Monthly Archives: January 2016

Steel industry likely to return to growth

©Bloomberg The global steel industry is expected to edge back into growth this year in spite of waning Chinese demand, at a time when low prices for the metal are casting a shadow over producers. World production of crude steel will rise by 0.15 per cent in 2016, according to a Financial Times survey of 18 analysts, with renewed expansion…

FT City Network: Is the outlook all doom?

©ESA/NASA View of London and the City at night fromTim Peake on board the International Space Station Several City leaders have warned about the global economic outlook, citing a “doomed” post-crisis environment in “a world of zeros” where central banks grapple over whether to further unwind ultra-loose monetary policies. Nigel Wilson, chief executive of Legal & General, said: “We are…

Nigeria asks for $3.5bn emergency loans

©AFP Nigerian President Muhammadu Buhari Nigeria has asked the World Bank and African Development Bank for $3.5bn in emergency loans to fill a growing gap in its budget in the latest sign of the economic damage being wrought on oil-rich nations by tumbling crude prices.  The request from the eight-month-old government of President Muhammadu Buhari is intended to help fund…

Capital controls will not cure China’s ills

©EPA In yet another sign of the strange times we live in, Japan is calling for China to impose controls to stem capital outflows that are eroding the value of the renminbi. Authoritative voices have endorsed this view. This fast-developing orthodoxy that capital controls could give China some breathing room is wrong. Controls would make things worse, not better. China…

Economic Outlook

©EPA Mark Carney, governor of the Bank of England This week’s highlights include the Bank of England’s rate decision, coinciding with the release of the year’s first inflation report on Thursday. Then Friday’s release of US non-farm payrolls will provide an important signal of US economic performance through January. Also out over the week are a number of activity indicators,…

British regulators help Iranian banks

©AP Melli Bank is one of three UK-based Iranian lenders to have its licence reactivated by the Bank of England Top UK regulators are trying to help three Iranian-owned banks reintegrate into the financial system after years of international sanctions — by deploying a unit designed to aid start-ups. The UK-based Iranian lenders would be among the first beneficiaries of…

We are the QE generation

Will quantitative easing ever properly end? To put it another way, will quantitative tightening ever start? As some investors worry that the US Federal Reserve may have made a big policy mistake by raising rates in December, others warn that unconventional loosening of monetary policy is in effect with us for life. It is almost like having an illness that…

EM slowdown hurts passive funds

©Kim Kyung-Hoon/Reuters Downing tools: a fall in the price of oil and indications of a slowdown in China have dented investor confidence in the outlook for emerging economies No one likes the feeling of giving up and asset managers are no exception. Each year the industry launches hundreds of funds, but only a fraction of the unsuccessful ones are closed….

Week in Review, January 30

A round up of some of the week’s most significant corporate events and news stories. Lower fuel prices give US carmakers a helping hand ©Bloomberg Two of America’s big three carmakers thanked sport utility vehicles and low fuel prices for high octane performance this week, writes Andy Sharman. Rising US sales of larger “gas-guzzlers” has driven the world’s second-largest car…

Azerbaijan’s credit rating cut to junk

©Alexander Melnikov/Dreamstime The oil boom that turned Baku, the Azerbaijan capital, into a kind of Dubai on the Caspian has ended Standard & Poor’s cut Azerbaijan’s credit rating to junk on Friday and predicted its economy would contract this year for the first time in two decades, the latest blow to the oil-dependent nation as it battles to contain a…