This morning is the first European trading session of the week, following Friday’s better the expected jobs report and data from China over the weekend pointing to a faster than expected economic recovery. The global economy has become particularly reliant on Chinese products and high-end demand from the growing Chinese middle class. Fears of a so-called hard landing for the Chinese economy following sustained double digit growth have been a concern for economists and investors around the world. The official figures released during the weekend, detailed strong factory output.
An article in the weekends press, reasoned the recent sell-off in notable US equities such as Apple, could be due to the impending fiscal cliff. The raft of tax changes set to hit Americans, could be one of the driving forces behind the sell off as profit and losses are settled before year end.
Three global investment banks plan to move 3,000 City of London jobs to other UK cities over the next few years -Financial Times
“Hedge funds out of love with equities”, assets in fixed income are set to overtake equities for the first time in history -Financial Times
South Korea is considering tightening the existing regulations on banks’ FX derivatives by checking their derivative positions more frequently
Ernst & Young is facing legal action by the liquidators of the main fund of Weavering Capital, whose collapse at the height of the financial crisis is the subject of a criminal investigation by the Serious Fraud Office - The Times
Willie Walsh head of British Airways has said that George Osborne has no growth plan