Year of the Monkey: We must be innovative and adaptable to strengthen China ties February 8, 2016 The Year of the Monkey starts today as we celebrate Chinese New Year. With London hosting the biggest celebrations outside of Asia, the zodiac animal has two particular attributes that I also think help define our modern City: our adaptability and innovativeness. The importance of China to both the City and the wider UK is a [...]
Mining sector burning through cash reserves after commodity price crash February 8, 2016 The value of cash held by London Stock Exchange-listed mining companies fell by £1.1bn in the last year, according to research released today by Banc De Binary. The findings show a fall in cash reserves across all LSE-listed mining companies from £24.3bn to £23.2bn over the last 12 months. A drop of £780m was recorded in [...]
China’s foreign exchange reserves hit lowest level since 2011 February 7, 2016 China’s foreign exchange reserves tumbled in January, according to figures released today. The country’s holding of US dollars fell by $99.5bn (£68.6bn) in January to $3.23 trillion, the lowest it's been since 2011, the data from the Chinese State Administration of Foreign Exchange shows. The Chinese authorities are attempting to maintain a value of the [...]
Steel crisis: World’s largest steelmaker ArcelorMittal taps investors for $3bn February 5, 2016 The world's largest steelmaker has been forced to ask its investors for a $3bn (£2bn), as it suffers from the Chinese industry's overcapacity which is blames for driving down steel prices. ArcelorMittal, which is based in Luxembourg, reported core profit dropped 32 per cent last year to $5.2bn and warned the result this year would only be "in excess [...]
CBRE: Investment in City offices hit an all-time high in 2015 February 5, 2016 Investment in City offices rose reached its highest ever last year, according to new figures. Real estate giant CBRE's London Property Perspective report, seen exclusively by City A.M., shows office investment rose to £8.2bn in 2015, eclipsing the previous record of £7.5bn set in 2007. In the fourth quarter alone, investment in the City rose 49 per [...]
Britain needs a free market energy revolution to keep the lights on February 5, 2016 Over the past decade and a half, Britain’s energy bills have soared. When wages stagnated and demand fell, electricity prices kept going up. Even the recent oil price collapse has barely cut household bills. Why? Politicians like to point the finger at the big six energy providers. They accuse the suppliers of acting like a [...]
Swiss commodity trader Trafigura’s chief released on bail amid fraud probe February 4, 2016 The head of one of the world's largest oil and metals traders, Trafigura, was released on bail after eight months in prison this week, as a probe into alleged fraudulent trading activity continues. Li Bo, who heads the company's operations in Beijing, has not been charged in the matter which relates to losses of $32m (£22m) in a gasoline trade [...]
Credit Suisse’s share price plummets as it posts first annual loss since 2008, plans 4,000 job cuts: Tidjane Thiam issues warning of global uncertainty February 4, 2016 Credit Suisse's share price plummeted this morning on news it is planning to cut 4,000 jobs following its first annual loss in eight years, alongside a warning that it is "not clear" when financial markets will start to rebound. The figures The Swiss lender has reported a pre-tax loss of CHF 2.42bn (£1.65bn) for the full year [...]
Is China the new Japan? Why markets are testing whether China will permanently slow to growth of two or three per cent February 3, 2016 Some 25 years ago the world’s then largest ever credit bubble burst, sending the Tokyo stock market index tumbling and Japanese real estate prices into freefall. Now it’s the turn of China to deflate as it surpasses Japan as the world’s biggest credit bubble. The cost for Japan can be measured in terms of its long-period of slow GDP [...]
FTSE 100 index opens lower as oil prices continue to drag on investor sentiment February 3, 2016 The FTSE 100 index opened lower this morning as oil prices dragged down investor sentiment (again). The UK's blue-chip index opened 0.57 per cent down at 5,889 points, led lower by Hargreaves Lansdown and Barclays. "This fresh bout of oil price weakness appears to have been driven by the very same concerns that drove the decline in [...]