- Consumer prices rose annual 1.3% in June after 1.4% in May
- Draghi faces balancing act as policy makers mull normalization
Euro-area inflation slowed in June even as underlying price pressures picked up, backing the European Central Bank’s call for a prudent approach toward policy normalization.
Consumer prices rose an annual 1.3 percent in June — more than economists predicted — after increasing 1.4 percent, according to a flash reading by Eurostat on Friday. The core rate, which strips out volatile components such as energy and food, increased to 1.1 percent from 0.9 percent in May, also exceeding estimates.
By Alessandro Speciale
June 30, 2017, 12:00 PM GMT+3 June 30, 2017, 12:42 PM GMT+3
- Consumer-health unit also is disappointing, Bayer says
- Stock slumps the most in eight months after announcement
Bayer AG plans to cut its sales and profit forecasts for this year because of unexpectedly high stockpiling in Brazil of its crop-protection products.
Full-year earnings before interest, taxes, depreciation and amortization and other special costs will be reduced by 300 million euros ($342 million) to 400 million euros, the Leverkusen, Germany-based company said in a statement on Friday. Second-quarter results will also be eroded. The stock dropped by the most in almost eight months.
By Chitra Somayaji
June 30, 2017, 10:39 AM GMT+3 June 30, 2017, 12:26 PM GMT+3
- Real incomes show longest stretch of decline in 40 years
- Carney says interest-rate outlook hinges on business activity
The pressure on consumers from the soaring cost of living was laid bare Friday as Britain published its most complete picture of the economy in the first three months of the year.
Britons saved a smaller proportion of their incomes than at any time on record and household incomes adjusted for inflation fell for a third straight quarter, the longest stretch in 40 years, the Office for National Statistics said.
By Jill Ward
June 30, 2017, 11:30 AM GMT+3 June 30, 2017, 1:20 PM GMT+3
- Bank remains bullish commodities, cuts oil forecast by $7.50
- Brent, WTI crude prices slipped into bear markets last week
Goldman Sachs Group Inc. analysts might not be the only ones to have incorrectly called commodity prices this year, but they are at least trying to figure out how they misjudged the market.
Commodities have tumbled 9 percent since their 2017 peak in mid-February, and Goldman acknowledges that some factors weren’t predictable, including rising oil supplies in Libya and Nigeria and the impact of weather on crops.
“But this still leaves the question of how did we (and the market) get it so wrong?” analysts from the bank said in a research note Thursday.
By Alex Longley and Mark Burton
June 29, 2017, 8:28 PM GMT+3 June 30, 2017, 1:39 PM GMT+3