Lloyds Posts First Half Profits, Markets Await US GDP Data – business live

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Hello and welcome to our continued coverage of the global economy, financial markets, euro area and business.
Lloyds Banking Group reported first half profit and reintroduced dividend payment to shareholders, driven by a vibrant housing market and recovering economy.

The bank posted pre-tax profit of £ 3.9bn for the six months to June, beating analysts’ expectations of £ 3.1bn. It compares to a loss of £ 602million over the same period last year, when it set aside billions of pounds to cover a potential increase in bad debts due to the Covid pandemic. 19.

Asian markets rebounded of their sale earlier in the week, as China tried to calm the nerves of investors by telling foreign brokerage firms not to “over-interpret” its latest regulatory measures on education companies and public listings. ‘foreigner. Regulators reportedly called banks overnight to tell them that Chinese companies would be allowed to register in the United States as long as they met registration requirements.

Japan’s Nikkei is up 0.7%, Hong Kong’s Hang Seng is up 2.9%, and the Australian market is up 0.5%. China’s blue-chip CSI 300 index gained 2% and the Shanghai Composite Index rose 1.5%.

European markets saw a welcome recovery yesterday after two days of losses, closing higher on positive business results and optimism about some relaxation of travel restrictions. Markets should open a little lower today, however.

Wall Street ended the day mixed, with the Nasdaq gaining 0.7% while the Dow Jones and S&P 500 closed slightly lower, after the last US Federal Reserve The move shifted the bond reduction argument to the Jackson Hole rally next month. The Fed left interest rates unchanged and the level of bond buying at $ 120 billion per month.

The dollar slipped in Asian trade after Fed Chairman Jerome Powell suggested that policy tightening was “still a long way off.”

I would say we have a long way to go on the labor market side.
I think we are a long way from making further substantial progress towards the maximum employment target.

Michael Hewson, chief economist at CMC Markets UK, looked into the matter.

The Fed acknowledged that the economy had made progress towards targets that needed to be considered scaling back, but there was still some way to go. The decision was unanimous. On the question of what “substantial further progress” meant, Powell was generally reluctant to decline to offer much more than various banalities on the subject.

On the economic calendar, the highlight of the day is the first estimate of US GDP growth in the second quarter. The economy is expected to have grown 8.6%, up from 6.4% in the first three months of the year.

The trading platform Robin Hood gears up for its first day of trading as a state-owned company, when U.S. markets open later this afternoon, in what is expected to be one of the biggest IPOs of this year, after listing from Coinbase.

Robinhood, which is used by amateur investors to gamble in the market, sold shares at $ 38 apiece, the low end of its $ 38- $ 42 range, raising nearly $ 2 billion and valuing the company at around 32. billions of dollars.

Hewson says:

It’s a particularly tough time for IPOs with sentiment as it is now and given how, after a lot of hype, Coinbase is now trading below its target price of $ 250 after rising sharply on first day.

Agenda

  • 8am BST: unemployment rate in Spain for the second quarter (forecast: 15.1%)
  • 8:55 a.m. BST: unemployment in Germany for July (expected rate: 5.8%)
  • 9am BST: production of SMMT cars in UK for June
  • 9:30 a.m. BST: UK mortgage approvals and consumer credit for June
  • 10am BST: Eurozone consumer confidence final for July (forecast: -4.4)
  • 11:30 am BST: Confidence of Spanish companies for July
  • 1 p.m. BST: inflation in Germany for July (forecast: 3.3%)
  • 1:30 p.m. BST: US GDP growth for the second quarter (forecast: 8.6%)
  • 1:30 p.m. BST: Unemployment claims in the United States for the week of July 17
  • 3 p.m. BST: US home sales for June

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