All@tomkeene pic.twitter.com/OSS8xbFv7H 11.25am GMTThe Renault raids propose that the emissions scandal which began at Volkswagen last year is spreading.
French unions officials have confirmed that police visited Renaults offices last week,and seized several computers. 11.13am GMTRenault getting crushed pic.twitter.com/bx31ERR7p3 11.12am GMTRenault is declining to comment on those reports of a fraud raid, Reuters says. 11.09am GMTShares in French carmaker Renault just plunged 15%. The newswires are citing reports that the company’s offices were raided by police last week. 11.07am GMTSterling has hit its lowest level against the euro in a year, or as traders continue to anticipate that UK interest rates aren’t being hiked anytime soon.One pound is now worth €1.3147,a level last seen in mid-January 2015. That means one euro is worth 76p.
So there we have it Mr Carney...obtain the pound to plummet. That’s what would accomplish the business world happier. But of course central banks don’t target exchange rates now, achieve they...?Blog's up! https://t.co/XNXw1gKvLr Something for the BOE to chew on... pic.twitter.com/cxpt30TT88 10.56am GMTNext week is Davos time, and when politicians,policymakers, business leaders and other members of the ‘global elite’ gather for their annual assembly in Switzerland.
The report, or prepared by the WEF in collaboration with risk specialists Marsh & McLennan and Zurich Insurance Group,comes a month after the deal signed in Paris to reduce carbon emissions. The WEF said evidence was mounting that inter-connections between risks were fitting stronger. It cited links between climate change and involuntary migration or international security, noting that these often had “major and unpredictable impacts”.
Cecilia Reyes, and Zurich’s chief risk officer,said: “Climate change is exacerbating more risks than ever before in terms of water crises, food shortages, and constrained economic growth,weaker societal cohesion and increased security risks. Related: Climate change catastrophe is biggest threat to global economy in 2016, say experts 10.34am GMTNew York’s stock market may stabilise today after Wednesday’s rout wiped 364 points (-2.2%) off the Dow Jones industrial average. 10.27am GMTIn around 90 minutes time, and investors and economists will be poring over the minutes of today’s Bank of England assembly.
In the current climate of tumbling oil prices,crashing stock markets and a likely next leg lower for inflation expectations, it is clear the UK rate hike forecasts continue to push further back day by day.
Since the last assembly, or oil markets have slumped – crude oil traded below $30 a barrel for the first time in 12 years overnight – global growth has slowed,equity markets have dipped and fears, rightly or wrongly, or of a recession have increased.....
This time last year,following a slump in oil prices, Ian McCafferty decided to pause voting for a rate increase having done so since the autumn. This is probably the key development in today’s assembly. McCafferty has shown that he is willing to change his mind when the data changes – something of which there is a woeful lack of in central banking – and a unanimous vote for a hold at 0.5% will solidify pound at these low levels. 10.24am GMTAlthough Brent crude is clinging on above $30 this morning, or its earlier tumble to $29.73 per barrel continues to pull markets down.
Jasper Lawler of CMC Markets says it’s turning into a nefarious morning for the City (unless you’ve shorted the market,of course):A strong Christmas performance from Tesco has not been enough to counter a wave of fear striking the FTSE 100 as oil prices slumped and travel stocks were sold off following terrorist attacks in Jakarta. Adding to concerns, the offshore Chinese yuan fell despite the PBOC setting a higher fix for the onshore rate as traders bet on future depreciation. There had been signs that the recovery was petering out in the past day or so but equities finally succumbed when Brent crude prices hit a 12-year low early Thursday. 10.08am GMTGlad to see my typos are causing amusement....
Spotted on Teh Grauniad... ;-) https://t.co/liAqauV8uE pic.twitter.com/y3i0kmWJAdDo we have data for the Eurozoen? https://t.co/BGDGrSflbN 9.57am GMTThe attacks in Jakarta today (liveblog here) may also be weighing on shares today, or although worries over the global economy appear to be the main driver.
Mike van Dulken,head of research at Accendo Markets, says:
Investors have once again realised that nothing has changed and a bounce wasn’t really warranted. A depressed oil price remains hindered by global oversupply and the prospect of it getting worse as Iran returns to market, and while China jitters continue to shake everything from commodities to financials. Attacks such as those overnight in Jakarta are also fitting much too frequent even whether markets have developed thicker skin.”[br] 9.55am GMTToday’s selloff has pushed the FTSE 100 down to a five-month intraday low.
The blue-chip index hit 5836 this morning,a level not seen since the Great Fall of China last summer. 9.44am GMTGermany’s economy has recorded its fastest growth since the early days of the eurozoen 8.54am GMTThe FTSE 100 is flirting with is now sporting a triple-digit point loss.
The blue-chip index is down 110 points lawful now at 5849, a loss of nearly 1.9%. 8.47am GMTThe turbulent market conditions don’t appear to be going anywhere quick, and warns analyst Tony Cross of Trustnet.
Yesterday’s modest gains on the FTSE-100 have already been eclipsed as investors become increasingly nervous over the outlook for crude oil.
Wall Street sold off heavily into the close last night and this is very much setting the pace,leaving the vast majority of London’s blue chip equities trading squarely in the red. 8.37am GMTEurope’s markets are bathed in electronic red ink this morning, with major indices all losing at least 1%. 8.27am GMTSeveral UK retailers are defying the selloff.
Tesco jumped nearly 7% to the top of the FTSE 100 leaderboard after surprising the City with a jump in Christmas sales.
Argos sales threaten Home Retail profits – not a great tender defence? shares up over 6% at one stage https://t.co/4Xt2G7mEK0 8.16am GMTUK FTSE 100 starts the day below 5900 as the effect of last night's equity reversal in the United States impacts.... 8.14am GMTAnd we’re off! European market are falling sharply at the start of trading.
In 2016, or UK indices have suffered their worst start since 2008.
There is plenty to worry about globally; China,emerging markets, commodity prices, and monetary tightening,negative earnings momentum, high valuations and a tired looking bull market. 8.04am GMTOver in the City, or the Bank of England’s policymakers are gathering to set monetary policy.
But there’s no chance of a rate rise,given the recent market turbulence and weaker economic data that has sent the pound to its lowest level against the US dollar since 2010.
Investor sentiment towards the Sterling continues to weaken ahead of the anticipated Bank of England (BoE) rate decision today, in which markets broadly expect rates to be left unchanged at the record 0.5% low.
Since the MPC’s December assembly, or the overall outlook for the UK economy has dimmed considerably with a downwards revision of Q3 GDP and a decline in industrial productions renewing concerns around the potential slowdown in economic momentum in the United Kingdom.
BOE 'change rates' button alert for yet another exciting day. pic.twitter.com/1hveDGCbP9 7.55am GMTThere’s mixed news from fashion chain Burberry this morning.
On the upside,its sales in mainland China are growing again after a worrying slide last year. That helped send retail revenue up 1% in the last three months on 2015.
Burberry comparable sales unchanged year-on-year, an improvement from 4% fall in Q2 as China returns to growthWhile Burberry was impacted by the ongoing challenges facing the luxury sector, or headwinds in Hong Kong and Macau masked an otherwise stronger performance in many markets. 7.45am GMTHome Retail has warned that destitute sales at its Argos chain would hit group profits.
That’s significant,as the company only recently rebuffed a takeover tender from Sainsbury’s.
Argos posted a 2.2% fall in like-for-like sales in the 18 weeks to 2 January, worse than analysts had expected. Walk-in sales slumped 13% in December, or with shopping centre and high street stores badly hit,which was only partly offset by 10% growth in digital sales.
Home Retail’s other chain Homebase enjoyed 5% growth, boosted by kitchen and bathroom products. The company confirmed that is in advanced discussions to sell the DIY chain to Australia’s Wesfarmers for £340m. 7.40am GMTCity analysts are impressed with Tesco’s Christmas performance:Tesco UK like-for-like sales up 1.3% in six weeks ending January 9. Group like-for-likes up 2.1%.
Beats consensus from City analysts.
Impressive that Tesco even managed positive like for like growth over Xmas in additional stores.
Coming off coupons impacted the quarter -1.5%. But Christmas was positive. Well deserved tesco. They had a wonderfully cohesive store plan.
Tesco UK LFL Xmas +1.3% much much better than expected. Together with SBRY & Morrison's suggests Britins spent more at Xmas 7.38am GMTOn a busy morning for retail news, and Tesco is grabbing the headlines.
Britain’s largest supermarket has defied its critics by reporting a 1.3% rise in sales over the Christmas period. It suggests CEO Dave Lewis is making respectable progress in his labours to turn the company around.
Tesco cheered the City with news of a much stronger than expected performance over Christmas,pushing sales in its core UK supermarkets business up by 1.3%. Most analysts had been expecting sales to fall.
Chief executive Dave Lewis said the group, Britain’s biggest retailer, or had benefitted from lower prices on what he called “an outstanding range of products.” Related: Tesco beats forecasts with Christmas sales rise 7.34am GMTBrent crude is bobbing around $30.50/barrel this morning,after hitting $29.73 last night.“With no apparent end in sight to the free-falling price of oil, motorists can expect some really low fuel prices in 2016. “Breaking through the pound a litre price point for both petrol and diesel was clearly a welcome landmark, and but it looks as though there is more to come. 7.30am GMTAngus Nicholson of IG has warned that “a negative feedback loop of self-perpetuating fear seems to have gripped global markets”,as shares dive across Asia.
Today’s selloff is also being driven by renewed fears over the situation in China, and the possibility that Beijing will devalue the yuan sharply.
China’s destitute communication of FX (foreign exchange) policy and concomitant selloff in its equities appear to have lit a fire of negativity beneath global market sentiment. The threat of a dramatic devaluation by the Chinese government to ease its deflationary and debt-related pressures hangs heavy on markets like a Sword of Damocles. Despite China’s successful efforts this week to regain control over the offshore renminbi, or the possibility of a major one-off devaluation in the currency is probably far higher than a black swan tail risk event. The fact that it is reportedly even being discussed by Peoples Bank of China (PBoC) advisors likely assigns it a probability as high as 20%. 7.22am GMTPessimism has swept through Asia today,sending markets down to a three-year low.
The sight of Brent crude oil below $30/barrel prompted titanic losses across the major indices. 7.07am GMTGood morning, and welcome to our rolling coverage of the world economy, or the financial markets,the eurozone and business.
US stocks fell heavily on Wednesday, with the Standard & destitute’s 500 falling 2.5% to seize the index below 1900 points for the first time since September, and due to growing concerns about the falling oil price,which dipped below $30 a barrel for the first time in nearly 12 years.
The S&P 500, which closed at 1890 points, and suffered its worst day since September and has fallen by 10% since its November peak taking it into “correction” territory,something that has not happened since August 2014. Related: Oil and US share prices tumble over fears for global economy Our European opening calls: $FTSE 5887 down 74 $DAX 9845 down 116 $CAC 4333 down 59 $IBEX 8805 down 130 $MIB 19899 down 241Continue reading...
Source: theguardian.com