Oil dips under $60 for first time in four months June 5, 2019 The price of Brent crude fell sharply today on news that US inventories had surged last week, against analyst predictions. The international standard was down 3.1 per cent to $60.10 at around 5.30 this afternoon, after rebounding from an earlier low of $59.50. Investors were spooked after the US today revealed oil stockpiles unexpectedly grew [...]
Brussels recommends crackdown on Rome over debt June 5, 2019 The European Commission (EC) has today said disciplinary procedures should be launched against Italy over its high levels of government debt. Read more: Italy could face €3bn fine over public debt The move will further inflame the row between Brussels and Rome over the issue of debt, as the Italian government seeks to cut taxes [...]
Kier shares rally after plummeting on profit warning June 5, 2019 The construction outsourcer’s market value fell 41 per cent at the start of the week. Investors fled after Kier Group admitted it would still be in the red at its interim results in September. It had previously said it would pay off its net debt by then. Read more: Kier Group share plummet 40 per [...]
Eurozone’s ‘modest’ growth reliant on service sector June 5, 2019 The Eurozone’s private sector continued its “modest” expansion in May, aided by solid growth in services, according to the latest survey from data firm IHS Markit. Read more: Eurozone manufacturing sector shrinks for fourth straight month May’s services purchasing managers’ index – which measures the health of the sector – rose to 52.9 from 52.8 [...]
UK economy ‘close to stagnation’ despite service sector growth June 5, 2019 The UK service sector beat analysts’ expectations to reach a three-month high in May, according to survey data released today by IHS Markit and the Chartered Institute of Procurement & Supply (Cips). Read more: UK manufacturing sector shrinks to 34-month low Nevertheless, IHS Markit said the UK economy is “close to stagnation” as Brexit and [...]
Crisis-era ‘bad bank’ repays last of government loan June 5, 2019 The so-called bad bank created to take on the debts of Northern Rock and Bradford & Bingley (B&B) after the financial crisis has paid back the last of the almost £50bn used to fund the bailouts. Read more: Rothesay life buys £860m of UK ‘bad bank’ mortgage loans Treasury-owned UK Asset Resolution (UKAR) today said [...]
Shell changes tack in expected dividend hike June 4, 2019 Royal Dutch Shell today told investors it expects to hike dividends after completing a $25bn (£19.7bn) share buyback by the end of 2020. The oil giant routinely pays around $16bn back to shareholders every year but has not upped its dividend since 2014, when it rose to $0.47 per share. Shell said it is on [...]
Softbank earns $11bn for selling some of its huge Alibaba stake June 4, 2019 Japan’s Softbank will book a pre-tax profit of $11.1bn (£8.75bn) for selling part of its stake in Chinese ecommerce giant Alibaba. The sale forms part of a three-year-old deal to sell assets in order to buy British chip designer ARM for $32bn in 2016. Read more: Uber IPO: Shares slide on second day of trading [...]
Retail Sales Hit by Biggest Slump on Record June 4, 2019 | City Talk Retail sales have taken a dramatic tumble in May, as already challenging retail conditions are set against a background of Brexit uncertainty. In total, sales for May declined by 2.7 per cent, the biggest drop since the British Retail Consortium (BRC) started the monthly survey 24 years ago. Britain’s retailers are warning that the decline [...]
Will the Federal Reserve cut rates in 2019? June 4, 2019 | City Talk Ahead of a key speech by Federal Reserve chair Jerome Powell, markets are widely expecting the US central banker to offer a clear hint that the next move will be to lower interest rates, perhaps as early as this summer. 97.2 per cent chance of a cut The latest market indicators suggest a greater than [...]