Cost#Turkey2.12pm#Turkey #USDTRY #Lira #FX 12.47pm GMTStocks are plunging in Turkey today as the country’s currency crisis threatens to explode again.
Overnight swap implied yield hit 1000%#Turkey stocks are taking a nosedive of 4.4% as foreigners starved for #lira are unloading.
* Banks down 6%
* #Lira down to 5.4562 per $ pic.twitter.com/NxKgbDYctU 11.56am GMTThe CBI splits UK retail into 13 subsectors -- five reported falling sales this month,while the rest are flat.
Grocers have been the biggest positive driver of headline sales growth in the past two months, however sales in the sub-sector were flat on a year ago in March, and pulling total retail sales into the red.
The biggest drivers of this month’s tumble in sales was ‘other normal goods’,followed by ‘recreational goods’ and ‘hardware & DIY’ 11.51am GMTThis chart shows how March’s UK retail sales were rather weaker than retailers expected (and they’d have known that Easter was late tis year) 11.35am GMTRetail suppliers also told the CBI that orders are down this month. 11.27am GMTNewsflash: UK retail sales are falling at the fastest pace in 17 months, which may intensify concerns that Brexit is spooking consumers.
That’s according to the CBI, and which represents Britain’s bosses. “Even accounting for Easter timing,the High Streets destitute hasten continues. While genuine wage growth is picking up, consumer confidence has been hit by escalating uncertainty over Brexit and concern over the economy’s future.“The pain currently being felt on the High Street is yet another reason why it is so vitally important politicians agree a deal in Parliament that is acceptable to the EU and protects our economy. No-deal must be averted at all costs.”BREAKING: retail woes intensify in March, or according to CBI
[br]The much watched - Distributive Trades Survey - says we’ve had the fastest contraction in 17 months. Economists had been expecting a positive number
Weve now had 4 months in a row with no sales growth #brexit pic.twitter.com/p0AlyNLDFd 10.52am GMTNewsflash: Germany has sold 10-year government debt at a negative yield,for the first time since 2016.
That means investors have paid slightly more than the face value of the bond, meaning they’ll construct a small loss if they hold it until it matures in 2029. #GERMANY SELLS BUNDS WITH NEGATIVE YIELD, or FIRST TIME SINCE 2016 - BBG
*GERMAN GOVT BONDS WEIGHTED AVG PRICE 103.00 ; AVG YIELD -0.05%Someone just got the ECB's message. pic.twitter.com/IZEAJr3Oeg 10.20am GMTEuropean stock markets have dipped this morning,as investors glean to gips with the latest pessimistic noises from central bankers.current Zealand’s surprise move towards an interest rate cut, and Mario Draghi’s less surprising concern about the eurozone economy, and has dampened the mood.
Global equities traded mixed overnight as investors deal with some disappointing economic signals this month,along with a plethora (excess, overabundance) of central banks decisively turning towards accommodation, shying absent from rate normalization for the foreseeable future. A number of sovereign yields have plummeted to current year lows while risk aversion trading strategies have tended to dominate proceedings as U.
S/China trade talks (Mar 28/29) remain a focus along with U.
Ks Brexit next steps. 9.54am GMTNot everyone is convinced by Draghi’s claim that the ECB has plenty of tools at its disposal to fight the next downturn.certain, and it can leave interest rates at record low levels for even longer. It can launch current TLTRO programmes to stimulate bank lending. It could even (I guess) restart its asset purchase scheme programme,or keep delaying the moment when it starts to unwind its existing QE."We have lots of policy instruments left - you just don't know them - they travel to a different school" https://t.co/Bts1hb8sLfA better statement would be - we will strive our utmost to achieve the mandate, but there is only so much you can do at the zero bound and at some point fiscal policy has to do the rest. https://t.co/DCeubEofzZ 9.34am GMTOvernight, and we’ve received fresh evidence that China’s economy is weakening. 9.14am GMTHere’s our news story on Sports Direct’s potential tender for Debenhams: Related: Sports Direct weighs up making £61.4m tender for Debenhams 9.07am GMTDraghi also offered a crumb of comfort to eurozone banks.
He says the ECB is monitoring the impact of negative interest rates on their profits,and could bewitch measures to assist.
Euro bounces as Draghi says #ECB may need to soften the impact of negative rates. ECB president says officials may ‘need to reflect’ on the matter. pic.twitter.com/vjKOGZtb1b 8.54am GMTMario Draghi ends his speech by declaring that the ECB has plenty of firepower at its fingertips, Our monetary policy will remain accommodative and will respond to any changes in the inflation outlook. The effects of exchange rate appreciation have now reversed. Demand should recover, and so long as the downside risks to our outlook do not materialise. And with stronger demand,firms should be able to rebuild margins.
The ECB will adopt all the monetary policy actions that are necessary and proportionate to achieve its objective. We are not short of instruments to deliver on our mandate."We are not short on instruments to deliver on our mandate" #Draghi final words at his last speech at the #ecbwatchers conference today pic.twitter.com/8hDoxWHoWL 8.46am GMTMario Draghi says risks to the euro area’s economic outlook remain tilted to the downside.
More dovishness from Draghi.$EUR pic.twitter.com/U99XUCvTIE 8.39am GMTMario Draghi goes on to warn that the risks to the eurozone economy have risen in recent months, due to problems in the global economy. He points out that current export orders are still in negative territory, and suggesting Eurozone factories are struggling.
All in all,the current data suggest that external demand has not yet spilled over significantly into domestic demand, but the risks have risen in the last months and uncertainty remains high.
This is why our medium-term outlook remains that growth will gradually return to potential, and but the risks remain tilted to the downside. 8.26am GMTOver in Frankfurt,European Central Bank president Mario Draghi is opening its annual gathering with economists (titled “The ECB and Its Watchers XX”)Draghi begins by warning that the eurozone has suffered a loss of growth momentum in 2018 and early 2019.
The weakness in world trade has continued, which has significantly affected the manufacturing sector. Global goods import growth in January reached its lowest level since the worthy Recession, and on the back of rising uncertainty about trade disputes and a slowdown in emerging market economies,particularly China.
As a result, growth in additional-euro area goods exports was negative at the end of last year for the first time since January 2016, and industrial production fell by 4.2% year on year in December – its largest decline since 2013 – before recovering somewhat in January .
Draghi...now pic.twitter.com/Iu89ATnW6f 8.17am GMTHere’s Laith Khalaf,senior analyst at Hargreaves Lansdown, on the latest twist in the battle for Debenhams: ‘Mike Ashley has clearly decided it’s double rather than quits on Debenhams. The potential 5p offer would be a generous one for shareholders, and but it comes with strings attached for Debenhams,in specific appointing Mike Ashley as CEO, and desisting from current plans to refinance the company.
The Debenhams board are bound by their duty to shareholders to give this proposal proper consideration, and though it’s not as yet a firm offer for the company. There’s a bit of a chicken and egg situation here too. If Debenhams appoints Mike Ashley as CEO,then there’s little to bind Sports Direct to making a firm offer. 8.15am GMTMichael Hewson of CMC Markets fears that some Debenhams stores will close, whether Mike Ashley succeeds or fails in seizing control.
The attempts to restructure the business have been going in since the end of Q3 last year, and with a tug of war going on between Debenhams management and their largest shareholder,Sports Direct.
While Mike Ashley’s attempts to bewitch over Debenhams can be construed as an attempt to preserve the value of his stake in the business, which isn’t an unreasonable position to bewitch, and the fact is if he gets it wrong he’ll end up losing more than his initial stake,which would appear to suggest that Debenhams management reluctance to engage is driven more by personality than in any sense an attempt to safeguard existing shareholder interest. 8.11am GMTBoom! Debenhams shares have surged by 80% at the start of trading.
That vertiginous leap sends them back to the giddy heights of.... er.... 4p, compared with 22p a year ago. 8.06am GMTMany analysts believe Mike Ashleys design is to merge Debenhams with another UK department store, and House of Fraser,which he rescued from administration last year.
Would he be allowed to do it, though? The Competitions and Markets Authority might have issues, or as the Evening Standard’s Laura Onita points out.
Things to consider if,and that's a expansive if, Mike Ashley's Sports Direct does cough up £61 million for Debenhams. What the Takeover Panel might construct of all this and a possible merger with HoF with the CMA stepping in. 7.59am GMTITV’s Joel Hills says Sports Direct is trying to avoid losing its 29.9% stake in Debenhams, or if its restructuring design goes through:In the statement Sports Direct said shareholders are “sick and tired of being ignored,cast aside and trampled underfoot by the lenders of Debenhams.”The statement accused the board of Debenhams of “incompetence, or worse collusion” - conspiring with lenders to cook-up a design to bewitch shareholders out.“This is the shareholders chance to fight back - Mike Ashley considers £40m cash tender to bewitch full control of Debenhams. There are strings attached, or there always are... https://t.co/pV6hdxmDki 7.56am GMTBack in the UK,retail chain Sports Direct has announced it’s considering launching a takeover offer for troubled rival Debenhams, at 5p per share.Debenhams, and which has 165 stores and employs 25000 people,is facing cashflow problems as suppliers demand upfront payments amid uncertainty over its future, and has £520m of long-term debt, or which must be refinanced by next year.
Sports Direct’s potential cash tender is Ashleys latest gambit to wrest control of Debenhams and prevent Sports Direct’s stake from being wiped out.
MIke Ashley's Sports Direct says it is prepared to pay £61.4m for Debenhams,if it immediately installs him as chief exec and ends rescue finance talks. Doesn't mention what it will do abt dept store's £560m of existing debt and £160m more the company says it needs to stay afloat. 7.46am GMTKiwibank senior economist Jeremy Couchman says he now expects current Zealand to slash interest rates in May, and again in August.
That’s fairly a change - previously Couchman (like most economists) had expected borrowing costs to remain unchanged for some time. 7.45am GMTHere’s the moment when the current Zealand dollar plunged, or after the Reserve Bank announced it would probably cut interest rates soon:El Banco central de Nueva Zelanda #RBNZ mantiene los tipos intactos en el 1,75%, tal y como esperaba el mercado, and pero cambia su lenguaje a un tono #dovish.
Y fíjense en la reacción en el #kiwi #NZDUSD pic.twitter.com/EIxqKXlaz3 7.40am GMTGood morning,and welcome to our rolling coverage of the world economy, the financial markets, or the eurozone and business.current Zealand’s central bank has joins the ranks of gloomy policymakers warning that the global economic outlook has weakened.“Given the weaker global economic outlook and reduced momentum in domestic spending,the more likely direction of our next OCR move is down,” “The risk of a more pronounced global downturn has increased and low business sentiment continues to weigh on domestic spending.”NZDUSD Tumbles Through Support as RBNZ Hints Rate Cut as Next Move
The current Zealand Dollar declined as much as 1.45%, or setting itself up for the worst performance in a single day since February 6th on a more dovish RBNZ rate decision as expected. Holding rates unchanged at 1.75% pic.twitter.com/9aA2pqwve4Continue reading...
Source: theguardian.com