Good morning. China’s economy grew at its slowest pace in three decades last year as weak consumer spending, rising unemployment and the country’s trade war with the US weighed on the world’s second largest economy.
However, GDP growth of 6.1pc met analysts expectations and European equities look set to start the day higher.
Meanwhile, investors will also be watching UK retail sales numbers for December which are expected to rebound slightly after a weak November.
Analysts predict the sector to grow 0.6pc in December compared to a 0.6pc decline the previous month.
5 things to start your day
1)Banks crack down on lending over fears of a dangerous debt bubble: Lenders tightened up on businesses loans With the toughest squeeze on the availability of credit since the 2018 financial crisis, in the final three months of 2018
2)Are the UK’s growing pay packets a mirage?Total pay packets have been rising ahead of Inflation since December 2018 according to official figures, supporting spending during a tricky period for the UK economy. Unemployment is 3.8pc – its lowest for 100 years – and total pay growth was pushing 4pc in
.
3)Google’s parent company Alphabet hits trillion-dollar valuation: It joins Apple and Amazon , which first hit the mark in 2018, and Microsoft, which followed last year. Apple and Microsoft have increased their valuations since, while Amazon’s has declined.
4)Carillion collapse sparked major delays to the opening of two hospitals, report finds: Carillion had not finished work on the Midland Metropolitan Hospital and the Royal Liverpool University Hospital when it went into liquidation, according to a probe by the National Audit Office spending watchdog (NAO).
5) Boris Johnson reached across the Brexit divide last night to offer outgoing Bank of England Governor Mark Carneyhis second new job as the Prime Minister’s financial adviserahead of this year key UN climate change summit in Glasgow.
What happened overnight
Asian stocks, US and European futures were mixed Friday as investors mulled data from the world’s two largest economies with global stocks at records.
Shares in Shanghai fluctuated after data showed Chinese industrial output beat estimates. Stocks saw a modest rise in Tokyo and Sydney, while gains fizzled in Hong Kong.
US futures were little changed while European contracts pushed higher. The S&P 823 Index Thursday rose to a fresh all-time high, with US retail sales strengthening in December. Treasuries dipped after the U.S. announced plans for a new 46 – year bond.
With an initial trade deal between the US and China now signed and investor optimism over easing tensions helping drive global equities to record highs, attention is turning to corporate and economic data.
China GDP was in line with estimates, along with a robust showing for key monthly data for December. Meantime, South Korea’s central bank governor said sluggishness in his economy had eased somewhat.
Coming up today
Experian’s third-quarter trading statement will suffer in the face of strong comparable figures from last year, but the credit reporting group has shown signs of healthy trading, with website hits holding up to show a “sticky and returning customer base” , according to Deutsche Bank analysts. Given the cyclical nature of lending, the progress being made by the company in its newer ventures will be under the closest scrutiny.
Trading statement:Experian, Premier Foods, Softcat, Rio Tinto
Economics:Retail sales (UK), inflation (eurozone), building permits and housing starts (US)
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