US Presidential Election 2016: Clinton vs Trump – whose economic policy is better for markets? April 27, 2016 It is a momentous time in terms of geopolitics. A plethora of major events with potentially significant investment consequences will take place this year. They range from the Brexit hurricane in the UK, to tectonic shifts in the oil economy abroad. Even ostensibly local conflagrations, such as political deadlock in Brazil, may impact wider markets. But [...]
Unions warn that tens of thousands of industry jobs are at risk in South Africa April 26, 2016 Tens of thousands of jobs in mining, metals and engineering are at risk in South Africa as firms cut costs due to the commodity rout. South Africa's Solidarity union said today that more than 29,000 jobs could go in the mining sector, as well as 8,000 in the metal and engineering industry. The union, which [...]
Renewables-focused E.On eyes profit of up to €1bn in 2016 April 26, 2016 E.On set its sights today on net income of up to €1bn (£775m) this year as Germany's largest utilities company pushed forward on plans to spin-off its power plant and trading businesses to focus on renewable energy and distribution grids. E.On will list 53.4 per cent of its power plant and trading business, Uniper, providing it secures enough shareholder support at [...]
Cobham shares plunge as it scrambles to secure emergency funding April 26, 2016 Cobham shares plunged as much as 21.5 per cent this morning after the engineering group issued a profit warning and launched a £500m emergency rights issue. Its push into the commercial market to offset slowing government defence spending on both sides of the Atlantic by snapping up US communications equipment maker Aeroflex two years ago has failed [...]
Oil prices start to climb on news of Saudi Arabia’s share offering in Aramco April 26, 2016 Oil prices started Tuesday morning on the front foot, climbing closer to the $45 a barrel mark, following Saudi Arabia's announcement that it will sell shares in state owned oil giant, Aramco. Brent Crude climbed by 0.67 per cent to $44.78 before the European stock markets opened. Yesterday, the commodity started the week on the slide as investors [...]
The end of the road for monetary policy? With a strong yen and negative interest rates doing little to boost Japan’s economy, could helicopter money be the answer? April 26, 2016 Since the financial crisis, developed economies have turned to central banks as their only hope for stimulating demand. Trillions have been spent buying government bonds, interest rates have been kept at record lows and credit remains cheap. And still, growth in GDP, prices and wages is elusive. When the Bank of Japan (BoJ) meets on Thursday to decide its next [...]
Sell in May and go away? Why some hedge funds are looking forward to this summer April 26, 2016 Some investors swear by the well-known adage “Sell in May and go away”, given that it’s a month that can bring low trading volumes, thin liquidity and, even worse, a stock market sell-off that permeates over the summer. Will this year be any different? Is it worth just going on holiday until St Leger Day, [...]
Smaller firms fail to plug hole in the FTSE left by big oil, big mining, and big finance one year on from record high April 25, 2016 Despite a FTSE fightback over the last few months, the blue-chip index remains well off its record close high of 7,103.98 set almost a year ago on 27 April 2015. Since February the FTSE 100 has added around 700 points after sinking as far as 5,536.97. It's now under 1,000 points of its high, but the recent rally already [...]
BP, Shell, Chevron and Exxon brace for worst reporting season yet April 25, 2016 It's about to go from bad to worse when BP publishes its first quarter results tomorrow, kicking off what analysts expect to be oil majors' worst reporting season yet. Analysts expect the firm to post a loss of 10 cents per share for the first quarter of 2016, on an anticipated revenue drop of 26 per cent. It [...]
Saudi Aramco set to be valued at more than $2 trillion as Saudi Arabia confirms five per cent stake sale April 25, 2016 Saudi Aramco, the Kingdom of Saudi Arabia's state owned oil company, will be valued at over $2 trillion (£1.38 trillion) when less than five per cent of the company is sold through an initial public offering. The valuation would make it the most valuable company in the world, over taking Apple which has a market capitalisation of $607bn. The [...]