Chief regulator thinks interest swaps compensation should be complete by April 2014 September 10, 2013 Compensation for interest rate swap mis-selling should be complete by April 2014, according to the chief executive of the Finacial Conduct Authority (FCA). So far only £500,000 has been paid out for just 10 cases. Banks have taken on 2,800 staff to deal with more than 30,000 cases. FCA boss Martin Wheatley said that "nobody [...]
Is this the new(er) normal? Government faces higher borrowing costs as bond yields rise September 10, 2013 (Tradeweb) Most economic data has bounced since Mark Carney arrived at Threadneedle Street, but since the Bank of England's adoption of forward guidance, so have government borrowing costs. After hitting July 2011 highs of three per cent last Friday, the yields on gilts have now moved back above three per cent today (pictured). These 10 [...]
Italy left behind as second quarter contraction exceeds estimates September 10, 2013 Revisions to Italian GDP have seen the economy shrink faster than expected, decreasing by 0.3 per cent in the second quarter. Italy is continuing to feel the effects of a two-year long recession, now lasting eight quarters. Analysts expected no change from the flash estimate put out on the 6th August which predicted a 0.2 per [...]
Glencore Xstrata leads index on better than expected synergies September 10, 2013 Glencore Xstrata shares are leading the FTSE 100 this morning on news that the miner is gaining better than expected synergies from its recent merger (release). At least $2 billion of synergies estimated for 2014, materially exceeding the initial merger guidance of $500 million;$450 million to come from marketing synergies as forecast, $175 million from [...]
Rolls Royce wins £111m contract to power Kazakhstan oil pipeline September 10, 2013 Good news for Rolls Royce – They've won a $175m (£111m) contract to power a pipeline running through Kazakhstan's Line C gas pipeline (release). Rolls-Royce will supply AGP, a joint venture between Kazakhstan's KazMunaiGaz and China's National Petroleum Corporation (CNPC), with twelve RB211 gas turbine driven pipeline compressor units which will operate at four compressor [...]
Surprise contraction for French industrial output in July September 10, 2013 Disappointing figures from France this morning as industrial output shrinks from July. Analysts have been hoping for the sector to return to growth. A decrease of -0.6 per cent from July's figure of -1.4 per cent failed to hit market predictions of a 0.6 per cent increase. July saw a significant slump in the [...]
Costa and Premier Inn see owner Whitbread achieve double digit sales growth September 10, 2013 Hotel and restaurant group Whitbread has seen like-for-like sales grow by 2.6 per cent in the 24 weeks to 15 August (release). In terms of total sales, a 12.4 per cent increase in the same period. These results are weaker than analysts had hoped for, with Costa achieving just 3.0 per cent like-for-like growth in [...]
Before the open: FTSE expected up following Chinese strengthening September 10, 2013 Given stronger data in from China this morning, investors are expecting London's leading index to move higher at the open. Industrial production and retail sales came in higher than analysts anticipated. European opening calls: FTSE +22, DAX +34, CAC +13 — Carolin Roth (@CarolinCNBC) September 10, 2013 $ little weaker, equities set to be stronger [...]
China goes two for two: Higher industrial production and retail sales data September 10, 2013 Fears of a Chinese slowdown allayed by some stronger data this morning. Industrial production rose by 10.4 per cent in the year to August, from 9.7 per cent last month. That beats analyst estimates of a 9.9 per cent rise. Retail sales also looking good, with a 13.4 per cent jump in the same period. [...]
Political risks rising in the Eurozone September 9, 2013 The rise of populist parties across the bloc and high unemployment may lead to more market volatility, writes Liam Ward-Proud RECOVERY in the Eurozone is certainly underway. The region ended its 18-month recession in the second quarter, posting growth of 0.3 per cent. European equities, despite a few blips, have also performed strongly, with the [...]