Closing post
Time for a recap.
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The UK’s services sector grew at the fastest rates since last May in January, helped by the prospect of interest rate cuts.
S&P Global’s UK services PMI rose to 54.3 in January from 53.4 in December, an eight-month high, with firms reporting a rise in new orders
Germany’s economy is struggling, though, with its service sector shrinking in January while imports and exports both fell in December.
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The dollar has strengthened after America’s top central banker said the U.S. Federal Reserve can be “prudent” in deciding when to cut its benchmark interest rate.
Chair Jerome Powell told CBS’s “60 Minutes” show that the Fed wants to see confirmation that inflation is moving down to 2% in a sustainable way.
Powell also indicated that Fed policymakers still expect to cut rates three times this year.
Powell’s comments pushed the dollar to its highest level against the pound since December.
Central banks should be certain they have beaten inflation before cutting interest rates this year, the OECD has warned, as it raised its growth forecasts for this year.
McDonald’s has missed sales forecasts, after takings in the Middle East were hit by boycotts against the company due to the Israel-Hamas war.
The pharmaceuticals firm behind the anti-obesity drugs Ozempic and Wegovy is spending $11bn to boost its production facilities, after struggling to keep up with demand.
Boeing could have to delay deliveries of more of its bestselling 737 Max planes after a supplier found new production glitches, adding to pressure on the beleaguered US manufacturer.
Estee Lauder to cut up to 5% of workforce
Cosmetics giant Estee Lauder will cut about 3% to 5% of its global workforce.
The cuts come as Estee Lauder tries to rebuild its profit margins, as a turnaround at it Chinese business is taking longer than expected.
Estee expects incremental operating profit between $1.1bn and $1.4bn from the efforts, up from $800m to $1bn it estimated earlier and looks to record between $500m and $700m in charges before taxes.
Shares in the company have jumped 15%.
