Banking shares plunge across Europe as stress test fallout rumbles on August 2, 2016 Shares in Europe's leading banks have been dumped again today as the sector's woes pile up and questions over the rigour of recent stress test pushed sentiment down. German lenders Commerzbank and Deutsche Bank are trading at all time lows and the problems facing Italy's financial services remains top of the agenda. Commerzbank issued a profit [...]
Before the bell: What you need to know before the US market open August 2, 2016 Japan has launched a £34bn stimulus package, the Reserve Bank of Australia has chopped its its benchmark interest rate to a record low 1.5 per cent and Europe's banks are getting sold off. Here's what you need to know before the US market open at 2:30pm. The US pre-market is pointing down ahead of the open. The S&P is [...]
Japan underwhelms markets with ¥28 trillion stimulus package August 2, 2016 Markets have given a lukewarm reaction to the long-awaited details of Japanese Prime Minister Shinzo Abe's latest economic salvo. The Japanese government today signed off a stimulus package worth a headline ¥28 trillion (£207bn), though critics said this figure betrayed the fact much of the spending comes in the form of cheap loans rather than direct [...]
These experts say the Bank of England should throw the kitchen sink at the UK economy – including a rate cut and QE August 2, 2016 Banking analysts have urged the Bank of England (BoE) to do everything it can to boost the UK economy and said the case for stimulus is clear. Analysts at Bank of America Merrill Lynch (BoAML) said in a note today that UK soft data "looks bad… the economy has taken a big hit and may be [...]
Former MPC member and Labour adviser David Blanchflower has launched a searing attack on Labour under Jeremy Corbyn August 2, 2016 Former Monetary Policy Committee member David Blanchflower has launched a searing attack on Labour and party leader Jeremy Corbyn after backing his rival Owen Smith. Blanchflower served on Labour's economic advisory committee, but quit in June over the party's failure to effectively campaign against Brexit. And he has now hit Corbyn with another scathing blast, [...]
Oil rout forces Kuwait to hike petrol prices 80 per cent August 2, 2016 Kuwait will hike its petrol prices by more than 80 per cent from 1 September, as part of the Opec member's adjustment to lower for longer oil prices. Its cabinet said yesterday that the price for the highest grade petrol would rise to 165 fils a litre, from 90 currently, according to a report by state news agency KUNA. Read [...]
Why it pays for TV networks to have their own flagship shows August 2, 2016 Fans are often frustrated by the fact TV network HBO's smash hit series Game of Throne isn't available on rival platforms such as Netflix. But new research suggests that holding onto exclusivity rights isn't just good for TV operators, it also benefit consumers. Read more: Play your own Game of Thrones in Northern Ireland Other [...]
Construction output tumbles at fastest pace since 2009 but sterling gains ground August 2, 2016 Activity in the construction sector is shrinking at its fastest pace in seven years, but has still managed to beat some exceptionally gloomy forecasts, helping the pound climb against the dollar. The Markit/Chartered Institute of Procurement and Supply (CIPS) survey came in at 45.9 on an index where scores below 50 signify contraction. This was only slightly down [...]
The economy post-Brexit: More QE or cutting interest rates? The UK’s poor productivity’s the real elephant in the room August 2, 2016 Uncertainty over the health of the global economy persists, as a checkered patchwork of data releases add to speculation over what the future holds. In the UK, the Brexit vote has amplified worries about the economy. “It remains hard to see how the UK can avoid recession altogether, possibly starting as soon as the third quarter,” [...]
Anticipation of $20bn Microsoft bond to finance LinkedIn deal drives up US Treasury yields August 1, 2016 US Treasury yields rose today in anticipation of a $19.75bn (£14.93bn) bond offering from Microsoft to finance its takeover of LinkedIn. The tech giant is expected to imminently launch the seven-tranche US dollar bond. Orders for the bond have reached more than $30bn, while 30-year yields hit a session high today of 2.244 per cent, Reuters reported. Yields [...]