What to Watch: European stocks, Italian bonds, Chinese GDP

Here’s a daily overview of the top business and economic developments the Yahoo Finance UK team is monitoring in the UK, Europe and abroad:

European stocks to watch: Michelin, InterContinental Hotels, Bouygues

Shares in tyre maker Michelin (ML.PA) tumbled by about 7% in morning trading after it cut its sales outlook and downgraded its tyre market growth forecasts. The company blamed slowing Chinese car demand and new emissions testing regulations.

Shares in InterContinental Hotels Group (IHG.L) were down by roughly 7% in morning trading on the London Stock Exchange after the company reported worse-than-expected quarterly results. Shares were trading at their lowest level of the year in London. The company’s stock is also traded in New York.

French conglomerate Bouygues (EN.PA) fell about 10% in morning trading – making it the biggest loser on the CAC 40 in Paris — after it cut its profit outlook due to difficulties in its construction businesses. This put pressure on shares in other construction firms in Europe.

Overall, European stocks were down on Friday morning while Asian stock markets ended the day with mixed results.

UK ban on fuel-powered car sales by 2032?

A UK parliamentary committee is proposing that Britain bring forward a ban on the sale of new petrol and diesel cars to 2032 to help the country reduce its greenhouse gas emissions.

Britain hopes to become a world leader in electric vehicle technology and currently plans to ban the sale of new petrol and diesel cars from 2040.

The Society of Motor Manufacturers and Traders (SMMT) called the deadline “impossible” to meet.

“Government’s 2040 ambition was already extremely challenging, so to fast-track that by eight years would be nigh on impossible,” said Mike Hawes, SMMT chief executive. “Zero emission vehicles make up just 0.6% of the market meaning consumer appetite would have to grow by some 17,000% in just over a decade.”

Amazon promises 1,000 new tech jobs in the UK

Amazon (AMZN) announced on Thursday evening it would open its first office in Manchester and expand two other centres in Edinburgh and Cambridge to house 1,000 new research and development roles.

The American firm called the move a “major investment boost to UK innovation.”

The new corporate office in Manchester will house at least 600 new workers, while the Edinburgh office will be expanded to accommodate more than 250 new staff. The Cambridge office will grow to bring in another 180 employees.

Bank of England’s Mark Carney speaks in New York

The head of the Bank of England, Mark Carney, is making a speech at the Economic Club of New York on Friday. Economists will be closely monitoring his talk for hints about his thoughts on Brexit, the UK economy and interest rates. The text of his speech will be released after UK stock markets close for the day.

Carney recently committed to staying at the central bank to January 2020.

Italian bond yields hit 4-year high

Traders sold Italian bonds and the euro on Friday after the European Union called Italy’s draft budget an “unprecedented” breach of EU fiscal rules.

Italy’s benchmark 10-year bond yields rose to 3.74% in early trading on Friday, the highest level since February 2014.

Late on Thursday, the European Commission told Rome in a letter that Italy’s planned government spending was too high and the country’s public debt would not fall in line with EU rules.

Chinese growth slows to 6.5%

China’s economic growth cooled to its weakest quarterly pace since the global financial crisis, according to new data released Friday by the country’s National Bureau of Statistics.

The economy grew 6.5% in the third quarter compared to the same time last year.

Chinese authorities are trying to navigate through numerous challenges, as US trade war fears have sparked a blistering sell-off in domestic stock markets and a steep decline in the value of the yuan versus the US dollar.

With files from Reuters