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 Volvo reports higher-than-expected profit and raises sales outlook Swedish truck maker Volvo reported a bigger-than-expected jump in second-quarter adjusted operating profit on Wednesday, and raised its outlook for the European and North American markets. Operating profit before restructuring charges and legal claims was 21.7 billion crowns ($2.12 billion), up from 13.8 billion a year earlier and topping the 18.4 billion mean forecast in a Refinitiv poll of analysts. Volvo said it expects industry-wide sales of 330,000 heavy trucks in the European market this year, and as many in North America, up from an April forecast of 320,000 in each of those markets. CEO Martin Lundstedt said Volvo had been successful in improving margins while managing cost inflation and increased disturbances in the supply chain. However, he also said that Volvo had been restrictive in taking orders, which had led to a decrease of 10% in order intake for the quarter.  

  The US dollar has rebounded from a 15-month low after the release of US retail sales data for June. The data showed that although headline sales rose less than expected, the May number was revised higher, and core sales showed more resilience, suggesting continued consumer resilience. The UK inflation data also weighed on the pound, as it showed that inflation fell to 7.9% in June, from May’s 8.7%. While this is still above the Bank of England's 2% target, it is a sign that inflation is starting to cool. The euro also fell back, as the final reading of the June eurozone CPI is expected to confirm that inflation rose 5.5% on the year last month, a drop from 6.1% the prior month. The Bank of Japan is also expected to keep interest rates unchanged next week, which could support the yen. Overall, the dollar is expected to continue to strengthen, as the US economy is showing signs of resilience. However, the pound and euro could see some relief if inflation data continues to c...