An Hour Ago
UK economy records 0.2% growth in April
U.K. gross domestic product grew by 0.2% in April, in line with economist expectations.
The Office for National Statistics said growth was mainly driven by the services sector, which expanded 0.3%, as production output fell by 0.3% and the construction sector dropped 0.6%.
It follows 0.3% GDP contraction in March and 0.1% growth for the first quarter as a whole, with the International Monetary Fund and Bank of England both forecasting the economy will dodge a recession.
British Finance Minister Jeremy Hunt said: “We are growing the economy, with the IMF saying that from 2025 we will grow faster than Germany, France and Italy.
“But high growth needs low inflation, so we must stick relentlessly to our plan to halve the rate this year to protect family budgets.”
Ruth Gregory, deputy chief U.K. economist at Capital Economics, said the GDP rise was not as good as it seemed, noting the “full drag” from higher interest rates was yet to be felt and forecasting a recession in the second half.
— Jenni Reid
6 Hours Ago
China’s real estate slump is predicted to last for years
Economists on Wall Street are warning weakness in China’s property market could be a drag on the economy for years to come.
“We see persistent weaknesses in the property sector, mainly related to lower-tier cities and private developer financing, and believe there appears no quick fix for them,” Goldman Sachs economists led by China economist Lisheng Wang said in a weekend note.
Goldman’s economists said the property market is expected to see an “L-shaped recovery” — defined as steep declines followed by a slow recovery rate.
Morgan Stanley in an outlook report added should monetary easing measures fail to support the ailing sector, it will also lead to concerns of a spillover effect in the rest of the Asia-Pacific region.
A “downside risk would be if China’s property sector does not stabilize even with the easing we expect,” they said. “In that scenario, confidence and financial conditions will tighten in China, which will have direct implications for China’s growth but also will negatively spill over to the region.”
– Jihye Lee
3 Hours Ago
CNBC Pro: This U.S. stock has risen 10% every year for the past decade — and analysts see more upside ahead
One U.S.-listed stock has risen by more than 10% every year for the past 10 years.
It is the only major stock among 85,000 to have posted such consistent returns, CNBC Pro has found.
Investment bank analysts also expect the stock to rise by 19% over the next 12 months.
CNBC Pro subscribers can read more here.
— Ganesh Rao
3 Hours Ago
CNBC Pro: Analysts reveal a $12 billion opportunity to tap the AI buzz, naming stocks to play it
There’s one corner of the semiconductor sector that analysts are particularly bullish on to play the artificial intelligence theme.
Bank of America expects the segment to reach $12 billion by 2027.
Here’s how to play it, according to the analysts.
— Weizhen Tan
3 Hours Ago
European markets: Here are the opening calls
European markets are expected to open lower Wednesday as investors look ahead to the U.S. Federal Reserve’s latest decision.
The U.K.’s FTSE 100 index is expected to open 17 points lower at 7,579, Germany’s DAX 21 points lower at 16,203, France’s CAC 13 points lower at 7,286 and Italy’s FTSE MIB 27 points lower at 27,530, according to data from IG.
Euro zone industrial production figures for April are due.
— Holly Ellyatt
