UK GDP grows 4.8% in Q2; Vectura backs PMI takeover bid; Delta variant hits oil demand – as it happened

Graeme Wearden

from on 2021-08-12 17:10 (#5N7T6)

UK inhaler maker plans to back tobacco giant Philip Morris International's takeover bid, despite health charities urging them to oppose it

Latest: Vectura board backs PMI's bid despite health experts' warnings

Earlier:

US jobless claims dropped last week
IEA: Rising demand for oil abruptly reversed course in July"
UK economy returned to growth in Q2
Economy grew 1% in June...but still 2.2% smaller than Feb 2020

6.10pm BST

Time to wrap up...

The board of the UK asthma inhaler maker Vectura has unanimously recommended that shareholders accept a controversial 1.1bn takeover bid from the tobacco company Philip Morris International, despite warnings from health charities and public health experts.

5.56pm BST

The Vectura board said it considered the terms of the final PMI offer fair and reasonable". They added that wider stakeholders could benefit from PMI's significant financial resources and its intentions to increase research and development investment and to operate Vectura as an autonomous business unit that will form the backbone of its inhaled therapeutics business".

Vectura board unanimously accepts Philip Morris's controversial takeover bid https://t.co/HQ1vQhldkm

5.54pm BST

Sarah Woolnough, the chief executive of Asthma UK and the British Lung Foundation, says the proposed takeover of Vectura by Philip Morris is unacceptable in every possible way'.

Investors must now decide whether or not to accept the Marlboro maker's 165p-per-share bid, she tweets:

The proposed PMI takeover of @VecturaGroup is unacceptable in every possible way. Along with representatives from more than 20 organisations, I wrote to the #Vectura Board today to urge them to reject the bid. They've decided to recommend, so now it's over to the shareholders.

You can read the joint letter to the #Vectura Board here. The arguments are exactly the same for the shareholders, many of whom have signed ethical pledges. pic.twitter.com/RQPm3fFPhZ

5.48pm BST

Well, quite...

Bosses at the inhaler business, Vectura, which aims to help patients with lung diseases, have unanimously backed a 1.1bn bid by the company behind Marlboro cigarettes, which causes lung disease, saying it is fair and reasonable".

5.33pm BST

The FT's Helen Thomas says it's a dismal' situation -- with cash trumping concerns about the damage that PMI's ownership of Vectura would have.

Dismal. Carlyle offer still on table. Vectura board decided 6% more cash was more important than potential damage to inhaler group from being owned by tobacco (which they've themselves acknowledged). https://t.co/BrIM1nsX4w

5.16pm BST

A late newsflash: inhaler group Vectura has backed the takeover offer from tobacco firm Philip Morris International, despite health charities, public health experts and doctors urging them to reject it.

Vectura says it has decided that PMI's offer, of 165p per share, is superior to the 155 pence per Vectura share offered by private equity firm Carlyle.

The Vectura Directors appreciate Carlyle's interest in Vectura over this lengthy process and their support for Vectura's strategy to become one of the market leading CDMOs in the inhalation segment.

However, the Vectura Directors recognise the superior cash price the Final PMI Offer provides Vectura shareholders. The Vectura Directors also note that wider stakeholders could benefit from PMI's significant financial resources and its intentions to increase research and development investment and to operate Vectura as an autonomous business unit that will form the backbone of its inhaled therapeutics business.

Respiratory drug group Vectura has backed a takeover by Philip Morris. Having previously acknowledged warnings that its ownership by a tobacco firm could harm Vectura's prospects, the board of the drug maker has changed its tune and said it could benefit from Philip Morris! pic.twitter.com/KpH37ARvyT

Vectura's future commercial viability as a company dedicated to improving respiratory health would be seriously jeopardised should the PMI takeover proceed."

2020 was the worst year on record for the negative impact of tobacco on human health, causing an estimated 8 million deaths and tens of millions of serious medical illnesses. PMI has an estimated 15% share of the global cigarette market, yet it is not held accountable for the profound impact its products have on human life".

4.47pm BST

In the City, the FTSE 100 index has closed 27 points lower at 7193, down 0.4%.

That's mainly due to some blue-chip stocks going ex-dividend today, such as Rio Tinto (-5.5%), while investors weren't too stirred by this morning's GDP report either.

Ex-dividend factors clip 32.74 points from FTSE 100 today - would be trading higher for the session otherwise

European Closing Bell

FTSE 100 -0.37% at 7,193

STOXX 50 +0.50% at 4,227

DAX +0.74% at 15,944

CAC 40 +0.43% at 6,888

IBEX 35 +0.09% at 8,984

MIB +0.34% at 26,546

SMI +0.39% at 12,436

~ @Newsquawk

4.36pm BST

Convenience store group McColl's has warned that the shortage of lorry drives in the UK could hit its profits.

This has been caused by the widely publicised nationwide shortage of delivery drivers due to a combination of external factors. We have put in place a number of temporary mitigating actions and continue to work closely with our supply chain partner to resolve these challenges as quickly as possible.

If these challenges to trading do not materially improve in the second half of the financial year, the performance in the full year is likely to fall short of management expectations.

Convenience store McColl's warns on profits due to disruption caused by HGV driver shortage

"If [these challenges] do not materially improve in the second half, FY performance is likely to fall short of management expectations"

Is the first explicit HGV profit warning?

McColl's warns that if trading challenges (driver shortages and negative impact on availability) do not improve, full-year profits are "likely to fall short of management expectations"

Group is raising up to 35m gross in a placing/open offer at 20p a share - 42% discount to share price last week before @MarkKleinmanSky story on Sunday

Hugely dilutive issue as market cap is only 25m

Not a great way for McColl's to encourage investors to take part in the share placing... https://t.co/xs8sk77KQr

3.53pm BST

Charity shops, the stalwart of many British high streets, are turning to selling online as they try to plug the large gap in funding caused by the Covid pandemic.

The number of items sold online by charities soared by 151% in the six months between February and July, according to data from Shopiago, which is behind a web-based platform that enables charities to enter e-commerce.

Charities across the country are increasingly understanding that online can significantly support in-store revenue. In fact, online sales have provided a funding lifeline for many charities during the pandemic, when their high street shops have shut and fundraising events haven't happened,"

3.37pm BST

More than 20 health charities, public health experts and doctors have urged the board of the UK asthma inhaler maker Vectura to reject a 1bn takeover bid from tobacco company Philip Morris International.

PMI raised its bid for Vectura to 165p a share last weekend, valuing the firm at 1.02bn, and outbidding a rival offer by US private equity group Carlyle which had agreed a takeover of Vectura in late May.

Vectura's future commercial viability as a company dedicated to improving respiratory health would be seriously jeopardised should the PMI takeover proceed."

3.27pm BST

Reddit, the news aggregation and discussion website whose Wall Street Bets crowd rocked the stock market earlier this year, has seen its own value jump sharply, to $10bn.

We are optimistic and encouraged that not only are we resourced and capitalized to continue on our growth path, but also that our investors support our vision and want to deepen their stakes in our future.

Reddit hits $10bn valuation following latest funding round https://t.co/Vi9Fxren0K pic.twitter.com/vAouPD3MtB

Reddit value jumps to $10bn after new fundraising https://t.co/O7qAzaT0WU

3.03pm BST

The world's appetite for oil will be lower than expected this year as the ongoing spread of the coronavirus Delta variant continues to drag on global economies, according to the International Energy Agency (IEA).

The global watchdog has slashed its oil demand forecasts for the rest of this year and predicted that crude supplies may outstrip demand next year to leave a glut of unwanted oil in the market.

We now estimate that demand fell in July as the rapid spread of the Covid-19 Delta variant undermined deliveries in China, Indonesia and other parts of Asia."

2.49pm BST

Last month's jump in US producer prices suggests inflation might be stickier than central bankers had hoped....

Yesterday's CPI data was under control - but producer prices appear stickier, and so do supply bottlenecks.
No runaway inflation and no need for the Fed to slam on the brakes. However, some effects might be more persistent than #TeamTransitory assumes. pic.twitter.com/IuQXR8LrXY

2.48pm BST

Annual jump in US Producer Prices is biggest on record. The producer price index for final demand increased 7.8% YoY and 1% from the prior month, Labor Department data showed Thursday. (via BBG) pic.twitter.com/DBK2KlkSxy

2.34pm BST

U.S. markets open slightly lower https://t.co/5UmoEG0Vsp pic.twitter.com/bzNLcLUujN

2.22pm BST

US producers hiked their prices again last month, as manufacturers and service providers both passed on higher costs.

The Producer Price Index for final demand, which tracks what firms charge for their goods and services, jumped by 1.0% in July - matching June's reading.

Hotter PPI #inflation at +7.8% y/y (+1% m/m) vs. +7.2% est. & +7.3% in prior month; core PPI +6.2% y/y (+0.9% m/m) vs. +5.6% est. & +5.6% in prior month pic.twitter.com/QJl5NG8xGb

US July PPI inflation readings remain elevated:
Headline (YoY) 7.8% from 7.3%
Headline (MoM) remains at 1% (0.6% exp)
Core (MoM) remains at 1% (0.5% exp)
Core (YoY) 6.2% from 5.6% (5.6% exp) pic.twitter.com/WK046HuHhB

BREAKING:

*U.S. PRODUCER PRICE INFLATION RISES +7.8% Y/Y IN JULY; EST. +7.3%

*U.S. CORE PPI RISES +6.2% Y/Y IN JULY; EST. +5.6% pic.twitter.com/mycu5tBHN0

Both CPI and PPI flashing red in the US. Impact of higher energy prices evident across both. Perhaps Biden will encourage higher US crude production rather than requesting OPEC to do his dirty work #OOTT pic.twitter.com/oxHAGGSIZc

1.46pm BST

Just in: The number of Americans filing new claims for unemployment benefit has dropped, in another sign that the US jobs market is robust as the economy rebounds.

There were 375,000 initial claims' for jobless support last week (on a seasonally-adjusted basis), a 12,000 drop on the 387,000 filed in the previous seven days.

BREAKING:

*U.S. JOBLESS CLAIMS FALL TO 375,000; EST. 375,000 pic.twitter.com/T3IHKS9Ar3

At 375k, Initial Jobless Claims came in right on the 375k estimate and below last week's 387k level. Claims are now averaging 395k for the past 4 weeks. Aggregate initial jobless claims over the past 72 weeks (since the virus hit) now exceed 91M.https://t.co/wyfH3UcCAS pic.twitter.com/85dQbNMrVM

Regular initial unemployment claims (nsa) fell further, now at another low since the start of the pandemic. Third week in a row of decline, a good trend to see! pic.twitter.com/xYR8HpADwd

UI claims rose slightly last week to 425K (321K UI initial claims NSA + 105K PUA claims), but remain near intra-crisis lows.

Claims have remained flat for the last few weeks, showing no signs of increasing yet in the face of the new wave of the Delta variant.#joblessclaims 1/ pic.twitter.com/MAi5VZGn7q

Initial jobless claims at 375k vs. 375k est. & 387k in prior week; continuing claims at 2.89M vs. 2.9M est. & 2.98M in prior week ... greatest increases in CA (+6.3k), VA (+4.8k), & MD (+2.4k); greatest decreases in MI (-4.4k), FL (-3.3k), & GA (-3.3k) pic.twitter.com/1PGFPuEm1i

1.30pm BST

Back on today's UK GDP report, the NIESR think tank have estimated that growth will slow this quarter.

They've predicted the economy will expand by 2.4% in July-September, a slowdown on the pacy 4.8% reported for April-June this morning.

OUT NOW: our latest #NIESRGDP Tracker suggests that #growth will slow in the third quarter but still remain high by historical standards on the assumption of waning #COVID19 cases & lifting of all domestic restrictions by the end of the 3rd quarter

1/2https://t.co/EpWoSoZXRH

1.06pm BST

The surge of UK takeover offers continued today, with London-listed Stock Spirits accepting a 767 million takeover bid from private equity player CVC Advisers.

Stock Spirits is a high quality business with strong brands, established market positions and significant growth potential and we are delighted that our proposal has been recommended by the Stock Spirits Directors.

CVC Funds are a long-standing investor in Central and Eastern Europe and we look forward to working with Stock Spirits management team to help drive its continued development, both by supporting the existing strategy and by investing in inorganic growth opportunities."

12.33pm BST

Tech news: The UK competition regulator has warned that Facebook could be forced to sell online image platform Giphy, due to concerns that the tie-up could damage social media choice and the display advertising market.

In 2020, Facebook paid $400m for Giphy, whose database of short GIF video clips and animations is very popular with users on platforms such as Snapchat, TikTok and Twitter.

The CMA wants Facebook to unwind its tie-up with Giphy - this is the first time it's ever moved to unwind a Big Tech deal, and maybe not the last...all eyes on its final decision in October https://t.co/MpEO83kxOr

Millions of people share GIFs every day with friends, family and colleagues, and this number continues to grow. Giphy's takeover could see Facebook withdrawing GIFs from competing platforms or requiring more user data in order to access them. It also removes a potential challenger to Facebook in the 5.5 billion display advertising market. None of this would be good news for customers.

While our investigation has shown serious competition concerns, these are provisional. We will now consult on our findings before completing our review. Should we conclude that the merger is detrimental to the market and social media users, we will take the necessary actions to make sure people are protected."

Facebook may have to sell Giphy on Britain's competition concerns https://t.co/KSpqTosKiF pic.twitter.com/AzbgknJ1CK

12.15pm BST

Back in the UK, the battle for qualified workers continues, with the owner of Currys PC World and Carphone Warehouse offering a 1,500 retention bonus to its lorry drivers and the same cash incentive to new recruits.

Dixons Carphone is also offering staff who work elsewhere in the business who refer a friend for a driver vacancy a 1,000 reward and promising 1,500 to those willing to retrain to drive lorries.

12.08pm BST

Factories across the eurozone had a lacklustre June, new data shows, as supply chain problems continued to hit manufacturing.

Eurozone industrial output fell by 0.3% during the month, after a 1.1% slide in May, data from eurostat shows.

Euro area #IndustrialProduction -0.3% in June over May 2021, +9.7% over June 2020 https://t.co/N8iWPROTiv pic.twitter.com/uL06lGzwXC

The ongoing supply chain disruptions in the eurozone cast a shadow over a successful consumer recovery. Improved consumer confidence amid the easing of lockdown restrictions and a shortage of many key commodities is causing demand to outstrip supply, which may add to inflationary pressures in the eurozone.

In light of the continued disruption to manufacturers, consumers are likely to drive growth in the currency union. Cebr forecasts GDP growth of 4.9% across 2021 as a whole."

11.58am BST

In other energy news, the UK government's plan to replace fossil gas with blue" hydrogen to help meet its climate targets could backfire, after US academics found that it may lead to more emissions than using gas.

In some cases blue hydrogen, which is made from fossil gas, could be up to 20% worse for the climate than using gas in homes and heavy industry, owing to the emissions that escape when gas is extracted from the ground and split to produce hydrogen.

11.36am BST

The spread of the Delta variant of Covid-19 will hit oil demand for the rest of the year, the International Energy Agency warned this morning.

Global oil demand surged by 3.8 mb/d [barrels per day] month-on-month in June, led by increased mobility in North America and Europe.

However, demand growth abruptly reversed course in July and the outlook for the remainder of 2021 has been downgraded due to the worsening progression of the pandemic and revisions to historical data.

The 2Q21 crude price rally lost steam in July on fears that new Covid-19 Delta cases and weaker economic indicators could slow the oil demand recovery just as more supply hit the market. Despite big swings, North Sea Dated still rose $2.03/bbl to $74.99/bbl but fell to $70.73/bbl in early August

The scale could tilt back to surplus in 2022 if OPEC+ continues to undo its cuts and producers not taking part in the deal ramp up in response to higher prices....

OPEC+ can still pause, continue or even reverse its curbs as required by the market and it looks unlikely that the unwinding of cuts will continue on a linear trajectory in 2022.

Our August Oil Market Report is out:

Demand growth abruptly reversed course in July & the outlook for the remainder of 2021 has been downgraded

OPEC+ supply increase goes a long way to plug expected supply deficit for remainder of the year

https://t.co/Y1pynJvlrJ

The @IEA cuts forecast global #oil demand sharply" for the rest of 2021 as the delta variant spreads. It goes against what many analysts are saying. Eg, Goldman reckons delta will be a two-month demand hit & this month's drop in crude prices is overdone. https://t.co/zDKOUwdxsQ

11.09am BST

The travel company Tui Group has cut back its summer schedule amid the continued impact of British coronavirus restrictions, despite receiving 1.5m bookings for summer holidays since early May.

10.55am BST

We also have more up-to-date info on the UK economy - showing that the number of firms suffering falling turnover has dropped, and that fewer workers are on furlough.

There are also more flights at UK airports, following the easing of travel restrictions, but the number of online job adverts has fallen.

The percentage of businesses currently trading in early August 2021 was 89% - following an increase from 71% in January 2021 https://t.co/khZELMqxi8 pic.twitter.com/DhBseSVSAx

The proportion of businesses' workforce reported to be on full or partial furlough leave is estimated to have fallen from 19.9% in late January 2021 to 3.7% (an approximate range of between 2.8% to 4.6%) in late July 2021 https://t.co/m0oE6CgV75

The percentage of currently trading businesses experiencing a decrease in turnover has steadily declined from 65% in June 2020 to 29% in late July 2021.

This is the lowest percentage recorded since comparable estimates began in June 2020 https://t.co/c85sis8lqg

The 7-day average number of UK daily flights in the week to 8 August 2021 increased by 6% from the previous week, according to @Eurocontrol.

This was the first time that the 7-day average surpassed 3,000 daily flights since the week ending 22 March 2020 https://t.co/TGJnaq0Vdq pic.twitter.com/0FAXi8sQCO

Online job adverts on 6 August 2021 fell by 5% compared with a week ago to 129% of its February 2020 average level, according to @Adzuna data.

The volume of online job adverts fell across all UK countries and English regions https://t.co/WIE7qRjGyN pic.twitter.com/0lfYWk8IQQ

10.29am BST

The latest trade data shows that UK exports to the European Union continued to pick up.

Exports of goods to the EU, excluding precious metals, were above Brexit levels in May and June 2021, the ONS says, after plunging at the start of 2021.

The disappointment could be down to persisting travel restrictions which impede trade in services.

The underlying data show that goods exports rose by 9.6% qoq whereas services dropped by 4.7%. The pattern was similar in imports, with goods rising by 10.0% qoq and services declining by 3.8%.

10.11am BST

How does the UK's economic performance stack up against major rivals?

As Rishi Sunak pointed out this morning, the UK has recorded the fastest quarterly growth among the G7 so far in April-June.

The U.K. economy still was the laggard in the G7 in Q2, despite a 4.8% q/q jump in GDP. Quarterly GDP still was 4.4% below its Q4 2019 level, whereas it was 0.8% above its pre-Covid peak in the U.S. and only 3.3% below in France, 3.6% below in Germany and 3.8% below in Italy: pic.twitter.com/riZ8HYs2Pk

On GDP @BenChu_ rightly points out:
- @hmtreasury cautioned against international comparisons, but is now doing so for the latest figure.
- either way the most relevant comparison is with pre-pandemic.
In fact fall of 4.4% puts UK 15th of 18 OECD countries so far reported. pic.twitter.com/kqc2y2XejO

9.23am BST

Britain's economy grew for a fifth month in June as the reopening of indoor hospitality and visits by patients to their GPs helped boost national output by 1%, official data has shown.

Despite the government's decision to delay the full lifting of restriction by four weeks to 19 July, the Office for National Statistics said growth in June was almost twice as rapid as the 0.6% in May.

UK economy grows for a fifth month as diners rush to cafes and bars https://t.co/n8jvXU5fh0

9.08am BST

Although the economy is recovering, unions fear that there will be more job losses if the government ends its wage subsidy scheme this autumn, as planned.

The TUC is urging ministers to create a permanent furlough scheme, so that firms can temporarily put staff on short-time when needed.

The economy is still fragile, with nearly two million people still on furlough.

A premature end to furlough will needlessly cost jobs and harm our economic recovery.

8.57am BST

James Sproule, Chief Economist of Handelsbanken in the UK, has plucked out some more key points from today's GDP report:

Accommodation and food service activities increased by 87.8% in the second quarter, while wholesale and retail trade increased by 12.8%, in response to the re-opening of indoor hospitality, Euro 2020 and the reopening of non-essential retail. The challenge for many businesses is going to be finding the people to deliver the services.

Accommodation will be receiving a further boost in the coming months as international travel remains harder than it was pre-pandemic and with many people opting to staycation" in the UK this summer.

8.48am BST

The unexpectedly strong 1.0% growth in June was a welcome surprise, suggesting that the recovery has maintained more momentum at the end of Q2 than expected, says Ruth Gregory of Capital Economics.

The upside surprise came from services output, which jumped by 1.5% m/m (consensus 0.9% m/m), leaving it just 2.1% below its pre-crisis level.

Healthcare contributed the most to services output, but food and beverage service activities also rose by 10.1% m/m in June. Meanwhile, the 0.2% m/m gain in manufacturing, left output in that sector 2.3% below its pre-crisis level. Unfortunately, there was little progress elsewhere in June. Industrial production fell by back by 0.7% m/m as planned closures of oil field production sites once again hit activity.

CapEco on UK GDP:

Overall, we are comfortable with our view that monthly GDP will return to its February 2020 pre-pandemic size by October and that the economy may yet surprise most forecasters by emerging from the pandemic without much scarring

8.43am BST

Today's GDP report also shows that company investment picked up a little in April-June, but remains sharply below pre-crisis levels.

Business investment rose by 2.4% in Q2, which left it over 15% below its levels in Q4 2019.

Consumers rushed back to newly reopened shops, pubs and restaurants in Q2, driving consumer spending higher by 7.3 per cent q/q and the Government's continued support for the economy meant that government spending rose by 6.1 per cent q/q.

However, business investment only rose by a relatively meagre 2.4 per cent q/q.

8.14am BST

Here's a handy chart showing how the UK recovery sped up in June after slowing in May.

7.58am BST

Chancellor of the Exchequer, Rishi Sunak, says the economy is on the mend' after returning to growth in the second quarter of this year, with a 4.8% rise in GDP.

Today's figures show that our economy is on the mend showing strong signs of recovery, thanks to our Plan for Jobs and successful vaccine programme.

I know there are still challenges to overcome, but I feel confident in the strength of the UK economy and the resilience of the British people.

7.53am BST

4.4% UK GDP growth in Q2 2021 is exceptionally strong growth from a historical perspective.

But, of course, its the LEVELS of activity that matter most in the wake of the unprecedented Covid collapse, not rates of change.

And UK GDP still 4.4% below its peak... pic.twitter.com/yFy7sb5v9C

7.46am BST

Jonathan Athow, deputy national statistician, says the UK continued to rebound strongly" in June.

Commenting on today's GDP figures, @jathers_ONS said: (1/4) pic.twitter.com/3rO46vfhUD

.@jathers_ONS continued: (2/4) pic.twitter.com/MEP4pibCa2

Commenting further, @jathers_ONS said: (3/4) pic.twitter.com/qGHdW5etma

7.41am BST

Health, advertising, and restaurants and bars all helped drive growth in June.

Health contributed strongly to GDP, because visits to local doctors increased in June compared with recent months, the ONS says.

Continued strong growth means that the industry is now only 1.5% below its pre-pandemic level (February 2020), and 9.0% above its August 2020 peak when the Eat Out to Help Out Scheme boosted consumer demand for bars and restaurants.

7.30am BST

The UK's service sector led the recovery in June, expanding by 1.5%, as the return of indoor dining and the reopening of leisure venues in May boosted growth.

But manufacturing grew by a modest 0.2% during the month, and construction output shrank by 1.3%.

7.19am BST

7.17am BST

In June alone, the UK economy grew by 1.0%, as the reopening of hospitality and leisure venues spurred growth....and more people visited their doctors again.

This is the fifth month of growth in a row, since the economy fell back in January's lockdowns, and is stronger than expected.

UK GDP beat: +1% mom for June vs +0.8% expectations , higher services output main driver

7.10am BST

7.06am BST

The UK economy returned to growth in the second quarter of the year, expanding by 4.8%, as the lockdown measures introduced to fight the Covid-19 pandemic were relaxed.

The Office for National Statistics reports that in April-June:

6.55am BST

As we wait for the GDP report... here's Adam Cole of RBC Capital Markets, who reckons the UK's post-pandemic recovery has already peaked.

After m/m growth of 2.4% in March and 2.0% in April, there was a marked slowdown in GDP growth in May to 0.8%, which suggested that the initial pace of the recovery was coming off quickly.

With the gains from what we would describe as the low-hanging fruit' of the recovery (the initial gain generated just by opening the sectors of the economy that had been shuttered) now largely exhausted, we would expect the pace of growth to moderate in coming months.

6.45am BST

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

Today we discover how quickly the UK economy bounced back from its contraction at the start of the year, as lockdowns measures were eased.

In the months after March, we've seen strong PMIs of over 60 across the board for manufacturing, construction, and services for all of the second quarter.

Retail sales growth has also been decent, helped by falling unemployment as businesses reopen, and while rising prices have been a headwind, the comparatives from last year will also add a boost.

UK Q2 GDP and US PPI in focus https://t.co/56o9Q6zV7P #gbp @CMCMarkets

Markets are, again, not really doing much this morning; treading water has been the order of the overnight session.

Looking ahead, Q2 UK GDP & US jobless claims are on the calendar.

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