State reputation riskier than sanctions for Russia’s oil and gas companies August 21, 2014 The Russian government’s reputation is a greater threat to the cred it worthiness of the country’s energy companies than the sanctions levied against the sector by the US and Europe, according to a report released yesterday. Credit ratings agency Standard and Poor’s (S&P) argued in research yesterday that sovereign risk is the largest factor weighing [...]
Divergence looms for Eurozone and US in Jackson Hole speeches August 21, 2014 WORLD-famous economists arrived at Jackson Hole yesterday, as the Kansas City Federal Reserve’s annual conference on monetary policy begins. Speeches today will come from Fed chair Janet Yellen and European Central Bank (ECB) boss Mario Draghi, the world’s two most important monetary policymakers. Analysts suspect that the speeches will display an emerging division between the [...]
Chinese industry signals slower growth as prices begin to drop August 21, 2014 CHINA’S manufacturing sector weakened to a three-month low this month, falling back towards negative territory after a more promising start to the summer. According to HSBC’s survey of the country’s dominant industrial base, released yesterday, manufacturers grew more slowly in August. The bank’s purchasing managers’ index (PMI) figure dropped back to 50.3, barely above the [...]
Bank of England’s Martin Weale and Ian McCafferty vote against Mark Carney on interest rate hike August 20, 2014 Two policymakers finally split from the Bank of England’s unprecedented unanimity this month, voting for what would be the first interest rate hike in six years. The Bank’s two most hawkish monetary policy committee (MPC) members, Martin Weale and Ian McCafferty voted for a modest increase in interest rates. The change would have brought the [...]
Fed offers hints at potential for early rate hike August 20, 2014 THE FEDERAL Reserve may raise interest rates at a faster pace than currently expected, if the country’s recent rapid growth continues. Minutes from the latest meeting of the US central bank’s Federal Open Market Committee (FOMC) said yesterday that “it might become appropriate to begin removing monetary policy accommodation sooner than they currently anticipated” if [...]
Bank of America set for biggest settlement since 2008 financial crash August 20, 2014 Bank of America is reportedly set to pay out $17bn (£10.2bn) to US authorities and in consumer relief, in a bid to settle an investigation into sales of mortgage-backed securities before the 2008 crisis. The agreement with US regulators is the largest of any yet to emerge from the crash. According to the AP news [...]
Hardware keeps HP growing in second quarter August 20, 2014 COMPUTER colossus Hewlett-Packard (HP) last night reported an uptick in revenues during the second quarter of the year, with demand for hardware helping to keep the company growing. Net revenue rose by one per cent during the three month period, when compared to the same quarter last year, climbing to $27.6bn (£16.63bn). Demand for personal computer [...]
Household finances still being squeezed with no end in sight August 20, 2014 BRITISH households saw no end in sight to the UK’s earnings squeeze this month, despite a significantly improved outlook for employment. According to data firm Markit’s latest household finance index, released yesterday, families’ cash availability had declined at the most rapid pace in half a year during the current month. The headline index, which measures the [...]
Domestic boost for UK industry in second half August 20, 2014 A BOOST to industrial orders this month is bucking expectations for a slowdown in the second half of the year, according to a major UK business body. The Confederation of British Industry (CBI) released its latest survey yesterday morning, with 29 per cent of manufacturers reporting stronger orders than usual, against 18 per cent suggesting that orders [...]
De Kirchner lays out Argentina’s debt swap plan August 20, 2014 THE ARGENTINIAN government revealed draft legislation yesterday, with measures that would allow Buenos Aires to circumvent the US legal ruling that had brought the country to a technical default. President Cristina Fernandez de Kirchner announced the move, which would allow bondholders which could not currently access their repayments to swap the debt for securities not [...]