Key events
Anxiety over demand from China is weighing on the oil price today.
Brent crude has dropped by 0.66% to $76.43 per barrel, the lowest in over a week.
Founded in a garage in Melbourne, REA Group has become Australia’s largest property website with operations across the country as well as in India and south-east Asia, PA Media points out.
According to its website, it employs more than 2,800 people.
If REA Group succeeded with a takeover of Rightmove, it would create an online estate agent with top positions in the Australian and UK property market.
REA argues there are “clear similarities” between the two businesses – both hold leading market positions in the residential business, for example, and “highly aligned cultural values”.
Shares in REA Group have fallen by 5.5% on the Australian stock market today, as traders react to its interest in Rightmove.
Murdoch’s REA Group considers Rightmove takeover
Rupert Murdoch’s property listings company is considering a swoop on UK housing portal Rightmove.
Australia’s REA Group, which is majority-owned by News Corp, says it sees an opportunity to create a “global and diversified digital property company” by acquiring Rightmove.
It is considering a possible cash and share offer for Rightmove, the FTSE-listed company, which was valued at around £4.34bn on Friday night.
REA told the City this morning:
“REA has a long history of growth and has demonstrated a track record of building businesses over decades to create globally leading platforms that have transformed the way people experience property.
With an acquisition of Rightmove, REA would look to enhance the UK property experience for buyers, sellers and renters, supporting Rightmove’s vision “to give everyone the belief they can make their move” while positively contributing to the property market ecosystem with investment and innovation.”
Introduction: China’s manufacturers report drop in export orders
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Chinese firms have been hit by a drop in exports orders, suggesting weakening demand from overseas as the crucial Christmas goods shipment period gets underway.
The latest survey of China’s manufacturers, from Caixin, released this morning shows that export orders were “subdued” last month, falling marginally for the first time this year amid reports of deteriorating external conditions.
The survey, which tracks small and medium-sized firms, also suggests that conditions in China’s manufacturing sector improved in August.
Price pressures eased as some factories benefitted from lower raw material costs, and confidence levels rose to a three-month high.
This lifted the Caixin/S&P Global manufacturing purchasing managers’ index (PMI) up to 50.4 in August, from 49.8 in July, and above the 50-point mark showing stagnation.
Dr Wang Zhe, senior economist at Caixin Insight Group, says:
“Demand picked up as total new orders resumed growth, with stronger demand for intermediate goods. Exports declined for the first time in eight months, dragged particularly by weakening demand for consumer products, pushing the corresponding indicator to the lowest since November.
So, a mixed picture. As was China’s official PMI, released by the National Bureau of Statistics on Saturday.
It found that China’s manufacturing activity sank to a six-month low in August as factory gate prices tumbled and owners struggled for orders.
The NBS’s purchasing managers’ index slipped to 49.1 from 49.4 in July, its sixth straight decline in a row.
We’ll find out this morning how UK and eurozone factories perfomed last month.
The agenda
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9am BST: Eurozone manufacturing PMI for August
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9.30am BST: UK manufacturing PMI for August
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11am BST: Ireland’s GDP and GNP report for Q2 2024