Fears rise over crash in key shipping index January 15, 2014 WORRIES over the strength of the global economic recovery have been sparked this week by a near 40 per cent collapse in a key benchmark. The Baltic Dry Index (BDI) records the cost of shipping raw materials around the world, and is used by some analysts as an indicator of economic health in the near [...]
Carney: House price boom set to end in 2016 January 15, 2014 BANK of England governor Mark Carney expects the recent surge in the property market to cool by 2016, as figures today confirm that house sales have returned to levels last seen in early 2008. The governor said that he is projecting “a continuation of the current momentum into 2014, before decelerating around the middle of [...]
Game on: Retailer eyes a float as Grand Theft Auto helps its revival January 15, 2014 GAME’s radical turnaround since collapsing into administration in 2012 was underscored yesterday after the retailer revealed that sales had almost doubled over Christmas, paving the way for a potential float. Total sales rocketed 83 per cent in the six weeks to 4 January, helped by the popularity of Grand Theft Auto V. The firm is [...]
EU rules make it harder for firms to cut risk exposure January 15, 2014 BUSINESSES and their customers could face higher costs after new EU rules were approved which could make it harder to cut their risks, lawyers warned yesterday. Rules to increase transparency in derivatives markets could make the industry safer and easier to police, but also mean firms will not be able to find bespoke products to [...]
IMF’s Lagarde warns of risk of deflation January 15, 2014 THE HEAD of the International Monetary Fund, Christine Lagarde, has warned that the economic recovery is still fragile, despite recent optimism about growth. During a speech in Washington, Lagarde said: “If inflation is the genie, then deflation is the ogre that must be fought decisively,” adding that the rising risk of deflation could prove devastating [...]
What the other papers say this morning – 16 January 2014 January 15, 2014 FINANCIAL TIMES Payday lenders to create database After repeatedly saying that it was impossible to create a database for payday loans the UK’s largest payday lenders are clubbing together to set one up. Wonga, Quick Quid, Mr Lender and ThinkFinance have all signed up to provide information to a real time credit-reporting system run by [...]
Upbeat Bank of America lifted by US recovery January 15, 2014 BANK of America Merrill Lynch (Baml) saw profits rise more than four-fold as the economic recovery slashed its bad debt costs, the bank said yesterday. It made a profit of $3.4bn (£2.1bn) in the final quarter of 2013, up from $732m in the same period of 2012. For the full year it made $11.4bn, up [...]
BP forecasts shale boom will transform the energy market January 15, 2014 GLOBAL energy consumption will rise by 41 per cent by 2035, with 95 per cent of that growth in demand coming from emerging markets, research from oil major BP predicted yesterday. But energy use in developed markets is expected to grow very slowly and will begin to decline in the later years of the forecast [...]
Deutsche and Citi face foreign exchange probe January 15, 2014 DEUTSCHE Bank has suspended several traders in the Americas, while Citi’s offices in Canary Wharf were yesterday visited by US enforcement officers. The probes are part of wider investigations into the foreign exchange markets – regulators believe traders may have attempted to fiddle some benchmarks. The Deutsche Bank staff are thought to have been based in [...]
Burberry shares lift the FTSE as luxury sales beat forecasts January 15, 2014 BURBERRY was the second highest riser on the FTSE yesterday after the luxury retailer revealed better-than-expected sales, driven by Asia Pacific and demand ahead of Chinese New Year. Shares closed 4.7 per cent higher as the 158 year-old firm posted a 14 per cent rise in sales to £528m and a 12 per cent increase [...]