Monthly Archives: July 2014

GoPro shares dive as earnings disappoint

©AFP A skier with a GoPro camera on his helmet Shares in GoPro dived more than 10 per cent in after-hours trading on a widening loss in its first earnings statement since it went public in June. The maker of cameras beloved by extreme sports enthusiasts reported a net loss of $19.8m, or 24 cents per share, up from $5.1m…

Asset managers may escape systemic label

©Bloomberg Large asset managers, including BlackRock and Fidelity, have for now escaped being labelled ‘systemically important’ as regulators lifted the threat of costly new supervision. The Treasury-led Financial Stability Oversight Council will continue its review of the industry’s activities and products for possible risks to the financial system, the Treasury department said. The potential for reviewing asset managers as systemic…

European banks feel backlash of clean-up

©AFP Investors in European banks received a harsh reminder of the risks posed by tougher regulation and closer scrutiny of financial balance sheets on Thursday as two big lenders announced record losses despite an improving economic outlook. Shares in Banco Espírito Santo fell 40 per cent after Portugal’s central bank ordered the country’s biggest lender to raise fresh capital and…

Hopes remain of deal on Argentine debt

You need JavaScript active on your browser in order to see this video. Argentina’s debt saga has been dragging on for more than 12 years and, with the country slipping back into default on Wednesday, it is far from over. Hopes remain that a deal with the private sector can still be reached. A last-minute proposal by a group of…

Ferrexpo falls on Ukraine tax hike

London’s Ukranian stocks took a tumble on Thursday after the nation pushed through a raft of tax hikes to avoid default and fund its military operations. Ferrexpo and Regal Petroleum were among the sharpest fallers after Ukraine’s parliament passed emergency measures at the second attempt that will triple its tax on natural gas production, as well as raising oil and…

CME’s profits drop as trading volumes fall

CME Group, operator of the world’s largest futures exchange, reported a 15 per cent drop in second-quarter earnings, missing expectations as trading volumes tumbled. Terry Duffy, executive chairman, said the exchange was hit by “historically low levels of volatility” across the market during the quarter ending in June. But he said conditions could soon change. “We continue to see positive…

Yum leads S&P 500 fast food sector lower

Fast-food chain shares were blunted on Thursday after one of the sector’s largest restaurant operators warned it had seen “significant” deterioration in Chinese sales amid a new food safety scare. Yum, the Kentucky-based operator of KFC, Pizza Hut and Taco Bell, said that an undercover July news report has had a “significant, negative impact to same-store sales at both KFC…

Massad sees end to US-EU clearing dispute

©Brendan Hoffman Tracking error: mistakes made by the CFTC in the US have rendered useless much of the trading data it has collected Timothy Massad, the new head of the main US derivatives regulator, said on Thursday he was committed to resolving a transatlantic dispute over compliance standards for clearing houses. Mr Massad said he had already been to Europe…

Investors amplify boom and bust cycles

Market boom and bust cycles are exaggerated by life assurance companies and pension funds, increasing risks to the stability of financial systems, warns a research paper published by the Bank of England. Evidence of “pro-cyclical” behaviour was apparent during the post-2007 financial crisis and during the “dotcom boom” at the start of the century, according to the study published on…

Argentina furious over second default

Argentina’s government reacted furiously to the country’s second default in 13 years, while investors retained hope for a resolution to the long debt stand-off. You need JavaScript active on your browser in order to see this video. Buenos Aires was insisting on Thursday that it was not in default, with cabinet chief Jorge Capitanich urging holders of its restructured debt…