China

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 pre…

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Chinese official PMI improved to 49.8 in Sep from 49.2 in Aug Fitch Ratings on Friday maintained Britain’s “AAA” credit rating with a negative outlook, warning that weak economic growth and a rising debt level was increasing the likelihood of a downgrade The board of Xstrata has recommended a £52bn all-share merger with Glencore - Daily Telegraph Greece will receive the next aid tranche even though the troika report uncovers some failure and offer th…

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State backed Royal Bank of Scotland is the front page of the business press this morning after further details emerged from the Tan Chi Man case in Singapore. He is the senior trader who was dismissed for gross misconduct, but is suing RBS on the basis he was simply the scapegoat of a widespread problem. Details emerged that senior traders at RBS boasted about operating a “cartel” that made “amazing” amounts of money by rigging the global interest rates. Analysts are…

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Overnight Asian markets fell as investors showed concern over central bank stimulus from the EU, Asia and the US, will not be enough to increase global growth. Benchmark indices across Asia fell with the MSCI Asia Pacific Index down around 1.5%. The Chinese economy has fuelled global demand through imports of raw materials for development and exports of cheap goods from low cost labour. Analysts are concerned that a Chinese hard landing could be the sucker punch to global growth over the nex…

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In a worrying sign for the mining industry, Caterpillar the world’s biggest construction and mining equipment maker has cut is forecast for 2015 earnings. With Chinese demand slowing, commodity producers have reduced their capital expenditure, which will impact Caterpillars outlook. The shortfall in Apple iPhone5 units available for the first week of demand (only selling a record breaking 5 million) has been blamed on the use of thinner touch screen. The shortfall of the componen…

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During the Asian session equities fell the most in two weeks after the release of Chinese manufacturing data, showing that its manufacturing sector is likely to contract in September for an 11th month. The Asian selloff continued after the release of Japanese exports down by 5.8% from August compared to the previous year. This week has seen WTI Crude fall by nearly $10 from high to low currently trading with a $90 handle trading at a 6-week low. This follows the sudden selloff on Monda…

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Its Monday morning and the start of the trading week in Europe, and though there has been unrest in the Middle East, political tensions increasing between Japan and China, the mainstream UK press is focused on the pictures taken of a royal while sunbathing. The escalating unrest in the Middle East is likely to unsettle investors and push up the prices of Oil due to the uncertainty of future supply. Protesters have been outside western embassies and Al-Qaeda brazenly attacked the ISAF b…

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Following the attack on the US embassy in Libya and the murder of the US ambassador, commentators are citing the possibility of the unrest spreading across the region. Anger was vented against the US in retaliation to a film published by a US citizen that was felt mocked and undermined the Islamic faith. If there is unrest spirals and is widespread this is likely to impact on Oil prices due to the stability in the Middle Eastern region. Expectation and rumours surround the capped EURCH…

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It’s the first day of the trading week for London, following an impressive closing ceremony for the Paralympic Games. Last week’s markets ended following a disappointing US NFP report on Friday and further weak macro data out of China at the weekend. Though this led to markets getting a slight lift as it increases the likelihood of further stimulus from both the US and China. Spencer Dale of the Bank of England speaking at Trinity College Dublin over the weekend stat…

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The UK government is attempting to reignite the economy with a plan to relax planning rules, to allow businesses and homes to expand and improve their properties. The expectation is that this supply side policy will help remove the bureaucracy and begin growth for the UK economy. Bank of England (BoE) announces interest rates and its asset purchase plan at 12pm (London). The benchmark interest rate is expected to be left unchanged at 0.5% and the asset purchase facility held at…

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The pace of growth in the Australian economy seems to have slowed. GDP data released overnight showed that economy grew 0.6% QoQ (Q2) compared to the more impressive 1.4% in Q1. The main contributing factor seemed to be the mining sector, down 1.4%. Perhaps this is due to other mitigating factors, though analysts are likely to point to the connection between the slowing of Chinese demand and Australian mining supply. Anticipation for the next iPhone release is underway as Apple…

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The weekend’s financial press were awash with articles discussing Chairman of the Federal Reserve Ben Bernanke’s Jackson Hole speech on Friday. Bernanke’s comments were sufficiently dovish, and led US equity markets to close with gains on Friday, with Gold and Silver benefiting from the prospect of QE3. The official China PMI for August was released on Saturday while the markets were closed, and printed a week figure of 49.2, below the pivotal 50.0 expansion le…

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China is taking a major step today towards integrating their currency (RMB) into the worlds foreign exchange market. The controlled peg set by their government has been allowed to float within a marginal band against a small basket of currencies around a fixed rate since 2005. The government has announced that they will gradually increase its flexibility and this latest announcement seems to confirm that. The undervaluing of the currency has been said by some to unfairly allowed China to con…

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During the Asian session equities have fallen as China has raised fuel prices, adding to concern that the powerhouse of the Far East is slowing down combined with a Federal Reserve official stating that “..the US rebound still faces risks.“ The UK government has been dealt a setback at is new flagship credit scheme for small businesses has failed to get all of the UK’s major bankson board. HSBC will not be participating in the National Loan GuaranteeScheme(NLGS) which…

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