Investment market update
This bulletin provides you with an overview of the latest market news from around the world – world markets, key headlines, stocks and market data.
UK equities are expected to open flat this morning, as Greece is urged to return to the negotiation table and make further concessions if it is to secure additional bailout funds.
Global markets were down, as the uncertainty surrounding Greece continues, after weekend negotiations between the country and its creditors broke down.
Greece has no plans to present new proposals at a meeting of European finance ministers this week, signalling the country won’t make further concessions to unlock bailout funds needed to avoid default. Greek Finance Minister Yanis Varoufakis told Bild newspaper any new proposals would need to be thrashed out at a lower level before they could be presented to the finance ministers set to meet on the 18 June in Luxembourg. He said that Greece remains willing to find a solution but creditors need to take Greece’s proposals seriously to end the impasse.
European car sales rose at the slowest pace in six months in May as buyers’ concerns about unemployment and the Greek sovereign debt crisis held back demand at Volkswagen AG and Renault SA. Registrations increased 1.4% to 1.15 million vehicles from 1.14 million a year earlier, the Brussels-based European Automobile Manufacturers’ Association, or ACEA, said Tuesday in a statement. Five-month sales rose 6.7% to 6 million autos. The Organization for Economic Cooperation and Development cut its global economic-growth forecast in early June, in part because the risk of a debt default by Greece is making businesses wary of spending money.
Chancellor of the Exchequer, George Osborne, who has already axed almost 400,000 state jobs, is set to step up the pace of cuts as he continues to attempt to balance the budget. The public sector could lose as many as 800,000 workers by April 2019 as Prime Minister, David Cameron, attempts to squeeze spending and achieve a fiscal surplus, the Institute for Fiscal Studies said in a report Tuesday, citing Office for Budget Responsibility projections. Firings and a public-sector pay freeze have helped the government reduce the deficit to less than 5% of gross domestic product from a post-World War II high of more than 10% when Cameron took office at the head of a coalition in 2010.
United Technologies Corp. dropped 2.5% after lowering its 2015 profit target amid weakness at the Sikorsky helicopter unit being targeted for divestiture.
Netflix Inc. declined 1.1%. Alibaba Group Holding Ltd. is planning to build China’s version of Netflix and HBO via a new service called Tmall Box Office, as it tries to service 600 million families looking for more entertainment content.
EasyJet Plc fell 2.3% after RBC Capital Markets downgraded the airline from outperform to underperform.
Barratt Developments Plc and Taylor Wimpey Plc fell 2.46% and 2.86% respectively after Citigroup Inc. said house-builder returns are likely to be muted.