Tag Archives: Purchasing Manager Survey

UPDATE 2-Italian bonds are set for the best week in two months | Instant News


* Italian 10-year bond yields fell 16 bps this week

* Set for the biggest weekly decline in 2 months

* German Bund results briefly touched 2-month lows of -0.499%

* Eurozone periphery government bond yields tmsnrt.rs/2ii2Bqr (Add comments, update prices to close)

By Dhara Ranasinghe

LONDON, July 24 (Reuters) – The Italian bond market is ready for the best week in two months on Friday, even as borrowing costs rise from 4-1 / 2 month lows set after this week’s agreement on a European Union recovery fund to support the economy hit by coronavirus.

Bond yields across the euro zone rose after data showing eurozone business activity recovered in July and signs of rising US / Chinese tensions prompted investors to take profits on rising prices this week and yields fell.

Yields on Italian 10-year bonds rose 2 basis points to 1.07%, from Thursday’s low of around 1.04%.

However, Italian yields fell around 16 bps this week, set for the biggest weekly decline in two months. According to Tradeweb data, Italian 10-year bond yields fell below 1% on Thursday for the first time since March.

Yields on Spanish and Portuguese 10-year bonds are down about 6 bps this week, Greek yields have fallen 10 bps.

“The impact of the recovery fund is not fully appreciated and is still not fully appreciated,” said Peter Chatwell, head of multi-asset strategy at Mizuho. “The structural part of this story is that it allows the risk of the euro to split to a level that has not been seen for some time.”

In Germany, yields rose from two-month lows after the euro zone flash Composite Purchasing Managers Index (PMI), seen as a good indicator of economic health, rose to 54.8, the highest since mid-2018 and above forecasts. The final reading for June is 48.5.

The 10-year Bund yield held up to 4 bps at -0.44%, after briefly touching a two-month low in early trade around -0.50% because German bonds also benefited from renewed optimism about the euro area.

Three forces seem to play a role – a strong fiscal response, an aggressive stimulus from the European Central Bank, and a perception of better handling the health crisis versus the United States.

It also helped raise the euro to 21-month highs against the dollar this week.

European Union leaders on Tuesday approved a 750 billion euro recovery fund, which according to Italian Prime Minister Giuseppe Conte would allow his government to change Italy. Italy and Spain, the two countries hardest hit by the pandemic, are among the biggest beneficiaries of the agreement.

“We think the Recovery Fund is a key element for Europe’s response to the shock. The ECB is helping to cope with large funding needs but cannot replace every foreign investor in the periphery, “analysts at BofA said in a note.

Reporting by Dhara Ranasinghe; edit by Larry King and Steve Orlofsky

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New Zealand manufacturing activity swings into expansion territory | Instant News


(Reuters) – Manufacturing activity in New Zealand moved back into expansion territory in June after three months of contraction, helped by easing of locking caused by coronaviruses and mobility restrictions, a survey showed on Friday.

The seasonally adjusted Manufacturing Manufacturing (PMI) Index of NZ’s New Zealand-Business rose to 56.3 from 39.8 in May and 26 in the previous month.

This is the best result since April 2018.

A number above 50 indicates expansion in activity, while anything below that threshold indicates contraction.

BusinessNZ executive director for manufacturing Catherine Beard said he welcomed the return of expansion but made a cautious note.

“One expansion result does not represent a trend given the ongoing offshore uncertainty around COVID-19,” he said. “A consistent trail of new orders over the coming months will be far towards ensuring the second half of 2020 is better than the first”.

New orders surged to 58.6 in June from 39.5 in May.

Reporting by Swati Pandey in Sydney; Editing by Chris Reese

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Contracts for Italian factory activity less than expected in May: PMI | Instant News


PHOTO FILE – A worker at the Liebherr manufacturing company, which manufactures tool cutting tools, wears gloves when he works in a factory the day after reopening, when Italy begins to gradually end national locking due to the spread of coronavirus disease (COVID-19), in Collegno, Italy, 5 May 2020. REUTERS / Massimo Pinca

ROME (Reuters) – Italian manufacturing activity shrank in May for the 20th month running but much sharper than the previous month, a survey showed on Monday, when Italy emerged from locking in to try to contain one of the world’s worst corona virus outbreaks.

The IHS Markit Purchasing Managers Index (PMI) rebounded to 45.4 from 31.1 in April, remaining well below the 50 mark that separates growth from contraction.

The data is much weaker than expected. The median estimate in a Reuters survey of nine analysts has pointed to 37.0.

April’s reading was the lowest since IHS Markit launched a survey in 1997, which reflected the closure of all factories that were not considered important to the country’s supply chain. Plants are allowed to reopen in May.

The Markit IHS sub-index for output at the factory jumped to 47.5 in May from a record low of 11.4 in April, indicating another decline in production but a much lower decline.

The eurozone’s third-largest economy shrank by 5.3% in the first quarter from the previous three months, the ISTAT statistics bureau reported on Friday, the sharpest decline in gross domestic product since the ISTAT series currently began in 1995.

The anti-establishment government of the 5-Star Movement and the center-left Democrats estimate a full year GDP decline of 8%.

Reporting by Gavin Jones; Editing by Catherine Evans

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German manufacturing production contract back in May – PMI | Instant News


FILE PHOTOS: Employees of the German car manufacturer Porsche working on the Porsche 911 at the Porsche plant in Stuttgart-Zuffenhausen, Germany, February 19, 2019. REUTERS / Ralph Orlowski

BERLIN (Reuters) – The German manufacturing sector continued to contract in May as factories faced weak demand because of a layoffed employee pandemic, according to a survey published on Monday that showed pessimistic business about the future.

IHS Markit’s final Managers Purchasing Index (PMI) for manufacturing, which accounts for around one fifth of Europe’s largest economy, rose to 36.6 from 34.5 in April. The flash reading is 36.8.

“Although more factories have begun to resume operations after loosening of restrictions, weak fundamental demand is still a limiting factor, as evidenced by the survey size of new orders that rebounded far less than output in May,” said Phil Smith, principal economist at IHS Markit.

“Manufacturing production has dropped 7-8% from its peak at the end of 2017 even before the onset of the pandemic, and now that number is seen in the region of 25-30%.”

Output declined more slowly than in April, but with companies operating far below full capacity and pessimistic about future output, factory staff reductions accelerated to their fastest pace in 11 years, with the investment goods sector being hit hard.

Reporting by Joseph Nasr; Editing by Catherine Evans

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The Brazilian service PMI slipped to an all-time low of 27.4 in April – IHS Markit | Instant News


May 6 (Reuters) – Economic activity in Brazil collapsed to a record low in April, a purchasing manager’s activity survey showed on Wednesday, when the coronavirus crisis halted trade in most of Latin America’s largest economies.

Brazil’s IHS Markit service purchasing managers index (PMI) fell to 27.4 and the composite PMI covering manufacturing activity fell to 26.5, both the lowest levels since the survey began 13 years ago.

Figures above 50.0 mark expansion of activity, while numbers below indicate contraction.

The numbers add weight to the growing belief that Brazil will experience a deep and painful recession this year, with some economists and institutions predicting the worst economic collapse in at least half a century.

“The April survey shows the large scale and impact of the COVID-19 pandemic on the Brazilian private sector economy, with the contraction of survey records in new businesses and activities marked during the month.” said Paul Smith, director of economics at IHS Markit.

“In addition, confidence about the future has been understood to take a considerable blow, with companies pessimistic overall about the coming year because of increased concerns over the long-term damage to the economy from the pandemic,” he said.

Not only did the major indexes fall to their previous lows, there were also many sub-indices, including business expectations and new business in the service sector, and new combined orders and future output expectations.

The lowest reading of each index or sub-index in April was the 15.2 index for new composite export demand, said IHS Markit.

Employment fell to its lowest level in nearly four years, and will almost certainly fall further, economists say. Analysts at Bank of America Merrill Lynch on Tuesday raised their unemployment estimates to 15% later in the second quarter. (Editing by Chizu Nomiyama)

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Italy – Factors to consider on May 4 | Instant News


The following factors can affect the Italian market on Monday.

Reuters has not yet verified newspaper reports, and cannot guarantee its accuracy. New items are marked with (*).

For a complete list of diary events in Italy, please click.

VIRUS CORONA

Deaths from the COVID-19 epidemic in Italy rose by 174 on Sunday, against 474 the day before, the Civil Protection Agency said, posting the smallest casualties since March 10. (*) On Monday people will be able to leave their homes more freely and more workplaces will be allowed to reopen provided they can meet the social distance rules, but most shops will be closed until May 18 and restaurants and bars can only offer take- aways.

ECONOMY (*) The head of Italy’s main business lobby Confindustria Carlo Bonomi told Corriere della Sera in an interview on Monday that if the government does not invest well in the country’s productive system, rather than distributing money to anyone, social emergencies will explode at the start September or October. He accused the government of not wanting to listen to industry needs and to increase uncertainty.

HIS Markit releases its April manufacturing PMI (0745 GMT)

Ministry of Transportation releases April car sales data (1600 GMT)

ISTAT and ISS-National Health Institute present a report on “Mortality in Italy”

Data on April state sector loan requirements.

(*) SAIPEM

The oil service group was awarded a contract for the transportation and installation of a natural gas pipeline between Denmark and Poland in the Baltic Sea, valued at around 280 million euros.

PRADA

CEO Patrizio Bertelli said in an interview with la Repubblica on Sunday that sales went well in China, Korea and Taiwan, posting double-digit growth in April.

FINCANTIERI

The US Navy announced on Thursday that it was giving a contract valued at more than $ 5.5 billion to Fincantieri to build the latest warship class.

TELECOM ITALY

A.E Elliott Management’s hedge fund has further cut its holdings in Italy’s biggest telephone group, a filing of regulations showed on Thursday. Elliott now owns 0.265% of TIM and indirectly holds another 4.862% through a swap contract with JPMorgan.

ATLANTIA

In the group’s Autostrade per l’Italia financial report published on Saturday, the company said that, in early April, the transportation ministry had asked him to increase the 2.9 billion euros compensation offered by Atlantia in March to settle a dispute over his company. toll road concession.

The Ministry has also asked Autostrade to accept a new method for calculating road tolls and agreed in cases where road contracts can be terminated by the previous grantor.

Atlantia and Autostrade sent a letter in early April asking to meet with the government to finalize a detailed agreement on the concession, the financial statement said.

In its financial report, Autostrade said coronavirus could reduce its 2020 revenues by between 850 million and 1.1 billion euros. He also said CDP had rejected a request in April to lend the company 200 million euros.

MEDIOBANCA

Mediobanca has canceled plans to buy shares in Indonesian consumer credit operator BFI Finance because of an emergency COVID-19 made the deal “unrealistic”, the Italian finance group said on Friday.

INTESA SANPAOLO

The biggest Italian retail bank said on Sunday that all of its branches will open on Monday, adding customers must make an appointment and wear a mask to gain access.

ASSICURAZIONI GENERALI

Shareholders in Italy’s biggest insurance company on Thursday approved changes to the company’s bylaws to allow the board to submit its own candidate list before renewal, setting the number of board seats between 13-17 with up to five seats reserved for minority shareholders and at least half of they are for independent directors.

UNIPOL

Shareholders on Thursday agreed to a loyalty-sharing scheme that handed over a group of local cooperatives that held in aggregate 48% of the voting rights of the financial group that approached 65% of their capital.

(*) DIASORIN

The diagnostic group is working on a quick and inexpensive saliva-based coronavirus test, Chief Executive Carlo Rosa told Corriere della Sera in an interview on Friday. “We are working on it lately, working with whom we believe to be the first operator in the world in this particular sector. It’s too soon to say more, “Rosa added.

FERRARI

Board meeting on Q1 results, followed by conference call (1300 GMT).

CREDEMS

Italy’s regional lender on Thursday said it had entered into exclusive negotiations to buy controlling shares in smaller rival Cassa di Risparmio di Cento.

TERNA

Italian power grid operator said on Thursday Fitch Ratings had confirmed the long-term BBB + rating with a stable outlook despite the downgrading of the Italian government.

ITALGAS

The gas group said on Thursday Fitch Ratings had confirmed BBB + long-term ratings with a stable outlook despite Italy downgrading to BBB-.

(*) CEMENTIR

Cement manufacturing plants in China have returned to 95% of their full capacity, Chief and Chief Executive Francesco Caltagirone Jr. said Monday in an interview with La Stamp adding that “what happened in China gave me hope for the whole world. ”

(*) NEWLAT

The Italian food company, which recently signed an agreement to buy the dairy group Centrale del Latte d’Italia (CLI), is considering buying another diary company in Greece, Chairman and major shareholder Angelo Mastrolia told L’Economia- Corriere della Sera on Monday. His family is open to the possibility of merging with a larger group, he added.

JUVENTUS FC, AS ROMA, SS LAZIO

The Serie A team will be able to start individual training sessions on Monday amid the COVID-19 crisis, according to a letter sent by the Italian interior ministry to local authorities.

COPY OF IMPREGILO

Annual and extraordinary shareholders meetings (1330 GMT).

TREVI FINANZIARIA

Start an increase in capital; ends on May 18.

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