German exports hit by shortages; another Chinese property developer defaults – business live | Business

Good morning, and welcome to our rolling protection of the world financial system, the monetary markets, the eurozone and business.

Sentiment amongst German exporters has taken an enormous hit, in response to a survey. In October, the Ifo institute’s export expectations index fell to 13.0 factors from 20.5 factors in September, the bottom worth since February. The institute mentioned provide issues of supplies used to make German items (similar to chips) are affecting exports.

Expectations have slipped within the electrical and electronics sector, although they continue to be excessive, however the temper is bleaker within the chemical, automotive, and textile and leather-based industries.

South Korean carmaker Hyundai missed analysts’ forecasts as the worldwide chip disaster took its toll on automotive exports. It warned that it might take a very long time for chip provides to get again to regular ranges.

The French automotive elements maker Faurecia has additionally been hit by the semiconductor scarcity which has prompted its clients to cut back manufacturing, and posted a greater than 10% drop in third-quarter gross sales.

In China, another property developer has defaulted, including to worries concerning the sector brought on by the debt disaster at Evergrande Group. Modern Land mentioned it missed a debt fee on account of “unexpected liquidity issues,” after Fantasia Holdings Group defaulted on maturing greenback bond in early October.

Evergrande, China’s second-biggest property developer which has a debt mountain of about $305bn, managed to keep away from a pricey default final week because it stumped up the money to pay a bond curiosity fee on the final minute.

An investor informed Reuters that builders are defaulting “one by by one”.

The question is at all times, who’s subsequent?

Oil costs stay excessive after Brent crude hit a three-year excessive of $86.50 a barrel yesterday. Prices have greater than doubled from about $40 a barrel a year in the past due to a sudden rise in post-pandemic vitality demand, whereas provide stays tight. Brent has slipped to $85.95 a barrel this morning whereas US crude is at $83.63 a barrel, down 0.16%.

Higher crude has pushed up UK petrol costs to their highest stage on report, in a blow to hard-hit households and small companies. The common day by day value for a litre reached 142.94p on Sunday, and will rise additional within the coming weeks.

EU vitality ministers are holding an emergency meeting in Luxembourg right this moment to debate their response to the spike in vitality costs.

On Wall Street, the Dow Jones and S&P 500 set new all-time highs yesterday, as Tesla broke by means of the $1trn valuation for the primary time, after the US electrical automotive pioneer acquired an order for 100,000 of its autos from the rental company Hertz.

Asian markets have been blended with Hong Hong’s Hang Seng index dropping 0.76% and China’s CSI 300 down 0.36% whereas Japan’s Nikkei superior practically 1.8%. European stock markets are set to open greater right this moment.

The Agenda

  • 11am BST: CBI retail gross sales survey for October (forecast: 13)
  • 2pm BST: US home value index for August
  • 3pm BST: US Conference Board Consumer confidence for October
  • 3pm BST: US New dwelling gross sales for September
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