Economy news

• Salesforce.com CEO speaks of failed efforts to buy Twitter, LinkedIn

  26-10-2016 23:11
  Salesforce.com Inc Chief Executive Marc Benioff spoke on Wednesday about a pair of key acquisitions that got away, suggesting his vision for LinkedIn was different from Microsoft's and that he would have pursued Twitter if shareholders had not learnt of his plans Speaking at a technology conference hosted by the Wall Street Journal in Laguna Beach, Calif., Benioff declined to elaborate on what he had hoped to do with micro-blogging site Twitter Inc. Twitter hired bankers earlier in October to ex
  
  Read more

• Glut punch: Global imbalances, a pre-crisis scourge, are back

  26-10-2016 22:16
  
  Main image: 
  BRAD SETSER, an economist at the Council on Foreign Relations, is the author of a new discussion paper looking at "the return of the East Asian savings glut". A summary of his paper begins in arresting fashion:The combined savings of China, Japan, Korea, Taiwan, and the two city-states of Hong Kong and Singapore is about 40 percent of their collective GDP, a thirty-five-year high.Prior to the financial crisis, many economists fretted about the problem of global imbalances.
  
  Read more

• Verizon exec says company needs more information about Yahoo hack

  26-10-2016 20:00
  A Verizon Communications Inc executive said the acquisition of Yahoo Inc still makes sense, but the telecommunications company needs more information about the email provider's massive breach of accounts. Speaking at a tech conference hosted by the Wall Street Journal in Laguna Beach, California, Marni Walden, an executive vice president at Verizon, said on Wednesday Yahoo is investigating the 2014 data breach and that she hopes to resolve any questions related to the incident in 60 days. &ldquo
  
  Read more

• Weak growth potential threatens euro zone jobs - ECB's Praet

  26-10-2016 19:30
  FRANKFURT (Reuters) - Weak potential growth across the euro zone threatens jobs, investment and confidence, European Central Bank chief economist Peter Praet said on Wednesday, calling on states to tackle long standing structural deficiencies to revive their economies. "Low potential growth casts a shadow over the long-run economic prospects for the euro area, creating a negative feedback loop," Praet told a business forum in Brussels. ...
  
  Read more

• Advertisement

• APE chief does not expect EU ruling on Areva rescue before summer 2017

  26-10-2016 19:29
  The head of French state holding agency APE said on Wednesday he does not expect European Union competition authorities will rule on a proposed rescue plan for Areva before the summer of next year. Under the terms of a state rescue package struck in January, the French government would take part in a 5 billion-euro (£4.47 billion) capital increase for 87 percent state-owned Areva, under which 85 percent state-owned EDF would also buy a majority stake in Areva's reactor unit Areva NP. Areva
  
  Read more

• Boeing has a banner 3Q and sees more of the same ahead

  26-10-2016 19:26
  Boeing's third-quarter profit rose 34 percent on lower taxes, and the company raised its forecast for 2016 earnings, revenue and airplane deliveries. The results beat Wall Street expectations, and Boeing ...
  
  Read more

• S Africa’s Gordhan slashes growth forecast

  26-10-2016 19:08 via ft.com
  Finance minister plans to lift tax take in battle to prevent downgrade to junk status
  
  Read more

• Italy demands another reprieve, and rightly so

  26-10-2016 18:41 via ft.com
  Matteo Renzi is correct to allow the projected deficit to rise
  
  Read more

• Advertisement

• Dental politics: What is the best way to check the age of child refugees?

  26-10-2016 18:40
  
  Print sectionUK Only Article: standard articleFly Title: Dental politics Main image: 20161029_brp005.jpgTHE “Jungle” camp in Calais—squalid, ramshackle and lawless—was no place for children. In May the British government agreed, rather reluctantly, to take an unspecified number of minors from the camp to live in Britain. This week, as the Jungle was demolished, a few hundred started to arrive under the scheme. But some British tabloids, not know
  
  Read more

• Child refugees: Gnashing of teeth

  26-10-2016 18:40
  
  Print sectionPrint Rubric: A very British tabloid fuss highlights a very European problem Print Headline: Gnashing of teeth Print Fly Title: Child refugeesUK Only Article: UK article only Issue: Liberty moves north Fly Title: Child refugees Main image: Minor on the moveMinor on the moveTHE “Jungle” camp in Calais—squalid, ramshackle and lawless—was no place for children. In May the British government agreed, r
  
  Read more

• Switzerland enjoys negative interest rates windfall

  26-10-2016 18:24 via ft.com
  Taxpayers settle bills early and bond investors pay to lend money to government
  
  Read more

• FTSE hits three-week low; commodities weigh

  26-10-2016 18:21
  By Atul Prakash and Alistair Smout LONDON (Reuters) - Britain's top share index hit a three-week low on Wednesday, with hotel operator Whitbread falling on a raft of negative broker comments and Antofagasta dragging down miners after a disappointing earnings update. The blue-chip FTSE 100 index closed 0.9 percent lower after falling to its lowest level since Oct. 3 earlier in the day. Whitbread fell 4.6 percent, the top faller in the FTSE 100 index, after Deutsche Bank, Kepler Cheuvreux, Credit
  
  Read more

• Deutsche Bank to review valuations of inflation swaps - Bloomberg

  26-10-2016 18:15
  (Reuters) - Deutsche Bank AG is reviewing whether it misstated the value of derivatives in its interest-rate trading business, and is sharing its findings with the U.S. authorities, Bloomberg reported, citing people familiar with the matter. The lender is looking at valuations on a type of derivative known as zero-coupon inflation swaps, Bloomberg reported on Wednesday. Zero-coupon inflation swaps are derivatives whose pay-off depends on the rate of inflation in a given period.
  
  Read more

• Ladbrokes and Coral merger receives green light from the CMA

  26-10-2016 17:33
  
  The Competition and Markets Authority (CMA) has given the green light to the proposed merger between Ladbrokes and Gala Coral. In a statement released on Wednesday afternoon (26 October), FTSE 250-listed Ladbrokes said the £2.7bn (€3bn) merger would be completed "in the very near future", after the competition regulator gave its final approval. Ladbrokes disposal of 322 shops to Betfred, 37 to Stan James and one to Bet21 received the green light by the regulator, meaning the final hur
  
  Read more

• FTSE Moves: Blue chip shares plunge as banks and miners lose ground

  26-10-2016 17:12
  
  Top flight shares plunged into the red in afternoon trading weighed by banks and miners. The FTSE 100 Index tumbled 93.5 points to 6924.1, after Lloyds Banking Group suffered further writedowns and Antofagasta posted disappointing production forecasts. The FTSE 250 Index fell 189.3 points to 17612.5.
  
  Read more

• EU states agree caps on wholesale roaming charges

  26-10-2016 17:09
  By Julia Fioretti BRUSSELS (Reuters) - EU states agreed a preliminary compromise on Wednesday on lowering the caps for how much mobile telecoms operators can charge each other to keep their customers connected while abroad, easing concerns that a flagship EU policy to end retail roaming fees could backfire. Anxious to revive support for the European Union amid a surge in nationalism of the kind that saw Britain vote to quit the bloc, the EU has trumpeted a scheme that will end the unpopular prac
  
  Read more

• GlaxoSmithKline sees profits soar on weakness of the pound

  26-10-2016 16:29
  
  GlaxoSmithKline (GSK) saw profits soar after the pharmaceutical giant was buoyed by the weakness of the pound following the UK's Brexit vote. Its third quarter pre-tax profit beat forecasts as it jumped 47% to £1.27bn compared to a year ago, as Glaxo – which sells in more than 150 markets – generates most of its sales in other currencies. Since the UK's vote to leave the European Union, on 23 June, the pound has fallen around 17% against the US dollar and around 20% against the
  
  Read more

• Markets no longer price in near-term rate cut from ECB

  26-10-2016 15:55
  By Dhara Ranasinghe LONDON (Reuters) - Investors no longer expect the European Central Bank to cut interest rates again this year, as data points to a pick-up in the economy and the central bank signals a reluctance to lower borrowing costs deeper into negative territory. The ECB, which last cut rates in March, is aware of the growing costs to the financial sector of its ultra-loose monetary policy and would rather not have to keep rates negative for too long, ECB chief Mario Draghi said this we
  
  Read more

• ECB all but certain to keep buying bonds beyond March, ease QE rules - central bank sources

  26-10-2016 15:52
  By Francesco Canepa and Frank Siebelt FRANKFURT (Reuters) - The European Central Bank is nearly certain to continue buying bonds beyond its March target and to relax its constraints on the purchases to ensure it finds enough paper to buy, central bank sources have told Reuters. ECB policymakers are due to decide in December on the future shape and duration of their 80 billion euros (£71.58 billion) monthly quantitative easing (QE) scheme, based on new growth and inflation forecasts. This w
  
  Read more

• No excuses for poor hedge fund performance - Lansdowne's Roden

  26-10-2016 15:47
  By Tova Cohen, Steven Scheer and Maiya Keidan TEL AVIV/LONDON, LONDON (Reuters) - Hedge funds should stop making excuses for poor performance, the chairman of Lansdowne Partners said on Wednesday against a backdrop of weak average returns that have prompted some to pull their money out. "When we as managers ... have a bad year, we need to be honest and tell clients we are making mistakes," Stuart Roden, who heads up one of London's oldest hedge fund firms, said at the Sohn Investment Conference
  
  Read more

• Aixtron says has not received any concrete questions from Berlin

  26-10-2016 15:30
  Aixtron said on Wednesday it had not received any concrete questions from the German Economy Ministry related to Berlin's plans for a more in-depth review of a planned Chinese takeover of the chip equipment maker. It also said in an e-mailed statement that it was not involved in the design, development, or production of its customers' semiconductor devices. It was responding to an earlier report that U.S. intelligence services warned Berlin that the 670 million euro (£599.51 million) takeo
  
  Read more

• FX Focus: Pound holds steady after recovering from two-week low against dollar

  26-10-2016 15:06
  
  The UK currency had touched its lowest level in two weeks on Tuesday, falling below $1.21 after the Chancellor Philip Hammond suggested the government remains open to the Bank of England (BoE) expanding its quantitative easing measures in future. The drop, however, was partly reversed after BoE Governor Mark Carney told the House of Lords that Britain's central bank would take the pound's weakness into consideration at next week's policy meeting and that it would not be overly eager to tolerate
  
  Read more

• Coke profit falls 28 percent, but beats expectations

  26-10-2016 14:34
  
  Coca-Cola's profit fell 28 percent in the third quarter, but its results still beat Wall Street expectations. Its shares rose before the stock market opened Wednesday. The world's largest beverage maker ...
  
  Read more

• Germany says review of Chinese bid for Aixtron to take months

  26-10-2016 14:29
  A German Economy Ministry review of a Chinese takeover bid for chip equipment maker Aixtron will likely take several months, a ministry spokeswoman said on Wednesday, declining to give details on why it withdrew clearance for the deal. Business-daily Handelsblatt reported on Wednesday that U.S. intelligence services had warned Berlin the Chinese takeover of Aixtron could give Beijing access to technology that could be used for military purposes.
  
  Read more

• Earnings rise fastest for the low-paid, says ONS

  26-10-2016 14:15
  
  Earnings have risen fastest among the lowest paid due to higher minimum wage levels, figures suggest.
  
  Read more

• New Heathrow runway may be built above the M25

  26-10-2016 13:49
  
  The transport secretary says Heathrow's new runway could be built above the existing M25.
  
  Read more

• U.S. warned Berlin on China-Aixtron deal - Handelsblatt

  26-10-2016 13:35
  FRANKFURT/BERLIN (Reuters) - U.S. intelligence services warned Berlin that a now on-hold Chinese takeover of German semiconductor equipment maker Aixtron could give Beijing access to technology that could be used for military purposes, business daily Handelsblatt said. The German economy ministry said on Monday it had withdrawn its approval for Fujian Grand Chip Investment Fund (FGC) to buy the Aachen-based firm for 670 million euros (£599.51 million), citing previously unknown security-re
  
  Read more

• Cashing in small pensions 'more popular'

  26-10-2016 13:33
  
  More retirees cash in their pension pots, but the amount they typically withdraw falls to about £10,000.
  
  Read more

• Oil price declines weigh on European markets

  26-10-2016 13:28
  Mixed results from the continent's banking sector and losses in the mining sector pushed the pan-European STOXX 600 index down 0.6 percent. The losses came after oil prices fell 1.18 percent on Wednesday as investors grew increasingly doubtful that OPEC members will agree to cut output and as U.S. inventories staged a surprisingly large increase. The market is starting to question whether the OPEC agreement reached a couple of weeks ago is really as solid as originally thought," Investec economi
  
  Read more

• Japan PM Abe adviser says government should consider more fiscal stimulus

  26-10-2016 13:27
  By Kaori Kaneko and Sumio Ito TOKYO (Reuters) - Japan should consider more government spending to maximise the impact of monetary policy, an adviser to Prime Minister Shinzo Abe said on Wednesday, indicating a shift in emphasis to fiscal from monetary policy. Koichi Hamada, long known as a "reflationist" keen to have the Bank of Japan flood the economy with cash to kindle price rises, singled out the role of fiscal stimulus after a recent policy shift by the central bank was taken to mean the BO
  
  Read more

• Apple, Lloyds profits fall, Man Booker prize

  26-10-2016 13:25 via ft.com
  Apple points to strength of App Store, iCloud and Apple Music
  
  Read more

• Britain's economy could face £84bn black hole post-Brexit

  26-10-2016 12:39
  
  Britain's economy could face a black hole of £84bn ($102.3bn) by the time the Chancellor sets out his spending plans in the Autumn Statement next month, a think tank has warned. According to a report from the Resolution Foundation, the deteriorating economic outlook, increased spending and lower tax receipts in the aftermath of Brexit could leave the government facing a shortfall until 2020-21. The think-tank warned the Treasury would face a £23bn deficit at the end of the parliament
  
  Read more

• Populists stick to tradition of central bank-bashing

  26-10-2016 12:31 via ft.com
  Claim to defend their followers’ interests rings hollow
  
  Read more

• Azerbaijan gas loans under threat after NGO demand

  26-10-2016 12:28 via ft.com
  Warning from anti-corruption watchdog highlights push for reform in autocratic country
  
  Read more

• Argentina’s debt bonanza raises risks

  26-10-2016 12:02 via ft.com
  Aggressive borrowing by government meant to secure financial cushion for reforms
  
  Read more

• Are Apple’s best days behind it?

  26-10-2016 11:19
  
  Apple is a fantastic brand that makes excellent products. But if it’s not careful, says John Stepek, it could turn into the Marks & Spencer of the tech world.
  The post Are Apple’s best days behind it? was first published on MoneyWeek.
  
  Read more

• Lloyds and Anto hit FTSE after results

  26-10-2016 11:12
  By Alistair Smout LONDON (Reuters) - The FTSE fell on Wednesday, hit by weakness in banks and mining stocks after Lloyds and Antofagasta respectively fell after disappointing earnings updates. Lloyds dropped 3.1 percent after reporting results. Although some analysts were encouraged by its underlying profits, which were roughly in line with its performance last year, additional provisions for mis-selling loan insurance (called PPI) and a deficit in its pension fund weighed on the stock.
  
  Read more

• Oilfield services groups stem large-scale job cuts

  26-10-2016 11:05 via ft.com
  Slowdown in employment losses is latest pointer that the worst is over for oil sector
  
  Read more

• UK mortgage approvals pick up from 19-month low - BBA

  26-10-2016 10:51
  British banks approved more mortgages last month after the number of approvals fell to a 19-month low in August, while consumer lending grew at its fastest rate in nearly a decade, industry figures showed on Wednesday. The British Bankers' Association said its members approved 38,252 mortgages for house purchase in September, down 15 percent on a year earlier but up from 37,241 in August, which was the lowest level since January 2015. "Mortgage approvals picked up slightly this month but the hou
  
  Read more

• Global shares hit by gloom on Wall Street, lower oil prices

  26-10-2016 10:42
  
  Share benchmarks in Europe and Asia saw broad declines Wednesday, tracking losses on Wall Street and weaker oil prices. KEEPING SCORE: The FTSE 100 of Britain dropped 0.9 percent to 6,951.30 and Germany's ...
  
  Read more

• German consumer morale falls heading into November - GfK institute

  26-10-2016 08:33
  By Joseph Nasr BERLIN (Reuters) - The mood among German consumers worsened heading into November to reach its lowest level since April this year, a survey showed on Wednesday, linking the fall to fears that weakness in the global economy could hurt German growth. The consumer sentiment indicator, published by the Nuremberg-based GfK institute and based on a survey of around 2,000 Germans, fell to 9.7, compared with an average forecast of a stable reading of 10.0 according to a Reuters poll. "Thi
  
  Read more

• Asia stocks slide on Wall Street losses, oil drops as glut worries return

  26-10-2016 08:22
  By Nichola Saminather SINGAPORE (Reuters) - Asian shares on Wednesday followed in the footsteps of Wall Street, which pulled back overnight on disappointing earnings, while the dollar strengthened and oil prices extended this week's losses. European markets were set for a similarly weak start, with financial spreadbetters expecting Britain's FTSE 100 and France's CAC 40 to open down about 0.4 percent, and Germany's DAX to begin the day 0.2 percent lower. MSCI's broadest index of Asia-Pacific sha
  
  Read more

• Apple eyes Christmas growth, American wins Man Booker prize and Central Asia’s shared dilemma

  26-10-2016 06:58 via ft.com
  Apple forecasts a return to revenue growth, after a 9 per cent decline in sales in the three months to September 24
  
  Read more

• BOJ set to hold fire, Kuroda may miss price goal during his tenure

  26-10-2016 06:27
  By Leika Kihara TOKYO (Reuters) - The Bank of Japan is likely to hold off on expanding stimulus next week despite an expected downgrade in its price forecast that may show Governor Haruhiko Kuroda won't see inflation hit his 2 percent target before his tenure ends in 2018. With policy on hold, the nine-member board may also debate some operational details of its new policy framework adopted last month, such as to what extent the central bank could slow its bond purchases if yields fall below tar
  
  Read more

• Asian shares hit by gloom on Wall Street, lower oil prices

  26-10-2016 06:25
  
  TOKYO (AP) — Shares fell broadly in Asia on Wednesday after a gloomy session on Wall Street, where shares of household names like appliance maker Whirlpool and athletic apparel maker Under Armour suffered their worst declines in years. Weaker oil prices also cast a pall.
  
  Read more

• Asia stocks slide on Wall Street losses, oil drops on inventory rise

  26-10-2016 05:17
  By Nichola Saminather SINGAPORE (Reuters) - Asian shares on Wednesday followed in the footsteps of Wall Street, which pulled back overnight on disappointing earnings, while the dollar inched down from a seven-month high and oil prices extended this week's losses. MSCI's broadest index of Asia-Pacific shares outside Japan slid 0.6 percent. Japan's Nikkei slipped 0.2 percent, while South Korea's KOSPI dropped 1.3 percent and Australia fell 1.6 percent. China's Shanghai Composite index pulled back
  
  Read more

• Asia stocks slide after Wall Street losses, oil drops on glut concerns

  26-10-2016 02:54
  By Nichola Saminather SINGAPORE (Reuters) - Asian shares tumbled in early trade on Wednesday, following in the footsteps of Wall Street, which pulled back on disappointing earnings, while the dollar inched down from a seven-month high and oil prices slid. MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.3 percent. Japan's Nikkei lost 0.2 percent, while South Korea's KOSPI dropped 0.8 percent and Australia fell 1.4 percent.
  
  Read more

• Peru central banker does not rule out rate cut next year

  26-10-2016 02:20
  By Teresa Cespedes and Mitra Taj LIMA (Reuters) - Peru's central bank does not rule out lowering the benchmark interest rate if government reforms fail to revive domestic demand next year and inflation is low, the bank's president told Reuters on Tuesday. Julio Velarde, a widely respected central banker recently appointed to a third five-year term by Peru's new president, Pedro Pablo Kuczynski, said pending government policies aimed at jumpstarting growth will not likely be felt until 2017.
  
  Read more

• Never done

  26-10-2016 01:18
  
  The World Economic Forum estimates that globally women work 39 more days a year than men when unpaid labour is factored in.
  
  Read more

• Bright hopes for India art start-up

  26-10-2016 01:17
  
  In India, one start-up called Kulture Shop is bringing together urban artists and turning their designs into home and lifestyle products.
  
  Read more

Follow @economyUKnws on Twitter!