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 [...]
Premier Oil granted more breathing space as debt talks continue August 1, 2016 EMBATTLED oil explorer Premier Oil was handed more time to renegotiate its debts arrangements with lenders yesterday, amid the stubborn price rout. The FTSE 250-listed firm said today that a test of financial covenants for the 12 months ended 31 July had effectively been pushed back by a month. It comes after a similar extension in June, which Premier [...]
Petrofac auditors find “no evidence” to support bribery allegations August 1, 2016 Petrofac said today that an independent investigation had found no evidence it was involved in a global scandal over bribery and corruption on the oil industry. The FTSE 250-listed firm called in lawyers and accountants after leaked documents suggested Monaco-based Unaoil paid bribes on behalf of oil companies including Petrofac to win contracts. "The independent investigation has thoroughly investigated [...]
Oil price tumbles as slow recovery stokes negative sentiment August 1, 2016 Oil reversed earlier gains to slip into negative territory today, as increased Opec production and more US oil rigs left crude investors feeling glum. Brent crude, the global benchmark, fell 2.11 per cent to $42.61 per barrel this afternoon, having risen as much as 0.74 per cent to $43.85 earlier in the day. Meanwhile, its US [...]
Platinum miner Lonmin shares fall as it flags political headwinds August 1, 2016 Shares in Lonmin fell as much as two per cent per cent to 233.5p per share today, after the platinum miner warned it could be hit by political and industrial headwinds in the near future. It came as the broader mining sector was boosted by a better-than-expected economic data release out of China, the world's [...]
There is a 98 per cent chance the Bank of England will cut interest rates August 1, 2016 The Bank of England is almost certain to slash interest rates when its rate-setting monetary policy committee (MPC) meets for the second time since the EU referendum this week. Futures markets indicate there is a 98.1 per cent probability the MPC will cut rates to a new record-low of 0.25 per cent, slightly up on [...]
India’s largest mortgage lender issues world’s first “Masala bond” in London August 1, 2016 The world's first ever "masala" bond has been issued in London today, in what chancellor Philip Hammond described as a major win for the UK economy in the aftermath of the EU referendum. India's largest mortgage provider, Housing Development Finance Corporation (HDFC), became the first Indian company to list corporate rupee-denominated debt outside of India, with the [...]
Manufacturing stutters forward in the Eurozone as PMI dips slightly August 1, 2016 Factories in the Eurozone entered the summer with a slight wobble, as output dipped and fundamental weaknesses in the manufacturing sector appeared stubborn. The purchasing managers' index (PMI) for manufacturing across the single currency bloc slipped to 52 in June, down from 52.8 in July, on a reading where scores above 50 mark expansion. It [...]
UK manufacturing PMI sinks even lower after EU referendum August 1, 2016 The most up-to-date measure of economic output among UK manufacturers has slumped to its lowest level in more than three years following the EU referendum. The manufacturing purchasing managers' index (PMI), which is closely watched by policymakers at the Bank of England, dropped to 48.2 in July, from 52.4 in June. That was even lower than a [...]