Carrefour hints at China float to follow Brazil January 19, 2015 FRENCH retailer Carrefour has not ruled out listing its Chinese unit, chief executive Georges Plassat told the French daily Les Echos yesterday. He said Carrefour could follow the same scenario as in Brazil, where it sold a 10 per cent stake in its business to billionaire Abilio Diniz last month, in a step towards a [...]
After the Swiss franc bombshell: Traders should expect a bumpy year ahead January 19, 2015 From the Eurozone to the UK, volatility will keep on returning. The Swiss National Bank’s (SNB) shock decision to abandon the Swiss franc’s euro anchor last Thursday saw markets reel. At one point, the euro had crashed 30 per cent against the franc (see graph) before recovering some of its losses. Ajay Pabari, founder [...]
China GDP growth falls to its lowest since 1990 January 19, 2015 After years of double-figure growth, China's GDP growth fell to its slowest in 24 years in 2014, according to figures published overnight. Growth in the country fell to 7.4 per cent last year, its slowest pace since 1990, down from two consecutive years of 7.7 per cent growth. While it was the first time it's [...]
JP Morgan boss Jamie Dimon: Banks are under assault January 14, 2015 The flood of megafines and regulations being inflicted on banks amounts to an “assault” by a multitude of authorities, JP Morgan’s boss Jamie Dimon claimed yesterday. Such a sustained attack threatens the competitiveness of the US as a whole, the chairman and chief executive said in an unusually outspoken defence of the industry. “Banks are [...]
City Moves for 15 January 2015 | Who’s switching jobs January 14, 2015 Lloyds Bank Lloyds Bank Commercial Banking has appointed Allen Appen as head of financial institutions capital and asset backed solutions. He joins from Barclays, where he was most recently head of financial institutions capital markets for Europe, the Middle East and Africa. Mole Valley Asset Management The investment management firm has appointed Andrew Holder as [...]
Why investors shouldn’t worry about mild deflation in the year ahead January 13, 2015 INVESTORS’ biggest enemy, inflation, is in retreat. Across developed economies, prices rose by a meagre 1 per cent over the second half of 2014. More up-to-date pricing indicators, like the Billion Prices Project, show a sharp fall in prices in 2015 so far (down about 1 per cent in the US versus the same time [...]
Under the bonnet: Key themes for emerging markets this year January 12, 2015 Dollar strength and plunging oil will have a big impact MUCH of the growth the global economy has seen since the financial crisis has emanated from emerging markets. But many analysts expect this narrative to change in 2015, with growth momentum shifting to developed markets like the US. Late last year, Fitch revised down its [...]
As bankers warn of crisis risks, is the Chinese economy a cause for concern? January 11, 2015 Clare Howarth is lead Asia Pacific economist at Oxford Economics, says Yes. Chinese producer prices have been falling for almost three years, as growth slows and industry struggles with excess capacity. Falling oil prices have pushed producer price inflation (PPI) down faster in recent months, but are also partly a consequence of the cooling economy. [...]
Why New Year needs a rebrand January 9, 2015 As the headache from the night before started to kick in, I had the opportunity to reflect on what a New Year really meant (as opposed to just felt like). I’m sure countless books have been written on the existential significance of turning a new page, yet I couldn’t help but wonder, from a [...]
China at risk of financial crisis, bankers warn January 8, 2015 CHINESE President Xi’s strategy of slower economic growth could be “lethal” for the country’s financial system, according to a report from Bank of America Merrill Lynch (BoAML). Analysts at the bank said they expect the Chinese market to be “choppy” in 2015, and warned of a heightened debt default risk. It also cautioned investors to [...]