Shares in Ashmore jumped 18 per cent at the open as the investment manager reveals profits beat expectations February 9, 2017 Asset manager Ashmore Group today reported that it almost doubled its profits in the six months to 31 December. The figures Assets under management (AuM) were $52.2bn (£41.6bn), up five per cent over 2016. The group said 91 per cent of AuM outperformed benchmarks over the 12 months. Net revenue increased 24 per cent to [...]
The new indifference: Why markets just don’t care about political risk February 9, 2017 The market reaction to excessive political turmoil has been extraordinary over the last year. Any investor with a crystal ball would have shunned risk assets, given the traditional relationship between political uncertainty and equity market volatility. But they would have been wrong. Incredibly, markets dismissed each event with increasing disdain. There is no sign of [...]
We must take a wrecking ball to political correctness to achieve our true economic potential February 9, 2017 Just how big is the size of the state in the UK? A simple question you might think. Surely all you need is a numerator (a tax or public spending measure) and a denominator (a GDP measure)? Divide one by the other and hey presto there’s your size measure – as a proportion of GDP. [...]
UK’s small businesses confident it can grow profits as it turns to global exports after Brexit February 9, 2017 Small businesses in the UK are confident about their future business prospects in the face of Brexit as they move their focus to export growth, according to a survey of executives. Half of British small-business executives think they can increase revenues by at least four cent over the next year, according to the survey by [...]
“Our aim certainly is not to punish the UK,” insists Brussels’ financial services commissioner February 8, 2017 Politicians tend to seek the limelight. They court media interest with controversial policy ideas, catchy soundbites and displays of tribal affiliation. But it's people like Valdis Dombrovskis, quiet bureaucrats who do their best to keep beneath the radar and get their job done, who exercise a hidden power. This is particularly true of the European [...]
Top EU envoy Valdis Dombrovskis jets into town for talks with chancellor and City chiefs February 8, 2017 One of the EU's top commissioners jets into London this morning for a whirlwind pre-Brexit tour of the capital, telling City A.M. that a future deal on financial services must "work for all". Valdis Dombrovskis, vice president in charge of financial services, said the European Commission would not set out to “punish” the UK during [...]
As China’s central bank hauls in several bitcoin exchanges, could governments crush the cryptocurrency? February 8, 2017 Harriet Green, deputy business features editor at City AM, says Yes: If governments like China’s perceive bitcoin to be a threat, they will seek to undermine it. While they couldn’t destroy existing bitcoins, they could destroy demand. Any cryptocurrency is at risk of being made illegal by any government. Granted, users can move underground, but [...]
Oil prices are up despite US crude stocks delivering “Goliath” increases February 8, 2017 Oil prices have lifted after an initial slump after data showed US crude inventories increased for the fifth straight week but gas stocks declined. Benchmark Brent crude is trading 0.6 per cent up at $55.38 per barrel while West Texas Intermediate (WTI) is up 0.61 per cent at $52.49. The increase came after prices initially fell to lows [...]
What do we know about Aramco’s boutique adviser? February 8, 2017 The world’s largest IPO in recent times is expected to take place next year, as the Saudi state oil firm known as Saudi Aramco is floated with an anticipated value of around $2 trillion. New-York based investment bank, Moelis & Co. has been reported as the sole independent adviser on the IPO, representing by far [...]
The UK economy is gaining momentum despite Brexit fears, says the OECD February 8, 2017 UK economic growth is gaining momentum despite concerns over Britain's future EU trade deal, according to the Organisation for Economic Co-operation and Development (OECD). The composite leading indicator rose to 99.5, according to the group of richer nations, continuing a clear upward trend from July 2016, the month after the UK's referendum on EU membership. The [...]