Best of the Brokers for 20 October 2015 October 20, 2015 To appear in Best of the Brokers, email your research to notes@cityam.com ASSOCIATED BRITISH FOODS More bad news for Associated British Foods (ABF), as Berenberg analysts downgraded the food processing and retailing company from “hold” to “buy” while keeping the target price at 3,450p. While ABF’s share price has increased by 10 per cent since [...]
Well, this is awkward: Xi Jinping’s trade deals visit overshadowed by growing concern over China’s impact on UK steel industry October 20, 2015 The government is making its case for stepping up the Sino-British relationship by announcing £30bn worth of new trade and investment deals, despite escalating concerns that the UK steel industry is crumbling at the hands of Chinese manufacturers. The Prime Minister announced the business deals, which the government says will create more than 3,900 jobs [...]
Britain’s businesses are not rattled by Chinese slowdown, Grant Thornton research shows October 20, 2015 Britain’s businesses are standing firm as world-wide business sentiment takes a hammering from China. UK business confidence over the three months to the end of September towered above the global average of 38 per cent at 67 per cent, down from the peak of 79 per cent in the previous quarter when businesses were buoyed [...]
As David Cameron vows to raise issue of Chinese steel with Xi Jinping, what are his options? October 19, 2015 Britain’s industrial towns are facing an uncertain future as job losses in the steel industry continue to mount. Calls from those affected to “do something” are understandable. But the truth is that, under current government policies, this once iconic industry (like coal before it) is becoming increasingly unviable. So in the case of SSI, whose [...]
President Xi Jinping’s UK visit: How Britain can truly become China’s best partner in the West October 19, 2015 As the Queen welcomes the President of China to Buckingham Palace today for a state visit, both leaders can reflect on the significant progress made in UK-China relations. Indeed, much has changed. The Chinese economy, despite its slowdown, has grown massively in recent decades; it is eight times larger today than in 1999, when the [...]
Steelmaker Caparo set to go into administration, with the loss of 1,800 jobs October 19, 2015 Steelmaker Caparo Industries has gone into administration, PWC has confirmed, as the crisis in the UK's steel sector deepens. Caparo is set to go into administration with the loss of around 1,700 jobs. The news follows the closure of the UK's second largest steelmaker, SSI steelworks in Redcar, which was announced this month. The liquidation will lead to over 2,200 [...]
There’s no room for complacency if we want to keep UK startups booming October 19, 2015 Unemployment is in decline. Latest figures from the Office for National Statistics (ONS) showed that the number of people out of work is at its lowest since the onset of the 2008 economic crisis. By the same token, employment is at its highest since records began in 1971. This is in no small part due [...]
Prime Minister David Cameron appoints Alibaba’s Jack Ma to his Business Advisory Group October 19, 2015 Alibaba founder and executive chairman Jack Ma has been appointed to Prime Minister David Cameron's Business Advisory Group (BAG). Number 10 announced the appointment today, ahead of a four-day state visit by China's President Xi Jingping. Commenting on the appointment today, a Downing Street spokeswoman said: "This is about appointing someone who has real business [...]
Mining companies take the FTSE 100 lower October 19, 2015 The FTSE 100 has turned negative, led by mining companies, including Anglo American which was four per cent down at 9:50, Fresnillo which was three per cent lower and Glencore which was trading 2.7 per cent down. Chinese gross domestic product figures released today fed further into fears of a global slowdown, pushing mining companies share price down. Read more: China's third [...]
China’s third quarter GDP beats expectations, but it’s the weakest economic growth since 2009 October 19, 2015 China's economy grew by more than expected in the third quarter of this year, easing fears that it is slowing at a greater pace than previously thought. China's statistics bureau said this morning that the country's gross domestic product increased 6.9 per cent between July and September from a year ago, beating analysts' estimates for 6.8 [...]