Wednesday, 23 Sep 2020

European Economics Preview: Bank Of England Rate Decision Due

Watch: Bank of England Governor Mark Carney speaks after rate decision

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Bank of England Governor Mark Carney is speaking at a press conference following the U.K. central bank's latest interest rate decision.

The BOE left its benchmark rate unchanged on Thursday. Investors will likely tune into Carney's speech for any comments on the health of the U.K. economy, especially as fears of a no-deal Brexit escalate. 

Thursday's decision marks the first since the appointment of Boris Johnson as Britain's new prime minister. Johnson has promised a tough approach to Brexit proceedings, saying the U.K. will leave the EU by a deadline of October 31"do or die, come what may."

It also comes as major global central banks become increasingly dovish amid concerns of slowing economic growth. The U.S. Federal Reserve on Wednesday cut rates for the first time in more than a decade, while the European Central Bank recently signaled a rate cut could be on the horizon.

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TREASURIES-U.S. yields little changed after jobless claims data meets expectations

NEW YORK, Aug 1 (Reuters) – U.S. Treasury yields were little changed early on Thursday as first-time filings for domestic unemployment benefits rose last week but were within economist forecasts, supporting a view of a sturdy domestic labor market.

At 8:35 a.m. (1235 GMT), the yields on benchmark 10-year Treasury notes were 2.025%, slightly higher than Wednesday’s close.

Starbucks adds pumpkin spice flavor to new line of creamers

Is it pumpkin spice season already? Starbucks Corp. SBUX, -2.03% said Thursday that it is adding a Starbucks Pumpkin Spice Latte flavor to its new lineup of creamers. The creamer product, announced last week through a partnership with Nestlé, is available at grocery stores. The Pumpkin Spice Latte drink hasn’t yet been brought back to Starbucks locations. Ready-to-drink Pumpkin Spice Lattes are available at grocers, however, along with pumpkin spice ground coffee and other at-home products. Starbucks shares have soared 47% in 2019 while the S&P 500 index SPX, -1.09% has gained nearly 19% for the period.

Burger King to sell plant-based Impossible Whopper across the US

Burger King will begin selling the plant-based Impossible Whopper across the US next week after a successful run in six regions.

Inside the impossible burger: is the meat-free mega trend as good as we think?

The rollout to 7,000 locations will be for a limited time, a typical practice in the fast-food industry for new products. The chain will not say how many of the burgers it has sold since first introducing them in April, but did say it is enticing more people to enter its stores.

Impossible Foods, the company that makes the burgers for Burger King and White Castle, is struggling to meet surging demand. On Thursday it announced a new partnership with OSI, one of the world’s largest food producers.

Impossible Foods has doubled the workers at its plant and produced a record number of burgers in June, but demand is still outpacing production.

Atlas Air Worldwide Turns To Profit In Q2, But Stock Down

Atlas Air Worldwide Holdings Inc. (AAWW) reported second-quarter 2019 income from continuing operations of $86.9 million, or $1.61 per share, compared to a loss of $21.1 million, or $0.83 per share, in the second quarter of 2018.

In Thursday pre-market trade, AAWW is trading at $41.50, down $4.15 or 9.09%.

Reported results in the second quarter of 2019 included $59.8 million of tax benefits related to the favorable completion of an Internal Revenue Service examination of the company’s 2015 income tax return and an unrealized gain on outstanding warrants of $42.3 million.

Reported results for the second quarter of 2018 included an unrealized loss on outstanding warrants of $50.0 million.

Adjusted income from continuing operations, net of taxes, in the second quarter of 2019 totaled $4.5 million, or $0.17 per share, compared with $49.7 million, or $1.75 per diluted share, in the year-ago quarter.

Operating revenue for the quarter declined to $663.92 million from $666.15 million last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.54 per share and revenues of $713.31 million. Analysts’ estimates typically exclude special items.

The company anticipates revenue of approximately $2.9 billion, adjusted EBITDA of approximately $520 million, and adjusted net income of approximately 80% of 2018 adjusted net income of $204.3 million.

The company expects that third-quarter adjusted net income will represent a mid- to upper-teen percentage of full-year adjusted net income.

European Economics Preview: Bank Of England Rate Decision Due

The Bank of England’s interest rate announcement along with the minutes of the monetary policy meeting and quarterly Inflation Report are due on Thursday, headlining a busy day for the European economic news.

The BoE is expected to maintain its monetary policy amid fears of a no-deal Brexit. Economists forecast the bank to retain its key interest rate at 0.75 percent and quantitative easing at GBP 435 billion. The decision is due at 7.00 am ET.

At 3.00 am ET, foreign trade data from Hungary and Purchasing Managers’ survey data from Norway, Turkey and Poland are due.

At 3.15 am ET, IHS Markit releases Spain’s manufacturing PMI data. Economists forecast the indicator to rise marginally to 48.0 in July from 47.9 in June.

At 3.45 am ET, factory PMI data is due from Italy. Economists forecast the index to drop to 48.0 in July from 48.4 in June.

At 3.50 am ET, France’s final manufacturing PMI data is due. The index is expected to match the flash score of 50.0 in July.

At 3.55 am ET, IHS Markit publishes Germany’s factory PMI data. The flash reading for July was 43.1.

At 4.00 am ET, the euro area manufacturing PMI data is due. The final reading is seen at 46.4 in July, unchanged from flash estimate.

At 4.30 am ET, UK Markit/CIPS factory PMI data is due. Economists forecast the index to drop to 47.6 in July from 48.0 in June.

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