The China NPC sets ambitious targets for 2024
China's service activity grew at a slower pace in February. The Caixin/S&P Global Services PMI edged down to 52.5 from 52.7 in January.
The British Retail Consortium
British Retail Consortium (BRC) January numbers show consumer spending is slowing in the UK. Consumer spending rose 1% in February on a like-for-like basis, according to the British Retail Consortium, slowing for a 1.4% increase in January, below the forecast of a 1.6% rise. The survey says that bad weather kept shoppers at home but also shows households remain cautious about spending in the face of high borrowing costs and inflation. The cuts in National Insurance social security contributions that came into effect in January did little to encourage consumer spending. Chancellor Jeremy Hunt had said these cuts would help put more money in people's pockets.
The Caixin/S&P Global Services PMI
China's service activity grew at a slower pace in February. The Caixin/S&P Global Services PMI edged down to 52.5 from 52.7 in January. Still, it remains comfortably above the 50-mark for a 14th straight month. The survey contrasts with the official NBS one released last week, which showed service activity expanded at a faster pace.
The Chinese economy
The Chinese economy has been struggling since COVID, hit by a property crisis, weak consumer spending, and a contraction in manufacturing activity. To boost demand, Chinese policymakers have rolled out several measures over the past year. Overnight, the authorities announced more at the National People's Congress. It plans 1 trillion yuan of ultra-long special government bonds and 3.9 trillion yuan of new special local government bonds. The NPC also set a gross domestic product (GDP) growth target of around 5% in 2024, a CPI growth target of around 3%, and a budget deficit of 3% on GDP.
US PMI
Over in the US, Institute of Supply Management (ISM) services Purchasing Managers' Index (PMI) forecast at 53 in February, down from 53.4 the previous month. Factory orders are expected to fall by 2.8% in January month-over-month (MoM) after a 0.2% rise in December.
Greggs
Greggs total sales rose 19.6%, and underlying profit before tax excluding exceptional income rose 13.1% to £167.7 million. Greggs opened 220 new shops in 2023. Reach adjusted revenue fell 5.4% to £568.6 million, operating profit fell 9%, and dividends remained at 7.34 pence.
Target
Over in the US, Target is due to report before the market opens. The street anticipates earnings of $2.41 per share, which would be a 27.5% increase on the same quarter last year. Revenue is thought to rise by 1.5% to $31.83 billion.
Gold
Gold is little changed after another day of strong gains that took the precious metal near its peak three months ago. Traders are taking gold up ahead of Fed Chair Powell's two-day congressional testimony on Wednesday and Thursday, in a jobs data-heavy week, as investors seek more clues on the health of the US economy and the potential timing of the central bank's rate cuts.
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