickel prices hit nearly five-month high, followed by gains in stainless steel. Nickel is used in electric vehicle batteries and to make stainless steel. Three-month nickel on the London Metal Exchange rose 2.3% to $ 19,205.
The central bank also announced a climate program, which will offer long-term zero-interest loans to banks that provide green and sustainability-linked loans and invest in green bonds and sustainability-linked bonds. He also said he would start buying green bonds using his foreign exchange reserves.
The BOJ said in its quarterly report:
The Japanese economy is expected to improve … as the impact of the pandemic gradually eases thanks to advances in vaccinations.
But the outlook is highly uncertain, as domestic and foreign economies could be influenced by developments regarding the pandemic.
A surge in Covid infections has forced the Japanese government to impose a new state of emergency on Tokyo, a week before the Olympics, dashing any hope of a strong rebound in economic growth this quarter.
Burberry, the British fashion brand known for its plaid trench coats and scarves, posted stronger than expected sales as young shoppers grabbed its jackets, leather handbags and shoes. Comparable sales jumped 90% to £ 479million in the 13 weeks ending June from a year earlier, when stores were closed, and are up 1% from 2019 levels.
As part of this, full-price sales growth reached 26% as the company abandoned markdowns. Burberry recently opened its first flagship with its new global design concept at Sloane Street in London, with three more flagships to follow over the next year.
Marc Gobbetti, the general manager who is leaving by the end of the year to return to Italy, said:
We saw strong growth in our strategic categories, particularly leather goods and outerwear, and we discontinued markdowns in digital and consumer stores. We have continued to roll out our new store concept which will transform the way customers perceive our brand and our products in a unique British luxury setting.
Asian stock markets were mixed after a difficult day in the markets in Europe and on Wall Street yesterday. Japan’s Nikkei lost nearly 1% while Hong Kong’s Hang Seng rose nearly 0.3% and the Australian market stagnated. Europe is expected to open slightly higher this morning.
- 9am BST: Italy trade for May
- 9am BST: Spain trade for May
- 10 a.m. BST: Eurozone inflation for June (expected core inflation: 0.9%)
- 1:30 p.m. BST: US retail sales for June (forecast: 0.4%)
- 3 p.m. BST: Michigan US consumer sentiment for July (forecast: 86.5)