City Desk Morning Briefing - Monday December 5th 2011
So is the UK economy heading back into recession? We'll have a much better idea following the publication of the services PMI data for November at 9.30 this morning. The dominant service sector is absolutely critical and a poor reading will raise fears that we will slip back into contraction in the current quarter.
Economists expect today's data to show that the sector is continuing to grow - but only just, with a reading of 50.5 forecast. That would be a 2011-low (and down from 51.3 in October). We'll have full news and analysis from our economics team at
www.telegraph.co.uk .
Asian markets rose overnight on renewed hopes that European leaders have finally got to grips with the region's debt crisis. Angela Merkel flies to Paris today to meet Nicolas Sarkozy at the start of a crucial week for Europe. The pair will put the finishing touches to a plan for greater fiscal union and enforcement of the region's deficit rules ahead of (yet another) European summit in Brussels at the end of the week.
Meanwhile Italian prime minister, Mario Monti, will unveil a €30bn plan to reduce the country's debt, which includes raising taxes and the pension age, later today.
We have got our debt crisis live blog up and running for the opening of European markets, which are expected to follow Asia and open a fraction higher. You can also find the latest take on the eurozone crisis from Ambrose Evans Pritchard online.
On the corporate front we have got full year results this morning from Tui Travel. The group claims to have made record profits - albeit at the operating level. As well as the numbers we will also be quizzing chief executive Peter Long, on whether he approved those disgraceful adverts that attempted to play on customers fears and cash in on the troubles at rival Thomas Cook.
That's not the only news this morning from the travel sector. Easygroup - the private investment vehicle of Sir Stelios Haji-Ioannou - is apparently looking at launching a low-cost budget airline in Africa in a joint venture with Rubicon Diversified Investments.
We have also got what looks, at first glance, like a profit warning from recruitment group Michael Page and news that clients are deserting Aberdeen Asset Management - pulling out £1.7bn last year in volatile markets.
In the US an update from Dollar General should give Wall Street an insight into consumer confidence. We also get the Institute of Supply Management's service sector report.
By Richard Fletcher Daily Telegraph City Editor
