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You can find the current article at its original source at http://www.theguardian.com/business/live/2017/jul/28/france-us-uk-growth-gdp-exports-sterling-ftse-business-live
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| France and Spain beat UK with solid growth in Q2 – business live | France and Spain beat UK with solid growth in Q2 – business live |
| (35 minutes later) | |
| 9.24am BST | |
| 09:24 | |
| Silvia Walter of Swiss Life Asset Managers is impressed by Spain’s recovery: | |
| ok, French #GDP growth in Q2 is strong...but #Spain beats that easily, again! pic.twitter.com/zfMcbtFfFf | |
| 9.21am BST | |
| 09:21 | |
| Sweden’s growth rate is “crazy strong”, says Torbjörn Isaksson of Nordea Markets. | |
| He reckons the Swedish economy continues to perform very well, mainly due to strong domestic demand. | |
| Isaksson adds: | |
| GDP rose by a full 1.7% q/q and as much as 4.0% y/y. Our call was 1.1% q/q while the Riksbank’s forecast was 0.7% q/q. Moreover, the first quarter was revised upwards by 0.2% points to 0.6% q/q. | |
| The main surprises are fixed investments and inventories. Residential construction continues to be a very important growth driver (scary!), but also other investments seem to have picked up and more than forecast. Inventories weighed on growth but much less than we had in mind. | |
| Sweden has the strongest economy but the most dovish CB... Our comment on the crazy strong Q2 GDP: https://t.co/xyU657XGwC pic.twitter.com/Pb8tHWf3Je | |
| Updated | |
| at 9.21am BST | |
| 9.01am BST | |
| 09:01 | |
| Wowzers! Sweden’s economy grew by a blistering 1.7% in the last quarter. | |
| That smashes analyst forecasts of 1% growth, and means Sweden’s economy has expanded by an impressive 4% over the last year. | |
| Sweden appears to be benefitting from its current loose monetary policy - interest rates are negative, to encourage banks to lend..... | |
| #Sweden: #GDP Growth +4.0% YoY, Core #CPI +1.9%, but Repo Rate at -0.50% and Deposit Rate at -1.25%! #MonetaryMadness pic.twitter.com/tJysd33OgK | |
| 4% YoY growth. As a reminder, the Riksbank's benchmark rate is -0.5% https://t.co/VzxLQ4eAFQ | |
| 8.49am BST | 8.49am BST |
| 08:49 | 08:49 |
| Austria’s economy grew by 0.8% in the last quarter, thanks to a boost in trade. | Austria’s economy grew by 0.8% in the last quarter, thanks to a boost in trade. |
| New figures show that exports jumped by 2.4% in April to June, up from 2.0% in January to March. | New figures show that exports jumped by 2.4% in April to June, up from 2.0% in January to March. |
| 8.32am BST | 8.32am BST |
| 08:32 | 08:32 |
| Spain’s economy has finally reached its pre-crisis peak, thanks to the 0.9% growth recorded in the last quarter. | Spain’s economy has finally reached its pre-crisis peak, thanks to the 0.9% growth recorded in the last quarter. |
| Spanish real GDP now exceeds its pre-crisis level (2008) for the first time!! pic.twitter.com/8VyxCO2zbY | Spanish real GDP now exceeds its pre-crisis level (2008) for the first time!! pic.twitter.com/8VyxCO2zbY |
| That’s an important moment, but it has come at a cost. As El Pais points out, Spain still employs 1.9 million fewer people than in 2008. | That’s an important moment, but it has come at a cost. As El Pais points out, Spain still employs 1.9 million fewer people than in 2008. |
| Updated | Updated |
| at 8.51am BST | at 8.51am BST |
| 8.13am BST | 8.13am BST |
| 08:13 | 08:13 |
| Spain posts 0.9% growth | Spain posts 0.9% growth |
| Newsflash: Spain has recorded another strong quarter of growth, beating both the UK and France. | Newsflash: Spain has recorded another strong quarter of growth, beating both the UK and France. |
| Spanish GDP rose by 0.9% in the last three months, new figures from statistics body INE show. | Spanish GDP rose by 0.9% in the last three months, new figures from statistics body INE show. |
| That’s three times as fast Britain managed during the quarter, and nearly double France’s growth rate. | That’s three times as fast Britain managed during the quarter, and nearly double France’s growth rate. |
| That’s up from 0.8% in the first quarter of 2017, and means Spain’s economy has now grown for 15 quarters in a row (or nearly four years). | That’s up from 0.8% in the first quarter of 2017, and means Spain’s economy has now grown for 15 quarters in a row (or nearly four years). |
| On an annual basis, Spanish GDP grew by 3.1%. | On an annual basis, Spanish GDP grew by 3.1%. |
| More to follow.... | More to follow.... |
| Updated | Updated |
| at 8.15am BST | at 8.15am BST |
| 8.02am BST | 8.02am BST |
| 08:02 | 08:02 |
| Ouch. Shares in BT have fallen by 1.7% at the start of trading after posting a 40% drop in profits. | Ouch. Shares in BT have fallen by 1.7% at the start of trading after posting a 40% drop in profits. |
| My colleague Mark Sweney explains why.... | My colleague Mark Sweney explains why.... |
| BT’s profits slumped more than 40% in the first quarter of its new financial year after it was forced to pay out £225m to two shareholders following the accounting scandal at its Italian operation. | BT’s profits slumped more than 40% in the first quarter of its new financial year after it was forced to pay out £225m to two shareholders following the accounting scandal at its Italian operation. |
| Deutsche Telekom and Orange became shareholders in BT after the company struck a £12.5bn cash and shares deal to buy mobile company EE in 2015. | Deutsche Telekom and Orange became shareholders in BT after the company struck a £12.5bn cash and shares deal to buy mobile company EE in 2015. |
| As part of that deal the two companies were issued a warranty as a protection against a slump in BT’s performance. | As part of that deal the two companies were issued a warranty as a protection against a slump in BT’s performance. |
| DT and Orange triggered a claim under the warranty after BT’s stock market value plunged by almost £8bn, after the company revealed the extent of a £530m accounting scandal at its Italian operation. BT’s share price remains more than 20% lower that it was a year ago. | DT and Orange triggered a claim under the warranty after BT’s stock market value plunged by almost £8bn, after the company revealed the extent of a £530m accounting scandal at its Italian operation. BT’s share price remains more than 20% lower that it was a year ago. |
| 7.56am BST | 7.56am BST |
| 07:56 | 07:56 |
| The news that France’s economy grew by a healthy 0.5% last quarter should reassure investors, says Naeem Aslam of Think Markets: | The news that France’s economy grew by a healthy 0.5% last quarter should reassure investors, says Naeem Aslam of Think Markets: |
| Over in Europe, the French GDP data brought more light for the Eurozone’s economy. The problem child of the Eurozone is no longer a problem child, in fact, it has grown up and living up to the expectations. | Over in Europe, the French GDP data brought more light for the Eurozone’s economy. The problem child of the Eurozone is no longer a problem child, in fact, it has grown up and living up to the expectations. |
| Updated | Updated |
| at 7.56am BST | at 7.56am BST |
| 7.47am BST | 7.47am BST |
| 07:47 | 07:47 |
| Bloomberg journalist Mark Deen reckons the French economy has entered a purple patch: | Bloomberg journalist Mark Deen reckons the French economy has entered a purple patch: |
| French GDP in best run since 2011. Numbers strong if you dig into them - external trade contributing 0.8%, biggest such since 2010 pic.twitter.com/9Mn5dmUDZh | French GDP in best run since 2011. Numbers strong if you dig into them - external trade contributing 0.8%, biggest such since 2010 pic.twitter.com/9Mn5dmUDZh |
| 7.44am BST | 7.44am BST |
| 07:44 | 07:44 |
| Over in the City, Barclays has told shareholders its setting aside another £700m to cover the cost of the PPI scandal (in which customers were sold insurance they didn’t need, or ask for). | Over in the City, Barclays has told shareholders its setting aside another £700m to cover the cost of the PPI scandal (in which customers were sold insurance they didn’t need, or ask for). |
| Barclays has also posted a net loss of £1.2bn for the last six months, having losing £2.2bn through the sale of its Africa business. More on that shortly.... | Barclays has also posted a net loss of £1.2bn for the last six months, having losing £2.2bn through the sale of its Africa business. More on that shortly.... |
| Updated | Updated |
| at 7.44am BST | at 7.44am BST |
| 7.30am BST | 7.30am BST |
| 07:30 | 07:30 |
| IHS: France looks healthy, but there are risks.... | IHS: France looks healthy, but there are risks.... |
| Diego Iscaro, senior principal economist at IHS Global Insight, thinks France’s economy is in decent shape. | Diego Iscaro, senior principal economist at IHS Global Insight, thinks France’s economy is in decent shape. |
| Here’s his take on today’s GDP figures: | Here’s his take on today’s GDP figures: |
| France’s GDP rose by 0.5% q/q during the second quarter of 2017, according to seasonally-adjusted figures released by the INSEE. The economy had grown by the same magnitude during the first three months of the year. | France’s GDP rose by 0.5% q/q during the second quarter of 2017, according to seasonally-adjusted figures released by the INSEE. The economy had grown by the same magnitude during the first three months of the year. |
| Net foreign trade was the main driver of growth during the second quarter, adding 0.8 percentage point to the total change in demand, as exports rebounded strongly. Domestic demand, excluding stocks, also made a positive contribution. Internal demand was boosted by a new increase in investment spending (although it decelerated compared to the first quarter) and a modest acceleration in private consumption. | Net foreign trade was the main driver of growth during the second quarter, adding 0.8 percentage point to the total change in demand, as exports rebounded strongly. Domestic demand, excluding stocks, also made a positive contribution. Internal demand was boosted by a new increase in investment spending (although it decelerated compared to the first quarter) and a modest acceleration in private consumption. |
| The figures show France’s economy posting solid growth during the second quarter and support our view that GDP is likely to grow by around 1.6% in 2017. This would be the strongest performance in six years. | The figures show France’s economy posting solid growth during the second quarter and support our view that GDP is likely to grow by around 1.6% in 2017. This would be the strongest performance in six years. |
| We expect growth to remain healthy during the second half of the year, boosted by gradually improving labour market situation, muted inflation and solid external demand. Confidence indices suggest that firms and households are also more upbeat about the economic outlook, which should also help to support domestic demand. | We expect growth to remain healthy during the second half of the year, boosted by gradually improving labour market situation, muted inflation and solid external demand. Confidence indices suggest that firms and households are also more upbeat about the economic outlook, which should also help to support domestic demand. |
| Investment spending should also be supported by favourable credit conditions and improving demand levels during the second half of 2017. | Investment spending should also be supported by favourable credit conditions and improving demand levels during the second half of 2017. |
| The French economic recovery seems to be well stablished, but there are still risks on the horizon. Although hopes for the implementation of reforms – particularly on the fiscal and labour market fronts – are high, the risk of the government not delivering as expected is not negligible, despite its large majority in the National Assembly. | The French economic recovery seems to be well stablished, but there are still risks on the horizon. Although hopes for the implementation of reforms – particularly on the fiscal and labour market fronts – are high, the risk of the government not delivering as expected is not negligible, despite its large majority in the National Assembly. |
| Updated | Updated |
| at 7.57am BST | at 7.57am BST |
| 7.08am BST | 7.08am BST |
| 07:08 | 07:08 |
| French GDP: Snap reaction | French GDP: Snap reaction |
| Today’s growth figures should cheer France’s new leader, says Mehreen Khan of the FT. | Today’s growth figures should cheer France’s new leader, says Mehreen Khan of the FT. |
| She writes: | She writes: |
| The official figures will be a boon for president Macron who has vowed to overhaul the French economy after years of lagging behind its major eurozone rival, Germany. | The official figures will be a boon for president Macron who has vowed to overhaul the French economy after years of lagging behind its major eurozone rival, Germany. |
| Unemployment in France is now at its lowest since the eurozone crisis, inflation has been tamed, and business surveys are revealing the best confidence levels in a decade. | Unemployment in France is now at its lowest since the eurozone crisis, inflation has been tamed, and business surveys are revealing the best confidence levels in a decade. |
| French economic growth held steady at 0.5% as president Macron came to office https://t.co/lFkS98D29u pic.twitter.com/8xxLLpBGDq | French economic growth held steady at 0.5% as president Macron came to office https://t.co/lFkS98D29u pic.twitter.com/8xxLLpBGDq |
| Claus Vistesen of Pantheon Economics agrees that France did well in the last quarter.... | Claus Vistesen of Pantheon Economics agrees that France did well in the last quarter.... |
| Great GDP headline in France, but net exports will fall in Q3 and I doubt inventories will snap back in manufacturing to fully compensate. | Great GDP headline in France, but net exports will fall in Q3 and I doubt inventories will snap back in manufacturing to fully compensate. |
| Bloomberg’s Fergal O’Brien flags up that France’s economy has now grown for a year. | Bloomberg’s Fergal O’Brien flags up that France’s economy has now grown for a year. |
| France kicks off eurozone GDP season with 0.5% growth. In line with estimate and a fourth consecutive expansion. pic.twitter.com/ZYzShAMMOH | France kicks off eurozone GDP season with 0.5% growth. In line with estimate and a fourth consecutive expansion. pic.twitter.com/ZYzShAMMOH |
| 6.59am BST | 6.59am BST |
| 06:59 | 06:59 |
| This chart shows how net trade boosted French growth in the last quarter. | This chart shows how net trade boosted French growth in the last quarter. |
| 6.51am BST | 6.51am BST |
| 06:51 | 06:51 |
| French GDP rises by 0.5% | French GDP rises by 0.5% |
| Breaking: France’s economy grew by 0.5% in the second quarter of 2017. | Breaking: France’s economy grew by 0.5% in the second quarter of 2017. |
| That matches economists’ forecasts, and outpaces Britain’s 0.3% growth in the last three months. | That matches economists’ forecasts, and outpaces Britain’s 0.3% growth in the last three months. |
| It means that France’s economy has now grown steadily for the last year, and by 0.5% per quarter for the last nine months. That’s a pretty solid performance. | It means that France’s economy has now grown steadily for the last year, and by 0.5% per quarter for the last nine months. That’s a pretty solid performance. |
| #France #GDP Growth Rate QoQ 1st Est at 0.5% https://t.co/YZQGQpj2eo pic.twitter.com/tMHr1kvn0P | #France #GDP Growth Rate QoQ 1st Est at 0.5% https://t.co/YZQGQpj2eo pic.twitter.com/tMHr1kvn0P |
| The French economy was helped by a surge in exports - they rose by 3.1% in April to June, while imports only rose by 0.2%. | The French economy was helped by a surge in exports - they rose by 3.1% in April to June, while imports only rose by 0.2%. |
| Consumer spending rose too, to 0.3% from 0.1% in Q1. | Consumer spending rose too, to 0.3% from 0.1% in Q1. |
| However, business investment slowed to 0.5% from 2.1% in January to March. | However, business investment slowed to 0.5% from 2.1% in January to March. |
| On an annual basis, French GDP grew by 1.8% - again, slightly faster than Britain’s 1.7% year-on-year growth. | On an annual basis, French GDP grew by 1.8% - again, slightly faster than Britain’s 1.7% year-on-year growth. |
| France Q2 prelim GDP 0.5% QoQ = 3 months stable, but 1.8% YoY = strongest since late 2011 | France Q2 prelim GDP 0.5% QoQ = 3 months stable, but 1.8% YoY = strongest since late 2011 |
| More to follow.... | More to follow.... |
| Updated | Updated |
| at 6.52am BST | at 6.52am BST |
| 6.41am BST | 6.41am BST |
| 06:41 | 06:41 |
| The agenda: French and US growth figures | The agenda: French and US growth figures |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| We get two key pieces of economic data this morning - new growth figures from France and America. | We get two key pieces of economic data this morning - new growth figures from France and America. |
| Together, they’ll help us to see how the global economy performed in the second quarter of this year. Economists expect that both countries grew fairly solidly, with French GDP tipped to rise by 0.5% and America’s by around 0.7% (or 2.7% on an annualised basis). | Together, they’ll help us to see how the global economy performed in the second quarter of this year. Economists expect that both countries grew fairly solidly, with French GDP tipped to rise by 0.5% and America’s by around 0.7% (or 2.7% on an annualised basis). |
| We also find out how Canada’s economy performed in May. | We also find out how Canada’s economy performed in May. |
| Update: Spanish growth figures are also coming this morning. | Update: Spanish growth figures are also coming this morning. |
| It’s also another busy morning for financial news. Barclays bank, telecoms group BT, airline operator IAG and online estate agent Rightmove are among those reporting results. | It’s also another busy morning for financial news. Barclays bank, telecoms group BT, airline operator IAG and online estate agent Rightmove are among those reporting results. |
| The agenda: | The agenda: |
| 6.30am BST: French GDP for the second quarter of 2017 | 6.30am BST: French GDP for the second quarter of 2017 |
| 8am BST: Spanish GDP for the second quarter of 2017 | 8am BST: Spanish GDP for the second quarter of 2017 |
| 10am BST: Eurozone consumer confidence | 10am BST: Eurozone consumer confidence |
| 1pm BST: German inflation for July | 1pm BST: German inflation for July |
| 1.30pm BST: US GDP for the second quarter of 2017 | 1.30pm BST: US GDP for the second quarter of 2017 |
| 1.30pm BST: Canadian GDP for May | 1.30pm BST: Canadian GDP for May |
| Updated | Updated |
| at 7.40am BST | at 7.40am BST |