Australian mining tax clears hurdle November 23, 2011 A NEW Australian tax on miners that will cost the industry A$7.7bn (£4.82bn) over the next two years has passed its biggest hurdle so far. After 18 months of acrimonious debate that brought down former leader Kevin Rudd, politicians agreed to back Australian Prime Minister Julia Gillard’s 30 per cent profit tax in return for minor [...]
US slump worsens November 23, 2011 US stocks suffered a sixth straight day of losses yesterday as frustration over the Eurozone’s debt crisis, coupled with weak Chinese factory data, further dented investor sentiment. A weak German bond sale sparked fears the debt crisis was even beginning to threaten Berlin, with the leaders of France and Germany still at odds over a [...]
China doubles HK yuan swaps to offer relief valve November 22, 2011 China’s central bank has doubled the size of a currency swap with Hong Kong to 400 billion yuan (£40bn), a move aimed at giving the financial centre a bigger relief valve to cope with rising demand for trade settlement in the currency. The expansion will also boost confidence that Beijing intends to internationalise the yuan, [...]
Economy in the Eurozone set to shrink by 0.3pc November 21, 2011 THE EUROZONE economy will shrink by 0.3 per cent next year, a leading group of economists has predicted. Economic activity across the 17-state single currency area will thereafter stage only a “modest recovery” in 2013, the Economist Intelligence Unit (EIU) said yesterday. “The latest plan to resolve the crisis is expected to comprise coordinated bank [...]
FTSE slides to a six-week low over Eurozone debt worries November 21, 2011 BRITAIN’S FTSE 100 slid to its lowest close in six weeks, with worries mounting over the health of the global economy as the US and Europe wrestled with their respective debt problems. London’s blue chip index fell 140.34 points, or 2.6 per cent to 5,222.60 yesterday, its sixth straight day of losses and adding to [...]
George Osborne has to hold his nerve – the UK economy needs vision, not populism November 21, 2011 EVERY day the pressure grows for the government to do something about growth. Usually this translates into calls for more borrowing and spending, special rules for struggling businesses, or other eye-catching initiatives. The government should resist. Recent history has taught us such quick wins often end up being own goals. They make the business environment [...]
Pearson to buy China education firm for $294m November 21, 2011 Publishing group Pearson announced today an agreement to acquire Chinese-based Global Education and Technology Group for a headline price of $294m (£187.8m). The purchase of Global Education, a test preparation service for students learning English, bolsters Pearson’s position as the world’s largest learning company while also expanding its operations in China. Pearson believes Global Education [...]
Rumoured ECB loans to IMF will keep all eyes on the euro November 20, 2011 ONCE again, investors spent last week battling with the effects of Europe’s ongoing debt crisis. Italian, French and Spanish bonds all fell sharply despite support from the ECB. The European Central Bank bought bonds in the secondary market as part of its Securities Markets Programme (SMP). However, yields on these troubled countries continued to rise [...]
Trading on global risk sentiment November 20, 2011 AS IS the case across all asset classes, sentiment in the commodity markets hinges upon the belief, or lack thereof, in the ability of politicians and policy makers to find a solution to the European debt crisis. With no sign of a meaningful, long-term cure for Europe’s ills on the cards, cyclical commodities, like industrial [...]
South African billionaire in talks to take over Tower 42 November 17, 2011 SOUTH African billionaire Nathan Kirsh could soon be making a comeback to the City as the new owner of the Tower 42 skyscraper. Kirsh’s family office is understood to be in advanced talks to buy Natwest’s former headquarters on Old Broad Street, which would mark Kirsch’s first deal since selling a 29 per cent stake [...]