The day was marked by a stagnant UK economy. India’s renewed trade talks with the European Union were pressed into action. EU climate policy discussions had been delayed. And Ocado’s shares dropped sharply.
UK Growth Stagnates in July
According to Office for National Statistics, the UK economy did not grow in July. This is a major setback for Rachel Reeves as she prepares for an upcoming budget.
This flatlining follows a 0.4% growth in June. It highlights a slower pace of economic expansion after the UK had the highest rate of G7 economy in the first six months.
ONS reports that the gains made in construction and services were countered by a contraction of 0.9% in manufacturing, which is included in production.
In a wider measure, the GDP increased by only 0.2% over the past three months compared to the same period in June.
Liz McKeown, ONS’s director of economic stats said that the growth in the economy has remained slow for the past three months. The growth of services was stable, but production declined.
India and EU Push for Free Trade Agreement
India and the European Union have intensified their efforts to reach a free-trade agreement, as New Delhi seeks diversified export markets to counter US tariffs.
According to a statement, Commerce Minister Piyush Ghoyal stated at a New Delhi industry event on Friday that “India and European Union work with commitment and sincerity to finalise an comprehensive and balanced trade agreement.”
This urgency is a result of the United States’ 50% tariff on Indian imports.
Maros Sefcovic is also in India to negotiate and described the negotiations as being “intense”. He said that they were moving at an “unprecedented pace.”
Both parties aim to reach an agreement before the end of this year.
EU Climate Goal talks delayed
Germany and France joined forces in order to bring the discussion about the proposed climate targets for 2040 to the heads of governments within the European Union, thereby delaying a decision.
Germany, which has already adopted this position, said that at a Brussels meeting of ambassadors, the European Commission plan to reduce emissions by 90 percent by 2040, should be decided by the summit of leaders in October.
Denmark, the rotating president, gave up on its efforts to achieve a faster qualified majority agreement by next week, as the EU’s largest two economies were aligned.
The proposal must now be approved by all EU leaders. This is a much more difficult political obstacle than just a vote among ministers.
Ocado shares drop on Kroger review
Ocado shares fell by 13% Friday, after US retailer Kroger announced a review of their investment in automated storage facilities. These warehouses are a critical part of Ocado’s global growth strategy.
Ron Sargent, interim chairman of Kroger and its CEO, told investors the company would be reviewing “site by site” their automated fulfillment network that was built with Ocado.
These remarks were made following a strategic review conducted by Kroger in June.
Sargent stated on Thursday that “we’re looking at all aspects of the business in order to increase efficiency. This includes a site-by-site review of our Kroger automated fulfillment network.”
Ocado stock has dropped 18% in the last year. This news raised questions about the future of the US business.
The post Europe Bulletin: UK Growth Flatlines, India EU Trade Deal, Ocado Shares Slump may be updated as new developments unfold
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