Weekly News Summary for July 12-18, 2019

Friday,  July 12: US PPI Slightly Improves in June

US producer prices slightly improved in June, as acceleration in services was offset by lower costs of energy goods and other products, resulting in the smallest annual gain in producer inflation since January 2017.

The Labor Department stated on Friday, that in the 12 months through last month, the US producer price index (PPI) for final demand rose by 1.7%, to mark as the smallest increase in nearly 2-1/2 years.

Monday, July 15: China Registers Slowest Growth since 1992

China’s economy grew to its weakest since the first quarter of 1992, as the impact of its trade spat with the US takes effect.

Data from the country’s statistics bureau released on Monday, showed the world’s second largest economy expanded by 6.2% in the second quarter, the slowest rate in at least 27 years, and ending lower than the 6.4% registered in the previous quarter.

Tuesday, July 16: US Retail Sales Surpass Forecasts in June

US retail sales on Tuesday showed solid growth last month, indicating higher consumer spending, which might help minimize some of the negative impact of weak business investment.

The Commerce Department said retail sales advanced by 0.4% in June, beating economists’ forecasts for 0.1% rise, as households increased their spending on motor vehicles and other items.

Wednesday, July 17: Netflix Falls on Lower Subscriber and Revenue Data

Shares of US streaming giant Netflix dropped more than 12% in after-hour trade on Wednesday, after the company reported lower-than-expected subscriber and revenue figures in the second quarter.

Netflix reported earnings of $0.60 per share, surpassing EPS forecast of $0.56, although revenue of $4.92 billion, slightly missed expectations of $4.93 billion, while global subscriber numbers of 2.7 million, also ended below estimates of 5 million.

Thursday, July 18: SAP Reports Weak Results, European Shares Drop

German business software group SAP dropped by 6.9% on Thursday, after Europe’s most valuable tech firm told investors that significant improvement in margins will have to wait until 2020, as its second-quarter operating profit slipped 21%.

The company’s disappointing results weighed the DAX down by 1.1%, which then send the STOXX 600 0.6% lower.