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| Markets await latest eurozone growth figures, Dixons data breach - business live | |
| (35 minutes later) | |
| Germany’s jobless total fell by 6,000 in July to 2.338m, compared to expectations of a 10,000 decline. The unemployment rate was steady at 5.3%, as forecast. | |
| Here’s our story on the Dixons Carphone data breach: | |
| Dixons Carphone said an investigation into a massive data breach has found personal data belonging to 10 million customers may have been accessed last year, nearly 10 times as many as initially thought. | |
| The electronics retailer had estimated the attack involved unauthorised access to 1.2m personal records, when it first reported the breach in June. It said there was no evidence of any fraud. | |
| Alex Baldock, chief executive, said: “Since our data security review uncovered last year’s breach, we’ve been working around the clock to put it right. That’s included closing off the unauthorised access, adding new security measures and launching an immediate investigation, which has allowed us to build a fuller understanding of the incident that we’re updating on today. | |
| “Again, we’re disappointed in having fallen short here, and very sorry for any distress we’ve caused our customers. I want to assure them that we remain fully committed to making their personal data safe with us.” | |
| The company said records containing personal data such as names, addresses or email addresses had been accessed, but not financial information. It is writing to customers to apologise for the data breach, but does not plan to pay compensation as there is no evidence that anyone has suffered any financial loss. | |
| “While there is no evidence that some of this data may have left our systems, these records do not contain payment card or bank account details and there is no evidence that any fraud has resulted,” Dixons said. | |
| The full report is here: | |
| Some big falls on the FTSE 100 from company’s reporting results. | Some big falls on the FTSE 100 from company’s reporting results. |
| Rentokil Initial is down 4.4% after half year profits dropped 81.5% although last year’s figure included a one off £462m profit on the disposal of its workwear business. Revenues fell 4.7%. | Rentokil Initial is down 4.4% after half year profits dropped 81.5% although last year’s figure included a one off £462m profit on the disposal of its workwear business. Revenues fell 4.7%. |
| Standard Chartered is 3.4% lower despite a 34% rise in profits, as worries about a trade war unsettle investors. | Standard Chartered is 3.4% lower despite a 34% rise in profits, as worries about a trade war unsettle investors. |
| And British Gas owner Centrica is down 3.5% as it reported a 20% fall in profits at its consumer division and announced the loss of another 226,000 customers or 1% in the first half. Neil Wilson, chief market analyst at Markets.com said: | And British Gas owner Centrica is down 3.5% as it reported a 20% fall in profits at its consumer division and announced the loss of another 226,000 customers or 1% in the first half. Neil Wilson, chief market analyst at Markets.com said: |
| Centrica results make for some grim reading again but management does sound a little more confident than the talk of ‘material uncertainty’ we got at the start of the year... | Centrica results make for some grim reading again but management does sound a little more confident than the talk of ‘material uncertainty’ we got at the start of the year... |
| The UK Consumer division is leaking cash and customers. Although the customer churn has slowed with accounts down just 1%, profits there fell 20%. The cold snap could have been good for Centrica but higher wholesale costs, fewer customer accounts and the prepayment cap all weighed on profits. | The UK Consumer division is leaking cash and customers. Although the customer churn has slowed with accounts down just 1%, profits there fell 20%. The cold snap could have been good for Centrica but higher wholesale costs, fewer customer accounts and the prepayment cap all weighed on profits. |
| And while it’s slowing, the loss of customers needs to be arrested fast – cutting costs is working for now but is not sustainable longer term. Centrica lost 226,000 customers in the first half and the fact that this is flagged as a better performance than previously shows just how bad the situation is. | And while it’s slowing, the loss of customers needs to be arrested fast – cutting costs is working for now but is not sustainable longer term. Centrica lost 226,000 customers in the first half and the fact that this is flagged as a better performance than previously shows just how bad the situation is. |
| It’s a cautious opening for European markets, with a raft of company results, some key economic data ahead and continuing concerns about valuations in the technology sector after major falls for Facebook and Twitter. | It’s a cautious opening for European markets, with a raft of company results, some key economic data ahead and continuing concerns about valuations in the technology sector after major falls for Facebook and Twitter. |
| The FTSE 100 is up 0.07%, while Germany’s Dax edged 0.1% higher but France’s Cac fell 0.1% and Italy’s FTSE MIB dipped 0.04%. | The FTSE 100 is up 0.07%, while Germany’s Dax edged 0.1% higher but France’s Cac fell 0.1% and Italy’s FTSE MIB dipped 0.04%. |
| The Bank of Japan’s actions today continue its dovish tendencies. Viraj Patel, foreign exchange strategist at ING Bank said: | The Bank of Japan’s actions today continue its dovish tendencies. Viraj Patel, foreign exchange strategist at ING Bank said: |
| When it comes to the July BoJ meeting, there was more than meets the eye – with the central bank making subtle, yet curious, tweaks to its unconventional policy artillery. But if anyone was in doubt, the super-easy BoJ policy is still very much in place; while officials will allow for greater flexibility in long-term yields, it’s important to stress the two-way flexibility here (not just upwards, but also downwards). In fact, by firmly restating the annual ¥80trn JGB purchase target, the BoJ are showing no real appetite for a rapid rise in long-term yields (there was explicit aversion to this in the statement). What sealed the dovish deal was the guidance that the BoJ will ‘maintain very low rate levels for an extended period of time’ – which is not too dissimilar to what the ECB stated last month. | When it comes to the July BoJ meeting, there was more than meets the eye – with the central bank making subtle, yet curious, tweaks to its unconventional policy artillery. But if anyone was in doubt, the super-easy BoJ policy is still very much in place; while officials will allow for greater flexibility in long-term yields, it’s important to stress the two-way flexibility here (not just upwards, but also downwards). In fact, by firmly restating the annual ¥80trn JGB purchase target, the BoJ are showing no real appetite for a rapid rise in long-term yields (there was explicit aversion to this in the statement). What sealed the dovish deal was the guidance that the BoJ will ‘maintain very low rate levels for an extended period of time’ – which is not too dissimilar to what the ECB stated last month. |
| Back in the UK, and Dixons Carphone had previously announced it had found unauthorised access to some of its data. Now it says that around 10m records containing personal data may have been affected in 2017. | Back in the UK, and Dixons Carphone had previously announced it had found unauthorised access to some of its data. Now it says that around 10m records containing personal data may have been affected in 2017. |
| It says there is evidence some of this data may have left its systems but it maintains these records did not contain payment card or bank account details and there is no evidence of any fraud being committed. It is now contacting all of its customers to apologise and advise them of the steps they need to take to minimise the risk of fraud. | It says there is evidence some of this data may have left its systems but it maintains these records did not contain payment card or bank account details and there is no evidence of any fraud being committed. It is now contacting all of its customers to apologise and advise them of the steps they need to take to minimise the risk of fraud. |
| German consumers are spending freely according to the latest retail sales figures. | German consumers are spending freely according to the latest retail sales figures. |
| They rose 3% year on year in June, up from a 1.2% rise in May and much better than the 1.5% increase expected by analysts. The month on month figure showed a 1.2% increase, compared to a 1.5% decline in May. | They rose 3% year on year in June, up from a 1.2% rise in May and much better than the 1.5% increase expected by analysts. The month on month figure showed a 1.2% increase, compared to a 1.5% decline in May. |
| Here are the opening calls for the European markets from IG: | Here are the opening calls for the European markets from IG: |
| European Opening Calls:#FTSE 7698 -0.04%#DAX 12806 +0.06%#CAC 5484 -0.14%#MIB 21941 +0.00%#IBEX 9849 -0.05% | European Opening Calls:#FTSE 7698 -0.04%#DAX 12806 +0.06%#CAC 5484 -0.14%#MIB 21941 +0.00%#IBEX 9849 -0.05% |
| In Asia the Hang Seng is down 0.53% while the Nikkei 225 is up 0.039%. | In Asia the Hang Seng is down 0.53% while the Nikkei 225 is up 0.039%. |
| 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. |
| Investors will be anticipating another nervy day on the markets after a weak start to the week. The technology drop which followed last week’s poor results from Facebook and Twitter continued on Monday, with the Nasdaq Composite recording its third decline of more than 1% in a row. Will Apple, which reports later, be able to turn the tide? Michael Hewson, chief market analyst at CMC Markets UK, said: | Investors will be anticipating another nervy day on the markets after a weak start to the week. The technology drop which followed last week’s poor results from Facebook and Twitter continued on Monday, with the Nasdaq Composite recording its third decline of more than 1% in a row. Will Apple, which reports later, be able to turn the tide? Michael Hewson, chief market analyst at CMC Markets UK, said: |
| Apple shares managed to outperform [on Monday], only declining 0.5%, but only because investors are looking ahead to tonight’s Q3 earnings announcement, but even here there may be cause for concern. Lower average selling prices at its Q2 update suggested that buyers were opting for cheaper models, perhaps indicating that iPhone X sales may have peaked. Whether this is true or not is likely to be difficult to determine given that Q3 tends to be a weak quarter in any case, as it tends to be a precursor to a range of new product launches or updates, which tend to happen in Q4. | Apple shares managed to outperform [on Monday], only declining 0.5%, but only because investors are looking ahead to tonight’s Q3 earnings announcement, but even here there may be cause for concern. Lower average selling prices at its Q2 update suggested that buyers were opting for cheaper models, perhaps indicating that iPhone X sales may have peaked. Whether this is true or not is likely to be difficult to determine given that Q3 tends to be a weak quarter in any case, as it tends to be a precursor to a range of new product launches or updates, which tend to happen in Q4. |
| Of more importance will be its burgeoning services business, which includes music, games, apps and Apple pay fees, and which has slowly grown in importance, and has seen revenues rise consistently since 2012. | Of more importance will be its burgeoning services business, which includes music, games, apps and Apple pay fees, and which has slowly grown in importance, and has seen revenues rise consistently since 2012. |
| It is a busy day for company results ahead of the start of the summer lull, with BP already reporting its first dividend hike since 2014. | It is a busy day for company results ahead of the start of the summer lull, with BP already reporting its first dividend hike since 2014. |
| On the economic front we have eurozone GDP figures, with the second quarter expected to show a dip from 2.5% to 2.2% on an annualised basis. Initial July inflation figures for the bloc are forecast to remain at 2% on a headline basis, with the core number edging back to 1%. Hewson said: | On the economic front we have eurozone GDP figures, with the second quarter expected to show a dip from 2.5% to 2.2% on an annualised basis. Initial July inflation figures for the bloc are forecast to remain at 2% on a headline basis, with the core number edging back to 1%. Hewson said: |
| Last week the European Central Bank signed off for its summer break by playing down expectations that we’d see a rate rise much before the end of Q3 next year, and this candour from President Mario Draghi went some way to help push the euro down towards the bottom end of its recent range. | Last week the European Central Bank signed off for its summer break by playing down expectations that we’d see a rate rise much before the end of Q3 next year, and this candour from President Mario Draghi went some way to help push the euro down towards the bottom end of its recent range. |
| Since then we’ve seen it start to edge back up again despite a strong US Q2 GDP number, which has seen US rates edge back up again, and today’s latest preliminary flash EU CPI number for July could well prompt a further recovery towards the 1.1800 area. Inflation pressures have popped higher in recent months, helped by rising energy prices, however these do appear to have stalled a little, particularly given that core prices dropped below 1% in June to 0.9%. | Since then we’ve seen it start to edge back up again despite a strong US Q2 GDP number, which has seen US rates edge back up again, and today’s latest preliminary flash EU CPI number for July could well prompt a further recovery towards the 1.1800 area. Inflation pressures have popped higher in recent months, helped by rising energy prices, however these do appear to have stalled a little, particularly given that core prices dropped below 1% in June to 0.9%. |
| Earlier the Bank of Japan said it would be more flexible in its asset purchase programme, and vowed to keep interest rates low for the time being. | Earlier the Bank of Japan said it would be more flexible in its asset purchase programme, and vowed to keep interest rates low for the time being. |
| Also today, the Financial Conduct Authority is due to publish its latest report on its investigation into Royal Bank of Scotland’s mistreatment of small and medium sized businesses through its global restructuring group. | Also today, the Financial Conduct Authority is due to publish its latest report on its investigation into Royal Bank of Scotland’s mistreatment of small and medium sized businesses through its global restructuring group. |
| Agenda: | Agenda: |
| 10.00 BST Eurozone inflation and GDP | 10.00 BST Eurozone inflation and GDP |
| 10.00 BST FCA report into Royal Bank of Scotland | 10.00 BST FCA report into Royal Bank of Scotland |
| 13.30 BST US personal spending figures | 13.30 BST US personal spending figures |