Monthly Archives: November 2015

US deals double blow with ethanol ruling

©Reuters The Obama administration has delivered a blow to the corn industry and oil refiners with an ethanol ruling that disappointed groups on opposite sides of a fight over renewable fuels. Setting out long-delayed mandates on how much ethanol should be mixed with petrol, the administration on Monday unveiled targets that were seen as too low by groups that mash…

Glencore gains on trading hopes

Glencore was Monday’s biggest FTSE 100 gainer after Credit Suisse tipped the commodity house to trade its way out of trouble. Glencore’s marketing business should be able to deliver earnings of between $2.3bn and $2.4bn next year — below management’s through-the-cycle guidance but still enough to underpin group cash flow, Credit Suisse said. Its methodology was to use Glencore’s 2004…

BATS gearing up for second try at IPO

©Reuters/Lucas Jackson BATS Global Markets, the second-biggest US stock exchange operator, is gearing up for another attempted flotation, nearly four years after technical glitches on its own bourse forced it to withdraw its initial public offering. A listing is likely to take place as soon as next year, according to several people familiar with the matter. It could value the…

Global defaults climb to six-year peak

Companies have defaulted on $78bn worth of debt so far this year, according to Standard & Poor’s, with 2015 set to finish with the highest number of worldwide defaults since 2009. The figures are the latest sign financial stress is beginning to rise for corporate borrowers, led by US oil and gas companies. The rising tide of defaults comes as…

IMF gives strong backing to renminbi

©Bloomberg The IMF on Monday gave a major vote of confidence to China and its reform efforts, giving the renminbi greater weighting than the yen or pound as it included the RMB in its elite basket of reserve currencies. The vote by the board to make the RMB the fifth currency in the basket used to value the IMF’s own…

Financials top S&P sectors in November

A glance at Wall Street’s leaders and laggards for November illustrates what’s dominating the attention of investors: a looming rate increase by the US Federal Reserve. The financial sector was poised to post the biggest gains of the 10 major S&P 500 groups, rallying almost 2 per cent. Regional bank Fifth Third Bancorp was one of the standouts, zooming higher…

Swiss banks face uncertainty on ECB move

©Bloomberg Headquarters of the Swiss National Bank Earlier this year, housebuyers in Switzerland thought they had hit the jackpot. On January 15, the Swiss National Bank announced the world’s lowest official interest rates, pushing market rates deep into negative territory where lenders, in effect, pay borrowers to take their funds. For mortgage applicants, it seemed 2015 would be the year…

Swiss 10-year bond yield at record low

©Bloomberg Swiss 10-year bond yields slipped deeper into negative territory on Monday, underscoring market nervousness at the impact of European Central Bank policy on other key markets. The benchmark yield registered a record low of minus 0.41 per cent, eclipsing the previous low of minus 0.39 per cent set last week. Investors have priced in a further expansion of the…

Dollar bulls usher in pivotal policy week

©Bloomberg The dollar climbed to new peaks against major currencies on Monday as investors closed the books on November and prepared for a pivotal week that is set to shape market activity well into 2016. Investors are increasingly embracing the prospect of monetary divergence across the Atlantic. As the European Central Bank and the US Federal Reserve are seen taking…

US credit tightens ahead of Fed shift

©Bloomberg Janet Yellen, chairwoman of the Federal Reserve Dear future historians: Janet Yellen did not cause the late-2010s recession. If a Federal Reserve interest rate rise in December is followed in short order by an economic slowdown, the temptation will be to blame the central bank and its chair for a premature tightening of monetary policy. But there are a…