Euro

Another week begins and it is the first trading day of the week. Chinese data released on Saturday was better than expected giving Asian markets a lift from the open. However sentiment faded as markets focused on the continuing uncertainty in Europe. It is thought that Virgin Money may purchase the 316 RBS branches that need to be sold by the end of the year. Under the European regulations the bailout conditions stipulate that RBS must sell the branches by year end or incur large fines…

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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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It is a miserable wet, cold and windy day in the City of London, and I feel that a rubber dingy would have been a more appropriate method of transport to get into the office. Investors are awaiting Thursday’s release of the Oliver Wyman investigation into the Spanish banking sector. The report has independently covered 14 banking groups, with an estimated figure for a required bailout of €60bn. Currently Spain has earmarked €100bn to recapitalise the Spanish banks, but…

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It’s the final trading session of the week in Europe and if you are one of the Apple faithful then you might have been queuing outside an Apple store overnight awaiting the iPhone 5 release. With pre orders topping $2 million, Apple has already released a statement stating that some clients will be unable to purchase the new smart phone until the end of October. It is a problem, that many companies would love to have, being unable to meet the demand upon release of a new product, with…

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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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In a controversial plan Vince Cable the Business Secretary, will announce the plans today for a government-backed corporate lender. This is an attempt to reignite lending and reinvigorate the UK economy, though firmer details as to the scale and setup are yet to be decided. I personally think that this is a backwards step and that a regulated banking sector is the solution rather than a politicised government lendeThe new Chief Executive of Barclays Antony Jenkins has vowed to review each un…

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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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Equity markets rallied yesterday after the expected announcement by Mario Draghi that the European Central Bank (ECB) will indeed be supporting indebted European governments. He pledged the ECB will consider to purchasing their government bonds in a new programme dubbed Outright Monetary Transactions. These would be bought in the secondary market, and not indirectly from the governments and Draghi stipulated that this would only happen after the governments had sought financial aid from the…

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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 US markets were closed yesterday for the Labor Day public holiday, meaning that volumes were thin between the European and Asian sessions. Overnight during the Asian session, the RBA rate decision took centre stage, and left interest rates on hold at 3.50%, as expected. AUDUSD initially rallied on the decision and is currently trading at 1.02861. The London 2012 Olympic Games failed to boost the UK high street, with August BRC like-for-like retail sales -0.5%. This doe…

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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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