Italian decline moderates as length of recession breaks record August 6, 2013 Second quarter Italian GDP has come in slightly better than expected, as the pace of contraction slows. But the recession has broken new records, as Italy has seen GDP fall for eight quarters. Italian output shrunk by 0.2 per cent in the second quarter, down from a fall of 0.6 previous in the first. Economists [...]
More forecast smashing UK figures as industrial output returns decisively to growth August 6, 2013 Today's excellent UK industrial production figures have added to the trend of forecast-beating results for the economy. In the second quarter of the year, production output rose in line with expectations at 0.6 per cent growth, driven primarily by 0.7 per cent growth in manufacturing output. The Office for National Statistics (ONS) says this has [...]
Car sales forecasts up as volumes rise for 17th consecutive month August 6, 2013 Car sales were up 12.7 per cent to 162,228 units in July, according to the Society of Motor Manufacturers and Traders (SMMT). The SMMT has hiked it forecast for 2013 car registrations to 2.216m units, up 8.4 per cent from last year. July's best sellers were the Ford Fiesta (9,089 units), the Ford Focus (7,229) [...]
Sony shares tumble as board unanimously reject calls to spin off entertainment business August 6, 2013 Sony’s Board of Directors has unanimously rejected calls from activist investor Daniel Loeb to spin off its entertainment business, saying it is “fundamental” to Sony’s success. Loeb, who is one of the company’s biggest shareholders and founder of the Third Point hedge fund, wrote an investor letter last week saying the entertainment division is “poorly [...]
Esure shares dive on low maiden dividend August 6, 2013 Shares in online insurer Esure have taken a dive of around six per cent after announcing a low interim dividend of 2.5p in today's half yearly report (release). The firm saw pre-tax profits up 15.2 per cent to £56.9m in the six months ended 30 June. Peter Wood, chairman of Esure, commented: Our first interim [...]
L&G shares rise as it reports 13 per cent increase in profits August 6, 2013 Shares in Legal & General (L&G) rose over two per cent this morning as the company reported a 13 per cent increase in pre-tax profits to £592m. Earnings per share rose 13 per cent to 7.82p and dividends per share were increased 22 per cent to 2.40p (release). L&G said all of its principal business [...]
UK “bad bank” handed back £1.9bn to taxpayers in the first half of the year August 6, 2013 UK Asset Resolution (UKAR), the state-run “bad bank” running down the loans of Bradford & Bingley and Northern Rock, has said it repaid £1.9bn to taxpayers in the first half of the year including £1.3bn of loan repayments (report). At the end of 2012, UKAR had £27.8bn of funding from HM Treasury, plus a further [...]
What to expect from tomorrow’s Bank of England Inflation Report August 6, 2013 Tomorrow sees Mark Carney's first Inflation Report as governor of the Bank of England, which should come with an additional statement on the central bank's plans for forward guidance. Berenberg chief economist Rob Wood gives his assessment of what we might expect: Here comes guidance The BoE will make an announcement on guidance alongside the [...]
House prices rose by more than expected in July August 6, 2013 UK house prices rose by a larger-than-expected 0.9 per cent in July, according to the Halifax House Price index. Analysts had forecast a rise of 0.5 per cent following an upwardly revised 0.7 per cent growth in June. In the three months to July, house prices rose 4.6 per cent compared to the same period [...]
ECB’s Praet says that further rate cuts remain an option August 6, 2013 The European Central Bank's executive board member Peter Praet has said that further interest rate cuts remain an option, writing in Vox. Praet also said that the central bank's forawrd guidance includes an easing bias. Against the conditions that we see prevailing over a meaningful horizon, our guidance includes an easing bias. This conveys the [...]