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Thursday Papers: Bombardier to cut 7,000 jobs worldwide

And economists warn that negative interest rates mark a 'dangerous experiment' for the world as monetary policy hits buffers.

 
Thursday Papers: Bombardier to cut 7,000 jobs worldwide

Top stories

  • The Guardian: The Canadian plane and train manufacturer Bombardier is to cut 7,000 jobs – one-tenth of its global workforce – over the next two years, including 1,350 in the UK.
  • The Daily Telegraph: Central bank moves to impose negative interest rates mark a "dangerous experiment" in global monetary policy, posing new risks to financial stability, economists have warned.
  • Financial Times: China’s flourishing appetite for acquiring overseas companies has been dealt a sharp setback as regulatory fears hindered two potential takeovers and highlighted the obstacles to striking deals with Chinese companies.
  • Financial Times: Shares in RWE plunged after it scrapped its dividend for 2015, as low electricity prices continued to wreak havoc on Germany’s power generation industry.
  • The Guardian: Iran has given a significant boost to oil prices by unexpectedly praising a plan put forward by Saudi Arabia and Russia to freeze production.
  • Financial Times: Rolls-Royce is preparing to back a bid by ValueAct for a seat on the board, giving the US-based activist investor influence over the UK’s flagship engineering company as it seeks to recover from a string of profit warnings.
  • Financial Times: Many Federal Reserve policymakers saw increased risks facing the US economy as they assessed the market turmoil that has erupted in 2016 amid plunging commodity prices and confusion over China’s currency policies.

Business and economics

  • Daily Express: Troubles in the Italian and Portuguese economies could blow up this year to shatter the eurozone, as disastrous Greece almost did last year.
  • Financial Times: The nationalised Spanish lender Bankia will compensate in full thousands of retail investors who participated in the bank’s ill-fated initial public offering in 2011.
  • Financial Times: Shares in Glencore hit a three-month high on Wednesday after the mining and trading house completed the early refinancing of a key credit line, moving to bolster investor confidence during the worst commodity rout in decades.
  • Daily Mail: Nervous fund managers are pulling money out of the stock market and now have more cash in the bank than during the financial crisis.
  • Financial Times: Fraudulent loans are on the rise in China as economic growth slows, threatening to further undermine the country’s $29 trillion banking system, which is already under pressure from an indebted corporate sector.
  • Financial Times: Metalysis, a UK company that aims to produce metal powders for use in 3D printing at lower costs, has secured £20 million in new investment from British investor Neil Woodford and Australia’s Iluka Resources.
  • Financial Times: Trading platform Plus500 predicted market volatility would drive an increase in customer numbers as its profits were hit even as revenues rose last year.
  • Financial Times: T-Mobile US outpaced rival wireless companies in the fourth quarter of last year, adding almost a million of the most lucrative mobile phone customers and beating Wall Street expectations for profits and sales.
  • The Daily Telegraph: One of AstraZeneca's most promising cancer drugs has been granted 'breakthrough' status from US regulators.
  • Daily Mail: Shares in Auto Trader rose 3% as Britain’s leading website for buying and selling cars raised profits forecasts.
  • Financial Times: Arla Foods, the dairy co-operative behind Anchor butter and Lurpak spreads, has warned of an “unpredictable and tough” year ahead as dairy producers battle falling demand for milk from China, sanctions against Russia and increasing supply from Europe.
  • The Independent: Amazon has taken a step forward in taking on high street clothing retailers, entering talks to hire a former Marks & Spencer boss and starting a recruitment drive to launch its own online fashion label.
  • The Daily Telegraph: William Hill has told regulators that the £2.3 billion merger of its two biggest rivals, Ladbrokes and Coral, will harm competition in the bookmaking industry even if the pair agree to sell swathes of betting shops.
  • Financial Times: The publisher of the Daily Mirror is set to unveil a cheaper tabloid newspaper at the end of the month in a move that defies the decline of print media.
  • The Guardian: Asda is asking suppliers for discounts and cash contributions worth millions of pounds so it can fight back against the rise of discounters Aldi and Lidl by slashing prices for shoppers.
  • Financial Times: The chief executive of Nomad Foods has moved to allay investor disillusionment with the acquisition vehicle, promising to stem sliding sales at its Iglo brand and push ahead with cost cuts before making its next acquisition.
  • Financial Times: Blythe Masters, the investment banker turned blockchain entrepreneur, will announce a string of partnerships with consultancies to help their financial clients harness the technology that underpins bitcoin.
  • Financial Times: China’s economic slowdown and investment cutbacks by US oil and gas groups weighed on profits at Schneider Electric and prompted the company to give cautious forecasts for the year ahead.
  • The Daily Telegraph: Barclays’ investment banking chief Tom King is expected to retire from the bank next month, less than a year after winning an internal struggle over the future of his unit.
  • Financial Times: A former Deutsche Bank analyst has been fined $100,000 and banned for a year, for issuing a positive research report which glossed over concerns he had aired privately to a select group of hedge fund clients.
  • The Daily Telegraph: More banks could see their contingent convertible (CoCo) bonds downgraded, Standard and Poor's has warned, a week after Deutsche Bank's bonds were targeted by the credit ratings agency.
  • Financial Times: VimpelCom, the Russian mobile phone operator, has agreed a “prospective” settlement with US authorities, acknowledging that it broke anti-corruption laws over its business in Uzbekistan.

Share tips, comment and bids

  • Financial Times: Fosun International has abandoned the purchase of an Israeli insurance company - in the first indication that the recent detention of its chairman may be having an impact on its investment strategy.
  • Financial Times: Crédit Agricole has struck an €18 billion deal to sell stakes in its network of regional banks in a move designed to boost capital and allow the lender to finance cash dividends.
  • The Independent: Vodafone yesterday ruled out hitching up with Virgin Media even after it sealed a massive joint venture with Virgin’s owner Liberty Global in the Netherlands.
  • The Daily Telegraph: Activist American hedge fund Knight Vinke has sold its stake in UBS after failing to win enough shareholder support to force the Swiss lender to sell its investment bank.
  • Financial Times: Aston Martin has signed a deal to develop an electric car with the Chinese backer of Silicon Valley start-up Faraday Future.
  • Financial Times (Comment): Putin’s proposals to privatise Russian groups appear badly flawed.
  • The Independent (Comment): Apple: the rights – and wrongs – of tech giant’s privacy protection fight with the FBI.
  • Financial Times (Lex): Auto Trader: online market reminds any doubters that business is brisk.
  • Financial Times (Lex): RWE: dividend cut is part of a wider restructuring in the face of hostile energy policy.
  • Financial Times (Lex): SoftBank: market capitalisation jumps $10 billion after buyback announced.
  • Financial Times (Lex): Neel Kashkari: Minneapolis Fed chief’s topic for an opening speech was curious.
  • Financial Times (Lex): Fosun: seller beware.
  • Financial Times (Lex): Groupon: Alibaba’s stake looks like stock picking rather than prelude to a takeover.

1 comment so far. Why not have your say?

croppp

Feb 18, 2016 at 11:03

China`s economic slowdown. a fact or prepared fiction.

China and its rapid expansion had to gather itself the country started to outstrip imported supplies of metal. The south atlantic news agency ,put in a article in 2014 .

China buys one of peru`s largest copper mines .Operated by Glencore Xstrata

Chinese consortium is buying Glencore Xstrats`s copper mine in peru for a 6bn dollar all cash deal.Marking one of china`s largest mining acquistions .The consortium is led by MMG limited and includes china`s Citric metal.

450.000 tons of copper a year are sent to china from this mine which is used mostly in their electronics industry .the world has plenty of copper which prior to china coming on the international scene was used by other countries . the likelyhood is that china is starting to ajust to what metal supplies are available for its industries .and to make preparations for further buys in the years ahead .

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