It’s eurozone GDP day, when we learn how the countries which share the single currency are faring economically. And the early news is that France’s economic growth was stronger than expected in the second quarter of this year. French GDP expanded by 0.3% in the April-June quarter, new data from statistics body INSEE shows, beating expectations for 0.2% growth. That matches the 0.3% growth recorded across the eurozone’s second-largest economy in the first quarter of the year. It suggests France’s economy was stronger than expected this spring – before Emmanuel Macron stunned Europe by calling snap parliamentary elections last month. INSEE reports that domestic demand “picked up slightly”, and added to growth. There was also a “slight rebound” in investment (or gross fixed capital formation). Household consumption was stable in the quarter, while foreign trade also made a positive contribution to growth.Exports grew by 0.6%, driven by a rise in transport equipment – which INSEE attributes to the “delivery of a new ship”. INSEE has previously predicted that the Olympic Games’ will lift France’s economic growth in the third quarter of this year. Economists predict that the wider eurozone also grew in the last quarter, by an estimated 0.2%. We’ll find out if they’re right at 10am, after getting growth figures from Italy, Spain and Germany too. In the energy sector, BP has lifted its dividend after beating profit forecasts for the last quarter. BP has reported an underlying profit of $2.756bn for the second quarter of the financial year, up from $2.589bn in the same quarter in 2023, and slightly higher than the $2.723bn it earned in Q1. That beat analyst expectations of $2.6bn. BP said the profit was due to “an average” performance in gas marketing and trading, lower refining margins, stronger fuels margins and “lower taxation”. It adds: "The underlying effective tax rate (ETR)* in the quarter was 33% which reflects the impact of the reassessment of the recognition of deferred tax assets." BP is raising its dividend to 8c per share, up from 7.27c/share. The oil giant has also announced another share buyback, worth $1.75bn, for the last quarter, as it continues to use spare cash to buy back equity. Kate Thomson, BP’s chief financial officer, says: "We generated strong operating cash flow in the quarter, which helped reduce net debt to $22.6bn. "Our decision to increase our dividend by 10%, and extend our buyback programme commitment to Q4 2024, reflects the confidence we have in our performance and outlook for cash generation. "We are maintaining a disciplined financial frame and remain committed to growing value and returns for BP." The agenda • 8am BST: Spain’s Q2 2024 GDP report • 9am BST: Germany’s Q2 2024 GDP report • 9am BST: Italy’s Q2 2024 GDP report • 10am BST: Eurozone GDP report for Q2 2024 • 1pm BST: Germany’s inflation rate for July • 2pm BST: US house price index for May • 3pm BST: US consumer confidence index for Jul We’ll be tracking all the main events throughout the day ...
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