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Archive for the breakfast-today Category

Conservatives lose second parliamentary seat to UKIP

Friday, November 21st, 2014

The UK Independence Party (UKIP) won the south-eastern English constituency of Rochester and Strood in a special election by defeating Prime Minister David Cameron’s Conservative Party. The victory indicates a possible political upheaval in the next year’s national election. UKIP had won its first elected seat, last month.

Bank of Italy doubts ECB credibility over target inflation

Thursday, November 20th, 2014

Salvatore Rossi, Deputy Governor of Bank of Italy, stated the Eurozone is on the brink of deflation. Raising doubts over the ECB’s credibility, he said the central bank is unlikely to meet its target inflation, with the rate hovering near 0.4% in October.

UK house prices rise in September

Wednesday, November 19th, 2014

The Office for National Statistics revealed that house prices in the UK increased 12.1% y-o-y in September to reach a seven-year high after gaining 11.7% in August. The average house prices inched up 0.5% m-o-m to £273,000 in September.

David Cameron warns of impending global crisis

Tuesday, November 18th, 2014

The UK’s Prime Minister David Cameron urged parliamentarians to hold firm on economic policies to secure a better future for the country. He stated the economy has responded well to the tough measures undertaken thus far, however the worrying signs from the Eurozone cannot be ignored.

UK house prices decline in November: Rightmove

Monday, November 17th, 2014

Rightmove reported the average asking price for a house in the UK contracted 1.7% m-o-m in November to £267,127, following a 2.6% increase in October. On a y-o-y basis, house prices grew 8.5% in the UK compared with 7.6% in the previous month.

Declining oil prices to weaken Russia’s economy: IMF

Friday, November 14th, 2014

The IMF spokesman Bill Murray stated the Russian central bank’s decision to float the domestic currency would enhance the country’s ability to control inflation and withstand external shocks. However, the move may not offset the impact of falling crude prices on the oil-dependent economy. IMF expects the Russian economy to grow at 0.5% in 2015.

UK RICS house price index declines

Thursday, November 13th, 2014

A survey by the Royal Institution of Chartered Surveyors indicated the monthly house price balance fell to +20 in October (weakest since May 2013), from +30 in September. This was largely due to widespread price declines in London.

Standard Chartered plans to close up to 100 branches in 2015

Wednesday, November 12th, 2014

Standard Chartered bank plans to shut around 100 branches or 8% of its network to save US$200m on the proposed US$400m per year. The company’s cost to income ratio stood at 67% in the first half of the year. The bank has been under significant pressure to improve performance after its shares fell 30% this year.

British retail sales improve slightly in October

Tuesday, November 11th, 2014

The British Retail Consortium stated total retail spending in October increased 1.4% y-o-y vis-à-vis a 0.8% y-o-y decline in September. However, retail sales on a like for like basis remained unchanged, after falling 2.1% in the previous month.

China producer price index declines again in October

Monday, November 10th, 2014

The National Bureau of Statistics in China revealed factory gate prices fell 2.2% y-o-y, for a record 32nd month in October. In contrast, consumer prices advanced 1.6%, unchanged from the rise in the previous month.

PBoC confirms liquidity injection in major banks

Friday, November 7th, 2014

The PBoC confirmed that it has provided China’s lenders ¥769.5bn through a newly created medium-term lending facility tool, charging interest at a rate of 3.5% for three months. Lending was spread over two months, with an injection of ¥500bn in September and ¥269.5bn in October.

Japan’s leading index rises to a five month high in September

Thursday, November 6th, 2014

Japan’s Cabinet Office revealed today that the country’s leading index rose to 105.6 in September, the highest since April, following a reading of 104.4 in August. The coincident index climbed to 109.7, whereas the lagging index dropped to 115.8 in September.

EU trims Eurozone growth forecast

Wednesday, November 5th, 2014

European Union (EU) reported the GDP of the 18-nation zone would increase 0.8% this year and 1.1% in 2015, down from previous estimates of 1.2% and 1.7%, respectively. EU lowered its projections for Germany amid poorer-than-expected inflation in the Eurozone.

Italy significantly downgrades 2014 GDP

Tuesday, November 4th, 2014

Istat, Italy’s statistical office, downwardly revised the 2014 GDP outlook to 0.3% contraction from 0.6% expansion earlier. The GDP forecast for 2015 has also been trimmed to 0.5% growth from 1.0%.

China non-manufacturing PMI decelerates in October

Monday, November 3rd, 2014

The official services Purchasing Managers’ (PMI) index in China fell to 53.8 in October from a reading of 54.0 in September. Few days back, the official manufacturing PMI also indicated weaker growth momentum, with a reading of 50.8 for the month vis-à-vis 51.1 in September.

BoJ announces unexpected stimulus program

Friday, October 31st, 2014

Haruhiko Kuroda, Bank of Japan (BoJ)’s governor, surprised markets with an unprecedented monetary package to boost the struggling economy by fuelling inflation. BoJ would expand the monetary base to ¥80tn annually, up from ¥60tn to ¥70tn.

Sanctions on Russia impact exports from Germany

Thursday, October 30th, 2014

Germany’s Federal Statistical Office stated the country’s exports to Russia fell 26% y-o-y in August due to the European Union’s sanction measures in late July. For the first eight months, exports of motor vehicles & automotive parts and machinery declined 27% and 17%, respectively.

Sweden trims interest rates to zero

Wednesday, October 29th, 2014

Sveriges Riksbank, Sweden’s central bank, cut its repo rate to zero from 0.25% at this month’s monetary policy meeting to stimulate the country’s economy and counter fears of deflation. This move beat market expectations of a rate cut to 0.1%. No rate hikes are expected until mid-2016 when inflation is projected to reach its target rate of 2%.

Japan retail sales rise in September

Tuesday, October 28th, 2014

Today, Japan’s Ministry of Economy, Trade and Industry revealed retail sales rose 2.3% y-o-y to ¥11.2tn in September, beating estimates, following a 1.2% gain in the previous month. On a seasonally adjusted m-o-m basis, sales grew 2.7% vis-à-vis 1.9% in August.

ECB fails 25 banks in stress test

Monday, October 27th, 2014

Yesterday, the ECB reported as many as 25 of Europe’s 130 largest banks failed the exercise, comprising a stress test and an asset quality review of balance sheets as of 31st December 2013. However, about half of these banks have already mended their capital challenges, about 13 have not yet closed capital gaps and most are based in Italy.

UK told to pay £1.7bn extra to EU

Friday, October 24th, 2014

The UK has been told it must pay an extra £1.7bn (2.1bn euros) towards the European Union’s budget because the economy has performed better than expected in recent years. The payment follows new calculations by the EU, which determines how much each member state should contribute based on gross national incomes. It would add about a fifth to the UK’s annual net contribution of £8.6bn. It comes at a time of increased pressure on David Cameron over Europe. (Source: BBC)

Tesco boss Sir Richard Broadbent to quit over profits error

Thursday, October 23rd, 2014

Tesco chairman Sir Richard Broadbent has announced that he will be leaving the firm, following the firm’s announcement of a bigger-than-forecast hole in its profits. Tesco now says that profits in the first half of the year were overstated by £263m. That is an increase from last month’s initial estimate of £250m. Tesco also reported a sharp fall in sales and profits for the first half of its financial year. (Source: BBC)

Japanese exports exceed estimates

Wednesday, October 22nd, 2014

Japan’s Ministry of Finance revealed that exports grew 6.9% y-o-y in September, the most in seven months, following a 1.3% drop in August. Markets estimated a 6.5% increase. On the other hand, imports rose 6.2% y-o-y after falling 1.5% last month. The trade deficit stood at ¥958.3bn.

China’s GDP climbs 7.3% y-o-y in third quarter

Tuesday, October 21st, 2014

China’s government announced that its gross domestic product (GDP) increased 7.3% y-o-y, above the initial estimate of 7.2%. However, the economy slowed in comparison to the previous quarter growth of 7.5%. On an annualized quarterly basis the GDP rose 1.9%.

Moody’s reduces credit rating for Russia

Monday, October 20th, 2014

Moody’s Investors Service cut Russia’s credit rating to Baa2 from Baa1, citing weak growth prospects and depletion of the country’s reserves, following the sanctions on Ukraine. Rapidly declining oil prices have added to Russia’s economic concerns.

UK house price perception improves in October

Friday, October 17th, 2014

As per a survey by Knight Frank and Markit Economic, the UK house price sentiment index rose to 60.7 in October from 60.6 in September, ending the view of price moderation. Moreover, the future house price sentiment index climbed to 70.8 from 69.2 in September.

China’s aggregate financing rises in September

Thursday, October 16th, 2014

The People’s Bank of China (PBoC) stated that the new credit financing for September rose to a three-month high of ¥1.05tn, indicating the success of its monetary policies. Moreover, towards the end of September, the M2 money supply grew 12.9% y-o-y, while foreign reserves stood at US$3.89tn, down 2.6% from the previous quarter.

Germany trims 2014 growth forecast

Wednesday, October 15th, 2014

Germany cut its 2014 growth forecast to 1.2% from 1.8%, as estimated previously, due to the adverse impact of the weakening Eurozone. The government also reduced its projection for 2015 to 1.3% from 2% earlier.

Warm weather impacts UK retail sales in September

Tuesday, October 14th, 2014

The British Retail Consortium reported like-for-like (LFL) retail sales decline of 2.1% y-o-y in September, after rising a strong 1.3% y-o-y in August. Total sales dropped 0.8% y-o-y, the biggest fall in years, due to unusually warm weather. Sales had increased 2.7% y-o-y in the previous month.

China trade data beats expectations in September

Monday, October 13th, 2014

Exports grew 15.3% y-o-y from 9.4% in August, while the imports gained 7.0% against a drop of 2.4% last month, both beating market expectations. However, the trade surplus for the month stood at US$31.0bn.