China not headed for a “hard landing” says Rio Tinto boss as volatility pushes earnings down August 8, 2013 Mining giant Rio Tinto has reported pre-tax profits were more or less flat in the first half of the year and a 71 per cent fall in basic earnings per share (EPS). Its chief executive Sam Walsh warned against global economic volatility, but does not think China is headed for a hard landing. Pre-tax [...]
Before the open – 08/08 August 8, 2013 The Nikkei erased early gains late last night after the Japanese Cabinet Office’s Eco Watchers Survey revealed a bleaker-than-expected view of the economy and its outlook. The survey came in at 52.3 for the current view of the economy and 53.6 for the short-term outlook – below the respective 53.5 and 54.1 predictions. Markets were [...]
Inside Track: Lord Davies still in the running for both RBS and Lloyds August 7, 2013 LORD Davies, the former trade minister and one of the City’s most distinguished bankers, is not a man who gives up easily. So it must have been galling that the share price of Lloyds Banking Group has put on a gallop in recent weeks, faster than the famous black stallion that adorns its logo. Project [...]
China fines infant formula firms £71m over price-fixing charges August 7, 2013 CHINESE authorities yesterday issued fines totalling 670m yuan (£71m) on six global producers of infant formula following a probe into price fixing, according to state media. The six companies are Biostime, Mead Johnson, Dumex, Abbott, Friesland and Fonterra. The National Development and Reform Commission (NDRC) says that the firms set minimum resale prices for distributors [...]
Slowing China hits HSBC profit growth hopes August 5, 2013 PROFITS jumped 10 per cent at HSBC after a campaign to cut costs and close inefficient business units, the bank announced yesterday. But the first half results fell short of investors’ hopes as emerging markets growth missed expectations, leaving the lender’s shares down 4.37 per cent at the end of the day. Pre-tax profits came [...]
Best of the Brokers for 2 August 2013 August 1, 2013 ENTERPRISE INNS Deutsche Bank has raised the pub company’s target price by 40 per cent to 190p as it reaffirmed its “buy” rating. The bank’s analysts said that the recent good weather should see a return to profit in the chain’s third quarter results, due next week. KINGFISHER A recent meeting with Kingfisher’s management failed [...]
Poorly-designed immigration policies are damaging the London economy July 31, 2013 THE PROPOSAL from part of the coalition to make some overseas visitors pay a £3,000 bond to come to Britain is perhaps the most ill-considered development in immigration policy yet. The government says that Britain is open for business, but with visitor bonds, healthcare levies, and adverts urging self-deportation – to mention but three examples [...]
Global fertiliser prices forecast to plunge as Russian potash cartel breaks down July 30, 2013 The break-up of a Russian potash cartel could spark a global price war among fertiliser producers, its chief executive has said. Uralkali pulled out of the Belarus Potash Corporation (BPC) after accusing its partner Belaruskali – which controls around 47 per cent of the global potash market – of selling fertiliser outside of the marketing [...]
Before the open – 30/07 July 30, 2013 Asian stocks were buoyed last night after the Chinese central bank gave the markets a liquidity shot for the first time since February and the dollar index recovered from a five week low. Early losses in the Hang Seng and Shanghai Composite were quickly erased, while a weaker yen and a small (but less than [...]
Daily FX: Analyst picks July 29, 2013 CURRENCY STRATEGIST CHRIS VECCHIO My pick: Closed long Aussie-yen. Short Aussie-dollar Expertise: Fundamental and technical analysis Average time frame of trades: A few hours to a few weeks The bearish bias on the Aussie has been revived, and there are two main reasons to look short early this week: Chinese data has worsened since second [...]