Euro

To the surprise of analysts it was announced over the weekend that as part of the bailout agreement, Cypriot bank deposits would be imposed with a levy, or a so-called tax. The bailout terms are harsh in comparison to many, with the unprecedented terms effecting individual investors directly. The situation is fluid, and the initial terms of the “tax” are rumoured to have changed, with government officials in discussion on how to move forward. Today and tomorrow are now bank holid…

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Bank of England chews over negative interest rate plan - CityAM Sterling has steady following its recent rapid decline, though the cable is currently unable to break the psychological 1.50 level The unemployment rate has remained steady at 5.4 per cent in February as the Australian economy added 71,500 jobs, the biggest monthly gain in 12 years -SMH Bank of England's Bailey warns that UK banks need more capital, this idea is controversial as some believe higher capital…

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M&A seems to have sprung to life, as Warren Buffett’s Berkshire Hathaway and 3G Capital agreed to buy Heinz for $28bn, which is one of the food industry’s largest acquisitions SAC Capital Advisors, the hedge-fund is seeking to stem investor outflow, amid legal and regulatory scrutiny -WSJ Commerzbank loses $954 million in Q4 RBA’s Kent Says Chinese Demand for Commodities to Remain Strong -Bloomberg The Treasury has put billions of pounds of taxpa…

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Yesterday Mark Carney the current Bank of Canada Governor, and future Bank of England Governor took centre stage. The Treasury Select Committee (TSC) immediately began with questions about his remuneration and housing allowance; Carney seemed comfortable, calm and collected. Initially sterling rallied following the release of his written answers to questions he had received prior. Mark Carney hinted towards a change in stance from Mervyn King’s current approach, but was respectful that…

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S&P affirmed Belgium's AA rating with negative outlook Pimco boss says EU exit threatens UK “standard of living” - Daily Telegraph The Eurozones biggest economies would raise an estimated €30-40bn from their planned “Tobin Tax” - Financial Times Amazon shares climb to new highs on earnings update FTSE 100 closed above 6300 yesterday for the first time since May 2008 CB's Fall in Assets Risks Rise in the Euro- WSJ Ge…

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The south east of England including London has been covered with snow since Friday, though a relatively small amount (4-5 inches) it has caused travel chaos. Analysts have been quick to highlight the weather disruption as an increased chance of the UK entering a double-dip recession. There have been widespread cancellations across both airport and train networks, as the UK struggles to cope with snowfall. Today is also Martin Luther King Day in the United States, which means that the…

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There have been numerous articles in the last few months over the so-called business zombies of the UK high-street. These are companies that have become reliant on low-financing rates but have had stagnated growth, thus are on the verge of collapse. HMV in a statement last night announced: The board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection The music retailer has been tra…

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The UK supermarket industry is saturated and companies are ruthless in attempting to increase their market shares. Loss leader promotions are common and tactics to attract customers over the all-important Christmas period are key. This week has seen the supermarkets post their trading updates, with Tesco posting better than expected numbers following last week’s results from Waitrose. Marks and Spencer suffered over the Christmas period and their release was brought forward after a lea…

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Christmas is under a week away, and the New Year isn’t far. Until the 2nd of January, with many traders likely to close or cover positions over the holiday period and be away from their desks, liquidity from Monday the 24th December until the 2nd of January should be relatively thin. Some analysts have been putting the dollar weakness down to fund managers squaring positions ahead of month end and year end. Cable is trading at the highest price since mid-September, and EURUSD tra…

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Fitch affirms Italy at A- with a negative outlook Insurers are conducting a war of words with regulators trying to prevent a repeat of AIG’s collapse –Financial Times Commodity trading giant Trafigura mulls London float of its subsidiary Puma BP is looking to change the terms of its contract with the Iraq government for the Rumaila oilfield, as it seeks to scale back its production target – The Daily Telegraph The coalition is pressing ahead with pla…

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It is the final trading session of the week in Europe, and London currently feels like the Antarctic with the dark mornings, and freezing weather. Both the Bank of England and ECB left rates and QE unchanged as expected, with both sterling and the euro barely moving upon the release. Today is Non-Farm Payrolls, which is the eagerly anticipated among traders, and can be one of the most volatile economic releases of the month. Median figure for the release is 93K, and has seen some banks…

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Morning Market Headlines RBA cut rates as expected by 25bps to 3.0%, to “foster sustainable growth” High frequency trades improve markets, Bank of England experts argue, by assisting price discovery - CityAM Ex-Goldman trader (current with Morgan Stanley) is probed by SEC over market manipulation – Reuters UK is facing a lost decade for growth – CityAM Feds Bullard favours US$25bn of QE which provided the same impact as US$45bn via Twist…

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Fitch said and Moody's downgraded France by one notch to Aa1 from Aaa with a negative outlook The FT says trading of US equities in "dark pools" has grown 50% in 3yrs and now represents a third of trading Credit Suisse Group AG plans to split its private bank business from its investment bank, and its asset-management unit will be dissolved and integrated into its wealth-management unit -Tagesanzeiger The Spanish government is offering residency for home purc…

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UK RICS Oct house price balance leaps to highest since Dec 2009 or -7 (f/c -15) vs -14 Sep MegaFon is to go ahead with market debut despite concerns raised about the editing of the Wikipedia entry of the Billionaire oligarch behind the deal – The Times Bloomberg is launching an iTunes-style portal for applications to allow external developers to sell software to their 315,000 subscribers -FT Germany investigates UBS clients over alleged tax evasion - FT NYSE Eur…

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During the Asian session, the Reserve Bank of New Zealand (RBNZ) left their base interest rate on hold at 2.5%. The central bank expects firmer growth for the final quarter of the year and into 2013, with the markets expecting no further interest rate cuts, the Kiwi Dollar rallied following the release. UK GDP is released at 9:30am (London) and is expected to show expansion, and that the economy has pulled out of recession. David Cameron has come under fire from the opposition for a su…

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