Monthly Archives: June 2013

Eurobonds: A change of gear

©Alamy Fast lane: The group that built the Autostrada del Sole still uses bonds to finance projects The Autostrada del Sole, which joins Italy’s north and south and was completed in 1964, was as much part of the country’s postwar revitalisation as Fiat 500 cars and film stars wearing Gucci loafers. Behind the company that built the toll road was…

Investors move out of cash and into bonds

Investors switched billions of dollars out of the safety of cash into bonds as well as equity funds in the first half of this year, before the US Federal Reserve created market uncertainty by hinting at a possible slowdown in quantitative easing. Data for the first half of the year show that 2013 has not seen the sort of “great…

Barclays’ threat on lending under fire

Antony Jenkins, Barclays chief executive, has come under fire for threatening to curb lending to businesses to meet more stringent capital requirements imposed by UK regulators. Robert Jenkins – a former member of the Financial Policy Committee, the UK’s new stability regulator – criticised the warning as either “hubris, reflex or plain stupidity” in a letter published by the Financial…

Argentina unveils new payment method

©Getty Argentina gets a new payment method on Monday that, unlike the peso, can be swapped for much coveted dollars in a country where greenbacks are like gold. Though designed for real estate purchases, officials say the new Certificate of Deposit for Investment, or Cedin, could also be used to buy anything from washing machines to holidays, provided buyer and…

Chinese banks hit Hong Kong IPO hitch

China’s banks have been dealt a further blow as falling share prices put on ice a number of potential new Hong Kong listings. Several smaller Chinese commercial lenders had been planning Hong Kong stock market debuts this year or early next year, including Bank of Shanghai, Guangfa Bank, and Bank of Chongqing. However, little known regulations on bank capital raising,…

Economic Outlook: Host of manufacturing data out

A host of manufacturing sentiment data out this week will give a comprehensive picture of global demand levels. Figures for Brazil, China, the eurozone, France, Germany, India, Russia and the US are published on Monday. And Asian countries’ export data will give a further indication of industrial production, which has been fairly flat for the past couple of years. This…

S&P 500 ends strongest first half since 1998

The S&P 500 ended Friday’s session with its strongest first half of any year since 1998 after reaching record highs in May on a rally underpinned by the Federal Reserve’s massive monetary stimulus, Reuters reports. US-listed shares of BlackBerry plunged 27.8 per cent to $10.46 after the smartphone maker reported an unexpected quarterly operating loss, a dearth of details on…

Bonds suffer worst first half since 1994

US fixed income investors have suffered their worst first half of a year since the great bear market of 1994 with the Federal Reserve looking to step back from its open ended support of asset prices. You need JavaScript active on your browser in order to see this video. The Barclays US Aggregate Index, the investment benchmark for fixed income…

Unfancied Ocado proves UK’s top performer

The London market’s best performer of the year so far has been one of its least-fancied companies. Shares in Ocado, the loss-making grocery delivery service, have jumped 242 per cent in the first half. Yet in January, only two of the 11 analysts covering the company rated it worth buying. Brokerages and research houses were instead pushing HSBC and Diageo,…

Serco tops FTSE 100 on broker acclaim

Serco topped the FTSE 100 leader board after attracting bullish broker acclaim for outperforming its revenue targets. but a broadly weak London market broke its longest run of monthly gains since the mid-1990s. The outsourcing group rose 2.7 per cent to 616.5p after it said in a trading statement that it was well on track to meet growth targets for…