Political crisis in Portugal saw ECB support for banks hit highest level since 2012 August 6, 2013 The European Central Bank increased its lending to Portuguese banks to €50.1bn in July from €49.4bn in July – the highest since December. This was the month a political crisis gripped the country, triggered by the resignation of CDS-PP leader Paulo Portas from his post as foreign minister, and later reinstated as deputy prime minister. [...]
US trade deficit narrows to lowest since October 2009 – upwards GDP revision likely August 6, 2013 The US Bureau of Economic Analysis has said the country’s trade deficit narrowed in June, coming in at a lower than expected $34.22bn. This was down from a downwardly revised $44.10bn deficit the month before. Analysts had expected to see the trade deficit shrink slightly less drastically to $43.50bn. June's trade deficit was its lowest [...]
Fed’s Lockhart says he wouldn’t rule out tapering in October August 6, 2013 The Fed's Dennis Lockhart has said that he wouldn't rule out tapering at the the October Federal Open Market Committee (FOMC) meeting. While analyst speculation has rested on tapering beginning in September or December, this upsets things somewhat. Rumours about tapering – or a reduction in the rate at which the Fed expands the monetary [...]
Munich Re shares fall as flooding hits first half profits August 6, 2013 The world’s biggest reinsurance company Munich Re has reported a 4.5 per cent fall in first half profits to €1.5bn (£980,000) as it was hit by claims from natural disasters in the second quarter of the year (release). Share prices are down around 4.5 per cent. Net income fell to €529m from €808m in the [...]
Ratings agency says Help to Buy will push up house prices August 6, 2013 Ratings agency Fitch has said that chancellor George Osborne's mortgage backing scheme Help to Buy will "probably push up house prices" (release). The policy is also unlikely to help with very low housing supply, Fitch says that the "impact on the number of new homes built is less clear". House builders stand to benefit, but [...]
IMF’s youngest ever chief economist Raghuram Rajan appointed as governor of India’s central bank August 6, 2013 Raghuram Rajan has been named as the latest governor at the Reserve Bank of India. He presently works as the chief economic adviser to the Indian government and was hotly tipped for the role. Rajan is also a successful academic, as a professor of finance at the University of Chicago Booth School of Business. He [...]
Paris air show drives German factory orders to highest growth rate in eight months August 6, 2013 The volume of new orders, shipments, unfilled orders, and inventories reported by German manufacturers rose 4.3 per cent in June compared to the year before. Analysts had expected a 0.2 per cent fall, down from the 2.0 per cent decrease in May. Compared to the month before, factory orders were up 3.8 per cent – [...]
Standard Chartered shares rise despite fall in profits August 6, 2013 Shares in Standard Chartered rose by three per cent this morning, despite first half pre-tax profits falling more than 15 per cent to and basic earnings per share falling by more than a quarter (release). Compared to the same period the year before, the bank’s pre-tax profits fell to $3.325bn (£2.17bn) from $3,936, while earnings [...]
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 [...]