Asian markets calm as Japan boosts bank lending February 19, 2014 Asian markets have so far been indecisive as investors continue to await developments regarding Chinese interest rates. The People's Bank of China (PBOC) is attempting to drive up the cost of money to encourage companies to deleverage and reduce shadow banking activity. However, there remain concerns that tightening may hurt economic growth over the short [...]
Cautious China sucks liquidity from markets February 18, 2014 CHINA’S central bank yesterday sucked liquidity from the markets in a surprise move which underlines the authorities’ fears about the rate of credit growth. It withdrew 48bn yuan (£4.7bn) from the money markets with two-week repurchase agreements (repos), after data showed a surge in credit volumes late last week. The aim is for banks and [...]
London Report: Third straight day of gains sees FTSE erase 2014 losses February 18, 2014 BRITAIN’S top equity index erased its losses for the year as it rose for a third straight session yesterday, boosted by BHP Billiton and telecoms giant BT. Shares in global mining firm Billiton rose 1.9 per cent after first-half profit beat forecasts and it hinted at a share buyback in August, despite a cautious outlook [...]
What you need to know before the open – 18/02 February 18, 2014 European equities are expected higher today, with investors banking on affirming economic sentiment data, in the form of Germany’s ZEW survey. Also in focus is UK inflation data at 9.30 this morning. In Asia, Tokyo stocks jumped 3.1 per cent – their best session since August – after the Bank of Japan confirmed it’s keeping [...]
What the other papers say this morning – 18 February 2014 February 17, 2014 FINANCIAL TIMES Goldman retreats from bond platform Goldman Sachs has retreated from its electronic bond trading platform, in a move that highlights the challenges investment banks face in revamping their struggling fixed-income trading businesses. Banks including Goldman, Morgan Stanley and UBS had developed their own electronic corporate bond trading platforms in an effort to more efficiently [...]
Strong Chinese loans prop up Asian markets February 17, 2014 A MAJOR boost to Chinese lending in January buoyed Asian markets yesterday, even following Japan’s disappointing fourth quarter GDP data. The Peoples’ Bank of China announced that 1.32 trillion yuan (£128.36bn) was distributed in new loans during January, the highest in over nearly four years, easily beating more bearish forecasts. The news follows better than [...]
Europe has reached a turning point – we now need to rescue it from the EU February 17, 2014 THE COMING European Parliament elections could be a turning point: our moment to save Europe from the EU. But for that to happen, Europeans must realise the real future they face under the current system, and the risks involved in underestimating Brussels. I have been interested in politics since I was a kid, and that [...]
What you need to know before the US open – 17/02 February 17, 2014 The dollar’s dropped to six-week lows today, in the wake of weaker-than-expected US data. The fall in January manufacturing output, out last Friday, has seen some investors re-assess their expectations for the speed at which the Fed will taper. It edged up against the yen after data showed the Japanese economy grew just 0.3 per [...]
This week’s 4 must-see charts February 14, 2014 The gaping chasm between Mark Carney’s messaging and market expectations of future rate hikes, suspicious Chinese statistics, the sudden devaluation of Kazakhstan's tenge, and Janet Yellen's labour market worries. We bring you some of our favourite analyst’s picks of the most important graphs this week, as well as a choice of our own. Jeremy Cook, [...]
What the other papers say this morning – 14 February 2014 February 13, 2014 FINANCIAL TIMES Apple to cut use of ‘conflict minerals’ Apple is extending its supply chain clean up beyond Chinese factories and into African mines, using name-and-shame tactics to cut the amount of “conflict minerals” that end up in its iPhones and iPads. As it touts fresh improvements to working conditions in the factories that produce [...]