As expected the curtain fell on JJB Sports, with 2,200 redundancies and 133 shop closures. The remaining units have been sold to Sports Direct. The company had been on the brink of collapse for some time; with the share price collapsing after the company put itself up for sale. It is a blow for the high street as another chain has gone bust which will leave further empty units in the UK.
The Reserve Bank of Australia cut its interest rates overnight by 25bps to 3.25% which was only predicted by 9 out of 28 economists surveyed by Bloomberg. The Aussie dollar fell against the Greenback by 90 pips following the release to trade at a 3-week low. The Australian economy has ridden high on a mining boom from Chinese demand, but as that seems to be slowing so does the pace of Australian growth. There is also speculation from analysts that the RBA will cut interest rates by 25bps next month.
iPhone 5 drives Softbank to $2.3 billion EAccess deal to boost bandwidth - Bloomberg
RBA cut its target rate by 25bp to 3.25%. (Only 9 out of 28 economists predicted) Following the announcement AUDUSD fell 85 pips settling at 1.03020
Banks facing worst equities trading since 2006 as markets rally -Bloomberg
Moody’s: Spanish banks will need up to €105bn
JPMorgan Chase has been hit with a lawsuit by Bear Stearns over faulty mortgage back securities - CityAM
Data from the UK at 9:30 (London) with PMI construction expected at 49.9, following yesterday’s poor factory and credit data from the UK, Osborne would be pleased to see PMI print above 50. (50 being the key level to show expansion)