In June, France’s service sector experienced a sharp fall in new orders, attributed to election uncertainty. Output prices rose slightly. Italy’s service sector expanded but with weakened momentum, while Germany’s services business activity also eased. In Spain, private sector expansion continued at an above-average pace.
As the UK general election approached, concerns about infrastructure and the NHS emerged. Guardian reporters found little hope for change despite potential shifts in politics. In financial markets, a Labour victory is predicted to boost UK assets. Wealthy individuals are selling assets amid fears of increased capital gains tax.
GSK acquired full rights to develop mRNA vaccines for flu and COVID-19 from CureVac, enhancing their vaccine development capabilities. Hawksmoor restaurant chain is up for sale, with a potential value of £100m, as it seeks to expand overseas operations. US markets rise on optimism following remarks by Jerome Powell, with Tesla shares jumping 10% on better-than-expected car sales.
Overall, economic activity in June was mixed across various countries, with political uncertainty impacting business confidence. Despite concerns in the UK around infrastructure and healthcare, financial markets are hopeful for stability post-election. GSK’s acquisition of vaccine rights and Hawksmoor’s potential sale reflect ongoing shifts in the business landscape. Meanwhile, US markets react positively to potential rate cuts and strong car sales figures from Tesla.
Source
Photo credit www.theguardian.com