UK inflation rises unexpectedly in June to 0.6%
LONDON, July 15 (Reuters) – British inflation rose unexpectedly last month, official data showed on Wednesday.
Consumer price inflation increased to 0.6% in June from 0.5% in May, the Office for National Statistics said.
The average forecast in a Reuters poll of economists was for the rate to fall to 0.4%.
Core inflation – which excludes typically volatile energy, food, alcohol and tobacco prices – rose to 1.4% from May’s 1.2%. Economists had expected the rate to remain unchanged at 1.2%. (Reporting by Andy Bruce Editing by William Schomberg)
Carl Zeiss Meditec 9-month EBIT Declines; Adj. Revenue Down 6.9% – Quick Facts
Carl Zeiss Meditec AG (CZMWF.PK) reported earnings before interest and taxes (EBIT) of 111.9 million euros for the first nine months of 2019/20 compared to 184.2 million euros, prior year. Earnings per share was 0.77 euros compared to 1.22 euros.
For the nine months of fiscal 2019/20, revenue was 967.9 million euros compared to 1.03 billion euros, a decline of 5.8%. After adjustment for currency effects, revenue was down 6.9%, for the fiscal period.
Looking forward, Carl Zeiss Meditec expects to see a further impact on business development in the remainder of fiscal 2019/20 due to Covid-19 pandemic. The company currently anticipates revenue of around 1.3 billion euros for fiscal 2019/20 compared to 1.459 billion euros, prior year.
Carl Zeiss Meditec will publish its quarterly statement on August 5, 2020.
Philippines Flattened Covid-19 Curve in April, Health Chief Says
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The Philippines has flattened its Covid-19 infection curve since April, Health Secretary Francisco Duque said, even as the number of cases continues to rise.
It takes 8 to 12 days for the cases to double from only 2.5 days during the initial stages of the outbreak, while the doubling time for the number of deaths has also fallen to a “moderate risk,” Duque said in a virtual forum on Wednesday.
The Southeast Asian nation has 57,545 infections as of Tuesday, the second-highest in the region and jumping almost 580% since 8,488 Covid-19 cases in end-April, when large parts of the Philippines were under a stringent lockdown. In that same period, the number of deaths has also nearly tripled from 568 to 1,603.
In May, Duque said the country was already experiencing its second wave of coronavirus infections, prompting acorrection from the Department of Health.
Treasury yields move higher ahead of Fed's Beige Book report
- On the data front, there will be import prices and the Empire State manufacturing numbers at 8:30 a.m. ET.
- The Fed's Beige Book will be released at 2 p.m. ET.
U.S. government debt prices were lower Wednesday morning as market sentiment turned positive on vaccine hopes.
At around 3 a.m. ET, the yield on the benchmark 10-year Treasury note rose to 0.6266% and the yield on the 30-year Treasury bond also moved higher to 1.3128%. Yields move inversely to prices.
Wednesday's trading has been tracking news that Moderna, a biotech firm, said that its potential vaccine to prevent Covid-19 delivered a solid immune response in an early-stage human trial among all 45 patients.
On the data front, there will be import prices and the Empire State manufacturing numbers at 8:30 a.m. ET. This will be followed by industrial production and capacity utilization at 9:15 a.m. ET and the Fed's Beige Book report at 2 p.m. ET.
Philadelphia Fed President Patrick Harker will attend a webinar at 11:45 a.m. ET.
There are no Treasury auctions scheduled.
Burberry's first-quarter like-for-like sales drop 45%
- Demand was severely impacted by COVID-19 in the first quarter, with comparable sales falling 45%, although the decline eased to 20% in June driven by growth in mainland China and South Korea.
- Chief Executive Marco Gobbetti said it would take time for luxury demand to return to pre-crisis levels with the resumption of overseas travel, but he was "encouraged by the improving trends in all regions and the promising exit rate for June".
British fashion brand Burberry said on Wednesday that demand was severely impacted by COVID-19 in the first quarter, with comparable sales falling 45%, although the decline eased to 20% in June driven by growth in mainland China and South Korea.
Chief Executive Marco Gobbetti said it would take time for luxury demand to return to pre-crisis levels with the resumption of overseas travel, but he was "encouraged by the improving trends in all regions and the promising exit rate for June."
Analysts had expected first-quarter like-for-like sales to fall 49%, according to a company-compiled consensus.
Burberry said it expected revenue in its second quarter to remain impacted by the pandemic, with negligible tourists flows hitting sales from traveling shoppers and some of its stores remaining closed and others operating with reduced hours.
It said that based on the 20% decline recorded in June it expected to see a decline of 15%-20% in its second quarter.
Burberry reported total retail revenue of 257 million pounds, down 48% in its first quarter.
Oatly made oat milk cool in the US. Now it's eyeing China
San Francisco (CNN Business)Oatly, the popular Swedish oat milk brand, has received $200 million from a Blackstone-led, star-studded investment group that included Oprah Winfrey, Natalie Portman, Jay-Z’s entertainment agency, and former Starbucks CEO Howard Schultz.
The equity investment represents a 10% share of the company, Sara Fletcher, an Oatly spokesperson, told CNN Business on Tuesday. The money will go toward expanding production and distribution capabilities in Europe, the United States and Asia.
The investment puts Oatly’s valuation at $2 billion, according to The Wall Street Journal, which first reported the news. The financial infusion could set the stage for Oatly to go public in the next 12 to 18 months or to be acquired, the Journal reported.
Fletcher said reports of a future acquisition or IPO are “just rumors right now. We’re keeping all options open.”
Sales of oat milk and plant-based dairy alternatives have soared in recent years and accelerated during the Covid-19 pandemic, as consumers stocked up on shelf-stable food staples.
Multinational companies are stepping up their offerings as well. Earlier this week, Nestlé (NSRGY) and Starbucks (SBUX) announced that Starbucks-branded non-dairy, almond milk and oat milk creamers were launching nationwide.