China fears weigh on markets ahead of UK manufacturing data - business live

Discussion in 'Market News' started by Lily, Mar 9, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    All the day’s economic and financial news, as fears over China continue to dog the markets

    8.33am GMT

    Despite the recent market turbulence, Britain’s premier luxury chocolate maker has decided to float on the London exchange.

    Hotel Chocolat is hoping to raise £50m by entering the AIM Market.

    After yday's big news that chocolate makes you smarter... today Hotel Chocolat reveals it's going to float on Aim

    8.18am GMT

    Kit Juckes, top foreign exchange strategist at French bank Société Générale, has an interesting take on the state of the markets.

    He told clients this morning:

    I can’t help reflecting that we’re still living with the consequences of the twin bubbles - credit and commodities - that were unleashed by the Fed’s absurdly easy monetary policy in 2003.

    The credit bubble burst in 2008 and prompted even easier policy, as well as QE. That drove bond yields down and gave the commodity bubble a fresh lease of life, but when that too burst, we got commodity price deflation to go with the low yields and the result is they are even lower. Investors are left hunting for yield by buying emerging market or high-yield bonds as soon as there is any semblance of calm, but it’s no surprise that the over-riding mood is so fragile.

    8.13am GMT

    There’s thin gruel for investors in the Restaurant Group.

    Shares in the company have tumbled 15% at the start of trading, after it warned the City this morning that like-for-like sales are down by 1.5% so far this year.

    The more challenging trading conditions we saw at the end of last year have continued into the early part of 2016, reflecting a softening in consumer demand and weaker overall consumer confidence.

    Whilst still early in the year, our assessment is that this more challenging environment and recent trading patterns are likely to persist.

    8.00am GMT

    Germany’s push into renewable energy has driven its utility giant E.ON into a record loss.

    Germany is aiming to generate 80 per cent of its electricity from renewable sources, such as wind and solar, by 2050, up from around a quarter today.

    But government subsidies for renewables have led to an increase in power generation which has caused wholesale prices to tumble, eroding profitability at the utility companies’ coal and gas-fired power stations.

    7.43am GMT

    Worries over the Chinese economy have weighed on Asian stock markets overnight.

    Yesterday’s alarmingly weak trade data, which showed a 25% tumble in China’s exports in February, hit many shares on the Shanghai stock market.

    China stocks dropped more than 1% on Wednesday, snapping a six-session winning streak, as a tumble in commodity prices hit resource shares and prompted profit-taking amid signs of persistent lethargy in the economy.

    The blue-chip CSI300 index declined 1.2%, to 3,071.91, while the Shanghai Composite Index shed 1.3%, to 2,862.56 points, registering their first losses in seven sessions.

    7.26am GMT

    Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

    There’s a fragile feel in the air in the City today - along with a LOT of rain - after Tuesday’s barrage of gloomy news.

    The manufacturing sector has borne the brunt of the global economic slowdown over the past few months and once again the UK economy is in the cross hairs today with the latest ONS manufacturing and industrial production data for January.

    December was an extremely disappointing month with sharp declines in both as 2015 came to a disappointing end. The expectation is for a rebound in January with a 0.4% rise in industrial production, and a 0.2% rise in manufacturing production

    Continue reading...

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