Economy news

• Brent at 16-month high, Treasury yields climb further

  01-12-2016 23:10
  By Rodrigo Campos NEW YORK (Reuters) - Brent crude futures rose to a 16-month high on Thursday on the heels of OPEC's agreement a day earlier to cut oil output, while Treasury yields continued to climb following the weakest monthly performance for global bonds in almost 13 years. The benchmark 10-year U.S. Treasury yield jumped to its highest since July 2015 to start the month, after Bank of America Merrill Lynch's Global Broad Market Index fell 1.76 percent in November, its steepest monthly per
  
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• Tennessee factory workers win $421m on lottery

  01-12-2016 21:41 via bbc.co.uk
  
  Amy O'Neill talks about her $421m lottery win, shared with 20 colleagues at a Tennessee car parts factory.
  
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• Brent hits 16-month high, Treasury yields rise further

  01-12-2016 21:14
  By Rodrigo Campos NEW YORK (Reuters) - Brent crude futures rose to a 16-month high on Thursday on the heels of OPEC's agreement a day earlier to cut output, while Treasury yields continued to climb following the weakest monthly performance for global bonds in almost 13 years. The benchmark 10-year U.S. Treasury yield jumped to its highest since July 2015 to start the month, after Bank of America Merrill Lynch's Global Broad Market Index fell 1.76 percent in November -its steepest monthly percent
  
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• Spain expands deadline to privatise Bankia by two years - government source

  01-12-2016 20:15
  By Sonya Dowsett MADRID (Reuters) - The Spanish government will pass a law on Friday giving it until end-2019 to privatise state-rescued lender Bankia in order to recoup the most possible from its injection of funds as part of a 2012 bailout, a government source said on Thursday. Bankia became the symbol of Spain's financial crisis when it lost more than 19 billion euros (20.67 billion pounds) in 2012 because of soured real estate holdings. Spain injected more than 22 billion euros in public mon
  
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• U.S. Federal Reserve may face unnerving shake-up under Trump administration

  01-12-2016 19:41
  By Howard Schneider WASHINGTON (Reuters) - Change at the Federal Reserve could come quickly with President-elect Donald Trump's team pledging to promptly fill high-level central bank jobs and roll out a tax and fiscal plan that could rewrite policymakers' core economic assumptions. Fed officials already say their plan to gradually increase interest rates may need to be accelerated to accommodate the new administration's economic proposals, which could push inflation higher. The concerns for Fed
  
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• Carstens quits Mexican central bank to head BIS

  01-12-2016 19:10 via ft.com
  Respected policymaker seen as steady hand in economy hit by turbulence
  
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• Italy 'No' vote will make it harder for banks to raise money - economy min

  01-12-2016 19:04
  ROME (Reuters) - If the government loses a Dec. 4 referendum on constitutional reform it will be harder for Italy's struggling banks to recapitalise, Economy Minister Pier Carlo Padoan said on Thursday. Padoan told state television RAI that Italy's banking system was solid, but said there were eight banks that were in a delicate position. One of those lenders, Monte dei Paschi di Siena , is looking to raise 5 billion euros ($5.3 billion) by year-end to plug a capital shortfall. "If 'No' wins it
  
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• FTSE slips as higher costs hit consumer goods firms

  01-12-2016 18:58
  By Peter Hobson and Atul Prakash LONDON (Reuters) - Britain's top equity index slid on Thursday, pulled down by more evidence of the weak pound damaging consumer goods companies and by some stocks trading without rights to their latest dividend payouts. The blue-chip FTSE 100 index was down 0.5 percent, its lowest close since Nov. 17. The benchmark index is still up 8 percent so far in 2016. ...
  
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• Rise in malnutrition must be reversed before it creates health 'catastrophe' - experts

  01-12-2016 18:27
  By Alex Whiting ROME (Thomson Reuters Foundation) - Malnutrition - which includes hunger and obesity - is on the rise and may affect half the world's population by 2035 unless governments take urgent action to reverse its spread, U.N. agencies and experts said on Thursday. The problem affects a third of the world's population and costs the global economy an estimated $3.5 trillion a year in healthcare and lost productivity, the U.N. Food and Agriculture Organization (FAO) says. Middle income cou
  
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• Brent crude at 16-month high, Treasury yields rise further

  01-12-2016 18:22
  By Rodrigo Campos NEW YORK (Reuters) - Brent crude futures surged to a 16-month high on Thursday on the heels of OPEC's agreement a day earlier to cut output, while Treasury yields continued to climb following the weakest monthly performance for global bonds in almost 13 years. The benchmark 10-year U.S. Treasury yield jumped to its highest since July 2015 to start the month, after Bank of America Merrill Lynch's Global Broad Market Index fell 1.76 percent in November. Bets on faster inflation i
  
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• CA buys Austrian peer Automic in $635 million deal

  01-12-2016 18:20
  U.S. software management group CA Inc said on Thursday it has agreed to buy Austrian business automation firm Automic from private equity group EQT in a 600 million euro ($635 million) deal as it seeks to expand in Europe. Automic specializes in helping developers of some of the most complex business applications to roll out new releases of software at companies such as Bosch, Netflix, eBay, Exxon Mobil, Vodafone, Société Générale, General Electric and Swisscom. At th
  
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• Oil prices rise further after Opec agrees output cut

  01-12-2016 18:16 via bbc.co.uk
  
  Oil prices have continued to rise after Opec oil producing countries agreed to cut output.
  
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• Philip Hammond’s looking for market failure – he’ll find it in the fund management sector

  01-12-2016 17:54
  
  After intervening in the “market failure” of lettings fees for tenants, Philip Hammond should turn his attention to fund management fees, says Merryn Somerset Webb.
  The post Philip Hammond’s looking for market failure – he’ll find it in the fund management sector was first published on MoneyWeek.
  
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• Volkswagen Truck & Bus to invest 420 million euros in Brazil

  01-12-2016 17:49
  Volkswagen AG said its truck and bus unit would invest 420 million euros (354.88 million pound) in Brazil over the next five years to offer new products, modernise its plan in Resende and develop connectivity services. "I am confident that the Brazilian economy has bottomed out and will recover again in the next few years," Volkswagen Truck & Bus chief Andreas Renschler said in a statement on Thursday. The investment is the biggest ever by Volkswagen's Brazilian truck and bus unit, Volkswage
  
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• Exclusive - ECB to extend asset buys but may signal eventual end

  01-12-2016 17:35
  By Noah Barkin , John O'Donnell and Balazs Koranyi BERLIN/FRANKFURT (Reuters) - The ECB will extend its bond purchases beyond March and consider sending a formal signal after its policy meeting next Thursday that the programme will eventually end, senior sources with direct knowledge of discussions said. Much of the preparatory staff work has focussed on a six-month extension at a steady pace of 80 billion euros (67.61 billion pound) per month, an option favoured by many as growth is sluggish, i
  
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• Are soaring CEO salaries a burden on business?

  01-12-2016 17:30
  
  Executive pay has been rocketing for decades, exciting the envy of wage slaves. But should investors avoid or opt for stocks helmed by well-rewarded executives, asks Richard Beddard.
  The post Are soaring CEO salaries a burden on business? was first published on MoneyWeek.
  
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• Time to tackle executive pay

  01-12-2016 17:15
  
  The government's plans to tackle unfair lettings fees is a good start, says Merryn Somerset Webb. Now let's move on to executive pay.
  The post Time to tackle executive pay was first published on MoneyWeek.
  
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• Exclusive - ECB seeks compromise on asset buys as part of extension of programme: sources

  01-12-2016 17:04
  By Noah Barkin , John O'Donnell and Balazs Koranyi BERLIN/FRANKFURT (Reuters) - The ECB will extend its bond purchases beyond March and consider sending a formal signal after its policy meeting next Thursday that the programme will eventually end, senior sources with direct knowledge of discussions said. Much of the preparatory staff work has focussed on a six-month extension at a steady pace of 80 billion euros (67.26 billion pound) per month, an option favoured by many as growth is sluggish, i
  
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• Trade with the European Union post-Brexit: There is a case for staying in the customs union

  01-12-2016 16:42
  
  Print sectionPrint Rubric: It may make sense to stay in a customs union with the EU, at least for a while Print Headline: Customs of the country Print Fly Title: Trade with the European UnionUK Only Article: standard article Issue: Why a strengthening dollar is bad for the world economy Fly Title: Trade with the European Union post-Brexit Main image: Whose rules, what origin?Whose rules, what origin?ARGUMENTS rage over whether post-B
  
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• The homelessness crisis: An ever growing problem

  01-12-2016 16:42
  
  Print sectionPrint Rubric: The number of homeless people is rising. And this is not just about sleeping rough Print Headline: Still not home Print Fly Title: HomelessnessUK Only Article: UK article only Issue: Why a strengthening dollar is bad for the world economy Fly Title: The homelessness crisis Main image: A step off the housing ladderA step off the housing ladderEXACTLY 50 years ago, a drama aired on British television that cha
  
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• Mad as hell: A perfectly timed book on populism

  01-12-2016 16:42
  
  Print sectionPrint Rubric: Politicians and pundits had better start understanding populism. It is not a passing trend Print Headline: They want their countries back Print Fly Title: Political trendsUK Only Article: standard article Issue: Why a strengthening dollar is bad for the world economy Fly Title: Mad as hell Main image: 20161203_BKP001_0.jpgThe Populist Explosion: How the Great Recession Transformed American and European Poli
  
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• Breaks-it: The unstoppable rise of free-range eggs in Britain

  01-12-2016 16:42
  
  Print sectionPrint Rubric: The unstoppable rise of free-range eggs Print Headline: Breggs-it Print Fly Title: Batteries not includedUK Only Article: UK article only Issue: Why a strengthening dollar is bad for the world economy Fly Title: Breaks-it
  IN THE past decade British chickens have laid about 100bn eggs, with most of them coming from caged hens. A change of EU regulations in 2012 banned the smallest battery cages, but chicken-lovers sa
  
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• A less beautiful game: Evidence grows of child abuse in football

  01-12-2016 16:42
  
  Print sectionPrint Rubric: Footballers’ accounts of past sexual abuse highlight the sport’s vulnerabilities Print Headline: A less beautiful game Print Fly Title: Sexual abuse in footballUK Only Article: UK article only Issue: Why a strengthening dollar is bad for the world economy Fly Title: A less beautiful game Main image: 20161203_BRP505.jpgWATCHING the man who abused him for years marry his sister was torture, said A
  
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• US consumers should feel muted impact from rising oil price

  01-12-2016 16:38
  
  DALLAS (AP) — OPEC's decision to cut production gave an immediate boost to oil prices, but the impact on consumers and the U.S. economy is likely to be more modest and gradual.
  
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• US factories expanded for third straight month in November

  01-12-2016 16:36
  
  American factories expanded for the third straight month in November, another good sign for the American economy. The Institute for Supply Management says its manufacturing index came in at 53.2 last month, ...
  
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• Africa looks to boost growth with free-trade area

  01-12-2016 15:51 via ft.com
  Lowing barriers and tariffs will stimulate the continent’s economies, say leaders
  
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• The soft bigotry of low expectations

  01-12-2016 14:53 via ft.com
  UK government may not even be aiming for the third-best Brexit
  
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• UK factory growth cools as weak pound fuels cost pressures - PMI

  01-12-2016 13:41
  By Andy Bruce LONDON (Reuters) - British manufacturing growth cooled unexpectedly in November as factories grappled with soaring costs caused by sterling's slump after June's Brexit vote, even before this week's jump in oil prices. Britain's economy has performed much better than expected since June's vote to quit the EU. Wednesday's 10 percent surge in crude oil prices - after OPEC and Russia agreed to restrict production - pushed the dollar cost of oil close to levels not seen in 18 months, an
  
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• Oil hits 6-week high after OPEC deal, sterling jumps

  01-12-2016 13:27
  By Jamie McGeever LONDON (Reuters) - Oil swept to a six-week high on Thursday after OPEC agreed to cut crude output to help clear a glut, while sterling hit a three-month peak after traders interpreted comments from a senior UK official as a crack in the government's "hard Brexit" line. The Organization of the Petroleum Exporting Countries on Wednesday agreed to its first output cut since 2008, finally taking action after global oil prices fell by more than half in the last two years. The jump i
  
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• Syria, oil, merlot

  01-12-2016 13:26 via ft.com
  Moves to end Aleppo fighting a sign of how US is becoming increasingly sidelined in the region
  
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• Eurozone jobless rate below 10% for first time since 2011

  01-12-2016 13:13 via bbc.co.uk
  
  The eurozone's unemployment rate has fallen below 10% for the first time since 2011.
  
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• Irish consumer sentiment budges only slightly from 20-month low

  01-12-2016 13:04
  Irish economic growth is forecast to be the highest in the European Union for a third successive year in 2016 but recent data has been mixed against the backdrop of Britain's decision to leave the EU, a major risk to neighbouring Ireland's economy. The KBC Bank Ireland/ESRI Consumer Sentiment Index rose to of 97.8 from 97.3 in October, remaining well below the 15-year high of 108.6 hit at the start of the year when Irish economic indicators were overwhelmingly positive. "A monthly change of 0.5
  
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• An Italian No vote will derail essential reforms

  01-12-2016 12:48 via ft.com
  Prime minister Renzi is heading in the right direction but needs more time
  
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• Still work to be done for deal on Greek reforms next week - EU's Moscovici

  01-12-2016 12:40
  Talks between Greece and its European Union creditors are progressing but work is still needed to reach a technical deal on Greek reforms, the EU commissioner for economic affairs said on Thursday. "The discussions continue, the positions are getting closer, but there is still work to be done," Pierre Moscovici told a news conference in Brussels. This would allow euro zone finance ministers, who will gather in Brussels on Dec. 5 for a regular meeting, to start discussions also on "medium-term" m
  
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• Global factories had bumper November but growth may have peaked

  01-12-2016 12:25
  By Jonathan Cable and Saikat Chatterjee LONDON/HONG KONG (Reuters) - Manufacturers around the globe performed strongly in November, but concerns about the protectionist leanings of U.S. President-elect Donald Trump and an OPEC-induced oil price rally could curtail future growth. Factories across Asia and Europe ramped up activity and data due later on Thursday from the United States are expected to show manufacturers in the world's largest economy also pushed harder on the accelerator. Policymak
  
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• Italy referendum: What if voters say 'No' to reforms?

  01-12-2016 12:23 via bbc.co.uk
  
  What happens if Italians vote against proposed constitutional reforms?
  
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• Podcast: The Economist asks: What made the world's great universities let women in?

  01-12-2016 12:00
  
  Print sectionUK Only Article: standard articleFly Title: Podcast: The Economist asks Byline: Economist.comMain image: 20161203_mma903.jpg
    Rubric: Anne McElvoy is joined by Nancy Weiss Malkiel, emeritus professor of history at Princeton and author of "Keep the Damned Women Out", to unearth the roots of the sweeping changes that came to elite universities in Britain and America in the 1960s and 1970s. What made institutions
  
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• UK manufacturing sector growth 'slows in November'

  01-12-2016 11:58 via bbc.co.uk
  
  Growth in the UK's manufacturing sector slowed last month, according to a closely-watched survey.
  
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• FTSE slips as gold miners lose glitter

  01-12-2016 11:33
  By Atul Prakash LONDON (Reuters) - Britain's top equity index fell on Thursday as water utility Severn Trent slipped after its shares traded without rights to their latest dividend payouts, while precious metals miners tracked gold prices lower. Shares in Fresnillo , Centamin and Acacia Mining fell 1.2 to 3.7 percent after gold prices slipped for a third straight session, reaching their lowest level since early February on concern about a U.S. interest rate hike. The precious metal has been unde
  
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• Bank of England says new Term Funding Scheme sees little uptake in third quarter

  01-12-2016 11:13
  A new Bank of England programme designed to make lenders pass on the Base interest Rate cut to households saw little uptake in the third quarter, Bank of England data showed, with only one lender borrowing from it. The Bank of England launched the Term Funding Scheme to provide four-year funding for banks at interest rates close to the Bank Rate in August amid concerns they may not pass on the cut because it would eat into their profits.Under the terms of the scheme, banks can initially borrow u
  
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• Global stock markets mixed after China factory data

  01-12-2016 11:10
  
  European stock markets fell slightly in early trading after Asian stock markets finished higher on Thursday as upbeat factory data from China boosted investor sentiment. KEEPING SCORE: Britain's FTSE 100 ...
  
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• UK carpet seller Headlam says full-year profit to beat forecasts despite price rises

  01-12-2016 10:39
  British carpet distributor Headlam said full-year profit should beat current market expectations as price rises introduced after the pound fell in the wake of the Brexit vote had not had an adverse impact on revenue. In August Headlam increased prices on residential floorcoverings imported from continental Europe by 3.5 percent on average to cover the pound's fall against the euro. "The price increases ... have remained in place since their introduction in August and, pleasingly, appear to have
  
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• Solid growth in German manufacturing points to fourth-quarter rebound

  01-12-2016 10:37
  German manufacturing growth slowed slightly in November, but solid demand from domestic and foreign customers kept it robust overall, a survey showed on Thursday, suggesting that factories will contribute to a rebound in the fourth quarter. Markit's Purchasing Managers' Index (PMI) for manufacturing, which accounts for about a fifth of Europe's largest economy, fell to 54.3 from 55.0 in October, which was the highest level in nearly three years. The November reading was a tick below a flash read
  
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• Oil hits six-week high after OPEC deal, bond yields rise

  01-12-2016 10:15
  By Jamie McGeever LONDON (Reuters) - Oil swept to a six-week high on Thursday, lifting energy shares in its slipstream, after OPEC agreed to cut crude output to clear a glut, while bond yields rose on prospects that resulting inflationary pressures will lead to higher interest rates. The Organization of the Petroleum Exporting Countries on Wednesday agreed to its first output cut since 2008, finally taking action after global oil prices fell by more than half in the last two years. The jump in o
  
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• Euro zone November factory growth strongest since January 2014 - PMI

  01-12-2016 10:14
  LONDON, Dec 1 (Reuters) - - Euro zone manufacturers enjoyed their best month in November since the start of 2014, a survey showed, benefiting from a weaker currency and stronger demand. That will please policymakers at the European Central Bank, who are expected to announce an extension to their asset purchase programme when they meet next week, a Reuters poll found last month [ECILT/EU]. IHS Markit's final manufacturing Purchasing Managers' Index for the euro zone chalked up its highest reading
  
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• Saudi Arabia has lost the war of attrition in the oil market

  01-12-2016 10:05
  
  Opec has finally come to an agreement to reduce production, sending the oil price soaring. John Stepek looks at why the market is so excited.
  The post Saudi Arabia has lost the war of attrition in the oil market was first published on MoneyWeek.
  
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• Opec cuts supply for the first time since financial crisis

  01-12-2016 07:08 via ft.com
  Move sends prices soaring above $50 a barrel
  
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• Blame wages and turtle doves: '12 Days' now costs $34,363

  01-12-2016 07:07
  
  The slow recovery of the U.S. economy is continuing to keep the cost of Christmas — or at least the gifts listed in "The Twelve Days of Christmas" — from spiraling out of control. The price of ...
  
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• OPEC cuts will have a muted effect on consumers

  01-12-2016 06:40
  
  DALLAS (AP) — OPEC's decision to cut production gave an immediate boost to oil prices, but the impact on consumers and the U.S. economy is likely to be more modest and gradual.
  
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• China manufacturing heats up in November, inflation pressure builds

  01-12-2016 05:30
  By Elias Glenn BEIJING (Reuters) - Activity in China's manufacturing sector grew more than expected in November, expanding at its strongest pace in more than two years, as the world's second-largest economy picks up momentum heading into what promises to be a tumultuous 2017. After a rocky start to the year, China's factories have perked up in recent months, buoyed by a government infrastructure building spree and a housing boom that is starting to show signs of fatigue. "The next move by the ce
  
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