Citigroup economist Michael Saunders said today that he expects the UK central bank to keep rates unchanged for the next 12 months, with the first increase in rates in late-2016. Earlier today, the Bank of England kept its main interest rate unchanged at 0.5%, a decision which was widely expected.
Turkish President Erdogan told Russia there were other places his country could get natural gas and other countries that could build its first nuclear plant. Those remarks came in the wake of Russian incursions into Turkish air space during its air campaign in Syria. ‘Russia's explanations on the air space violations are not convincing,’ the Turkish daily Sabah and others quoted Erdogan as telling reporters.
The dollar first weakened against the euro than picked up amid nervousness over what kind of message the Federal Reserve minutes due later today will send on the outlook for US interest rates and economic growth. After publications by the Bank of England and the European Central Bank, now the focus turns to records from Fed’s September meeting scheduled for release at 18:00 GMT. At last check, the EUR/USD pair traded at up 0.1% at 1.1248 after hitting a session high at 1.1314.
Volkswagen's Michael Horn, head of the company’s US subsidiary, knew the car maker might be breaking US emissions rules as long as 18 months before VW’s admission of cheating diesel tests. Horn admitted that before a panel of US lawmakers today. This information is likely to raise questions about why the German auto maker did not act more quickly to fix the rigged software.
Anheuser-Busch InBev has responded to SABMiller PLC's rejection of its Wednesday offer to take over the world's second-largest brewer in a cash-and-stock deal that InBev claims is very good for SABMiller’s shareholders. InBev said it is ‘surprised’ by the response adding that the claim that its offer undervalues SABMiller ‘lacks credibility.’
The shares of GoPro Inc. tumbled as much as 8% yesterday after Morgan Stanley reduced its price target on the stock nearly in half, but many analysts are still optimistic that virtual reality and drones can lead the action-camera maker to a comeback. Morgan Stanley is now the most bearish bank covering GoPro on Wall Street, while the average price target is still $65.25, according to a poll of 18 analysts.
Canadian new-house prices rose above expectations in August, led by advances in new home prices in the province of Ontario. Prices of new houses nationwide climbed 0.3% on a monthly basis, following a 0.1% gain in July. Expectations were for a 0.2% increase.
The number of Americans applying for initial unemployment benefits dropped by 13,000 last week to a seasonally adjusted 263,000. Economists expected a much smaller decline to 274,000 new claims last week. The number of claims for the previous week was revised down by 1,000 to 276,000. The US Labor Department said there were no special factors affecting the latest weekly data, but data from South Carolina and Nevada were estimated, and South Carolina’s state offices were closed earlier this week due to flooding.
In the week ending 03.10.2015 the advance figure for seasonally adjusted initial claims is 263 000, it was expected to be 274 000 versus 277 000 previously.
European Central Bank (ECB) officials determined that downside risks to inflation have intensified over the summer but more time is needed to estimate the effect of financial market volatility and slowing Chinese economy, according to the minutes of the bank's 3 September policy meeting released today. Still, ECB officials stressed the central bank's willingness to boost its stimulus programs, if needed, to address the risks of too-low inflation.
Norway's Statoil ASA said today that an oil spill had occurred near the Statfjord A platform in the North Sea on the Norwegian continental shelf, but that it was too early to assess the ecological damage. The oil leak happened while an oil tanker was being loaded at the field's loading buoy, Statoil said. Statoil’s stock was down 3.7% in today’s trade.
Alibaba Group Holding Ltd. is starting a new campaign to reassure shareholders of its growth outlook after investors fled its stock over slowing revenue growth, China’s economic worries and other issues. In a letter to shareholders to be published today, CEO Jack Ma said the world was panicking to China’s economic downtrend and that he believed it wouldn’t hurt consumers' expenditure. The statement is part of an online report with videos and charts designed to better explain the Chinese market and the company’s strategy to overseas investors.
The UK economy likely slowed during the 3rd quarter, the Bank of England said today, as the central bank forecasts an economic growth of 0.6% between July and September, compared with 0.7% growth during the previous quarter. The BOE said this ‘gentle deceleration’ was likely due to the economy approaching a natural balance after recovering from the financial crisis, but also underscored the government's budget cuts. Also today, the central bank decided to leave its main interest rate at a record low of 0.50% and its stimulus program at GBP 375 billion in asset buys per month. The minutes have shown another 8-1 vote in favour of leaving rates unchanged today, with only one member voting for a rate hike to 0.75%. The GBP/USD pair fell to 1.53 after the release.
The United Auto Workers (UAW) said today that it reached a revised deal with Fiat Chrysler Automobiles NV that secures “significant gains” for its members, averting a personnel strike that would have halted production at Fiat Chrysler’s US plants. The UAW’s President Dennis Williams just said that the new accord “addresses our members’ principal concerns about their jobs and their futures.”
Actual: 375 B GBP
Survey: 375 B GBP
Prior: 375 B GBP
Facebook is planning to launch a ‘Reactions’ feature that expresses multiple emotions, instead of the long-serving ‘like’ (and long-rumoured ‘dislike’) button. Sources revealed that the social network will start testing the new feature on users in Ireland and Spain as soon as Friday.
Dianping and Meituan, two of China’s largest forces in the online-to-offline (O2O) space — and backed by the ecommerce giant Alibaba and social networking powerhouse Tencent — said today that they have formed a strategic cooperation. The two companies will jointly set up a new company to rival Biadu’s group-buying platform Nuomi, analysts said.
Sony has completed the acquisition of Softkinetic Systems, Belgium-based maker of body-sensing and image recognition technology. Sensors similar to the ones developed by Softkinetic are used in the Wii video game console and Microsoft’s Xbox 360 and Xbox One game consoles.
Patrick Pouyanne, the chief executive of French oil giant Total SA, called today on the oil sector to work harder on finding solutions to reduce greenhouse-gas emissions or risk being at the mercy of policy makers. His comments come 2 months ahead of a major conference on measures to combat climate change in Paris. Pouyanne said that it wasn't just about carbon pricing, but also the role that natural gas has to play as it is a cleaner fuel than coal.
Sony has reduced the price of the PlayStation 4 video game console to $350. The move was somewhat anticipated, as Microsoft is also positioning its Xbox One at a lower price this fall. Sony had priced its PS4 at $400 since the launch in November 2013 in the USA, in order to compete with Microsoft’s device price by that time at $500.
Google surprised investors in August by announcing a new parent company called Alphabet. The company's site is located at the somewhat unconventional ABC.xyz web domain, as the more logical Alphabet.com is owned by BMW, and abc.com is owned by TV network ABC. Earlier this week, however, Domain Investing found out that Google bought at least one other alphabet-inspired domain name: abcdefghijklmnopqrstuvwxyz.com. Most likely, the company is just protecting its assets by registering domains that could be associated with Alphabet.
The global economies risk a slide into a fresh financial crisis if governments and policymakers mishandle risks to market stability, the International Monetary Fund (IMF) warned yesterday. The fund’s head of financial stability said that its concerns are based on increasing corporate defaults in emerging economies and an apparent worldwide decline in appetite for riskier assets.
Facebook’s intentions in virtual reality were already clear after buying Oculus, which is readying the launch of its first headset developed together with Samsung. Facebook’s Michael Abrash said virtual reality is already achieved, but augmented reality presents a new type of challenges. Still, CEO Mark Zuckerberg confirmed the company is working on it.
Germany's trade surplus missed expectations in August, as exports logged their steepest decline since January 2009. Germany's adjusted trade surplus shrunk to EUR 19.6 billion from a revised EUR 22.4 billion in July, below forecasts of EUR 22.5 billion, official data revealed today. Exports tumbled 5.2% from the preceding month to EUR 97.7 billion in August, the steepest decline in more than 6 years.
US stock futures slipped in early trading today, reflecting some disappointment in the performance of China’s stock market, which resumed trading after a multi-day holiday break. Futures for the Dow Jones industrials fell to 16,680 points, while those for the S&P 500 slipped to 1,970.90, and the futures for the Nasdaq 100 index dropped to 4,287.7 points, but started to trim those losses after the start of the European session.
The Bank of Japan (BOJ) once again cut its forecast for industrial output in its monthly report released today, underscoring the central bank's weakening confidence in the Japanese economy. Industrial output over the quarter through September will likely be "more or less flat, including the possibility of a small decrease" compared with the previous quarter, the latest economic report said. The gauge slumped 0.5% in August, dropping for a second straight month and surprising both economists and government officials.
Today Amazon opened an arts-and-crafts online bazaar that aims to gain share on a growing market dominated by the online site Etsy. The new marketplace is called Handmade at Amazon and was launched in the US today with over 80,000 items from around 5,000 sellers. Etsy's success has proven that a lucrative market exists for handmade merchandise. Since 2005, it has grown to USD 2 billion in sales a year.
As Volkswagen AG prepares for a massive recall to fix diesel vehicles, some US car owners vow to not bring their cars in for a fix. The cars, around 482,000 Passats, Golfs and Jettas sold from 2009 to 2015 in the United States, are fun to drive, owners claim, and any fixes will result in lower performance and fuel economy, which they would be unhappy about. There are few legal possibilities to force them participate in the recall.
Germany's trade surplus shrank unexpectedly in August, as exports marked their steepest decline in almost seven years. The seasonally and calendar adjusted trade surplus narrowed to EUR 19.6 billion from a revised EUR 22.4 billion in July, below the forecasts for EUR 20.2 billion, data from the Federal Statistical Office showed Thursday. Exports fell by 5.2% on a monthly basis to adjusted EUR 97.7 billion in August, the sharpest decline since January 2009. Imports fell by 3.1% on the month to EUR 78.2 billion. In the meanwhile, Germany's current account balance, a broad measure of the economy's international financial position, showed a surplus of EUR 12.3 billion in August in unadjusted terms, compared with forecasts for a EUR 16.2 billion surplus.
Yesterday Amazon introduced a storage appliance on which customers can load up to 50 terabytes of data and then email to the company to plug into its data centre. The device is called Snowball, can hold the equivalent of 6,400 movie DVDs. It resembles a heavy suitcase and weighs around 20 kg. It is weather-resistant and also contains a 10 GB network connection on the back. Companies can expect to pay USD 200 to use the box, plus shipping costs.
The European Central Bank will need more time to reach its inflation rate target of just below 2%, ECB governing council member Klaas Knot said in an interview released today. “There is nothing wrong with the target of 2%, but the medium term over which we aim to achieve that, is probably a bit longer than it was in the past.” At 11:30 GMT today, the ECB will publish the minutes from its monetary policy meeting held on 3 September.
Sony Corp. is reportedly planning to sell half of its Sony/ATV Music Publishing, after resolving a contractual clause with its co-owner, the Michael Jackson estate, which allows one partner to buy out the other, sources said. Sony/ATV has been co-owned by Sony and the estate of the late pop star since 1995, with each partner holding a 50% stake.
Deutsche Bank AG reported the biggest quarterly loss in at least a decade and may scrap its dividend. Europe’s biggest investment bank expects its third-quarter loss to amount to EUR 6.2 billion after writing down the value of its two largest divisions and boosting reserves for legal costs.
• At 11:00 GMT today, the Bank of England will announce its decision about the interest rates and the amount of asset purchases. Analysts expect both to stay unchanged at 0.50% and GBP 375 billion respectively.
• Again at 11:00 GMT, the bank will publish the minutes from its meeting. Economists expect none of the nine members of the BOE’s Monetary Policy Committee to have voted for a rise of the interest rate. Usually, the British pound is very volatile during such announcements.
• At 11:30 GMT, the European Central Bank (ECB) will publish the minutes from its monetary policy meeting held on 3 September. That will be the first disclosure about the bank’s discussions on monetary policy, but the detailed records of the meeting will be kept secret for 30 years.
• At 12:30 GMT, the US Jobless Claims will be released. The median forecast is for a fall of 3,000 to 274,000 claims. Fewer jobless claims would support the US dollar.
• At 18:00 GMT, the Federal Open Market Committee (FOMC) within the US central bank (FED) will release the minutes of its last monetary policy meeting in September.
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