Monthly Archives: January 2015

ECB dismisses supply side view of eurozone woes

©Reuters The ECB vice-president has launched a staunch defence of the central banks’s quantitative easing programme, saying large-scale asset purchases were necessary to counter Europe’s problem of insufficient demand. Speaking at the Cambridge Union in Cambridge, Vitor Constâncio attacked what he called a ‘misguided view’ that the Eurozone economic problems were solely the result of supply side problems.’ He insisted…

BofE report into forex-rigging cost £3m

©Bloomberg The Bank of England paid almost £3m of taxpayers’ money for a report on whether any of its staff knew about or were involved in alleged manipulation of one of the world’s biggest financial markets. More than £400,000 was paid to Lord Grabiner QC, a senior barrister, according to BoE correspondence published on Friday. During a testy hearing earlier…

Outflows seep out of Franklin funds

Franklin Resources, the asset management group that counts bond investor Michael Hasenstab among its top managers, missed earnings estimates in the last quarter as money continued to seep out of its funds. But Franklin said on Friday that the outlook for Mr Hasenstab’s global bond franchise was strong, despite high-profile losses on Ukrainian debt, in response to questions about outflows…

Qatar Airways buys 10% stake in IAG

Qatar Airways has bought a 9.99 per cent stake in British Airways’ owner International Airlines Group, in a move that underlines the state-controlled Gulf carrier’s determination to be a leading force in global aviation. The deal shows how big European carriers are seeking to head off the strategic threat that fast-growing and well-financed Gulf airlines pose to their businesses by…

BT to inject £1.5bn to plug pension hole

©Bloomberg The BT Pension Scheme is an investor highlighting responsible investment BT Group will inject £1.5bn into its £47bn pension plan to help tackle a worsening deficit as the group prepares for a testing period of investment in sports rights, mobile telecoms and an advanced fibre network. A nine-month review of the British telecoms group’s pension liabilities found that the…

Bulk commodity shipping rates fall sharply

The Baltic Dry index has slumped to its lowest level in almost three decades, hit hard by falling commodity prices and glut of ships. The index, which tracks rates for ships carrying bulk commodities such as iron ore and thermal coal, fell 24 points, or 3.8 per cent, to 608 points on Friday. It has dropped 95 per cent from…

Petrofac bounces on deepwater retreat talk

©Bloomberg Petrofac was a gainer on Friday amid speculation that the oil services company might abandon its $1bn move into deepwater drilling. Petrofac, an onshore engineering specialist, surprised investors in 2013 with plans to buy a boat and enter a niche of the subsea construction market currently dominated by international oil companies. Its vessel, initially due for delivery in 2016,…

IC — January 31 highlights

Buy: Crest Nicholson (CRST) On top of excellent growth prospects and a sector-leading forecast dividend, shares in Crest Nicholson are cheaper than its rivals, writes Jonas Crosland. Annual results from Crest Nicholson provide further evidence of the healthy state of the UK housebuilding sector. The company remains on target to achieve revenue growth of up to 80 per cent in…

Dollar rally stalls on rate rise rethink

©Bloomberg The Federal Reserve this week offered no new clues as to the next rise in US interest rates, which left dollar bulls feeling they had pushed the currency high enough for now. As measured against six of its leading rivals, the dollar index ended the week unchanged at 94.78. At its first policy meeting of the year, the Fed…

Biogen soars on profit forecast

Biogen shares jumped 10.5 per cent after the biotech company reported fourth-quarter profits had nearly doubled from a year ago, thanks to healthy sales of its multiple sclerosis treatments. The Cambridge, Massachusetts-based biotechnology company posted net profit of $883m, or $3.74 a share, compared with $457.3m, or $1.92 a share, a year ago. Wall Street had forecast $3.421 a share….