German sentiment strengthens in pre-US default scare data October 15, 2013 Some hope for the German economy if we stay optimistic and assume that a US default can be avoided. The survey data below does not include the greater impact from US debt woes. The ZEW survey for October shows economic sentiment up from 49.6 to 52.8, while analysts had expected no change. That's the strongest [...]
Tiny Royal Mail allocations see Cable’s hopes for long term investors dashed October 15, 2013 Business secretary Vince Cable had hoped for Royal Mail shares to go to long term investors – not just those that he thought would want to make a quick buck. But due to the small allocations granted to retail investors, many are now selling out. As Ishaq Siddiq of ETX Capital points out, with only [...]
UK house prices surge to above 2008 levels October 15, 2013 (Office for National Statistics) UK house prices rose by 3.8 per cent in the year to August, exceeding expectations of a 3.6 per cent increase and surpassing its previous peak in January 2008 by 0.3 per cent. The Office for National Statistics reports that house price growth remains stable across the UK, with London prices [...]
Inflation remains stubbornly high in September October 15, 2013 Inflation has stayed put at 2.7 per cent in the year to September, despite analysts forecasts of a softening to 2.6 per cent. The pound has slipped against the dollar on the news. The largest contribution to the consumer price index measure came from air fares, which was offset by a downward contribution from petrol [...]
‘Underpriced’ Royal Mail sale to be probed by MPs October 15, 2013 A panel of MPs is keen to investigate the privatisation of Royal Mail by calling in City bankers who advised ministers on the sell-off, reports Mark Kleinman, City editor at Sky News. Sky News has learnt that certain members of the Business, Innovation and Skills (BIS) Select Committee want to interview executives from the syndicate [...]
Astra Zeneca arm buys oncology drugs company Spirogen October 15, 2013 Biopharmaceuticals company Astra Zeneca announced today that one of its research arms has acquired Spirogen, a privately-held biotech company that focuses on a drug technology used in oncology. MedImmune, the global arm of Astra Zeneca, will acquire 100 per cent of Spirogen's shares for an initial consideration of $200m (£125m) and deferred consideration of up [...]
Shares drop as Burberry announces CEO Ahrendts’ exit October 15, 2013 Shares have dropped five per cent this morning as fashion heavyweight Burberry announces its chief executive officer (CEO) Angela Ahrendts will step down by the middle of next year to take up a new position with Apple. It has also reported, in a separate statement, total revenue for the six months to September of £1,031m [...]
What you need to know before the open – 15/10 October 15, 2013 Economic confidence in the US is dwindling as we enter day 15 of shutdown, although markets don't seem too worried at present. Equity markets continue to display confidence that a US Senate agreement could be reached this week, but the shift to Congress, with its Republican majority, will throw up deeper disagreements. The lack of [...]
The IMF is playing with fire by giving intellectual backing to punitive taxation October 15, 2013 SOMETHING is going wrong at the IMF. Its traditional role as a stabilising force for countries in deep financial difficulty is being undermined by internal ideological disputes. This manifested itself most obviously in the debate over “austerity” measures, especially in the UK. Just as growth began to return, the IMF’s chief economist Olivier Blanchard told [...]
Abe’s absent arrow: Slow reform in Japan October 14, 2013 Despite hopes of a further rally, long-term worries abound Japan’s Nikkei 225 index enjoyed a strong rally last week, climbing from Tuesday’s low of less than 13,754 to almost 14,405 on Friday (markets were closed yesterday). While tied to volatility surrounding the US debt ceiling debate, these gains came amid news that Japanese machinery orders [...]