Bloomberg's Betty Liu, Dominic Chu and Michael McKee report on today's ten most important stocks including Petmed Express, UBS and McDonald's. They speak on Bloomberg Television's "In The Loop."
Monday, 22 July 2013
Aston Martin CC100: No More Mr. Nice (British) Guy
As Aston Martin celebrates 100 years, designer Marek Reichman talks to Bloomberg Television about what goes into making the cars.
$2.2B and 6 Miles Long: China's Gigantic Bridge
In today's "First Look," Bloomberg's Sara Eisen highlights the photos illustrating headlines from around the world. She speaks on Bloomberg Television's "Bloomberg Surveillance."
New Apple Product Due This Year: Segall
Ken Segall, former ad executive at Apple, discusses Apple's approach to new hardware as the company is due for a product announcement. He speaks on Bloomberg Television's "Bloomberg Surveillance."
Inside Tesla: A Massive Factory Pumping Out Model S
Bloomberg Businessweek's Ashlee Vance visits the Tesla factory in Fremont, CA to find out what it takes to make the white-hot Model S.
British Super-Rocket Is Holy Grail of Space Launch
Bloomberg's Robert Wall provides details of the deal between the U.K. government and EADS to fund the development of reusable rocket technology. He speaks on Bloomberg Television's "The Pulse."
Meet Atlas: DARPA's Startling $2M Humanoid Future
A few months ago we introduced you to PETMAN: a Boston Dynamics- designed humanoid robot designed to test protective clothing used in chemical and nuclear fallouts. Boston Dynamics recently unveiled an updated version of Petman He's called ATLAS, and the U.S. Military hopes he will be a valuable asset in the field. Bloomberg's Adam Johnson gets an up close look.
Today in the market 22/07/2013 - UK
Most U.K. Stocks Fall After Four Weeks of Advances
Most U.K. stocks retreated following four successive weeks of advances for the benchmark FTSE 100 Index. (UKX)
GlaxoSmithKline Plc (GSK) was the biggest drag on the benchmark measure after an executive said some employees may have broken the law in China. Bumi (BUMI) Plc tumbled 8.6 percent after the coal producer at the center of an ownership dispute ended a three-month halt in London trading. Fresnillo Plc and Randgold Resources Ltd. each added at least 3 percent as gold and silver rallied for a third day.
The FTSE 100 Index dropped 7.5 points, or 0.1 percent, to 6,623.17 in London, as two shares fell for every one that rose. The gauge advanced 1.3 percent last week as Federal Reserve Chairman Ben S. Bernanke said the central bank remains flexible on when to reduce its asset purchases. The FTSE All-Share Index slid less than 0.1 percent today, while Ireland’s ISEQ Index added less than 0.1 percent.
“There’s some hesitation before we get a wealth of data this week,” Ishaq Siddiqi, market strategist at ETX Capital in London, said by telephone. “The miners are being supported by a tick up in gold prices.” He said, “We’re paying more attention to what’s happening on the corporate front.”
The volume of shares changing hands in companies on the FTSE 100 was 31 percent less than the 30-day average, data compiled by Bloomberg showed.
Fourteen companies listed on the FTSE 100 companies will report earnings this week. The list includes ARM Holdings Plc and GlaxoSmithKline on July 24, Unilever on July 25 and British Sky Broadcasting Group Plc on July 26.
GlaxoSmithKline Plc (GSK) was the biggest drag on the benchmark measure after an executive said some employees may have broken the law in China. Bumi (BUMI) Plc tumbled 8.6 percent after the coal producer at the center of an ownership dispute ended a three-month halt in London trading. Fresnillo Plc and Randgold Resources Ltd. each added at least 3 percent as gold and silver rallied for a third day.
The FTSE 100 Index dropped 7.5 points, or 0.1 percent, to 6,623.17 in London, as two shares fell for every one that rose. The gauge advanced 1.3 percent last week as Federal Reserve Chairman Ben S. Bernanke said the central bank remains flexible on when to reduce its asset purchases. The FTSE All-Share Index slid less than 0.1 percent today, while Ireland’s ISEQ Index added less than 0.1 percent.
“There’s some hesitation before we get a wealth of data this week,” Ishaq Siddiqi, market strategist at ETX Capital in London, said by telephone. “The miners are being supported by a tick up in gold prices.” He said, “We’re paying more attention to what’s happening on the corporate front.”
The volume of shares changing hands in companies on the FTSE 100 was 31 percent less than the 30-day average, data compiled by Bloomberg showed.
Fourteen companies listed on the FTSE 100 companies will report earnings this week. The list includes ARM Holdings Plc and GlaxoSmithKline on July 24, Unilever on July 25 and British Sky Broadcasting Group Plc on July 26.
Today in the market 22/07/2013 - US
Energy stocks down; Halliburton off nearly 1%
Energy stocks edged lower Monday, following the broader market in sideways trading as Wall Street weighed earnings, including those of oil-field services Halliburton Co. (HAL.NaE)
Shares of Halliburton (HAL.NaE) , which posted second-quarter results that surpassed analyst expectations, declined 0.8%.
The company reported earnings of 73 cents per share, compared with expectations of 72 cents per share. The results compare with earnings of 79 cents per share a year earlier.
Revenues from the company's North American business fell 8.2%, while revenues from its international arm rose 14%. The company forecast improvement in North America for the second half of the year and higher revenue from Latin America.
Schlumberger Ltd. (SLB.NaE) shares led among energy companies on the S&P 500, up 2.4%. Schlumberger reported earnings of $1.15 a share, also above estimates, on Friday. The stock rose more than 5% after earnings were reported.
Other winners on Monday included refiner Tesoro Corp. (TSO.NaE) , up 1.5%, and Valero Energy Corp. (VLO.NaE) , with shares up 0.8%.
Valero reports second-quarter results on Tuesday, while Tesoro is scheduled to report Aug. 1.
Analysts expect Valero to post per-share earnings of $1.02 a share, compared with $1.08 a share in the previous quarter.
Top losers on Monday included Newfield Exploration Co. (NFX.NaE) , with shares down nearly 2%.
Major oil and gas companies were mixed. Chevron Corp. (CVX.NaE) shares added 0.3%, while Exxon Mobil Corp. (XOM.NaE) shares declined 0.3% and ConocoPhillips (COP.NaE) shares were off 0.1%.
The SPDR Energy Select Sector , an exchange-traded fund focused on energy names, fell 0.1%.
Source: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/us-detail.page?resId=201307221351MRKTWTCHNEWS_SVC_318F02F8-F2EF-11E2-9F9D-002128040CF6&requestId=1&showChain=true&FullArticle=true
Shares of Halliburton (HAL.NaE) , which posted second-quarter results that surpassed analyst expectations, declined 0.8%.
The company reported earnings of 73 cents per share, compared with expectations of 72 cents per share. The results compare with earnings of 79 cents per share a year earlier.
Revenues from the company's North American business fell 8.2%, while revenues from its international arm rose 14%. The company forecast improvement in North America for the second half of the year and higher revenue from Latin America.
Schlumberger Ltd. (SLB.NaE) shares led among energy companies on the S&P 500, up 2.4%. Schlumberger reported earnings of $1.15 a share, also above estimates, on Friday. The stock rose more than 5% after earnings were reported.
Other winners on Monday included refiner Tesoro Corp. (TSO.NaE) , up 1.5%, and Valero Energy Corp. (VLO.NaE) , with shares up 0.8%.
Valero reports second-quarter results on Tuesday, while Tesoro is scheduled to report Aug. 1.
Analysts expect Valero to post per-share earnings of $1.02 a share, compared with $1.08 a share in the previous quarter.
Top losers on Monday included Newfield Exploration Co. (NFX.NaE) , with shares down nearly 2%.
Major oil and gas companies were mixed. Chevron Corp. (CVX.NaE) shares added 0.3%, while Exxon Mobil Corp. (XOM.NaE) shares declined 0.3% and ConocoPhillips (COP.NaE) shares were off 0.1%.
The SPDR Energy Select Sector , an exchange-traded fund focused on energy names, fell 0.1%.
Source: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/us-detail.page?resId=201307221351MRKTWTCHNEWS_SVC_318F02F8-F2EF-11E2-9F9D-002128040CF6&requestId=1&showChain=true&FullArticle=true
Today in the market 22/07/2013 - Asia
Asian stocks rise; Japan gets election boost
Asian markets advanced Monday after China removed a floor on banks' lending rates and Japan's ruling government regained control of the parliament's upper house, raising hopes for further reforms in both economies.
Japan's Nikkei Stock Average rose 0.5%, the Shanghai Composite added 0.6% and Hong Kong's Hang Seng Index edged 0.3% higher, with each overcoming volatility that dragged them into losses earlier in the day.
'Longer-term investors will take heart from the improved potential for structural reform in Japan and China's abolition of minimum bank lending rates,' said CMC Markets chief market analyst Ric Spooner.
The performance in Tokyo came after the ruling Liberal Democratic Party's coalition easily won a majority of the 121 seats contested in the upper house elections over the weekend. The victory gave Prime Minister Shinzo Abe's LDP control over both houses, consolidating its political power.
Telecommunication and insurance shares advanced, although a strengthened yen weighed on some exporters.
Shares of Softbank Corp. (SFTBF.NaE) climbed 0.9%, Nippon Telegraph & Telephone Corp. (NTT.NaE) gained 1.3%, and MS&AD Insurance Group Holdings Inc. (MSADF.NaE) rose 1%.
On the downside, Nissan Motor Corp. eased 0.7%, Mitsubishi Heavy Industries Ltd. (MHVYF.NaE) retreated 4.1%, and Renesas Electronics Corp. (RNECF.NaE) dropped 3.4%, as the U.S. dollar fell to around the ?100-level.
HSBC's co-head of Asian economic research Frederic Neumann said the real test for Prime Minister Abe's administration lay ahead, as he must urgently implement far-reaching reforms to revive the economy.
'No matter whether [Abe] succeeds in the coming quarters or not, there is one effect that will be keenly felt: Japanese money will increasingly wash over Asia,' he wrote in a note to clients.
Chinese shares turned volatile, meanwhile, as analysts said the People's Bank of China's decision late Friday to abandon a floor on the rates bank could charge on their loans marked a structural reform, but one that wouldn't significantly affect bank earnings nor provide help to the economy.
'We believe this is the easy part of interest-rate deregulation, but nevertheless is an important first step in the right direction for structural reforms,' Credit Suisse economist Dong Tao wrote in a report. 'Removing the deposit-rate ceiling would be more significant to the economy and banking sector than removing the floor to the lending rate.'
China currently caps the interest rates that banks pay on deposits, a factor that often pushes savers toward riskier investments in search of higher returns.
Credit ratings agency Moody's Investors Service said that while the removal of the lending rate marked an important step in China's financial reforms, removal of the lending rate floor was a credit negative for banks. 'It is another move towards interest rate deregulation that will narrow their net interest margins,' Moody's said.
In Monday trade, shares of China Construction Bank Corp. (CICHF.NaE) lost 0.2%, and those of Industrial & Commercial Bank of China Ltd. (IDCBF.NaE) shed 0.5% in Shanghai.
Shares of metals companies advanced after gold and copper prices rose Friday in the U.S. Jiangxi Copper Co. (JIAXF.NaE) climbed 2% and Zijin Mining Group Co. (ZIJMF.NaE) added 2.5% in Shanghai; in Hong Kong, Zhaojin Mining Industry Co. (ZHAOF.NaE) rose 4.5% and China Molybdenum Co. (CMCLF.NaE) advanced 1.1%.
Elsewhere, Australia's S&P/ASX 200 rose 0.6% and South Korea's Kospi added 0.5%, with the Australian shares propped up by the mining and financial sectors.
Commonwealth Bank of Australia (CBAUF.NaE) gained 0.6%, and Macquarie Group Ltd. (MCQEF.NaE) rose 3.3%, while gold miner Newcrest Mining Ltd. (NCMGF.NaE) jumped 7.5%.
Asia's performance came after the Standard & Poor's 500 Index marked modest gains in the U.S. on Friday, though weakness for Microsoft Corp. (MSFT.NaE) helped drag down the Dow Jones Industrial Average .
Source: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/asia-detail.page?resId=201307212119MRKTWTCHNEWS_SVC_DCB031A6-F264-11E2-9F9D-002128040CF6&requestId=1&showChain=true&FullArticle=true
Asian markets advanced Monday after China removed a floor on banks' lending rates and Japan's ruling government regained control of the parliament's upper house, raising hopes for further reforms in both economies.
Japan's Nikkei Stock Average rose 0.5%, the Shanghai Composite added 0.6% and Hong Kong's Hang Seng Index edged 0.3% higher, with each overcoming volatility that dragged them into losses earlier in the day.
'Longer-term investors will take heart from the improved potential for structural reform in Japan and China's abolition of minimum bank lending rates,' said CMC Markets chief market analyst Ric Spooner.
The performance in Tokyo came after the ruling Liberal Democratic Party's coalition easily won a majority of the 121 seats contested in the upper house elections over the weekend. The victory gave Prime Minister Shinzo Abe's LDP control over both houses, consolidating its political power.
Telecommunication and insurance shares advanced, although a strengthened yen weighed on some exporters.
Shares of Softbank Corp. (SFTBF.NaE) climbed 0.9%, Nippon Telegraph & Telephone Corp. (NTT.NaE) gained 1.3%, and MS&AD Insurance Group Holdings Inc. (MSADF.NaE) rose 1%.
On the downside, Nissan Motor Corp. eased 0.7%, Mitsubishi Heavy Industries Ltd. (MHVYF.NaE) retreated 4.1%, and Renesas Electronics Corp. (RNECF.NaE) dropped 3.4%, as the U.S. dollar fell to around the ?100-level.
HSBC's co-head of Asian economic research Frederic Neumann said the real test for Prime Minister Abe's administration lay ahead, as he must urgently implement far-reaching reforms to revive the economy.
'No matter whether [Abe] succeeds in the coming quarters or not, there is one effect that will be keenly felt: Japanese money will increasingly wash over Asia,' he wrote in a note to clients.
Chinese shares turned volatile, meanwhile, as analysts said the People's Bank of China's decision late Friday to abandon a floor on the rates bank could charge on their loans marked a structural reform, but one that wouldn't significantly affect bank earnings nor provide help to the economy.
'We believe this is the easy part of interest-rate deregulation, but nevertheless is an important first step in the right direction for structural reforms,' Credit Suisse economist Dong Tao wrote in a report. 'Removing the deposit-rate ceiling would be more significant to the economy and banking sector than removing the floor to the lending rate.'
China currently caps the interest rates that banks pay on deposits, a factor that often pushes savers toward riskier investments in search of higher returns.
Credit ratings agency Moody's Investors Service said that while the removal of the lending rate marked an important step in China's financial reforms, removal of the lending rate floor was a credit negative for banks. 'It is another move towards interest rate deregulation that will narrow their net interest margins,' Moody's said.
In Monday trade, shares of China Construction Bank Corp. (CICHF.NaE) lost 0.2%, and those of Industrial & Commercial Bank of China Ltd. (IDCBF.NaE) shed 0.5% in Shanghai.
Shares of metals companies advanced after gold and copper prices rose Friday in the U.S. Jiangxi Copper Co. (JIAXF.NaE) climbed 2% and Zijin Mining Group Co. (ZIJMF.NaE) added 2.5% in Shanghai; in Hong Kong, Zhaojin Mining Industry Co. (ZHAOF.NaE) rose 4.5% and China Molybdenum Co. (CMCLF.NaE) advanced 1.1%.
Elsewhere, Australia's S&P/ASX 200 rose 0.6% and South Korea's Kospi added 0.5%, with the Australian shares propped up by the mining and financial sectors.
Commonwealth Bank of Australia (CBAUF.NaE) gained 0.6%, and Macquarie Group Ltd. (MCQEF.NaE) rose 3.3%, while gold miner Newcrest Mining Ltd. (NCMGF.NaE) jumped 7.5%.
Asia's performance came after the Standard & Poor's 500 Index marked modest gains in the U.S. on Friday, though weakness for Microsoft Corp. (MSFT.NaE) helped drag down the Dow Jones Industrial Average .
Source: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/asia-detail.page?resId=201307212119MRKTWTCHNEWS_SVC_DCB031A6-F264-11E2-9F9D-002128040CF6&requestId=1&showChain=true&FullArticle=true
Today in the market 22/07/2013 - Europe
Europe stocks hold on to seven-week high
Source: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/europe-detail.page?resId=201307220436MRKTWTCHNEWS_SVC_784D6354-F2A1-11E2-9F9D-002128040CF6&requestId=1&showChain=true&FullArticle=true
European stock markets moved slightly higher on Monday as investors digested a range of corporate news, with GlaxoSmithKline PLC (GSK.NaE) on the decline after admitting executives may have breached Chinese law and UBS AG (UBS.NaE) higher after a preliminary earnings statement.
The Stoxx Europe 600 index added 0.2% to 300.30, marking the highest close since late May. The index fluctuated between small gains and losses for most of the trading day.
'There's very little on the agenda today to persuade investors to take on any big positions. There's nothing to make investors think that the economy is better or worse than when they left on Friday. People are just treading water,' said James Ashley, senior European economist at RBC Capital Markets.
Instead, he said, investors were waiting for top-tier data releases out later this week and next week.
'We can get a big surprise with the euro-zone PMIs on Wednesday and this can determine how the markets will move. We also have U.K. GDP on Thursday. But the potential for market-moving news is greater next week when we have some notable events with the [U.S. Federal Open Market Committee] meeting, Bank of England, European Central Bank and [U.S.] nonfarm payrolls,' he added.
Global investors have recently paid close attention to data coming out of the U.S. to gauge whether they strengthen or weaken the case for the Federal Reserve to taper its asset purchases. Fed Chairman Ben Bernanke has said a reduction in purchases could happen later this year, depending on the incoming data.
U.S. stocks were higher on Wall Street in Monday's trade.
KPN rallies on news of potential deal
Shares of Dutch telecom company KPN N.V. rallied nearly 13% on Monday, leading gainers in the Stoxx 600 index after The Financial Times reported that Spain's Telefonica SA (TEF.NaE) is in advanced talks to buy E-Plus, KPN's German mobile telecommunications business. KPN and Telef?nica Deutschland Holding AG subsequently issued statements confirming the talks.
Shares of Telef?nica Deutschland, Germany's third-largest integrated telecoms operator, which is part of Telefonica SA (TEF.NaE), gained 6.8%.
Shares of Telefonica (TEF.NaE) closed up 1.3% in Madrid.
In London, shares of GlaxoSmithKline fell 1.2% after the pharma major said some of its senior executives appeared to have violated Chinese law. The statement came after Chinese officials alleged that the company was involved in widespread bribery in the country in order to get health-care providers to prescribe its products.
Shares of Nokia Corp. (NOK.NaE) lost 1.2% after Oppenheimer cut the firm to underperform.
On a more upbeat note, investors welcomed UBS's preliminary second-quarter results, sending the shares 2.5% higher. The Swiss investment bank said its second-quarter results, which are expected to be released in full on July 30, now include pretax charges for litigation matters totaling about 865 million Swiss francs ($919 million). UBS estimated that net income was 690 million Swiss francs. Additionally, the bank said it has settled with a U.S. regulator over claims related to mortgage-backed securities.
Investors in Europe also looked to Asia, where Japanese stocks closed higher after Prime Minister Shinzo Abe's governing bloc won a majority in Sunday's upper-house election.
Portuguese stocks rally
Back in Europe, Portugal's PSI 20 index rallied 2.3% to 5,651.40 after Prime Minister Pedro Passos Coelho vowed to stick to the country's bailout program after weeks of political uncertainty. Additionally, Coelho announced a cabinet reshuffle in which he intends to name Paulo Portas, his junior coalition partner, as Portugal's new deputy prime minister. Portas will be responsible for dealing with the Troika.
In Germany, the Bundesbank said in its monthly bulletin that the economy expanded strongly in the second quarter, an assessment that has been confirmed by current indicators. However, there are signs of a slowdown in economic growth in the summer quarter, the central bank said.
The DAX 30 index closed slightly lower at 8,331.06.
Shares of Deutsche Bank AG (DB.NaE) rose 1.4% after the Financial Times reported the bank plans to shrink its balance sheet by as much as one-fifth, in order to comply with stricter regulations.
Banks were also higher in France, where Soci?t? G?n?rale SA added 1.5% and BNP Paribas SA (BNPQF.NaE) climbed 1.7%. France's CAC 40 index gained 0.4% to 3,939.92.
The U.K.'s FTSE 100 index fell 0.1% to 6,623.17, weighed by Glaxo.
Outside the major indexes, shares of Royal Philips NV climbed 2.1% after the firm reported a 2% rise in second-quarter revenue, as sales in China and other emerging markets continued to grow.
Shares of Saipem SpA (SAPMF.NaE) picked up 2.7% after Barclays lifted the Italian oil-services firm to overweight from equal weight.
Julius Baer Gruppe AG (JBARF.NaE) rallied 5.7% after the bank reported first-half adjusted earnings per share at 1.23 Swiss francs, which Credit Suisse called 'solid' and said were 10% higher than consensus expectations.
Ziggo NV (ZIGGF.NaE) dropped 2.9% after UBS cut the cable operator to neutral from buy.
The Stoxx Europe 600 index added 0.2% to 300.30, marking the highest close since late May. The index fluctuated between small gains and losses for most of the trading day.
'There's very little on the agenda today to persuade investors to take on any big positions. There's nothing to make investors think that the economy is better or worse than when they left on Friday. People are just treading water,' said James Ashley, senior European economist at RBC Capital Markets.
Instead, he said, investors were waiting for top-tier data releases out later this week and next week.
'We can get a big surprise with the euro-zone PMIs on Wednesday and this can determine how the markets will move. We also have U.K. GDP on Thursday. But the potential for market-moving news is greater next week when we have some notable events with the [U.S. Federal Open Market Committee] meeting, Bank of England, European Central Bank and [U.S.] nonfarm payrolls,' he added.
Global investors have recently paid close attention to data coming out of the U.S. to gauge whether they strengthen or weaken the case for the Federal Reserve to taper its asset purchases. Fed Chairman Ben Bernanke has said a reduction in purchases could happen later this year, depending on the incoming data.
U.S. stocks were higher on Wall Street in Monday's trade.
KPN rallies on news of potential deal
Shares of Dutch telecom company KPN N.V. rallied nearly 13% on Monday, leading gainers in the Stoxx 600 index after The Financial Times reported that Spain's Telefonica SA (TEF.NaE) is in advanced talks to buy E-Plus, KPN's German mobile telecommunications business. KPN and Telef?nica Deutschland Holding AG subsequently issued statements confirming the talks.
Shares of Telef?nica Deutschland, Germany's third-largest integrated telecoms operator, which is part of Telefonica SA (TEF.NaE), gained 6.8%.
Shares of Telefonica (TEF.NaE) closed up 1.3% in Madrid.
In London, shares of GlaxoSmithKline fell 1.2% after the pharma major said some of its senior executives appeared to have violated Chinese law. The statement came after Chinese officials alleged that the company was involved in widespread bribery in the country in order to get health-care providers to prescribe its products.
Shares of Nokia Corp. (NOK.NaE) lost 1.2% after Oppenheimer cut the firm to underperform.
On a more upbeat note, investors welcomed UBS's preliminary second-quarter results, sending the shares 2.5% higher. The Swiss investment bank said its second-quarter results, which are expected to be released in full on July 30, now include pretax charges for litigation matters totaling about 865 million Swiss francs ($919 million). UBS estimated that net income was 690 million Swiss francs. Additionally, the bank said it has settled with a U.S. regulator over claims related to mortgage-backed securities.
Investors in Europe also looked to Asia, where Japanese stocks closed higher after Prime Minister Shinzo Abe's governing bloc won a majority in Sunday's upper-house election.
Portuguese stocks rally
Back in Europe, Portugal's PSI 20 index rallied 2.3% to 5,651.40 after Prime Minister Pedro Passos Coelho vowed to stick to the country's bailout program after weeks of political uncertainty. Additionally, Coelho announced a cabinet reshuffle in which he intends to name Paulo Portas, his junior coalition partner, as Portugal's new deputy prime minister. Portas will be responsible for dealing with the Troika.
In Germany, the Bundesbank said in its monthly bulletin that the economy expanded strongly in the second quarter, an assessment that has been confirmed by current indicators. However, there are signs of a slowdown in economic growth in the summer quarter, the central bank said.
The DAX 30 index closed slightly lower at 8,331.06.
Shares of Deutsche Bank AG (DB.NaE) rose 1.4% after the Financial Times reported the bank plans to shrink its balance sheet by as much as one-fifth, in order to comply with stricter regulations.
Banks were also higher in France, where Soci?t? G?n?rale SA added 1.5% and BNP Paribas SA (BNPQF.NaE) climbed 1.7%. France's CAC 40 index gained 0.4% to 3,939.92.
The U.K.'s FTSE 100 index fell 0.1% to 6,623.17, weighed by Glaxo.
Outside the major indexes, shares of Royal Philips NV climbed 2.1% after the firm reported a 2% rise in second-quarter revenue, as sales in China and other emerging markets continued to grow.
Shares of Saipem SpA (SAPMF.NaE) picked up 2.7% after Barclays lifted the Italian oil-services firm to overweight from equal weight.
Julius Baer Gruppe AG (JBARF.NaE) rallied 5.7% after the bank reported first-half adjusted earnings per share at 1.23 Swiss francs, which Credit Suisse called 'solid' and said were 10% higher than consensus expectations.
Ziggo NV (ZIGGF.NaE) dropped 2.9% after UBS cut the cable operator to neutral from buy.
Source: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/europe-detail.page?resId=201307220436MRKTWTCHNEWS_SVC_784D6354-F2A1-11E2-9F9D-002128040CF6&requestId=1&showChain=true&FullArticle=true
Monday, 8 July 2013
Today in the markets 08/07/2013 - UK
Banks, resources lift FTSE 100
Most U.K. stocks kicked off the week on an upbeat note, building on gains from last week when the new Bank of England governor signaled a pro-stimulus stance.
The FTSE 100 index climbed 0.9% to 6,436.86, after closing out Friday with the highest weekly rise since Jan. 4.
The full-week gains came as the central bank, with new Governor Mark Carney at the helm, said the U.K.'s recovery is on track and signaled rates won't be raised anytime soon.
Banks, which tend to be among biggest beneficiaries of an upbeat sentiment, posted some of the biggest gains in Monday's trade. Shares of Royal Bank of Scotland Group PLC (RBS.NaE) gained 3.8%, Lloyds Banking Group PLC (LYG.NaE) added 2.3%, Standard Chartered PLC (SCBFF.NaE) picked up 1.9% and heavyweight HSBC Holdings PLC (HBC.NaE) rose 0.9%.
Miners were also on the rise, tracking gains for most metals prices. Anglo American PLC (AAUKF.NaE) picked up 1.3%, Rio Tinto PLC (RIO.NaE) rose 1% and BHP Billiton PLC (BBL.NaE) put on 0.7%.
Oil firms advanced as well, defying a drop in oil prices. BP PLC (BP.NaE) climbed 1.1% and Royal Dutch Shell PLC (RDS/A.NaE) rose 0.8%.
Source: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/details.page?resId=201307080529MRKTWTCHNEWS_SVC_867DE934-E7A8-11E2-8134-002128040CF6&requestId=1&showChain=true&FullArticle=true
Most U.K. stocks kicked off the week on an upbeat note, building on gains from last week when the new Bank of England governor signaled a pro-stimulus stance.
The FTSE 100 index climbed 0.9% to 6,436.86, after closing out Friday with the highest weekly rise since Jan. 4.
The full-week gains came as the central bank, with new Governor Mark Carney at the helm, said the U.K.'s recovery is on track and signaled rates won't be raised anytime soon.
Banks, which tend to be among biggest beneficiaries of an upbeat sentiment, posted some of the biggest gains in Monday's trade. Shares of Royal Bank of Scotland Group PLC (RBS.NaE) gained 3.8%, Lloyds Banking Group PLC (LYG.NaE) added 2.3%, Standard Chartered PLC (SCBFF.NaE) picked up 1.9% and heavyweight HSBC Holdings PLC (HBC.NaE) rose 0.9%.
Miners were also on the rise, tracking gains for most metals prices. Anglo American PLC (AAUKF.NaE) picked up 1.3%, Rio Tinto PLC (RIO.NaE) rose 1% and BHP Billiton PLC (BBL.NaE) put on 0.7%.
Oil firms advanced as well, defying a drop in oil prices. BP PLC (BP.NaE) climbed 1.1% and Royal Dutch Shell PLC (RDS/A.NaE) rose 0.8%.
Source: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/details.page?resId=201307080529MRKTWTCHNEWS_SVC_867DE934-E7A8-11E2-8134-002128040CF6&requestId=1&showChain=true&FullArticle=true
Today in the markets 08/07/2013 - US
Stock futures push higher, as Alcoa earnings loom
U.S. stock market futures pushed higher on Monday, extending gains from late last week as investors readied for the start of second-quarter earnings season, with Alcoa Inc.'s (AA.NaE) unofficial kickoff due after the close. The data calendar offers up only consumer credit.
Extending earlier gains, futures for the Dow Jones Industrial Average rose 73 points, or 0.5%, to 15,152, while those for the Standard & Poor's 500 index rose 10 points, or 0.6%, to 1,637.3. Futures for the Nasdaq 100 index added 19 points, or 0.7%, to 2,976.
At 3 p.m. Eastern Time, May consumer credit data will be released.
On Friday, data showed the U.S. added 195,000 new jobs in June, and employment gains in the prior two months came in stronger than originally reported. That data triggered sizeable gains for Wall Street. The S&P 500 rose 16.48 points, or 1%, to 1,631.89. The S&P 500 finished above its key 50-day moving average for the first time since June 19.
The Dow Jones Industrial Average rallied 147.29 points, or 1%, to 15,135.84.
The bigger data event this week will be the minutes of the June 18-19 Federal Open Market Committee meeting, due for release on Wednesday. Economists will be looking for clues as to what other Fed officials think about tapering plans and what factors caused the Fed to lean towards tapering soon. See Economic Preview
'The rally from June lows means that highs for the S&P 500 above 1,650 are now the next target, but Wednesday's minutes could easily pull the rug out from underneath the current move higher,' said Chris Beauchamp, market analyst at IG.
Outside of data, investor focus will turn second-quarter earnings season, as many companies have brought down their forecasts considerably. J.P. Morgan Chase & Co. will release results on Friday, and financial firms are expected to set the tone. Read a preview
Dan Greenhaus, chief global strategist at BTIG, said in a note that earnings consensus overall is roughly expecting 1.5% growth on the top line and similar on the bottom, but excluding financials, growth is expected to be negative.
'This would be the second consecutive quarter of unimpressive earnings growth, which is rubbing many clients the wrong way, especially as higher rates are expected to slow debt-fueled stock buybacks (and thus a boost to EPS),' said Greenhaus in a note.
He added BTIG is more positive than the consensus on earnings season, but 'not by much. More important of course will be guidance.'
Aluminum producer Alcoa (AA.NaE) is expected to report earnings of six cents a share on revenue of $5.85 billion, according to a FactSet survey of Wall Street analysts. Those results come after the market's close on Monday.
In overseas markets on Monday, Europe stocks rallied after a selloff seen at the end of last week. The Stoxx Europe 600 index rose 1.2%. In Asia, though, Chinese stocks fell on worries Beijing won't ease its policies even as growth slows. Citigroup on Monday cut its growth forecasts for China, citing risks to growth from 'policy missteps.'
The dollar remained firmer across the board, while gold also rose. Oil prices fell.
Source: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/us-detail.page?resId=201307080559MRKTWTCHNEWS_SVC_9236E03E-E7AB-11E2-8134-002128040CF6&FullArticle=true
U.S. stock market futures pushed higher on Monday, extending gains from late last week as investors readied for the start of second-quarter earnings season, with Alcoa Inc.'s (AA.NaE) unofficial kickoff due after the close. The data calendar offers up only consumer credit.
Extending earlier gains, futures for the Dow Jones Industrial Average rose 73 points, or 0.5%, to 15,152, while those for the Standard & Poor's 500 index rose 10 points, or 0.6%, to 1,637.3. Futures for the Nasdaq 100 index added 19 points, or 0.7%, to 2,976.
At 3 p.m. Eastern Time, May consumer credit data will be released.
On Friday, data showed the U.S. added 195,000 new jobs in June, and employment gains in the prior two months came in stronger than originally reported. That data triggered sizeable gains for Wall Street. The S&P 500 rose 16.48 points, or 1%, to 1,631.89. The S&P 500 finished above its key 50-day moving average for the first time since June 19.
The Dow Jones Industrial Average rallied 147.29 points, or 1%, to 15,135.84.
The bigger data event this week will be the minutes of the June 18-19 Federal Open Market Committee meeting, due for release on Wednesday. Economists will be looking for clues as to what other Fed officials think about tapering plans and what factors caused the Fed to lean towards tapering soon. See Economic Preview
'The rally from June lows means that highs for the S&P 500 above 1,650 are now the next target, but Wednesday's minutes could easily pull the rug out from underneath the current move higher,' said Chris Beauchamp, market analyst at IG.
Outside of data, investor focus will turn second-quarter earnings season, as many companies have brought down their forecasts considerably. J.P. Morgan Chase & Co. will release results on Friday, and financial firms are expected to set the tone. Read a preview
Dan Greenhaus, chief global strategist at BTIG, said in a note that earnings consensus overall is roughly expecting 1.5% growth on the top line and similar on the bottom, but excluding financials, growth is expected to be negative.
'This would be the second consecutive quarter of unimpressive earnings growth, which is rubbing many clients the wrong way, especially as higher rates are expected to slow debt-fueled stock buybacks (and thus a boost to EPS),' said Greenhaus in a note.
He added BTIG is more positive than the consensus on earnings season, but 'not by much. More important of course will be guidance.'
Aluminum producer Alcoa (AA.NaE) is expected to report earnings of six cents a share on revenue of $5.85 billion, according to a FactSet survey of Wall Street analysts. Those results come after the market's close on Monday.
In overseas markets on Monday, Europe stocks rallied after a selloff seen at the end of last week. The Stoxx Europe 600 index rose 1.2%. In Asia, though, Chinese stocks fell on worries Beijing won't ease its policies even as growth slows. Citigroup on Monday cut its growth forecasts for China, citing risks to growth from 'policy missteps.'
The dollar remained firmer across the board, while gold also rose. Oil prices fell.
Source: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/us-detail.page?resId=201307080559MRKTWTCHNEWS_SVC_9236E03E-E7AB-11E2-8134-002128040CF6&FullArticle=true
Today in the markets 08/07/2013 - Asia
China stocks tumble, weigh on Asia
Chinese stocks tumbled Monday on concerns Beijing won't ease policies despite slowing growth, with the losses also dragging down other regional markets.
The Shanghai Composite fell 2.4%, and Hong Kong's Hang Seng Index dropped 1.3%, with the retreat coming amid caution ahead of the release of China's monthly inflation data Tuesday.
In a statement Friday elaborating on its pursuit of economic restructuring and reforms, the State Council -- China's cabinet -- indicated it would strengthen supervision of wealth-management products and emphasized financial-market stability, but also hinted it would loosen controls on banks' interest rates only gradually. The State Council also suggested tighter controls over credit to industries with excess production capacity.
'The implication is that, for industries with over-capacities, banks should support big profit-making enterprises and need to shun small polluting ones,' said Bank of America Merrill Lynch economist Ting Lu.
'We believe the guidelines indicate the new government's commitment to economic restructuring to achieve a high-quality sustainable growth without large stimulus ahead,' Barclays analysts wrote in a note to clients Monday.
The drop came in the wake of a string of economic downgrades by brokerages in recent weeks, including from Goldman Sachs, HSBC, Barclays and Credit Suisse. On Monday, Citigroup joined the list, cutting its forecast of China's gross domestic product for 2013 to 7.4% from 7.6% previously, and for 2014 to 7.1% from 7.3%.
'We see some downside risks from policy missteps. The recent episode in the interbank money market highlights the lack of communication with the market and possibly limited coordination between government agencies,' Citigroup wrote in its report.
The losses in Shanghai and Hong Kong rubbed off on investor sentiment elsewhere in the region. Surrendering early gains, South Korea's Kospi fell 0.9%, while Australia's S&P/ASX 200 dropped 0.7%.
In Japan, the Nikkei Stock Average staged a sharp U-turn and ended 1.4% lower. The benchmark had risen more than 1% earlier in the session on buying inspired by a better-than-expected increase in U.S. jobs and further weakness in the yen.
Stock movers
Financial and property sector shares were hit in Hong Kong, with China Construction Bank Corp. (CICHF.NaE) sliding 2.1%, Industrial & Commercial Bank of China Ltd. (IDCBF.NaE) skidding 1.7%, and Hang Lung Properties Ltd. (HLPPF.NaE) losing 3.8%.
The resource sector also came under added selling pressure as the dollar strengthened after the U.S. upbeat jobs report Friday, hurting commodity prices.
On mainland Chinese bourses, shares of Shandong Gold-Mining Co. plunged 9.4%, and those of Jiangxi Copper Co. (JIAXF.NaE) fell 5.6%.
Coal miner China Shenhua Energy Co. (CUAEF.NaE) slumped 9%, also hurt as the stock traded without rights to a dividend.
Also on the downside, major miners fell in Sydney, with BHP Billiton Ltd. (BHP.NaE) dropping 1.8%, and Rio Tinto Ltd. (RTNTF.NaE) losing 1.9%.
Some energy names also retreated, as PetroChina Co. (PTR.NaE) dropped 2.1% in Hong Kong, and Oil Search Ltd. (OISHF.NaE) slipped 0.3% in Sydney, although U.S. benchmark crude-oil prices topped $103 a barrel.
Monday's performance in Asia followed a higher finish Friday on Wall Street in the wake of an upbeat nonfarm payrolls report. The U.S. economy added 195,000 jobs in June, beating estimates and fueling expectations that the Federal Reserve may soon begin to pare its asset purchases.
'The data reinforced expectations that the Fed would begin tapering in September,' said Cr?dit Agricole's forex strategy chief Mitul Kotecha. 'The Japanese yen in particular will remain susceptible to U.S. dollar strength and widening yield differentials.'
Several Japanese exporters declined against the backdrop of Chinese economic worries, even as the U.S. dollar extended gains above ?101 to weigh on the broader market. Honda Motor Co. (HMC.NaE) fell 2.1%, and Sony Corp. (SNE.NaE) declined 2%.
Shares of Softbank Corp. tumbled 3.4% after Standard & Poor's lowered its credit ratings on the telecommunications firm by two notches to BB+, below investment grade. S&P based the ratings action on its view that following Softbank's acquisition of Sprint Nextel Corp., the Japanese group has a ''satisfactory' business risk profile and a 'significant' financial risk profile.'
Data released earlier on Monday showed the country's current-account surplus narrowed to ?540.7 billion ($5.33 billion) in May, missing expectations, though marking the first back-to-back surplus in more than two years.
Meanwhile, shares of Asiana Airlines Inc. slumped 5.8% in Seoul after a Boeing 777 aircraft operated by the airline crashed in San Francisco, killing at least two and injuring more than 180 others.
Source: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/asia-detail.page?resId=201307072127MRKTWTCHNEWS_SVC_247E5356-E765-11E2-8134-002128040CF6&FullArticle=true
The Shanghai Composite fell 2.4%, and Hong Kong's Hang Seng Index dropped 1.3%, with the retreat coming amid caution ahead of the release of China's monthly inflation data Tuesday.
In a statement Friday elaborating on its pursuit of economic restructuring and reforms, the State Council -- China's cabinet -- indicated it would strengthen supervision of wealth-management products and emphasized financial-market stability, but also hinted it would loosen controls on banks' interest rates only gradually. The State Council also suggested tighter controls over credit to industries with excess production capacity.
'The implication is that, for industries with over-capacities, banks should support big profit-making enterprises and need to shun small polluting ones,' said Bank of America Merrill Lynch economist Ting Lu.
'We believe the guidelines indicate the new government's commitment to economic restructuring to achieve a high-quality sustainable growth without large stimulus ahead,' Barclays analysts wrote in a note to clients Monday.
The drop came in the wake of a string of economic downgrades by brokerages in recent weeks, including from Goldman Sachs, HSBC, Barclays and Credit Suisse. On Monday, Citigroup joined the list, cutting its forecast of China's gross domestic product for 2013 to 7.4% from 7.6% previously, and for 2014 to 7.1% from 7.3%.
'We see some downside risks from policy missteps. The recent episode in the interbank money market highlights the lack of communication with the market and possibly limited coordination between government agencies,' Citigroup wrote in its report.
The losses in Shanghai and Hong Kong rubbed off on investor sentiment elsewhere in the region. Surrendering early gains, South Korea's Kospi fell 0.9%, while Australia's S&P/ASX 200 dropped 0.7%.
In Japan, the Nikkei Stock Average staged a sharp U-turn and ended 1.4% lower. The benchmark had risen more than 1% earlier in the session on buying inspired by a better-than-expected increase in U.S. jobs and further weakness in the yen.
Stock movers
Financial and property sector shares were hit in Hong Kong, with China Construction Bank Corp. (CICHF.NaE) sliding 2.1%, Industrial & Commercial Bank of China Ltd. (IDCBF.NaE) skidding 1.7%, and Hang Lung Properties Ltd. (HLPPF.NaE) losing 3.8%.
The resource sector also came under added selling pressure as the dollar strengthened after the U.S. upbeat jobs report Friday, hurting commodity prices.
On mainland Chinese bourses, shares of Shandong Gold-Mining Co. plunged 9.4%, and those of Jiangxi Copper Co. (JIAXF.NaE) fell 5.6%.
Coal miner China Shenhua Energy Co. (CUAEF.NaE) slumped 9%, also hurt as the stock traded without rights to a dividend.
Also on the downside, major miners fell in Sydney, with BHP Billiton Ltd. (BHP.NaE) dropping 1.8%, and Rio Tinto Ltd. (RTNTF.NaE) losing 1.9%.
Some energy names also retreated, as PetroChina Co. (PTR.NaE) dropped 2.1% in Hong Kong, and Oil Search Ltd. (OISHF.NaE) slipped 0.3% in Sydney, although U.S. benchmark crude-oil prices topped $103 a barrel.
Monday's performance in Asia followed a higher finish Friday on Wall Street in the wake of an upbeat nonfarm payrolls report. The U.S. economy added 195,000 jobs in June, beating estimates and fueling expectations that the Federal Reserve may soon begin to pare its asset purchases.
'The data reinforced expectations that the Fed would begin tapering in September,' said Cr?dit Agricole's forex strategy chief Mitul Kotecha. 'The Japanese yen in particular will remain susceptible to U.S. dollar strength and widening yield differentials.'
Several Japanese exporters declined against the backdrop of Chinese economic worries, even as the U.S. dollar extended gains above ?101 to weigh on the broader market. Honda Motor Co. (HMC.NaE) fell 2.1%, and Sony Corp. (SNE.NaE) declined 2%.
Shares of Softbank Corp. tumbled 3.4% after Standard & Poor's lowered its credit ratings on the telecommunications firm by two notches to BB+, below investment grade. S&P based the ratings action on its view that following Softbank's acquisition of Sprint Nextel Corp., the Japanese group has a ''satisfactory' business risk profile and a 'significant' financial risk profile.'
Data released earlier on Monday showed the country's current-account surplus narrowed to ?540.7 billion ($5.33 billion) in May, missing expectations, though marking the first back-to-back surplus in more than two years.
Meanwhile, shares of Asiana Airlines Inc. slumped 5.8% in Seoul after a Boeing 777 aircraft operated by the airline crashed in San Francisco, killing at least two and injuring more than 180 others.
Source: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/asia-detail.page?resId=201307072127MRKTWTCHNEWS_SVC_247E5356-E765-11E2-8134-002128040CF6&FullArticle=true
Today in the markets 08/07/2013 - Europe
Europe stocks rebound ahead of Alcoa earnings
European stock markets rallied on Monday, rebounding after a selloff at the end of last week when better-than-expected U.S. jobs data stoked fears the Federal Reserve will soon scale back stimulus.
Investors further awaited U.S. bellwether Alcoa Inc. (AA.NaE) to kick off the earnings season later in the day.
The Stoxx Europe 600 index rose 1.2% to 291.65.
Shares of Hikma Pharmaceuticals PLC (HKMPF.NaE) jumped 7.8% in London after the drug maker said it now expects revenue growth around 17% in 2013, up from the 13% previously expected.
Banks were also among major advancers, with shares of Banco Comercial Portugu?s SA rising 4.6%, Jyske Bank AS 3.2% higher and Royal Bank of Scotland Group PLC (RBS.NaE) up 2.7%.
The broader stock market regained most of the territory it lost on Friday, when a stronger-than-expected jobs report in the U.S. for July sent stocks lower in Europe. U.S. Federal Reserve Chairman Ben Bernanke has said the central bank could start scaling back its $85-billion-a-month asset-purchase program if data such as new jobs shows the economy is growing as expected, leaving investors worried that less liquidity in the financial system will create market turmoil.
The International Monetary Fund's managing director, Christine Lagarde, warned on Sunday that central banks must be careful when they exit expansive monetary policy, according to The Wall Street Journal. Read: IMF takes another swipe at U.S. budget cuts
U.S. stock futures pointed to a higher open on Wall Street on Monday, after light trade on Friday on the back of the Fourth of July holiday on Thursday.
After the closing bell on Monday, aluminum giant Alcoa (AA.NaE) reports quarterly results, signaling the unofficial start of the second-quarter earnings season.
Among country-specific indexes in Europe, Germany's DAX 30 index gained 1.5% to 7,923.22, even as data showed exports slumped in May.
France's CAC 40 index added 1.3% to 3,803.13 and the U.K.'s FTSE 100 index picked up 1.2% to 6,450.82.
Source: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/europe-detail.page?resId=201307080437MRKTWTCHNEWS_SVC_79D318AA-E7A1-11E2-8134-002128040CF6&FullArticle=true
Investors further awaited U.S. bellwether Alcoa Inc. (AA.NaE) to kick off the earnings season later in the day.
The Stoxx Europe 600 index rose 1.2% to 291.65.
Shares of Hikma Pharmaceuticals PLC (HKMPF.NaE) jumped 7.8% in London after the drug maker said it now expects revenue growth around 17% in 2013, up from the 13% previously expected.
Banks were also among major advancers, with shares of Banco Comercial Portugu?s SA rising 4.6%, Jyske Bank AS 3.2% higher and Royal Bank of Scotland Group PLC (RBS.NaE) up 2.7%.
The broader stock market regained most of the territory it lost on Friday, when a stronger-than-expected jobs report in the U.S. for July sent stocks lower in Europe. U.S. Federal Reserve Chairman Ben Bernanke has said the central bank could start scaling back its $85-billion-a-month asset-purchase program if data such as new jobs shows the economy is growing as expected, leaving investors worried that less liquidity in the financial system will create market turmoil.
The International Monetary Fund's managing director, Christine Lagarde, warned on Sunday that central banks must be careful when they exit expansive monetary policy, according to The Wall Street Journal. Read: IMF takes another swipe at U.S. budget cuts
U.S. stock futures pointed to a higher open on Wall Street on Monday, after light trade on Friday on the back of the Fourth of July holiday on Thursday.
After the closing bell on Monday, aluminum giant Alcoa (AA.NaE) reports quarterly results, signaling the unofficial start of the second-quarter earnings season.
Among country-specific indexes in Europe, Germany's DAX 30 index gained 1.5% to 7,923.22, even as data showed exports slumped in May.
France's CAC 40 index added 1.3% to 3,803.13 and the U.K.'s FTSE 100 index picked up 1.2% to 6,450.82.
Source: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/europe-detail.page?resId=201307080437MRKTWTCHNEWS_SVC_79D318AA-E7A1-11E2-8134-002128040CF6&FullArticle=true
The Surprising Way Two Brothers Became Billionaires
India may be seeing rupee's worst plunge since 1991 but for billionaire brothers Shashi and Ravi Ruia things couldn't look rosier. They are profiting from the falling rupee after converting $4.3 billion in debt from rupee to dollars. Angie Lau is here with another look at Asia's billionaires -- and how these brothers have navigated murky debt waters. (Source: Bloomberg)
Pessimistic and Fully Invested
Philadelphia Trust President and CEO Mike Crofton discusses the markets and investment ideas on Bloomberg Television's "Lunch Money." (Source: Bloomberg)
Wednesday, 3 July 2013
China's Niche Market for Expensive Timepieces
Hong Kong continues to be the biggest market for luxury timepieces and in a world that's increasingly dominated by all things digital, luxury brands in the city are still relying on the age old of hand-making watches to lure-in the big spenders. David Ingles caught up with one of the world's foremost names in watch-making and asked him, what is so special about the hand-made stuff?
Gold logs modest advance after loss
Gold futures posted thin gains in electronic trade Wednesday ahead of reports about the U.S. labor market, which the U.S. Federal Reserve is monitoring as it assesses the future of monetary stimulus.
Gold for August delivery rose 20 cents to $1,243.60 an ounce.
On deck for investors is a private-sector payrolls projection for June from payroll processor ADP, followed by the U.S. Labor Department's weekly update on jobless claims.
Also, the Institute for Supply Management is likely to show somewhat faster growth in June among service-sector companies. The reports will lead up to Friday's release of the highly anticipated U.S. monthly unemployment report.
'Investors continue to read U.S. economic news flow in terms of its implications for the timing and size of Federal Reserve stimulus reduction,' wrote DailyFX.com currency strategist Ilya Spivak on Tuesday. 'As such, soft results may boost sentiment and cycle-sensitive copper prices. Gold and silver may likewise rise as downgraded QE 'taper' bets underpin anti-fiat demand.'
Analysts have said monetary stimulus by the Fed and other central banks helped fuel prices gains for gold in recent years.
Gold prices in 2013 have plunged, in part as the Fed has said improvement in the economy may lead it to pull back on bond purchases as early as this year. Fed Chairman Ben Bernanke late last month said asset purchases may be reduced to zero by the middle of 2014 when the unemployment rate is expected to have dropped to 7%.
The central bank currently buys $85 billion a month in bonds.
Gold futures on Tuesday fell 1%, their first decline in three sessions.
Meanwhile, September copper on Wednesday rose 3 cents, or 0.8%, to $3.17 a pound, and September silver rose 16 cents, or 0.8%, to $19.47 an ounce.
Platinum for October delivery , however, fell $1.60, or 0.1%, to $1,366.20 an ounce. September palladium fell $2.10, or 0.3%, to $686.80 an ounce.
U.S. markets will be closed on Thursday for Independence Day.
Source: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/us-detail.page?resId=201307030232MRKTWTCHNEWS_SVC_95B844CC-E39C-11E2-ACAD-002128040CF6&requestId=1&showChain=true&FullArticle=true
Today in the markets 03/07/2013 - ASIA
Asia stocks drop after China data; Hong Kong hit
Asian stocks fell Wednesday as concerns about growth in China's services sector added to the selling pressure amid caution ahead of U.S. jobs data later in the week, dragging on Hong Kong and Australian equities in particular.
Hong Kong's Hang Seng Index declined 2.5%, and the Shanghai Composite ended 0.6% lower.
Australia's S&P/ASX 200 tumbled 1.9%, returning most of the gains made in the previous session, when it jumped 2.6% after the country's central bank left its policy interest rate unchanged.
The performance came ahead of a U.S. holiday Thursday, leading into the key nonfarm payrolls data for June due on Friday.
'Financial markets remain edgy ahead of the U.S. jobs data due for release later in the week, with the result of nonfarm payrolls likely to shape the Federal Open Market Committee course towards the quantitative easing tapering,' said Tim Waterer, a senior trader at CMC Markets. 'A sense of nervousness among investors is likely to keep levels of volatility high in the interim.'
Stocks on Wall Street ended lower Tuesday amid caution over U.S. employment trends, with economists polled by MarketWatch anticipating an increase of 155,000 jobs in June, lower than the addition of 175,000 payrolls in May.
An official measure of the Purchasing Managers' Index (PMI) in China's services sector eased to 53.9 in June, down from 54.3 in May. In a separate survey by HSBC, the services PMI ticked up to 51.3 from 51.2 in May. HSBC's chief China economist Hongbin Qu, however, said growth in the sector was expected to slow in coming months as the effect of value-added-tax reforms filter through.
Meanwhile, Japan's Nikkei Stock Average finished 0.3% lower for its first decline in five trading days. Taiwan's Taiex gave up 1.3%, and South Korea's Kospi dropped 1.6%.
Shares of footwear major Belle International Holdings Ltd. (BELLF.NaE) skidded 4.2%, China Coal Energy Co. (CCOZF.NaE) slumped 6.6% and China Overseas Land & Investment Ltd. dropped 4% in Hong Kong, accelerating their losses after the Chinese services PMI data.
In Shanghai, property firm Gemdale Corp. retreated 3.1%, and China Southern Airlines Co. (ZNH.NaE) dropped 2.9%.
In Tokyo trading, utility Tokyo Electric Power Co. (TKECF.NaE) plunged 10.3% a day after it soared 19%, with the Nikkei newspaper reporting its plans to restart a nuclear power plant looked 'premature' and hinted of 'haste.'
Shares of Suntory Beverage & Food Ltd. rose modestly as they began trading in Tokyo after raising nearly $4 billion from an initial public offering, Japan's largest this year. The stock ended at ?3,145 ($31.30), up from its IPO price of ?3,100.
Mitsubishi UFJ Financial Group Inc. (MTU.NaE) gained 0.8% in choppy trading action, on plans to buy a majority stake in Thai lender Bank of Ayudhya PCL for about $5.6 billion.
Also posting gains, Nissan Motor Co. (NSANF.NaE) climbed 0.6%, and Honda Motor Co. (HMC.NaE) rose 0.4%, after reporting an increase in their U.S. sales for June.
The gains were aided as the U.S. dollar rose above the ?100 level for the first time since early June. The greenback had moved in the mid-?99 range during the previous Tokyo stock session.
Shares of internationally-exposed South Korean firms also suffered losses, with Samsung Electronics Co. (SSNLF.NaE) dropping 2.6% and LG Electronics Inc. (LGEAF.NaE) sliding 3.8%.
Mining issues and banks pulled back in Sydney after Tuesday's advances. Rio Tinto Ltd. (RTNTF.NaE) skidded 3%, and BHP Billiton Ltd. (BHP.NaE) slumped 3.2%, while National Australia Bank Ltd. (NAUBF.NaE) gave up 1.9%.
Data released earlier on Wednesday showed retail sales grew a slower-than-expected 0.1% in May. Trade data surprised positively, meanwhile, with the country recording a trade surplus of 670 million Australian dollars ($615 million) during the month, as exports grew 4% from a year earlier, while imports rose 2%.
Shares of a few regional energy producers rose as Nymex August crude-oil futures briefly climbed past the $102-a-barrel level during Asian trading hours.
PetroChina Co. (PTR.NaE) gained 2.2% in Shanghai, Linc Energy Ltd. (LNCYF.NaE) rose 4.1% in Sydney and Inpex Corp. (IPXHF.NaE) added 2.8% in Tokyo.
Source: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/asia-detail.page?resId=201307022121MRKTWTCHNEWS_SVC_CB8CB294-E375-11E2-ACAD-002128040CF6&requestId=1&showChain=true&FullArticle=true
Hong Kong's Hang Seng Index declined 2.5%, and the Shanghai Composite ended 0.6% lower.
Australia's S&P/ASX 200 tumbled 1.9%, returning most of the gains made in the previous session, when it jumped 2.6% after the country's central bank left its policy interest rate unchanged.
The performance came ahead of a U.S. holiday Thursday, leading into the key nonfarm payrolls data for June due on Friday.
'Financial markets remain edgy ahead of the U.S. jobs data due for release later in the week, with the result of nonfarm payrolls likely to shape the Federal Open Market Committee course towards the quantitative easing tapering,' said Tim Waterer, a senior trader at CMC Markets. 'A sense of nervousness among investors is likely to keep levels of volatility high in the interim.'
Stocks on Wall Street ended lower Tuesday amid caution over U.S. employment trends, with economists polled by MarketWatch anticipating an increase of 155,000 jobs in June, lower than the addition of 175,000 payrolls in May.
An official measure of the Purchasing Managers' Index (PMI) in China's services sector eased to 53.9 in June, down from 54.3 in May. In a separate survey by HSBC, the services PMI ticked up to 51.3 from 51.2 in May. HSBC's chief China economist Hongbin Qu, however, said growth in the sector was expected to slow in coming months as the effect of value-added-tax reforms filter through.
Meanwhile, Japan's Nikkei Stock Average finished 0.3% lower for its first decline in five trading days. Taiwan's Taiex gave up 1.3%, and South Korea's Kospi dropped 1.6%.
Shares of footwear major Belle International Holdings Ltd. (BELLF.NaE) skidded 4.2%, China Coal Energy Co. (CCOZF.NaE) slumped 6.6% and China Overseas Land & Investment Ltd. dropped 4% in Hong Kong, accelerating their losses after the Chinese services PMI data.
In Shanghai, property firm Gemdale Corp. retreated 3.1%, and China Southern Airlines Co. (ZNH.NaE) dropped 2.9%.
In Tokyo trading, utility Tokyo Electric Power Co. (TKECF.NaE) plunged 10.3% a day after it soared 19%, with the Nikkei newspaper reporting its plans to restart a nuclear power plant looked 'premature' and hinted of 'haste.'
Shares of Suntory Beverage & Food Ltd. rose modestly as they began trading in Tokyo after raising nearly $4 billion from an initial public offering, Japan's largest this year. The stock ended at ?3,145 ($31.30), up from its IPO price of ?3,100.
Mitsubishi UFJ Financial Group Inc. (MTU.NaE) gained 0.8% in choppy trading action, on plans to buy a majority stake in Thai lender Bank of Ayudhya PCL for about $5.6 billion.
Also posting gains, Nissan Motor Co. (NSANF.NaE) climbed 0.6%, and Honda Motor Co. (HMC.NaE) rose 0.4%, after reporting an increase in their U.S. sales for June.
The gains were aided as the U.S. dollar rose above the ?100 level for the first time since early June. The greenback had moved in the mid-?99 range during the previous Tokyo stock session.
Shares of internationally-exposed South Korean firms also suffered losses, with Samsung Electronics Co. (SSNLF.NaE) dropping 2.6% and LG Electronics Inc. (LGEAF.NaE) sliding 3.8%.
Mining issues and banks pulled back in Sydney after Tuesday's advances. Rio Tinto Ltd. (RTNTF.NaE) skidded 3%, and BHP Billiton Ltd. (BHP.NaE) slumped 3.2%, while National Australia Bank Ltd. (NAUBF.NaE) gave up 1.9%.
Data released earlier on Wednesday showed retail sales grew a slower-than-expected 0.1% in May. Trade data surprised positively, meanwhile, with the country recording a trade surplus of 670 million Australian dollars ($615 million) during the month, as exports grew 4% from a year earlier, while imports rose 2%.
Shares of a few regional energy producers rose as Nymex August crude-oil futures briefly climbed past the $102-a-barrel level during Asian trading hours.
PetroChina Co. (PTR.NaE) gained 2.2% in Shanghai, Linc Energy Ltd. (LNCYF.NaE) rose 4.1% in Sydney and Inpex Corp. (IPXHF.NaE) added 2.8% in Tokyo.
Source: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/asia-detail.page?resId=201307022121MRKTWTCHNEWS_SVC_CB8CB294-E375-11E2-ACAD-002128040CF6&requestId=1&showChain=true&FullArticle=true
Today in the market 03/07/2013 - US
Europe stocks tumble on global worries, Portugal
Europe stocks turned sharply lower on Wednesday as global worries piled on investors. Fears of a government collapse in Portugal, turmoil in Egypt and downbeat data from China dented sentiment, with all sectors in the red.
A downgrade from Standard & Poor's hit three of Europe's biggest banks.
The Stoxx Europe 600 index fell 1.4% to 283.24, a day after closing 0.4% lower in the prior session.
On the worry list was fears of another crisis in Europe. The biggest hits were seen in Portugal, where the PSI 20 index tumbled 6.5% to 5,160.05, with Banco Comercial Portugues SA sinking 13% and Banco Espirito Santo SA dropping 12%. The yield on Portugal's 10-year government bond shot above 8%.
Portugal assets tumbled on fears the government may not survive the second resignation of a cabinet minister, as Reuters reported more ministers may be ready to go.
Prime Minister Pedro Passos Coelho said he will not step down after Foreign Minister Paulo Portas resigned Tuesday afternoon in protest over the country's austerity policies. On Monday, the country's finance minister, Vitor Gaspar, stepped down.
'Expect the government to fall in the course of the next 48 hours. A new election will be called amid a huge drive towards 'anti-austerity,'' said Steen Jakobsen, chief economist with Saxo Bank. 'This is EXACTLY what German Chancellor Angela Merkel does not need.'
Losses in Europe pressured U.S. stock futures, which were sharply lower ahead of a shortened day for Wall Street and a busy one for data.
Investors were also keeping a close eye on turmoil in Egypt, with crude-oil prices soaring above $102 a barrel as President Mohammed Morsi refused to step down, as clashes amid protests over his rule turned deadly on Tuesday. Morsi has just a few hours to go to a deadline imposed by the military, which called on him to resolve the country's political crisis or the army will step in. Read: Egypt's Morsi rebuffs calls to step down
Banks in Portugal were not the only ones suffering. Shares of Barclays PLC (BCS.NaE) and Deutsche Bank AG (DB.NaE) dropped over 4% and Credit Suisse SA fell over 3% after Standard & Poor's lowered its long-term ratings on those banks. The ratings firm said new regulations and uncertain market conditions will make it tougher for those banks to operate.
The German DAX 30 index fell 2% to 7,748.42 as shares of Adidas AG (ADDYY.NaE) sank 5% after Deutsche Bank (DB.NaE) cut shares to hold from buy. BMW AG fell 3% after J.P. Morgan Cazenove cut the automaker to neutral from overweight. The investment bank said it was switching out of BMW (BAMXF.NaE) into Daimler AG (DDAIF.NaE) , which it lifted to overweight from neutral. Shares of Daimler fell 1.6%.
The French CAC 40 index fell 1.6% to 3,678.56, with BNP Paribas SA (BNPQF.NaE) sinking over 4% in line with European banks. Shares of heavyweight Total SA (TOT.NaE) fell 1%, not helped by a sharp rise in crude prices.
London stocks were under equal pressure as losses for Barclays (BCS.NaE) helped knock 1.6% off the FTSE 100 index to 6,204.40. Mining stocks were among those losing ground -- BHP Billiton PLC (BBL.NaE) slid 3.7% and Rio Tinto PLC (RIO.NaE) sank 2.8% -- after China services data showed sluggish growth in June.
ARM Holdings PLC (ARMH.NaE) was nearly the only gainer in London, up 1% after UBS lifted those shares to buy from neutral on the view a pullback in shares due to news-flow looks overdone.
A downgrade from Standard & Poor's hit three of Europe's biggest banks.
The Stoxx Europe 600 index fell 1.4% to 283.24, a day after closing 0.4% lower in the prior session.
On the worry list was fears of another crisis in Europe. The biggest hits were seen in Portugal, where the PSI 20 index tumbled 6.5% to 5,160.05, with Banco Comercial Portugues SA sinking 13% and Banco Espirito Santo SA dropping 12%. The yield on Portugal's 10-year government bond shot above 8%.
Portugal assets tumbled on fears the government may not survive the second resignation of a cabinet minister, as Reuters reported more ministers may be ready to go.
Prime Minister Pedro Passos Coelho said he will not step down after Foreign Minister Paulo Portas resigned Tuesday afternoon in protest over the country's austerity policies. On Monday, the country's finance minister, Vitor Gaspar, stepped down.
'Expect the government to fall in the course of the next 48 hours. A new election will be called amid a huge drive towards 'anti-austerity,'' said Steen Jakobsen, chief economist with Saxo Bank. 'This is EXACTLY what German Chancellor Angela Merkel does not need.'
Losses in Europe pressured U.S. stock futures, which were sharply lower ahead of a shortened day for Wall Street and a busy one for data.
Investors were also keeping a close eye on turmoil in Egypt, with crude-oil prices soaring above $102 a barrel as President Mohammed Morsi refused to step down, as clashes amid protests over his rule turned deadly on Tuesday. Morsi has just a few hours to go to a deadline imposed by the military, which called on him to resolve the country's political crisis or the army will step in. Read: Egypt's Morsi rebuffs calls to step down
Banks in Portugal were not the only ones suffering. Shares of Barclays PLC (BCS.NaE) and Deutsche Bank AG (DB.NaE) dropped over 4% and Credit Suisse SA fell over 3% after Standard & Poor's lowered its long-term ratings on those banks. The ratings firm said new regulations and uncertain market conditions will make it tougher for those banks to operate.
The German DAX 30 index fell 2% to 7,748.42 as shares of Adidas AG (ADDYY.NaE) sank 5% after Deutsche Bank (DB.NaE) cut shares to hold from buy. BMW AG fell 3% after J.P. Morgan Cazenove cut the automaker to neutral from overweight. The investment bank said it was switching out of BMW (BAMXF.NaE) into Daimler AG (DDAIF.NaE) , which it lifted to overweight from neutral. Shares of Daimler fell 1.6%.
The French CAC 40 index fell 1.6% to 3,678.56, with BNP Paribas SA (BNPQF.NaE) sinking over 4% in line with European banks. Shares of heavyweight Total SA (TOT.NaE) fell 1%, not helped by a sharp rise in crude prices.
London stocks were under equal pressure as losses for Barclays (BCS.NaE) helped knock 1.6% off the FTSE 100 index to 6,204.40. Mining stocks were among those losing ground -- BHP Billiton PLC (BBL.NaE) slid 3.7% and Rio Tinto PLC (RIO.NaE) sank 2.8% -- after China services data showed sluggish growth in June.
ARM Holdings PLC (ARMH.NaE) was nearly the only gainer in London, up 1% after UBS lifted those shares to buy from neutral on the view a pullback in shares due to news-flow looks overdone.
Elderly people's care: government to set out role for volunteers
Social care minister Norman Lamb will outline neighbourhood watch-style scheme to help meet needs as care budget shrinks.
Local communities should set up "neighbourhood watch" groups to support elderly people living alone or needing help with everyday tasks, according to the government's social care minister.
Norman Lamb risks criticism that he is calling on volunteers to step in to meet people's needs after deep government cuts in funding for councils that pay for care services.
But the minister will insist in a speech on Wednesday evening that he is not suggesting replacing "the safety net and essential care and support the NHS and local government provides, which is substantial and effective".
Rather, he will say, the rapid ageing of the population demands fresh thinking and action to meet growing care needs: "We have a grassroots movement to keep an eye on our neighbours' houses and property to guard against crime. So what about one to guard against isolation?"
The number of older people in England with care needs is forecast to rise by 60% over the next 20 years, but means-tested state funding will be guaranteed under government plans only for those whose needs are judged "substantial".
The number of people who received some form of council-funded care and support in their own homes dropped from 958,000 in 2009-10 to 802,000 in 2011-12.
Lamb, a Liberal Democrat, is due to float the idea of a neighbourhood watch scheme for the care of older and vulnerable people when he speaks at a Guardian debate on the challenges and opportunities presented by the ageing society.
The minister is expected to say: "I want to explore how we can reawaken communities' natural volunteer spirit to help provide an extra layer of support for older people. That means tapping into the energy of communities, bridging the gap between generations and encouraging everyone to help avoid leaving people lonely and isolated."
According to the Campaign to End Loneliness, one in 10 old people feels lonely "always" or "severely", and the effect of this on their health is equivalent to smoking 15 cigarettes a day.
Source: http://www.guardian.co.uk/society/2013/jul/03/elderly-people-care-volunteers-norman-lamb?CMP=twt_fd
Local communities should set up "neighbourhood watch" groups to support elderly people living alone or needing help with everyday tasks, according to the government's social care minister.
Norman Lamb risks criticism that he is calling on volunteers to step in to meet people's needs after deep government cuts in funding for councils that pay for care services.
But the minister will insist in a speech on Wednesday evening that he is not suggesting replacing "the safety net and essential care and support the NHS and local government provides, which is substantial and effective".
Rather, he will say, the rapid ageing of the population demands fresh thinking and action to meet growing care needs: "We have a grassroots movement to keep an eye on our neighbours' houses and property to guard against crime. So what about one to guard against isolation?"
The number of older people in England with care needs is forecast to rise by 60% over the next 20 years, but means-tested state funding will be guaranteed under government plans only for those whose needs are judged "substantial".
The number of people who received some form of council-funded care and support in their own homes dropped from 958,000 in 2009-10 to 802,000 in 2011-12.
Lamb, a Liberal Democrat, is due to float the idea of a neighbourhood watch scheme for the care of older and vulnerable people when he speaks at a Guardian debate on the challenges and opportunities presented by the ageing society.
The minister is expected to say: "I want to explore how we can reawaken communities' natural volunteer spirit to help provide an extra layer of support for older people. That means tapping into the energy of communities, bridging the gap between generations and encouraging everyone to help avoid leaving people lonely and isolated."
According to the Campaign to End Loneliness, one in 10 old people feels lonely "always" or "severely", and the effect of this on their health is equivalent to smoking 15 cigarettes a day.
Source: http://www.guardian.co.uk/society/2013/jul/03/elderly-people-care-volunteers-norman-lamb?CMP=twt_fd
U.K. Services Growth Accelerates as Recovery Evidence Builds
U.K. services growth unexpectedly accelerated to its fastest pace in more than two years in June, evidence the economic recovery is gaining strength.
A factory gauge rose to 56.9 from 54.9 in May, Markit Economics and the Chartered Institute of Purchasing and Supplysaid today in London. Economists had forecast 54.5 in June, according to the median of 33 estimates in a Bloomberg News survey. Readings above 50 indicate expansion. The pound rose after the data.
Reports this week showed manufacturing grew at the fastest in more than two years in June and construction expanded for a second month. Markit said its three indexes together point to economic growth of at least 0.5 percent in the second quarter, adding to signs of recovery just as Mark Carney leads his first Monetary Policy Committee meeting after taking over at the Bank of England.
“The U.K. services sector finished off the second quarter with a stellar performance in June, giving the clearest signal yet that the worst days of the financial crisis are behind us,”CIPS Chief Executive Officer David Noble said. The data “mark a good first week for the new Bank of England governor.”
The pound rose against dollar after the report. It was at $1.5241 as of 9:57 a.m. in London, up 0.6 percent from yesterday. The yield on the 10-year U.K. government bond dropped 4 basis points to 2.34 percent.
A factory gauge rose to 56.9 from 54.9 in May, Markit Economics and the Chartered Institute of Purchasing and Supplysaid today in London. Economists had forecast 54.5 in June, according to the median of 33 estimates in a Bloomberg News survey. Readings above 50 indicate expansion. The pound rose after the data.
Reports this week showed manufacturing grew at the fastest in more than two years in June and construction expanded for a second month. Markit said its three indexes together point to economic growth of at least 0.5 percent in the second quarter, adding to signs of recovery just as Mark Carney leads his first Monetary Policy Committee meeting after taking over at the Bank of England.
“The U.K. services sector finished off the second quarter with a stellar performance in June, giving the clearest signal yet that the worst days of the financial crisis are behind us,”CIPS Chief Executive Officer David Noble said. The data “mark a good first week for the new Bank of England governor.”
The pound rose against dollar after the report. It was at $1.5241 as of 9:57 a.m. in London, up 0.6 percent from yesterday. The yield on the 10-year U.K. government bond dropped 4 basis points to 2.34 percent.
Stimulus Decision
The BOE will probably keep its quantitative-easing programat 375 billion pounds ($571 billion) tomorrow, according to all 44 economists in a poll. All 53 economists in a separate survey say it will hold the key interest rate at a record low of 0.5 percent.
Markit said the improving surveys “will ease pressure on the MPC to embark on another round of QE.” Its U.K. construction index rose to 51 in June from 50.8 in May, while the factory gauge climbed to a two-year high of high of 52.5 from 51.5.
“Evidence that a recovery in the economy may be finally taking root is becoming more telling,” said Martin Beck, an economist at Capital Economics in London. “The recovery still faces some headwinds, but, for now at least, things seem to be moving in the right direction.”
The BOE will probably keep its quantitative-easing programat 375 billion pounds ($571 billion) tomorrow, according to all 44 economists in a poll. All 53 economists in a separate survey say it will hold the key interest rate at a record low of 0.5 percent.
Markit said the improving surveys “will ease pressure on the MPC to embark on another round of QE.” Its U.K. construction index rose to 51 in June from 50.8 in May, while the factory gauge climbed to a two-year high of high of 52.5 from 51.5.
“Evidence that a recovery in the economy may be finally taking root is becoming more telling,” said Martin Beck, an economist at Capital Economics in London. “The recovery still faces some headwinds, but, for now at least, things seem to be moving in the right direction.”
Europe Woes
In the euro region, the picture is less positive, with aservices gauge showing the industry contracted at a faster pace than initially estimated in June as the 17-nation currency bloc struggled to emerge from a record-long recession. The index rose to 48.3 from 47.2 in May, Markit said separately today. That’s below an initial estimate of 48.6 on June 20. A composite gauge of euro-area services and manufacturing output increased to 48.7 from 47.7.
Growth in China’s service industries slowed last month, according to a separate report today. The official non-manufacturing purchasing managers’ index from the National Bureau of Statistics and the China Federation of Logistics and Purchasing fell to 53.9 in June, a nine-month low, from 54.3 in May. Another service PMI released today by HSBC Holdings Plc and Markit rose to 51.3 last month from 51.2 in May.
Source: https://www.google.co.uk/search?gs_rn=19&gs_ri=psy-ab&cp=13&gs_id=1e&xhr=t&q=economy+growing&bav=on.2,or.r_qf.&bvm=bv.48705608,d.d2k&biw=1093&bih=428&wrapid=tljp1372844117877024&um=1&ie=UTF-8&hl=en&tbm=isch&source=og&sa=N&tab=wi&ei=YvDTUb7aOsyp0AX29ICQBw
In the euro region, the picture is less positive, with aservices gauge showing the industry contracted at a faster pace than initially estimated in June as the 17-nation currency bloc struggled to emerge from a record-long recession. The index rose to 48.3 from 47.2 in May, Markit said separately today. That’s below an initial estimate of 48.6 on June 20. A composite gauge of euro-area services and manufacturing output increased to 48.7 from 47.7.
Growth in China’s service industries slowed last month, according to a separate report today. The official non-manufacturing purchasing managers’ index from the National Bureau of Statistics and the China Federation of Logistics and Purchasing fell to 53.9 in June, a nine-month low, from 54.3 in May. Another service PMI released today by HSBC Holdings Plc and Markit rose to 51.3 last month from 51.2 in May.
Source: https://www.google.co.uk/search?gs_rn=19&gs_ri=psy-ab&cp=13&gs_id=1e&xhr=t&q=economy+growing&bav=on.2,or.r_qf.&bvm=bv.48705608,d.d2k&biw=1093&bih=428&wrapid=tljp1372844117877024&um=1&ie=UTF-8&hl=en&tbm=isch&source=og&sa=N&tab=wi&ei=YvDTUb7aOsyp0AX29ICQBw
RBS to announce independent review into its failure to lend to small firms
Royal Bank of Scotland today announces an independent review into its lending to small firms. It will be led by Sir Andrew Large, a former deputy governor of the Bank of England, who will work with the management consultancy Oliver Wyman.
RBS, 81 per cent owned by the taxpayer, said the review will "identify steps" that can be taken to support lending to small firms. The review, which will report in the autumn, is also designed to promote a "common understanding" of the way the bank makes decisions on whether to lend.
"If there are loans that we could and should be making, but are not, then that will change. If there are things we can do better, we will" said Chris Sullivan, RBS's head of UK corporate banking.
Since the financial crisis broke in 2008, RBS has been continuously lambasted for refusing loan and overdraft requests from small firms. Net new lending to small and medium-sized enterprises (SMEs) by UK banks has been negative for much of the past five years, despite a host of official programmes designed to support the flow of credit to SMEs.
John Allan, of the Federation of Small Businesses, described the RBS review as a "positive step in getting to the root of the problem" and urged small firms to tell the inquiry about their experiences of banking with RBS.
Last month, the Chancellor announced a separate review into whether RBS should be split into a good and a bad bank. This review, which is expected to be conducted by Rothschild, will report in September.
In a sign of the ongoing troubles in RBS, the lender announced yesterday that its subsidiary, Ulster Bank, will close 39 branches across Ireland by the end of 2014. The consolidation plans could ultimately result in the loss of some 1,800 jobs.
Separately, at the Treasury Select Committee yesterday, Bank of England officials delivered a rebuke to banks that have been lobbying ministers to water down regulation of the sector. "Of course it's unacceptable, it's also pointless" said Paul Tucker, the Bank's Deputy Governor. Andrew Bailey, head of the Bank's Prudential Regulation Authority, said he had not personally been approached by ministers to dilute demands, but added: "These conversations did take place."
Robert Jenkins, a former member of the Financial Policy Committee, has cast doubt on the favoured strategy of Mark Carney, the Bank's new Governor, to provide markets with "forward guidance" on monetary policy. "[It] could be consistent and credible when the economic challenge was clear and compelling. How can it possibly be as effective... on the bumpy road back?" he writes in The Independent.
Source: http://www.independent.co.uk/news/business/news/rbs-to-announce-independent-review-into-its-failure-to-lend-to-small-firms-8684091.html
RBS, 81 per cent owned by the taxpayer, said the review will "identify steps" that can be taken to support lending to small firms. The review, which will report in the autumn, is also designed to promote a "common understanding" of the way the bank makes decisions on whether to lend.
"If there are loans that we could and should be making, but are not, then that will change. If there are things we can do better, we will" said Chris Sullivan, RBS's head of UK corporate banking.
Since the financial crisis broke in 2008, RBS has been continuously lambasted for refusing loan and overdraft requests from small firms. Net new lending to small and medium-sized enterprises (SMEs) by UK banks has been negative for much of the past five years, despite a host of official programmes designed to support the flow of credit to SMEs.
John Allan, of the Federation of Small Businesses, described the RBS review as a "positive step in getting to the root of the problem" and urged small firms to tell the inquiry about their experiences of banking with RBS.
Last month, the Chancellor announced a separate review into whether RBS should be split into a good and a bad bank. This review, which is expected to be conducted by Rothschild, will report in September.
In a sign of the ongoing troubles in RBS, the lender announced yesterday that its subsidiary, Ulster Bank, will close 39 branches across Ireland by the end of 2014. The consolidation plans could ultimately result in the loss of some 1,800 jobs.
Separately, at the Treasury Select Committee yesterday, Bank of England officials delivered a rebuke to banks that have been lobbying ministers to water down regulation of the sector. "Of course it's unacceptable, it's also pointless" said Paul Tucker, the Bank's Deputy Governor. Andrew Bailey, head of the Bank's Prudential Regulation Authority, said he had not personally been approached by ministers to dilute demands, but added: "These conversations did take place."
Robert Jenkins, a former member of the Financial Policy Committee, has cast doubt on the favoured strategy of Mark Carney, the Bank's new Governor, to provide markets with "forward guidance" on monetary policy. "[It] could be consistent and credible when the economic challenge was clear and compelling. How can it possibly be as effective... on the bumpy road back?" he writes in The Independent.
Source: http://www.independent.co.uk/news/business/news/rbs-to-announce-independent-review-into-its-failure-to-lend-to-small-firms-8684091.html
FTSE falls after China data, Portugal crisis unnerve investors
The FTSE 100 fell early on Wednesday as lacklustre Chinese economic data and a political crisis in Portugal cast a shadow.
The FTSE 100 was down 101.4 points, or 1.6 percent, at 6,202.51 points at 0853 BST.
Construction materials and mining stocks were among the biggest losers as data highlighted a slowdown in construction
activity in China, the world's largest consumer of metals and a driver of global economic growth.
"There's more we need to see out of China before we feel we can buy any commodity stocks," said Dan Reed, head of contract-for-difference trading at Beaufort Securities. "I've been shorting the FTSE since about the 6,300 level."
Short sellers borrow a security and sell it, betting they will be able to buy it back at a lower price before returning it to the lender, pocketing the difference.
Reed said he was awaiting decisions from central banks in Britain and the euro zone, as well as jobs data from the United States later this week before taking any long-term positions on the FTSE.
Financial stocks knocked 30 points off the FTSE as a political crisis in Portugal threatened to derail Lisbon's exit from an international bailout programme and to reignite a crisis in the euro zone sovereign debt market.
Appetite for shares was further dented by concerns that turmoil in Egypt could destabilise the Middle East. That hit energy companies such as BG Group, which has operations in the region and fell 2 percent.
Africa-focused oil explorer and producer Tullow Oil outperformed its peers, rising 2.8 percent to the top of the FTSE after announcing a "very successful" exploration programme in Kenya.
Source: http://uk.reuters.com/article/2013/07/03/uk-markets-britain-stocks-idUKBRE8710BE20130703
The FTSE 100 was down 101.4 points, or 1.6 percent, at 6,202.51 points at 0853 BST.
Construction materials and mining stocks were among the biggest losers as data highlighted a slowdown in construction
activity in China, the world's largest consumer of metals and a driver of global economic growth."There's more we need to see out of China before we feel we can buy any commodity stocks," said Dan Reed, head of contract-for-difference trading at Beaufort Securities. "I've been shorting the FTSE since about the 6,300 level."
Short sellers borrow a security and sell it, betting they will be able to buy it back at a lower price before returning it to the lender, pocketing the difference.
Reed said he was awaiting decisions from central banks in Britain and the euro zone, as well as jobs data from the United States later this week before taking any long-term positions on the FTSE.
Financial stocks knocked 30 points off the FTSE as a political crisis in Portugal threatened to derail Lisbon's exit from an international bailout programme and to reignite a crisis in the euro zone sovereign debt market.
Appetite for shares was further dented by concerns that turmoil in Egypt could destabilise the Middle East. That hit energy companies such as BG Group, which has operations in the region and fell 2 percent.
Africa-focused oil explorer and producer Tullow Oil outperformed its peers, rising 2.8 percent to the top of the FTSE after announcing a "very successful" exploration programme in Kenya.
Source: http://uk.reuters.com/article/2013/07/03/uk-markets-britain-stocks-idUKBRE8710BE20130703
What to Expect From the Bank of England Meeting
Rogge Global Partners' Ranjiv Mann discusses the monetary policies of the Federal Reserve, Bank of Japan and Bank of England with Mark Barton and Anna Edwards on Bloomberg Television's "Countdown." (Source: Bloomberg)
VTB Capital's Neil Mackinnon discusses the outlook for Bank of England monetary policy with Mark Carney at the helm. He speaks with Anna Edwards and Mark Barton on Bloomberg Television's "Countdown." (Source: Bloomberg)
VTB Capital's Neil Mackinnon discusses the outlook for Bank of England monetary policy with Mark Carney at the helm. He speaks with Anna Edwards and Mark Barton on Bloomberg Television's "Countdown." (Source: Bloomberg)
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