Good morning. Is the tide lastly turning for London’s ailing inventory market? We’ve got new knowledge that would shed some gentle, in addition to updates on Kamala Harris’s marketing campaign.
However first, we start with the newest firm outcomes as earnings season will get into full swing, beginning with Tesla. Earnings on the electric-vehicle maker missed estimates, slumping 45 per cent within the second quarter because it confronted slower gross sales, hovering prices from worker lay-offs and ever-greater investments in its synthetic intelligence infrastructure.
Chief government Elon Musk additionally used yesterday’s earnings announcement to formally postpone the deliberate launch of Tesla’s first self-driving “robotaxis”. Shares fell greater than 8 per cent in after-hours buying and selling.
Alphabet’s outcomes have been rosier. Google’s dad or mum firm reported that revenues jumped 14 per cent within the second quarter, with double-digit development in promoting suggesting that AI chatbots similar to OpenAI’s ChatGPT had but to make a dent in queries on its dominant search engine.
And right here’s what else I’m preserving tabs on in the present day:
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Financial knowledge: S&P World releases a UK flash buying managers’ index.
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Joe Biden: The US president will ship a nationwide deal with from the Oval Workplace this night on his resolution to desert his bid for re-election.
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Netanyahu within the US: The Israeli prime minister will deal with Congress forward of conferences with Biden tomorrow and Donald Trump at his Mar-a-Lago property on Friday.
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Outcomes: Reckitt is below stress to revisit a sale of its vitamin enterprise because the conglomerate stories half-year earnings. Banco Santander, BNP Paribas, Deutsche Financial institution, easyJet and IBM additionally report.
5 extra high tales
1. Huge buyers are positioning themselves for “a turning of the tide” for London’s unloved inventory market, hoping that an bettering economic system, decrease rates of interest and political stability will increase low cost British shares. BlackRock and Allianz have joined British fund homes similar to Ruffer and Rathbones in elevating publicity to UK-listed shares in current months. Read the full story.
2. Emmanuel Macron has stated he is not going to title a brand new authorities till after the Olympic Video games to keep away from creating “dysfunction”. The French president stated it was necessary that the present caretaker authorities and ministers stayed in place since that they had been instrumental in planning the occasion. Here’s more on Macron’s “Olympic political truce”.
3. Unique: Three swing-state Democrats are actually the frontrunners to turn out to be Kamala Harris’s operating mate: Pennsylvania governor Josh Shapiro, Arizona senator Mark Kelly and governor Roy Cooper of North Carolina. Huge Democratic donors near the vice-president stated the lads have been being vetted by Barack Obama’s former attorney-general. Here’s what we know about the contenders.
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Path to victory: Pollsters anticipate a bump in Harris’s approval scores within the brief time period, however will that enthusiasm maintain over her three-month sprint to defeat Donald Trump?
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Harris’s legitimacy: Democrats worry a contest for his or her get together’s nomination might trigger “chaos”, however deference to established candidates has cost them in the past, writes Janan Ganesh.
4. European Fee president Ursula von der Leyen and Prime Minister Sir Keir Starmer are planning to fulfill inside weeks to drive a “reset” in post-Brexit EU-UK relations. The leaders are engaged on a late August or early September assembly, officers stated. Here’s what could be on the agenda.
5. Unique: Wegovy prescriptions by Britain’s public well being service have been held again by a scarcity of weight-loss clinics, a Monetary Instances evaluation of NHS England knowledge reveals. The favored drug was prescribed simply 3,300 instances since September, far under the 13,500 sufferers the UK’s healthcare spending watchdog expects will obtain the drug in its first 12 months of use. Clara Murray and Ian Johnston have more details.
The Huge Learn
The world’s oceans have absorbed 90 per cent of extra warmth and a few quarter of human-caused carbon dioxide emitted in the course of the industrial period. Previously 15 months, world sea floor temperatures have reached and stayed at document ranges, fuelling heatwaves and melting sea ice. As scientists examine whether or not the world’s seas will cool once more, there are worries that our oceans could also be reaching their limits within the very important position they play in defending the planet in opposition to the worst extremes of climate change.
We’re additionally studying . . .
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Non-public fairness: Our newest visible story explores how the sector’s sprawling web of debt has entangled banks and will pose a menace to the worldwide economic system.
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Rupert Murdoch: Was the 93-year-old media mogul’s uncommon go to to attend the Republican conference an indication of his waning influence?
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Venezuelan politics: With an election looming, even Hugo Chávez’s hometown has had sufficient of his revolution and is turning against his successor, Nicolás Maduro.
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Diamonds: The marketplace for tough diamonds for jewelry is struggling one among its worst downturns, however some forecast a restoration as costs of factory-made stones have fallen too far.
Chart of the day
The variety of undesirable Paris Olympics tickets obtainable for resale has hit greater than 1 / 4 of one million, simply days earlier than Friday’s opening ceremony. Poor demand has elevated issues that many athletes will compete in opposition to a backdrop of empty seats.
Take a break from the information
In terms of bespoke menswear, one may consider London’s Savile Row or Italy — however not Paris. Town’s household ateliers are broadening their attraction to youthful shoppers with extra inexpensive options, similar to made-to-measure offerings.
Further contributions from Benjamin Wilhelm and David Hindley