Chinese growth concerns as coronavirus new wave slows factory output – business live | Business

British aerospace producer Meggitt is about to be the newest massive UK firm snapped up by an abroad purchaser, after it agreed a £6.3bn take care of US engineering group Parker Hannifin.

Meggitt, which makes components like wheels, brakes and sensors for Airbus and Boeing planes, had been the goal of rumours of curiosity from one other US engineering firm - Woodward - on the finish of final week.

Nevertheless, it seems that Parker Hannifin, a constituent of the S&P 500 benchmark index, is the popular suitor. The corporate already makes aerospace components that management planes’ gas methods and hydraulics.

It has been a earnings parade for British banks to date this summer time, with the foremost UK lenders reporting an financial restoration that has meant earlier predictions of mortgage losses had been unfounded.

It’s HSBC’s flip in the present day. It reinstated dividend funds (after a ban was lifted) and launched $700m (£503m) that had been put aside to cowl dangerous money owed after earnings simply beat analyst estimates.

The Guardian’s banking correspondent, Kalyeena Makortoff, writes:

HSBC has hiked banker bonuses by 50% after earnings grew by greater than fourfold because of an financial rebound in the important thing markets together with the UK.

The London-headquartered financial institution mentioned it had put apart $900m to compensate its star bankers within the first half of the yr, up from $600m throughout the identical interval in 2020 when the financial institution’s earnings suffered from the onset of the Covid disaster. Its prime bankers may have one other six months to develop the bonus pool, earlier than it’s paid out subsequent spring.

HSBC mentioned the leap in mirrored the financial institution’s efficiency, as pre-tax earnings swelled to $5bn within the three months to 30 June, up from $1.1bn a yr earlier when it put apart billions of kilos to cowl potential defaults linked to the pandemic.

It’s trying like a optimistic begin to the week on European bourses regardless of the cautious outlook from Asia. London’s FTSE 100 has gained 1% within the opening minutes.

The index has been helped by robust outcomes from HSBC, whereas the aerospace sector has been a takeover strategy for Meggit (extra on each shortly).

Europe’s broad-based Stoxx 600 index gained 0.7% in early trades. France’s Cac 40 has gained 0.8%, Germany’s Dax index is up 0.6%, and Spain’s Ibex is up 0.9%.

Good morning, and welcome to our rolling protection of the world economic system, the monetary markets, the eurozone and enterprise.

It’s manufacturing PMI day - however the month-to-month check-up of manufacturing facility exercise from buying managers’ index surveys all over the world has acquired off to a reasonably tepid begin with the information of the slowest development in output from China’s manufacturing sector since April 2020.

China’s Caixin PMI got here in at 50.3 for July - nonetheless above the 50 development mark however decrease than the 51 forecast by economists. It was the bottom studying for the reason that contraction of April 2020 because the virus hit the worldwide economic system.

China and different Asian economies had been hit by rising prices, and new waves of the Delta variant of the coronavirus have forged a shadow over demand. Manufacturing facility output rose in each Japan and South Korea, the opposite giant east Asian economies, however provide chain shortages and uncooked materials shortages bit.