Why investors are right to fear Eurozone deflation March 18, 2014 While soaring inflation tends to grab headlines, the dangers of deflation often get less coverage. Perhaps because the different kinds of deflation – good and bad – are so poorly understood. The good kind, says the Adam Smith Institute's Ben Southwood, comes from productivity improvements. There you see the falls in prices mirrored by increases [...]
Crimea’s dented investor confidence, but the price of gas suggests there’s no need to worry March 18, 2014 This morning, Germany's ZEW survey demonstrated how investor sentiment can take a knock over international environment worries. The country’s ZEW survey falling for a second month in a row to 46.6 in March, from February’s 55.7. But ZEW officials have said that ongoing problems in Crimea have played a part in the drop, which could [...]
Asos’ profits warning is crushing online retailers March 18, 2014 This morning, Asos chief Nick Robertson delivered the surprise warning that the company’s earnings margin will decline this year to around 6.5 per cent. Shares crashed over 20 per cent on the news. The reason given is that the store’s upping its investment in warehouses in Europe, along with its new venture in China, and [...]
Germany’s court says EU rescue fund is legal March 18, 2014 Germany’s constitutional court has rejected challenges to the Eurozone’s bailout fund, confirming the legality of the €500bn European Stability Mechanism (ESM), and upholding the preliminary ruling made in 2012. It’s said the rights of the country’s parliament to make decisions on its budget are not violated by ESM, provided the Bundestag can veto the measure and impose [...]
Asos shares are crashing on chief’s warning March 18, 2014 Asos has reported retail sales up 26 per cent year-on-year in the first two months of 2014 and is, it says, confident of hitting sales of £1bn for 2013/14. But shares have crashed over 20 per cent this morning, following chief executive Nick Robertson’s warning that the company's earnings margin will shrink this year to [...]
Cairn Energy losses mount in face of high drilling costs March 18, 2014 Oil explorer Cairn Energy has reported a loss before tax of $1bn (£600m) significantly higher than last year's $194m. The board also agreed to suspend its share buy-back programme until the position with regard to the shareholding in Cairn India is resolved. The company expanded on why a well located off Morocco had been plugged [...]
What you need to know before the open March 18, 2014 Markets remained resilient yesterday, in the face of sanctions being meted out by the EU on Russian and Ukrainian individuals. Today, expectations are that they’ll hold their nerve again, opening slightly higher, ahead of President Putin’s decision to the Russian parliament on whether to annex Crimea to Russia. Asian markets rallied in Tuesday trading – [...]
Miner Antofagasta hit by weak prices and high costs March 18, 2014 Chilean-based miner Antofagasta has reported a 25 per cent fall in profit to $2.1bn (£1.3bn) in 2013, although it has pledged a much larger than expected dividend for shareholders. Shares have jumped almost six per cent this morning on the news. Chief executive Diego Hernandez said the year was a challenging one, as the firm was [...]
Sainsbury’s sales fall for the first time in 9 years March 18, 2014 Sainsbury's has seen a fall in like-for-like sales growth for the first time in nine years, with like-for-like sales in the fourth quarter dropping 3.1 per cent excluding fuel and a decline in total sales of 1.5 per cent. Justin King, chief executive, said: We have seen a decline in sales in the quarter reflecting [...]
Any Other Business – 18/03 March 18, 2014 Forget the huge salaries and enormous bonuses – it seems one of the banking giants’ biggest perks may be the boardroom banquet. While many of us mere mortals are nipping out for a sandwich, a new wave of the UK’s finest chefs are apparently honing their skills to feed the upper echelons of finance. Proof [...]