Dollar steady ahead of US inflation data

The UK economy

The UK economy shrank by 0.5% in July month-over-month (MoM), more than economists' anticipations of a 0.2% fall. Industrial production also missed expectations, down 0.7% MoM. At 10 a.m., industrial production in the eurozone was forecast to fall by 0.7% in July MoM. Year over year, the index is expected to fall by 0.3%.

US inflation

The market is waiting for US inflation data at 1.30 p.m.The market expects a mixed picture. consumer price index (CPI) growth is expected to accelerate to 3.6% in August year-over-year (YOY) after a 3.2% rise last month. An increase due to the recent rise in oil prices. Core CPI is forecast at 4.3% YoY, after 4.7% in July.

BP

BP Chief Executive Bernard Looney is to resign with immediate effect. Less than four years into the job, 53-year-old Looney is leaving not for financial reasons but following several allegations of personal relationships with colleagues. He joined BP in 1991, aged 21, and has spent his entire career at the company.

He was appointed chief executive in 2020 to transform the oil producer into an integrated energy company and navigate the energy transition. He pledged to cut oil and gas production to reduce carbon emissions, while investing in clean energy technologies.

BP's strategy

Three years ago, it was Looney who presented BP's ambitious plan to raise solar and wind capacity to 50 gigawatts by 2030. A plan with a cost of $112 billionInvestors will certainly wonder if Looney's departure will affect BP's strategy.

The group certainly doesn't want the market to think so. This morning, BP announced a $10 billion plan in Germany. BP aims to build up to 20 thousand fast EV charging spots by 2030. There are about 1,700 now. It also plans to produce more than 500,000 metric tonnes of sustainable aviation fuel at its Lingen refinery in Germany by 2030.

Birkenstock

Birkenstock is filing for an Initial public offering (IPO) in New York. According to Bloomberg, the German sandal maker is targeting a valuation of more than $8 billion. Birkenstock is aiming to join the NYSE in early October. Birkenstock's latest half-year report shows revenue of $644 million, up 19%, but net profit fell 45% to $40 million due to a sharp rise in operating costs.

Crude oil

On Tuesday, the Organization of the Petroleum Exporting Countries (OPEC) monthly report showed that global oil markets face a supply shortfall of more than 3 million barrels a day next quarter—potentially the biggest deficit in more than a decade—as Saudi Arabia extends its production cuts.

Also on Tuesday, inventories unexpectedly rose. According to the American Petroleum Institute (API), crude oil inventories increased by 1.2 million barrels last week. Analysts anticipated a two-million barrel drop. Gasoline and distillate stocks also rose by 4.2 million and 2.6 million, respectively.