Unexpected growth for Eurozone business activity
The Eurozone’s business activity picked up much faster than predicted, with its fastest pace since mid-2011.
This was unexpected following growth in France’s private sector hitting its lowest level in three months. Chris Williamson, Markits’ chief economist said;
“We think the key reason for the slowing in services growth is due to the attacks. Clearly there’s been a cut in footfall and any sort of feel-good factor amongst consumers in the wake of the horrific events. But history does tell us that these events tend to have a very short-lived impact.”
France’s slow growth was offset by an accelerated growth within Germany’s private sector, setting back worries over the emissions scandal at Volkswagen (VOWG_p.DE).
Bert Colijn at ING, commented on the Eurozone’s growth;
“This upbeat survey about the European economy fell short on one important aspect though: inflation. The survey indicated that despite the strongest output growth and job creation since early 2011, there was still no sign of inflationary pressures.”
Oil prices tumble following strong dollar and oversupply
Oil prices fell on Monday morning following a rise in the US dollar and faltering demand from China.
Analyst at Phillip Futures, Daniel Ang, has said;
“Oil prices and the USD strength have an inverse relationship and if the USD does strengthen more, oil prices should be taking a hit,”
According to data from the U.S. Commodity Futures Trading Commission, big hedge funds have increased their bets that oil will continue to fall.
Since OPEC decided to maintain its production levels, oil prices have halved over the past year
Concerns of oil price have increased since the international sanctions against Tehran are to be lifted in the coming months, with analysts expecting Iran to increase production by up to 500,000 barrels a day.
At 0918 GMT, U.S. West Texas Intermediate (WTI) crude futures fell to $40.64 a barrel from $41.90. Benchmark January Brent futures are down 90 cents at $43.76 a barrel.
Justin Trudeau: Plans and hopes for Canada
A few months ago, the success of Justin Trudeau in the Canadian elections seemed an unlikely future. Criticized for his age, lack of experience and slightly more left-wing approach to politics, he was an unlikely contender.
The Liberals, who won a decisive majority government with 184 seats, started the campaign with a mere 36 seats in the House of Commons and defied all odds to defeat the Conservatives.
So what changes does he hope to introduce to Canada?
Refugee Crisis
Trudeau recently announced promises to resettle 25,000 refugees in Canada before January 1st. Following the Paris attacks, Trudeau has stood by these plans, despite a wane in support from Canadian public.
Trudeau’s new policy differed from the previous Conservative government, which planned on admitting 10,000 refugees over the next three years.
For those with concerns of security, Canadian Prime minister stated;
“It didn’t take the tragedy in Paris for us to suddenly realize that security’s important. We’ve known for a long time, and we continue to be very much committed to keeping Canadians safe while we do the right thing to engage responsibly on this humanitarian crisis.”
How does Trudeau’s stance on the refugee crisis differ from the UK’s government? David Cameron bucked to pressure in early September, announcing an expanded resettlement programme for Britain, hoping to accept 20,000 Syrian refugees over the next five years. He has since however stated that he wants to put more effort into returning migrants to their country of origin.
Climate Change
Trudeau’s predecessor was a well known sceptic but Time Magazine believes that Canada’s new prime minister is ‘good news’ for the fight against climate change.
In a speech given earlier this year, Trudeau said;
“In 2015, pretending that we have to choose between the economy and the environment is as harmful as it is wrong,”
With plans to introduce a carbon pricing scheme to reduce emissions and attending conferences in Paris later this month, Trudeau is hoping to show support and create higher profile for talks around climate change.
Following recent polls, it is clear Canadians believe Trudeau to be the best person for the job. The question now is, for how long will this political honeymoon last?
Safiya Bashir on 23/11/2015
HSBC’s biggest shareholder shows support for bank’s UK exit
Some of HSBC’s biggest shareholders have announced that they would support the bank’s decision to move its headquarters abroad, should it decide to take the plunge.
One of their biggest shareholders, Standard Life Investments, said that HSBC (LON:HSBA) was put at a “competitive disadvantage” by “ever-increasing capital requirements” in London. Standard Life Investments head of equities David Cummings told Radio 4’s Today programme that “logically, we would be supportive of a move if they chose to do that”, stating that a UK exit could amount to “better growth, earnings and dividend prospects unless the regulator changes tack”. The decision to move away from London will be made by the end of the year, as HSBC struggles to contend with “regulatory and structural reforms” introduced since the financial crisis. Some speculate that the bank will choose to move to Hong Kong – HSBC makes around 80 percent of its profit in Asia, where is has major operations.23/11/2015
Shares in Playtech fall over 10 percent on failed takeover
Online gambling company Playtech (LON:PTEC) saw shares fall over 10 percent this morning following an update from the Financial Conduct Authority on its proposed takeover of Plus500 (LON:PLUS).
Over the weekend the Board of Playtech reevaluated steps that were being taken to satisfy the FCA’s concerns about the tatekover and stated that they were unlikely to obtain the FCA’s approval by the deadline of 31 December. Playtech are now withdrawing its change of control application to the FCA.
Playtech, a company who supply software to the heavily growing online gambling sector, had aimed to acquire Plus500 to grow its financials division. However, they stated that they were “continuing to enjoy double-digit underlying growth with a strong pipeline of opportunities” and had “confidence in maintaining momentum.”
Playtech is currently trading down 10.80 percent at 759.50 pence per share, somewhere in the middle of its 52 week range of between 616.14 and 936 pence per share. (0850GMT)
Pfizer Inc to acquire Allergan in this year’s biggest merger – Reuters
Pharmaceutical giant Pfizer Inc (NYSE:PFE) secured board approval over the weekend for the acquisition of rival company Allergan Plc (NYSE:AGN) in a deal that will create the world’s biggest drug company, Reuters reported this morning.
Its sources stated that the merger will be worth more than $150 billion – the largest deal this year, including that of SABMiller – and would involve Pfizer paying with 11.3 of its shares for each Allergan share. The companies’ boards of directors reportedly approved the deal Sunday, but Reuters’ sources have said that final details will be released later today.
A major bonus of the merger is that Pfizer will be able to redomicile to Ireland, where Allergan is based, and slash its corporate tax rate from the 35 percent it pays in the US to the Irish rate of just 12.5 percent.
The deal would put the merged group well above the competition, with combined annual sales of $60 billion. Pfizer and Allergan declined to comment.
Pfizer is currently trading down 0.34 percent, with Allergan up 3.57 percent on the news. (0837GMT)
2016: Is there hope on the horizon for non-energy commodities?
According to Daniel Yergin, IHS Vice Chairman, non-energy commodity prices have dropped 48% since July 2014. The end of the BRICs era has been one of the key factors behind the drop, but is there hope on the horizon for non-energy commodities in 2016?
Gold’s fall from grace has been making the headlines all year, but it is not the only metal to have suffered over the course of 2015. Silver has followed a similar downward trend, as have platinum and copper. Palladium has fared a little better than its fellow metals when viewed over the last ten years, but again in the last year its value has dropped off considerably.
“It’s been a bad year for precious metals and base metals alike,” comments Nikolas Xenofontos, Director of Risk Management of leading online trading services provider easy-forex, “And I’m far from convinced that prices have bottomed out yet. I think early 2016 will bring further declines, but there may be hope of a rally during the second half of the year, particularly if the global economy picks up again.”
Over the course of 2015, the projected global economic growth rate has been steadily cut by the International Monetary Fund (IMF). While the world economy grew by 3.4% during 2014, the IMF projected growth would slow to 3.3% in 2015. Then in October 2015 it lowered the projection to just 3.1%, with the slowdown of China’s economy and the shrinking of the Russian and Brazilian economies noted as having a major impact on the projection.
Grains have suffered just as much as metals over the course of 2015, with wheat, corn, soybeans and oats all experiencing significant drops in value. Rice showed some signs of recovering in the four months from June, but prices have since dropped off sharply.
Livestock, lumber, coffee and almost all other non-energy commodities have followed the same pattern, with only sugar and cocoa breaking the mould over the past 12 months. Sugar’s fortunes have been mixed, while cocoa has shown an impressive increase, to US$3,413.84 per tonne as at 17/11/15, up from US$2,871.10 per tonne a year earlier. Over the past two years, cocoa prices have risen by more than 40%, driven by an increase in demand that supply cannot match.
“Cocoa is an interesting one to watch during 2016,” confirms easy-forex’s Nikolas Xenofontos. “With growth restricted to within 20 degrees of the equator, it’s not a crop that can see production scaled up as easily as something like corn can. Global demand is increasing and, despite a good harvest this year, supply is lagging behind that demand. It’s a situation that looks set to continue into 2016. If you’re only going to invest in one commodity next year, cocoa might be the one for you!”
But with the IMF projecting an improved pace of global economic growth during 2016, at 3.8%, might there be light at the end of the tunnel so far as other non-energy commodities are concerned?
It’s certainly not out of the question, explains Xenofontos,“If the world economy rallies then we could see commodity prices begin to pick up once more, perhaps towards the tail end of 2016. I think it would be overly optimistic to think of them reaching their former heights – the end of the BRICs has led to the end of the commodities super-cycle era – but it’s not out of the question that prices might begin to recover as the world economy gets back into shape. There’s definitely at least a glimmer of hope on the horizon!”
For further details visit www.easy-forex.com, email pr@easy-forex.com or call +44 203 1500 748.
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20/11/2015
Innovative livestock trading platform seeks equity investors on Seedrs
Sell My Livestock, the first online website for livestock trading, is crowdfunding for investment on Seedrs. Launched just over a year ago, this niche business has grown rapidly and is increasingly disrupting the traditional methods of livestock sale, bringing trade into the 21st century.
Sell My Livestock was thought up by Dan Luff, a fourth generation Hampshire-based cattle farmer. He realised there had to be a better – and more modern – way to trade livestock than ringing around to see which farmers could offer the best price. Since then, Luff and friend James McInnes have created SellMyLivestock, a fully functioning trading website with over 2,000 registered users who enjoy the ease of use, zero commission charges and a dramatically reduced risk of disease.
The benefits are obvious. For sellers, there is the ability to trade for free, reach a nationwide audience and decreased transport costs, as there is no need to transport animals to market. Essentially, the website cuts out the inconvenient middle man.
For buyers, there is increased transparency with much more comprehensive access to an animal’s complete genetic history via SML’s application which combines real-time industry and government data, and access to stock from all around the UK.
The business has been supported this far through private investment and grant funding, but plans for growth include the launch of a monetisable automated invoicing and payment system. SellMyLivestock is now looking for an investment £150,000 in return for 15% equity in order to make this possible.
For more information on how to get involved with this opportunity, visit their campaign page on Seedrs.
Water purification company HaloSource drops 30 percent on trading update
Shares in water purification company HaloSource (LON:HALO) have dropped over 30 percent this morning after a trading update stated ‘operational challenges’ have prevented fulfilment of customer orders.
In a statement the company said, “we anticipate that Drinking Water revenues will be impacted negatively during the second half of 2015. However, the Company is confident that these production delays will in no way impact the marketplace demand for its class-leading HaloPure(R) disinfection technology for 2016 and beyond.”
HaloSource create water purification techniques that serve people and preserve the planet, and works with scientists and industry experts across the globe in search of new ways to improve water quality.
HaloSource has a 52 week range between 11.65 and 24.80, and is currently trading down 33.7 percent at 12.76 pence per share. (0937GMT)
HBOS report blames top executives
A report into the collapse of mortgage lender HBOS in 2008 has called for up to ten of its executives to be barred.
The long-awaited report by the Bank of England’s Prudential Regulation Authority and the Financial Conduct Authority was finally published yesterday, and blamed its top three executives at management level for the bank’s demise. The three, chairman Lord Stevenson and chief executives James Crosby and Andy Hornby, were also blamed at the time by a group of MPs.
A separate report conducted by independent QC Andrew Green, also published on Thursday, criticized the FSA for its failure to properly hold individuals to account for the crisis and urged other regulatory bodies to review the FSA’s decision not to act against key executives.
The merger between Halifax Building Society and The Bank of Scotland was valued at £30bn, but collapsed just seven years later wiping out its entire value. The taxpayer then injected £20.5 billion into the bank to avert a crisis. Andrew Bailey, the deputy governor of the Bank of England, promised rapid progress into the investigation of HBOS’ executives: “It’s not the intention to have a lengthy investigation. We will do this piece of work as soon as possible,” he said.20/11/2015