An Italian Bank run could crack the euro November 16, 2018 | City Talk The Italian government is defying the European Commission’s request that it revise its draft budget for 2019 to reduce the deficit. Bond yield spreads are widening and Italian banks are under pressure. Should a bank run ensue, could the euro fall apart? After German reunification, interest rates rose to over 9 per cent in the early [...]
More than £6bn wiped off combined value of RBS, Lloyds and Barclays amid Brexit deal fiasco November 15, 2018 More than £6bn has been wiped off the combined value of Barclays, Lloyds and Royal Bank of Scotland today as turmoil over Theresa May's Brexit deal hit the banking and housebuilding sectors. The threat of a no-deal reared its head this morning after Brexit secretary Dominic Raab dramatically resigned after the Prime Minister pushed her [...]
Six reasons you should care about share buybacks November 15, 2018 | City Talk Warren Buffett, the billionaire investor, recently hit the headlines with the announcement that he plans to spend almost $1 billion buying back shares in his investment company, Berkshire Hathaway. This practice has been increasingly common over recent years, with major implications. Buybacks have fundamentally altered the investment landscape over recent years. However, this is not [...]
Bitcoin falls below $100bn market cap for the first time in over a year November 15, 2018 Bitcoin's market capitalisation has fallen below the $100bn (£78bn) mark for the first time in over a year, amid a wider sell-off in the cryptocurrency sector. The value of the world's largest cryptocurrency briefly dipped below the milestone late last night, before settling firmly around the $98bn mark in the early hours of this morning, according to [...]
Debate: Following a share price dive, should we be worried about Interserve’s future? November 15, 2018 Debate: Following a share price dive, should we be worried about Interserve’s future? Yes – John Tizard is an independent strategic adviser. Interserve’s story seems to have some parallels with Carillion. Construction firms appear to find public service outsourcing challenging, with problems caused by clashes in culture and different expectations for margins. Contracts must be [...]
Fairytale economics will not enchant markets November 14, 2018 In a remarkable break with the economic prudence of the past decade, policymakers in the west are taking their feet off the spending brakes. During the recent midterm elections in the US, President Trump hailed the continuing stream of positive economic data and Democrats’ warnings about the cost of tax cuts failed to cut through. Meanwhile the [...]
US midterm elections: Is gridlock good? November 14, 2018 | City Talk Further tax cuts unlikely but will Trump strike a deal on trade? Keith Wade, Chief Economist, says: “The midterm elections restored some faith in opinion polls with the Democrats taking the House of Representatives and the Republicans holding the Senate. Conventional wisdom has it that a gridlocked Congress is good for markets as it prevents [...]
Oil prices rebound after record losing streak as producers mull supply cut November 14, 2018 Oil prices have bounced back bringing an end to the commodity's longest losing streak since records began as producers prepare for supply cuts. Crude prices had fallen for 12 consecutive days losing more than 25 per cent of their value as supply surged and demand faltered. But major oil producers, such as Saudi Arabia, have suggested [...]
Central banks could issue state-backed digital currencies, says IMF November 14, 2018 Central banks could issue digital currency, International Monetary Fund (IMF) managing director Christine Lagarde said today. Speaking at an event in Singapore, Lagarde mooted a state-backed digital token, or an account held at the central bank for consumers and firms to use for retail payments. As the demand for cashless payments increases, digital currency could provide security [...]
Inflation remains steady in October as CPI stays flat at 2.4 per cent November 14, 2018 Inflation remained steady in October, with the Consumer Price Index (CPI) flat month on month at 2.4 per cent, according to Office for National Statistics data out today. Rising fuel costs and domestic gas prices offset lower prices for food and non-alcoholic drinks, as well as clothing and transport, leading to CPI staying unchanged from its September [...]