Citywire for Financial Professionals

View the article online at

Saturday Papers: Oil hits 12-year low as Wall Street sinks

And 'financial carnage' wipes £113 billion off FTSE in ten days as China enters bear market.

Saturday Papers: Oil hits 12-year low as Wall Street sinks

Top stories

  • Financial Times: US stocks fell below the lows they hit in August and oil prices settled below $30 for the first time in 12 years as further disappointment over economic data reinforced a spiral of investor pessimism about the outlook for the world economy.
  • The Daily Telegraph: Britain’s leading companies surrendered more than £113 billion in value in the first 10 trading sessions this year, as another oil-inspired sell-off wreaked havoc on global financial markets.
  • The Guardian: Britain’s builders suffered an unexpected drop in output in November, signalling a faster slowdown in GDP growth during the final three months of 2015 than most City forecasts.
  • The Guardian: Apple may owe $8 billion in back taxes from its use of potentially illegal tax shelters in Ireland.
  • Financial Times: One person has been left “brain-dead” and five others admitted to hospital after a serious accident during a trial in France for an experimental painkiller being developed by Portuguese drug company Bial.
  • Financial Times: GE is to sell its appliance business to China’s Qingdao Haier for $5.4 billion, one month after pulling plans to sell it to Electrolux of Sweden due to opposition from antitrust regulators.
  • Financial Times: Volkswagen lost further market share in Europe in December as the rest of the world’s manufacturers enjoyed a blockbuster end to the year that helped push annual car sales in the region up almost 10%.
  • Daily Mail: A key barometer of world trade has crashed to a record low in a worrying sign the global economy is grinding to a halt; the Baltic Dry Index, which measures the cost of shipping raw materials such as coal, iron ore and grain, has fallen nearly 70% since August to its lowest level since its introduction in 1985.

Business and economics

  • The Guardian: Walmart is closing 269 stores, more than half of them in the US and another big chunk in its challenging Brazilian market.
  • Financial Times: WElink Energy, a renewable energy specialist, has signed a £1.1 billion framework agreement with China’s state-owned National Building Materials Group to build at least 8,000 “zero carbon” homes in the UK.
  • Financial Times: BHP Billiton highlighted the risk of a dividend cut at the world’s most valuable mining group by taking a $7.2 billion writedown on its US shale assets.
  • The Daily Telegraph: The Bank of England has banned two former Co-op Bank chiefs from holding senior roles in the City for life.
  • Daily Mail: Shell dividend could be under threat over audacious takeover of gas specialist BG Group.
  • The Guardian: The US car industry has the technology to make future vehicles meet the federal 54.5-mile per gallon average fuel economy requirement scheduled to arrive in 2025, according to the CEO of Fiat Chrysler Automobiles.
  • Financial Times: Three of the biggest US banks – Citigroup, Wells Fargo and JP Morgan - revealed the damage wrought by a plunging oil price this week, disclosing big jumps in costs for bad energy loans and fears of contagion in other portfolios.
  • Daily Mail: was the biggest loser on the FTSE 250 yesterday following a broker’s downgrade of the stock and as sales in the group’s insurance business fell sharply.
  • Daily Mail: Bovis Homes looks set to deliver a big rise in annual profits following a strong year which saw the firm sell more homes at higher prices, continuing a run of upbeat trading statements from the sector.
  • Daily Mail: Retailer Bonmarche saw its online and stores sales fall over the key Christmas period, but overall trading was in line with expectations and shares rallied having been battered after a December alert.
  • The Daily Telegraph: Harriet Green, the former boss of Thomas Cook, received £6.3 million from the company in 2015, despite only working for two months during the financial year.
  • The Daily Telegraph: Hennes & Mauritz, the world’s second-biggest fashion retailer, posted a 10% rise in sales last month, beating analyst forecasts.

Share tips, comment and bids

  • The Daily Telegraph (Questor share tip): Stanley Gibbons shares hit 11-year low as it reviews funding options; sell.
  • The Daily Telegraph: International Airlines Group, the FTSE 100 giant behind British Airways and Spain’s Iberia, is to boost its transatlantic network after inking a deal with Latam Airlines of Chile to link up on flights between Europe and South America.
  • The Guardian: The competition regulator has given the final clearance for BT’s contentious £12.5 billion takeover of EE, Britain’s largest mobile phone network.
  • Financial Times: Larry Fink, BlackRock chief executive, offered a bearish outlook for markets on Friday when he forecast that stocks may fall another 10%.
  • The Guardian (Comment): Janet Yellen and Fed left with face full of egg after interest rate rise blunder.
  • Financial Times (Lex): GoPro: an idiotic pay scheme for company’s founder.
  • Financial Times (Lex): BHP: mining group could do with cutting the word ‘progressive’ from its dividend policy.
  • Financial Times (Lex): Hong Kong and China: Burberry and Richemont sales glow doesn’t extend beyond mainland.
  • Financial Times (Lex): Lululemon: an admirable turnround at the yoga pants maker.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire Guide to Investment Trusts

In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add to your safe senders list so we don't get junked.


The hedge fund that's beaten Woodford twice

by Daniel Grote on Apr 25, 2018 at 16:00

Sorry, this link is not
quite ready yet