Aberdeen Asset Management denies sourcing potential buyer
Caledonia Investments to buy Gala Bingo for £241 million
Chinese rate cut leads to minor rally in Asian shares
Friday’s Chinese rate cut led to short-lived rally in Asian shares on Monday.
In early trade the Shanghai Composite rose nearly 1 percent, with Hong Kong’s Hang Seng index rising 0.8 percent and stocks came close to wiping out their losses since China’s currency devaluation in August. Japan’s Nikkei 225 managed to stay up throughout the day and closed up 0.65 percent, however, the tides turned during the afternoon with the Shanghai Composite closing up just 0.5% and Hang Seng index down 0.34% at 23,073.42. In a surprise move on Friday, Beijing cut its one-year benchmark interest rate to 4.35% in order to loosen monetary policy and encourage China to hit a target growth rate of 7 percent; last week China said its economy grew at an annual pace of 6.9%. Investors are awaiting news from the Chinese Communist party’s central committee meeting, which starts today, and will decide on a new five-year plan for China’s economy.FTSE up on the back of Chinese rate cut
European shares rose today after China announced that it will cut its benchmark interest rate to 4.35 percent, a hint that Beijing may be expecting a further slowdown in their economy.
The Chinese central bank also cut the ratio of Chinese currency that it expects its banks to hold. Last year China’s growth fell to 7.4 percent, and the government have since put measures into place to ensure growth does not fall below 7 percent this year.
European shares reacted well to the news as investors saw the chance to gain cheaper credit in China. The FTSE rose 1.3 percent this afternoon before cooling down to a steady 1.1 percent (1617GMT), with the German DAX up 3.08 percent. Brent crude also rose 0.8 percent to $48.46 per barrel. The changes will come into effect on Saturday.Google parent company Alphabet sees 50 percent profit increase
Google’s parent company Alphabet has reported a profit rise of nearly 50 percent, in its first full set of results since its creation.
Net income rose $2.74 billion to $3.98 billion on the year, with growth largely attributed to mobile searches and YouTube users.
Google created Alphabet in August, in a bid to simplify the structure of its diverse businesses, which include the secretive Google X. The company also announced plans for a large share buyback, causing shares to shoot up 11 percent in after hours trading. The results show Google’s continued strong performance in a difficult market, where advertising on sites is becoming increasing blocked and strong competition is faced from the likes of Facebook and Twitter. Sundar Pichai, chief executive of Google Inc, commented: “Search traffic on mobile phones have now surpassed desktop traffic worldwide. However, our value proposition to markets of all sizes is simple. Google can help you show the right ads to the right people at the right moment.” Alphabet Inc (NASDAQ:GOOGL) is currently trading up 1.39 percent, at 681.14 pence per share.ECB head Mario Draghi says stimulus programme will be re-examined
The European Central Bank has announced that it will will “re-examine” its quantitative easing programme at its December meeting, and left the key interest rate at 0.05 percent.
Europe has suffered a string of weak economic data of late, with consumer prices falling by 0.1 percent in September, leading to speculation that the bank’s stimulus programme has been ineffective. It has recently embarked on a scheme of bond purchases at €60bn per month designed to bring eurozone inflation back up.
ECB head Mario Draghi said at a conference in Malta today: “The asset-purchase plans are proceeding smoothly and continue to have a favourable impact. However, the degree of monetary policy accommodation will need to be re-examined at our December meeting.” He also commented that falling commodity prices and emerging market concerns are weighing on the Eurozone’s economic prospects. The FTSE 100 suffered some volatility immediately after Draghi’s speech, but has now settled up 0.51 percent (1635GMT).UK retail sales up in September
UK retail sales grew by 6.9 percent from the same month last year according to the Office for National Statistics, their strongest monthly growth for nearly two years.
A 2.3 percent growth in food and drink sales linked to the Rugby World Cup boosted the figures, which also included back-to-school buying from the August bank holiday.
Sales volumes grew 1.9 percent on the month, higher than economists predicted. According to the ONS, retail sales are likely to boost Q3 GDP by 0.1 percent.
The figures were also helped by falling prices, with inflation for retail prices down by 3.6 percent on the year, one of the biggest falls since 1988.
eBay sees profits fall after Paypal split
Online retail platform eBay (NASDAQ:EBAY) saw profits fall slightly in the third quarter, in the first full set of results released since it’s split from subsidiary Paypal.
The company saw revenue fall by 2.4% to $2.1 billion, down from $2.15 billion last year. Net income fell to $539m from $673m a year earlier. However, the figures beat analysts’ expectations and sent shares surging up around 9% in after-hours trading. eBay split from its faster-growing PayPal business in July; since then, Paypal has replaced it on the S&P 500. eBay said in a statement that they are seeing a negative impact from changes in Google’s search practices. eBay’s president and chief executive, Devin Wenig, told analysts that the company still has a “lot of work to do,” but said that its third quarter results “are a step in the right direction.”Chinese leader poised to fund British nuclear power
China’s President Xi Jinping is expected agree to contribute to Britain’s first nuclear power plant in a generation later, when he meets with David Cameron on the second day of his UK state visit.
China is likely to cover around 30 percent of the cost of the building of a nuclear power plant at Hinkley Point in Somerset, due to open in 2025. The plant will be built by French energy firm EDF, in conjunction with a consortium led by Chinese state-owned nuclear company CGN.

Miranda Wadham on 21/10/2015
