Eurozone

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…

Continue Reading →

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…

Continue Reading →

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…

Continue Reading →

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…

Continue Reading →

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…

Continue Reading →

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…

Continue Reading →

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…

Continue Reading →

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…

Continue Reading →

The key event of the week in the financial markets has arrived as traders eagerly await the speech from Federal Reserve Chairman Ben Bernanke at Jackson Hole, Wyoming. Speculation as to what the context of the speech will include, however the focus is due to whether there will be another round of quantitative easing (QE3). Many analysts and market commentators had voiced that this is all but a done deal, however it opinion seems to be split as to whether it will be announced. The Presi…

Continue Reading →

Fears of contagion swept through the European session yesterday, as yields rose on Spanish and Italian bonds and investors found the safety of Gold. The recent positive sentiment towards the US had led to the overhanging issues of Europe been overlooked. However following the disappointing employment figures from the US on Friday combined with bearish data from Europe has led to a reignition of fear. The yield on the Mediterranean Government bonds is close to previous levels that promoted ba…

Continue Reading →

Economic data released this morning shows that the UK economy has entered a technical recession. This is deemed as two consecutive quarters with negative GDP. Economists has expected slight growth, compared to the actual shrinking of the economy. The Office for National Statistics said that the negative growth was due to a sharp fall in construction output. This is a disappointing release for the Chancellor George Osborne as the shadow of recession covers the country once again.…

Continue Reading →