What you need to know before the US open May 23, 2014 A subdued start’s expected for US markets, ahead of home sales numbers, and after European counterparts headed lower on the back of a slip in German business confidence. Stock futures inched higher this morning. All eyes will be on the new house sales numbers, due out at 3pm. The numbers are of heightened importance, given [...]
Asian markets climb higher as hope for global recovery strengthens May 23, 2014 Asian markets are on the rise this morning after positive data from the US gave investors confidence in the strength of the global recovery, while events in Thailand and Ukraine ensured a note of caution. The previous session revealed that US factory output growth rose it to its fastest pace in three years, while China's [...]
What the other papers say this morning – 23 May 2014 May 22, 2014 FINANCIAL TIMES Corrupt companies face higher fines British companies that bribe foreign officials to win contracts, commit fraud, or launder money, face fines of up to 400 per cent of their illicit profits, under new penalty guidelines. In the most serious cases companies will pay fines comparable with those meted out in the US, where [...]
China is the real victor as Putin looks East May 22, 2014 WHEN President Vladimir Putin voyaged to Beijing this week, it was with one thing in mind: strengthening Sino-Russian relations. The signing of a $400bn (£237bn) gas pipeline deal with Beijing formed the centrepiece of this effort. Russia’s aggression in Ukraine is pushing the US and Europe away, and Putin is looking to reorient towards an [...]
Russia gas deal with China could drive up energy costs in Europe May 21, 2014 THE CHINESE and Russian government signed a $400bn (£237.1bn) gas deal yesterday, which some analysts believe could drive up gas prices in Europe when it comes into force. The agreement means that Gazprom will pipe gas into China for 30 years, beginning in 2018. At its peak, it will supply 38bn cubic metres of natural [...]
Letters to the Editor – 22/05 – The UK and Europe, Best of Twitter May 21, 2014 The UK and Europe [Re: Voters in the UK and Europe are in the mood for change, yesterday] I don’t understand Stephan Shakespeare’s conclusion that Euro voters are “united by a desire to stay in Europe”. That is not what his graphs say. On reform, UK, Germany, France and Sweden pass 70 per cent recognising need for significant [...]
Russia and China fail to agree on gas deal May 20, 2014 Russia and China have failed once again to reach a deal on gas supply between the two nations, in talks that have been going on for over 10 years. Presidents Vladimir Putin and Xi Jinping yesterday met and a bilateral agreement was signed, but it did not include crucial clauses agreeing a price for gas, [...]
War, what is it good for? Bull runs on stocks May 20, 2014 THE CHANCE of war this May is a signal to buy stocks, according to a note from Bank of America Merrill Lynch. Stocks have historically declined in the run-up to conflicts, but then “rally hard once war commences”. Michael Hartnett, chief investment strategist at BAML, points to World War II stock movements to make his [...]
BoAML: Stocks likely to “rally hard” if war commences May 20, 2014 The chance of war this May is a signal to buy stocks, according to Bank of America Merrill Lynch. Stocks have historically declined in the run-up to war, but then "rally hard once war commences". Michael Hartnett, chief investment strategist at BoAML, points to World War II stock movements to make his point. The chart [...]
India’s Modi is being put on a pedestal – and he’s got a long way to fall May 20, 2014 Indian businesses are jubilant about the result of the Indian election, which returned Narendra Modi as the country’s next Prime Minister – MNI’s business sentiment indicator shot up from 61.9 in April to 67 this month (the highest in two years), when it became clear that Modi would take the crown. Anything above 50 signals [...]