Monthly Archives: September 2016

Systemic fears over Deutsche do not add up

©EPA There can be little doubt Angela Merkel would bail out the Germany’s biggest bank if necessary Is Deutsche Bank a systemic risk? The answer seems blindingly obvious. On Thursday, after another brutal day for Germany’s biggest bank, which saw its shares tumble 6.7 per cent, US financial stocks lost almost 2 per cent. In London and New York, market…

IC — Moss Bros, J Sainsbury, Smiths Group

Buy: Moss Bros (MOSB) ©Bloomberg Margins fell in Moss’s hire business, but this was attributed to investment in improving quality, writes Bradley Gerrard. With more store openings (two already this half), the addition of the “Tailor Me” personalised service and more than £20m of net cash on the balance sheet, the shares’ 21 times forward earnings is justifiable; especially given…

Puerto Rico handed deadline by debt board

©EPA The powerful control board established to oversee a restructuring of Puerto Rico’s $69bn debt burden elected insurance executive Jose Carrión III as its chairman on Friday as it set a two-week deadline for the island to submit a turnround plan. The board, whose first public meeting in Downtown Manhattan was interrupted by protesters vehemently opposed to an entity they…

Babcock bounces on outsourcer reassurances

©Bloomberg Babcock shares bounced from a one-month low on Friday after the government outsourcer told analysts it is not suffering from the same issues as Capita. Capita’s profit warning a day earlier had sent Babcock lower by as much as 8 per cent with brokers including Citigroup highlighting it was now alone in the UK services sector not to warn…

Nutanix jumps on US trading debut

©Getty Nutanix shares jumped on their trading debut on Friday after the company that provides enterprise data storage priced above its expected range. Shares in the California-based company soared as much as 90 per cent to $30.40, having priced at $16 a share on Thursday, above the company’s previously expected range of $13 to $15. Nutanix raised $237.9m in its…

Deutsche Bank puts CDS market to test

©Reuters The sharp fall in Deutsche Bank’s shares comes after a year of decline As Deutsche Bank’s share price has swung dramatically throughout the week, traders have also fuelled demand for another type of security: the credit default swaps that offer insurance against a default by the lender. Deutsche Bank’s €37bn credibility gap Investor concerns are not about bad loans…

Deutsche Bank’s €37bn credibility gap

©FT Graphics / Getty Deutsche Bank has a €37bn credibility gap. That’s the difference between the value of the bank’s tangible assets, and the €14bn ($16bn) market capitalisation it has been left with after the past week’s share price battering. Most analysts and investors blame the bank’s chronically low earnings, and a potential $14bn fine from the US Department of…

Deutsche Bank’s coco bonds flash red

©FTGraphics / Getty The riskiest bonds sold by Deutsche Bank hit a record low on Friday, underlining the anxiety over a lender that is in the crosshairs of investors who have been worried all year about the health of Europe’s banking sector. Deutsche’s €1.75bn coco bond dropped as much as much as 7 per cent to a record low of…

Asia mixed as glow of oil rally fades

©AP Friday 05:45 BST. The fire lit under markets by news of Opec’s tentative agreement to cut oil production sputtered out, with Asian markets broadly down following a lacklustre US trading session. Taking the lead from Wall Street’s S&P 500 Index, which closed down 0.9 per cent on Thursday, equities across the Asia-Pacific region struggled to hold onto the previous…

China’s RMB joins elite global reserve club

©AP China’s renminbi formally becomes a reserve currency on Saturday, the 67th anniversary of Communist party rule in China, reaching a milestone on its long march to international acceptance. Government officials led by Zhou Xiaochuan, head of the People’s Bank of China, lobbied long and hard for the renminbi to be included in the International Monetary Fund’s special drawing rights…