Afternoon Coffee: US Manufacturing Grows Sharply in July, Brexit Drags Down Europe’s Business Activity

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The U.S. manufacturing sector has experienced positive growth this month, with manufacturing production seeing its sharpest rise since November. Markit said its Flash U.S. Manufacturing Purchasing Manager’s Index hit 52.9 in July, up from 51.3 in June.

Business activity in Europe, however, did not fare so well this month, with manufacturing and services output falling. Markit reported today that its Eurozone Flash PMI fell to an 18-month low of 52.9 in July. Economists point to Britain's vote to leave the European Union as one factor dragging down the flash PMI.

Bangladesh authorities and industry groups are trying to reassure foreign companies their supply chains are secure despite exporting delays from the country and threats of terrorism taking place there. All ports of entry into the country face higher security measures as the government aims to keep arms from entering. European retail association Accord said about 200 members will continue to source garments from Bangladesh.

ExxonMobil will acquire oil and gas company InterOil for $2.5 billion in stock as Exxon aims to ramp up liquified natural gas production to meet growing Asian demand. The deal will also add exports from Papua New Guinea, where InterOil is largely focused.


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