Receive our Newsletter

Get the latest news and tips direct to your inbox by signing up below.

Archive for the breakfast-today Category

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.

Bank lending in Japan increases in September

Friday, October 10th, 2014

The Bank of Japan (BoJ) informed today that the bank lending in Japan rose 2.3% y-o-y to ¥479.0tn in September vis-à-vis 2.2% in August. At the end of its meeting, the BoJ maintained its monetary policy and said softening measures were fruitful.

House prices in London decline in September

Thursday, October 9th, 2014

The Royal Institution of Chartered Surveyors (RICS) reported house prices in London dropped for the first time since January 2011, marking a slowdown in the UK housing market. The RICS price balance slipped to 30.0 in September from a downwardly revised 39.0 in August.

IMF downgrades global growth forecast for 2015

Wednesday, October 8th, 2014

The International Monetary Fund reduced its global growth projection for the next year to 3.8% from 4% estimated in July. Recovery in the US economy has been largely offset by persistent weakness in the Eurozone and major slowdown in numerous emerging markets.

BOJ retains monetary policy

Tuesday, October 7th, 2014

The Bank of Japan (BOJ) upheld its record stimulus at the conclusion of its meeting today. The monetary base would be increased to ¥70tn from ¥60tn annually. A six-year low yen deferred further monetary easing. The BOJ projects consumer prices to increase in the middle term.

UK home prices may fall in 2015

Monday, October 6th, 2014

As per the Centre for Economics and Business Research, home prices in the UK would decrease 0.8% y-o-y in 2015, partly reversing the 7.8% y-o-y gain in 2014.

Japan services PMI expands in September

Friday, October 3rd, 2014

Today, the latest survey by Markit Economics in Japan reported a services PMI reading of 52.5 for September. The reading significantly exceeded 49.9 in the previous month.

Japanese firms maintain inflation forecast

Thursday, October 2nd, 2014

A survey by the Bank of Japan (BoJ) revealed Japanese companies retained their inflation forecast of 1.5% for the coming year. These companies’ three- and five-year estimates are unchanged at 1.6% and 1.7%, respectively. Inflation forecasts were lower than the BoJ’s inflation target of 2%.

Italy downgrades growth forecasts

Wednesday, October 1st, 2014

The Italian Finance Minister Pier Carlo Padoan stated the country’s GDP is likely to contract 0.3% this year, instead of growing 0.8%, as previously predicted. Estimated expansion for 2015 was also cut to 0.6% from the initial forecast of 1.3%.

UK consumer confidence slips in September: Gfk

Tuesday, September 30th, 2014

Gfk’s survey revealed the consumer confidence index fell to -1 in September, retreating from +1 in August. The sentiment weakened as better economic data did not translate into an improved standard of living or wage hike.

Geneva’s annual report indicates probable crisis

Monday, September 29th, 2014

As per Financial Times, the report by International Centre for Monetary and Banking Studies, expected to release soon, cautions against another crisis owing to high debt and persistently slowing growth in various economies. The report records the escalating public sector debt in developed countries and private debt in emerging markets.

Growth in Japan’s core CPI misses expectations

Friday, September 26th, 2014

The Ministry of Internal Affairs and Communications of Japan reported core consumer price inflation (CPI) increased 3.1% y-o-y in August vis-à-vis 3.3% in July and the expectation of 3.2%. Overall inflation was up 0.2% m-o-m and 3.3% y-o-y.

Three Fed presidents insist tolerance on interest rates

Thursday, September 25th, 2014

Eyeing low inflation and slower growth, Fed presidents from New York, Minneapolis and Chicago warned against premature tightening of the monetary policy. The support came just a day after the Fed chair Janet Yellen’s comments of a sooner-than-expected rate hike.

UK mortgage approvals decline unexpectedly in August

Wednesday, September 24th, 2014

UK mortgage approvals fell to 41,588 in August from 42,715 in July, British Bankers’ Association said yesterday. However, gross mortgage borrowing rose to £11.1bn from £10.9bn last month.

Chinese manufacturing PMI beats expectations

Tuesday, September 23rd, 2014

Markit’s preliminary PMI reading signalled a rebound in China’s manufacturing sector. The PMI came in at 50.5 in September, well above 50.2 in August and the expectation of 50.0. New domestic and export orders, work backlogs and purchase quantity increased at a faster pace.

GDP leaders vow co-operation for global growth

Monday, September 22nd, 2014

The G20 finance officials met in Australia to pledge for robust growth in the world economy. The officials said the combined economic output of member countries should rise at least 2% above the current estimated reading for 2018, driven by structural measures and infrastructure spending.

Scotland votes ‘No’ to independence from UK

Friday, September 19th, 2014

Scotland will remain part of the UK after voters reject independence and First Minister Alex Salmond admits defeat.