Economy news

• Not out yet, Britain backs EU patent court

  28-11-2016 22:41
  Britain pleased and surprised some of its European Union partners on Monday by pledging to ratify a new, unified patent system for the bloc even though London is about to leave the EU. Slovak Economy Minister Peter Ziga, who chaired a meeting of EU counterparts in Brussels, told reporters he was "very pleased" that Britain had committed to be ready to ratify the international agreement in the first half of next year. Ratification by Britain, one of the EU's three biggest economies, was a conditi
  
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• Heineken takes on Castel in Ivory Coast beer market

  28-11-2016 20:07
  Heineken is planning to take on Castel for the top spot in Ivory Coast's growing beer market by competing with the French company on price, the general manager of the Dutch firm's new brewery said on Monday. Following a decade-long crisis that ended in 2011, Ivory Coast has emerged as Africa's fastest growing economy, according to the International Monetary Fund, and beer consumption is rising in the cocoa producing country of 23 million people. Heineken, the world's second largest beer maker, a
  
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• Growth stalling would be biggest risk to Europe's economy - ECB's Draghi

  28-11-2016 19:33
  By Francesco Canepa FRANKFURT (Reuters) - Stalling recovery would be the greatest risk facing the euro zone's economy, the head of the European Central Bank said on Monday, underscoring, before an important policy decision next week, the ECB's focus on supporting growth. The ECB is due to decide next week on whether to extend beyond March its 1.74-trillion-euro (1.48 trillion pounds) bond-buying programme, the centrepiece of its much-criticised stimulus policy, that some say has created bond and
  
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• Best for UK economy to keep rates on hold, says BoE's Vlieghe

  28-11-2016 19:30
  By William Schomberg SHEFFIELD, England (Reuters) - The highly uncertain outlook for Britain's economy as the country prepares to leave the European Union means the Bank of England should keep interest rates on hold, one of the bank's top policymakers said on Monday. Gertjan Vlieghe, who was one of the strongest advocates for Bank of England stimulus before and after June's Brexit vote, suggested the BoE would be in no hurry to either cut or raise rates. Vlieghe said upside or downside surprises
  
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• Spanish economy to maintain growth rate in fourth quarter - economy minister

  28-11-2016 18:59
  Spain's economy is expected to continue growing in the fourth quarter at a similar rate to previous quarters this year which have averaged year-on-year growth of 3.3 percent, Economy Minister Luis de Guindos said on Monday. "I believe that we are going into 2017 with positive momentum." In its twice-yearly economic outlook, the Organisation for Economic Cooperation and Development (OECD) also said on Monday it expected Spain to grow at 3.2 percent this year, lifting an earlier forecast of 2.8 pe
  
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• OECD premature in praise of Trump’s economic plan

  28-11-2016 18:58 via ft.com
  It is too early to assess the president-elect’s fiscal policies, writes Anton Spisak
  
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• Brexit will be tough for UK, warns Draghi

  28-11-2016 18:41 via ft.com
  ECB chief calls for clarity over negotiation process that will govern departure
  
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• Italy's Monte dei Paschi lists multiple threats to rescue plan

  28-11-2016 17:54
  By Silvia Aloisi and Valentina Za MILAN (Reuters) - More than 8 billion euros of legal claims against Monte dei Paschi di Siena , its weakening liquidity and the potential for more bad loan writedowns are among risks the bank says could scupper its 5-billion-euro rescue plan. In a 146-page prospectus for a debt swap offer that is a key plank of the rescue scheme aimed at keeping the bank in business, Monte dei Paschi warned on Monday of "considerable uncertainty" surrounding the whole plan. The
  
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• VW extends 20 billion euro loan to weather diesel fall-out

  28-11-2016 17:14
  By Arno Schuetze and Andreas Cremer FRANKFURT (Reuters) - Volkswagen has agreed to extend a 20 billion-euro (17.06 billion pound) bank credit line, it said on Monday, part of the German carmaker's efforts to maintain its financial strength while it counts the full cost of its emissions scandal. Europe's largest automaker secured the one-year bridge loan last December after the biggest corporate scandal in its history wiped billions off its market value and made it much more expensive for Volkswa
  
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• Best for economy to keep rates on hold, says BoE's Vlieghe

  28-11-2016 17:06
  The highly uncertain outlook for Britain's economy as it prepares to leave the European Union means the Bank of England should keep interest rates on hold, a top Bank of England policymaker said on Monday. Gertjan Vlieghe, one of the strongest advocates for Bank of England stimulus in the aftermath of June's Brexit vote, said upside or downside surprises in Britain's economy need not prompt automatic changes in British monetary policy.
  
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• Trump threatens to end US detente with Cuba

  28-11-2016 16:36 via ft.com
  President-elect says former foe needs to negotiate better deal after Castro’s death
  
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• VW, banks extend 20-billion euro loan until June 2017

  28-11-2016 16:33
  BERLIN (Reuters) - Volkswagen said it has agreed with banks to extend a 20 billion euro (17 billion pound) credit line until June 2017 to strengthen its finances as it grapples with billions of costs for its emissions scandal. The one-year bridging loan, which was originally due to expire at the end of this year, will protect the financial framework of Volkswagen and increase its financial flexibility, the carmaker said on Monday. VW said the loan facility is currently undrawn and added it will
  
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• The four freedoms: not set in stone, not universally adhered to, and not necessary for single market access

  28-11-2016 16:00
  
  A persistent myth about the EU is that there is no flexibility on the “four freedoms.” But there are plenty of exceptions that prove this isn’t true, says Merryn Somerset Webb.
  The post The four freedoms: not set in stone, not universally adhered to, and not necessary for single market access was first published on MoneyWeek.
  
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• Basel banking rules’ impact on European economy

  28-11-2016 15:44 via ft.com
  EU project relies on the capacity of institutions to bring prosperity and security
  
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• Zimbabwe note launch stokes currency fears

  28-11-2016 15:21 via bbc.co.uk
  
  Zimbabwe's launch of new notes is raising fears of a return to the local dollar, which was abandoned seven years ago.
  
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• Euro zone recovery to continue, thanks to ECB stimulus - Draghi

  28-11-2016 15:11
  FRANKFURT (Reuters) - The euro zone recovery has withstood economic and political uncertainty and its recovery expected to continue, partly thanks to the European Central Bank's monetary stimulus, ECB President Mario Draghi said on Monday. "The euro area economy continues to expand at a moderate but steady pace, despite the adverse effects of global economic and political uncertainty," Draghi told an EU Parliament committee. "This gradual upward trend is expected to continue, not least owing to
  
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• Italy's Monte dei Paschi warns of myriad threats to rescue plan

  28-11-2016 14:58
  By Silvia Aloisi and Valentina Za MILAN (Reuters) - More than 8 billion euros (6.81 billion pound) of legal claims against Monte dei Paschi di Siena , its weakening liquidity and the possibility of more bad loan writedowns are among the risks the Italian bank said could scupper its 5-billion euro rescue plan. In a 146-page prospectus for a debt swap offer that is a crucial plank of an attempt to stave off being wound down, Monte dei Paschi warned on Monday of "considerable uncertainty" surroundi
  
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• FX Focus: Pound declines against dollar and euro ahead of economic data

  28-11-2016 14:56
  
  Having registered its fourth consecutive weekly gain against the euro on Friday (25 November), sterling traded 0.45% lower against the common currency by early afternoon on Monday, exchanging hands at €1.1707. Updates on the health of the UK economy this week will come in the form of mortgage approvals data on Tuesday, followed by November's and construction PMI activity data on Thursday and Friday respectively, while European Central Bank President Mario Draghi will testify on economic and
  
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• Dollar steadies after oil slip, stocks remain groggy

  28-11-2016 14:48
  By Marc Jones LONDON (Reuters) - The dollar steadied after its biggest fall in almost a month on Monday, as doubts about a long-mooted OPEC output cut unsettled oil markets and "Trumpflation" trades that have gripped investors since the U.S. election. Crude prices stumbled into the red as Wall Street prepared for a lower opening after the post-Thanksgiving weekend [.N] and both European and Japanese shares [.EU] [.T] had difficult starts to the week. Concerns about the fallout from Italy's const
  
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• Greece wants primary surplus targets beyond 2018 lowered to 2.5 percent of GDP - Finance Minister

  28-11-2016 14:37
  Greek Finance Minister Euclid Tsakalotos said on Monday that if primary surplus targets beyond 2018 were lowered to 2.5 percent of GDP from 3.5 percent now, Athens would be able to cut taxes in an effort to boost economic competitiveness. German Finance Minister Wolfgang Schaeuble said a week ago that Greece's problem is not its debt but competitiveness. Let's agree to lower the primary budget surplus targets to 2.5 percent from 3.5 percent.
  
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• Only events can shift the Brexit debate

  28-11-2016 14:09
  An intervention now by Tony Blair might be counterproductive
  
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• Turkey’s troubled times

  28-11-2016 14:02 via ft.com
  Short-term currency risks and longer-term political outlook argue for discount on assets
  
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• OECD, Aleppo, Uber

  28-11-2016 13:13 via ft.com
  Group says president-elect’s pledge on infrastructure spending will boost US growth, combat inequality and energise workers
  
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• Greece seeks to fix borrowing costs in debt relief talks

  28-11-2016 13:10
  By George Georgiopoulos and Abhinav Ramnarayan ATHENS/LONDON (Reuters) - Greece is pushing its creditors to fix the borrowing costs on its massive debt pile at current low levels in a bid to save millions of euros in coupon payments if interest rates rise. The 162.7 billion euros is owed to the European Financial Stability Facility and the European Stability Mechanism, created by euro zone governments to help countries in difficulty during Europe's debt crisis, a government official said. The EF
  
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• EU says agreement stands after Portugal bank resignations

  28-11-2016 12:54
  European Commission Vice President Valdis Dombrovskis said on Monday that Brussels' "agreement in principle" over Portugal's state-owned bank Caixa Geral de Depositos (CGD) remained in force despite resignations of top managers. The recently appointed chief executive and six board members of CGD have resigned, Lisbon said on Monday, potentially delaying a 5 billion euro (4.27 billion pound) recapitalisation of the ailing bank. "It's agreed already in August and the Commission will continue work
  
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• EU's Dombrovskis sees swift completion of second Greek bailout review

  28-11-2016 12:50
  European Commission Vice President Valdis Dombrovskis said on Monday that "a lot of progress" had been made on the second review of Greece's euro zone bailout and that he expected it would be concluded soon. "There is substantial progress so we can expect in the foreseeable future we will be able to close the second review," Dombrovskis, who oversees euro affairs, told a news conference.
  
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• Higher-rate taxpayers: start your own pensions austerity drive

  28-11-2016 12:15
  
  Higher-rate taxpayers whose pension pots aren’t at the lifetime allowance should put every penny they can into their pension before the chancellor abolishes tax relief, says Merryn Somerset Webb.
  The post Higher-rate taxpayers: start your own pensions austerity drive was first published on MoneyWeek.
  
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• Unions, gig-economy firms gear up for New York benefits battle

  28-11-2016 12:06
  Faced with a barrage of lawsuits from workers demanding benefits and recognition as employees, some companies in the fast-growing 'gig economy' are looking to settle the issues through legislation. Joseph Morelle, the number two Democrat in the New York State Assembly, said he has been talking about portable benefits with such companies, which use occasional workers to provide rides, deliveries, house-cleaning and other services through websites and apps. In advance of that effort, online home-c
  
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• A better Britain for the taking

  28-11-2016 12:03 via ft.com
  
  A country can be made to work for everyone without leaving the EU
  
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• Three questions to ask an active fund manager before you buy

  28-11-2016 11:44
  
  For many investors, passive funds are a better option than active funds. But if you do want an active fund, how do you pick a good one? John Stepek explains.
  The post Three questions to ask an active fund manager before you buy was first published on MoneyWeek.
  
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• OECD sees resurgent U.S. growth boosting global economy

  28-11-2016 11:36
  PARIS (Reuters) - Global growth will pick up faster than previously expected in the coming months as the Trump administration's planned tax cuts and public spending fire up the U.S. economy, the OECD said on Monday, revising up its forecasts. In its twice-yearly Economic Outlook, the Organisation for Economic Cooperation and Development estimated global growth would accelerate from 2.9 percent this year to 3.3 percent in 2017 and reach 3.6 percent in 2018. The Paris-based organisation was slight
  
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• Oil slip sends dollar, bond yields skidding

  28-11-2016 11:21
  By Marc Jones LONDON (Reuters) - The dollar saw its biggest drop in almost a month on Monday as a bashing for oil prices on doubts about an OPEC output cut this week left investors reversing "Trumpflation" trades that have gripped markets since the U.S. election. Crude prices and Europe's main stock markets were down over 1 percent in early European trading as Italian shares also took a fresh tumble ahead of its referendum on constitutional change this Sunday. With oil so vital for global costs
  
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• FTSE index slips as crude oil drops

  28-11-2016 11:16
  By Atul Prakash LONDON (Reuters) - Britain's top share index retreated on Monday pulled lower by energy shares hit by a decline in oil prices and financial shares concerned over Italian banks. The blue-chip FTSE 100 index was down 0.7 percent in morning trading after recent gains. Energy shares led the broader stock market lower, with the UK oil and gas index falling 1.7 percent following weaker oil prices.
  
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• OECD - BOJ needs to keep easing but should monitor risks

  28-11-2016 11:06
  The Bank of Japan should maintain monetary easing until inflation is above its 2 percent target but should be mindful of financial distortions caused by its policies, the Organisation for Economic Cooperation and Development (OECD) said on Monday. The BOJ's new policy framework gives it more flexibility, but it remains to be seen if will be successful and it could be difficult to target 10-year government bond yields, the OECD said in its semiannual Economic Outlook Report. On the whole, the OEC
  
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• Trump’s infrastructure plans win OECD backing

  28-11-2016 11:00 via ft.com
  First leading global organisation to validate market bets on US economy
  
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• Trump’s infrastructure plans win backing from OECD

  28-11-2016 11:00 via ft.com
  
  First leading international organisation to validate market bets on US economy
  
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• Italy market watchdog approves Monte dei Paschi's debt swap

  28-11-2016 10:35
  Italian bank Monte dei Paschi di Siena said market regulator Consob had approved its debt-to-equity conversion offer which would be launched at 1300 GMT on Monday and run until 1500 GMT on Friday, barring an extension. The bond swap is a key plank of a challenging 5 billion euro ($5.3 billion) capital raising plan aimed at keeping Italy's third-largest bank in business after it emerged as Europe's most vulnerable lender in July industry stress tests. The plan is seen at risk of failing due to a
  
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• Euro zone corporate lending growth fastest since mid-2011 - ECB

  28-11-2016 10:13
  Bank loans to euro zone companies grew at their fastest pace in nearly 5-1/2 years last month but a measure of growth in money circulating, often an indicator of future activity, slowed markedly, data from the European Central Bank showed on Monday. Corporate lending grew by 2.1 percent in October, accelerating slightly from the previous month and marking the fastest pace since June 2011.
  
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• Italy November manufacturers' morale, consumer confidence decline - ISTAT

  28-11-2016 10:08
  Nov 28 (Reuters) - - Morale among Italian manufacturers fell in November after gaining the previous month, data showed on Monday, and consumer confidence also declined. Surveys from national statistics office ISTAT suggested Italy's economic outlook was weakening ahead of a referendum this weekend that may sink Prime Minister Matteo Renzi's government. The 41-year-old premier took power in February 2014 promising to turn around Italy's economy, the euro zone's worst performer. ...
  
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• Italy market watchdog approves Monte dei Paschi's swap

  28-11-2016 09:24
  MILAN (Reuters) - Monte dei Paschi di Siena said Italian market regulator Consob had approved its debt-to-equity conversion offer which would be launched at 1300 GMT on Monday and run until 1500 GMT on Friday, barring an extension. The bond swap is a key plank of a challenging 5 billion euro ($5.3 billion) capital raising plan aimed at keeping Italy's third-largest bank in business after it emerged as Europe's most vulnerable lender in July industry stress tests. ($1 = 0.9383 euros) (Reporting b
  
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• Ikea Reveals Why Paying The 'Real' Living Wage Is Good For Business

  28-11-2016 09:06
  
  Paying staff the ‘real’ Living Wage and improving their terms and conditions has been crucial to the success of Ikea’s business, the boss of its... Read more: UK News, UK Whats Working, UK Business, UK Economy, UK Retail, UK Living Wage,UK News
  
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• Dollar, U.S. bond yields drop as oil tumbles on output cut doubts

  28-11-2016 07:29
  By Hideyuki Sano TOKYO (Reuters) - The dollar and U.S. bond yields fell on Monday as investors reversed a "Trumpflation" trade that has gripped markets since the U.S. elections, after oil prices slid on fears that producer countries meeting this week could fail to agree an output cut. Prospects of reduced upward pressure on inflation from oil prices, prompted investors to temper expectations for rises in U.S. interest rates, bring down treasury yields and the dollar. In contrast, U.S. stock futu
  
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• China will stick to 'going out' strategy amid outflow concerns

  28-11-2016 07:19
  China said on Monday it will stick to its opening up policy and "going out" strategy on investment even while a slide in the yuan to 8-1/2-year lows revives worries about capital fleeing the country. Officials from the National Development and Reform Commission, the Ministry of Commerce, the People's Bank of China and the State Administration of Foreign Exchange said the country will continue to encourage healthy development of outbound investment, the official Xinhua news agency reported. The W
  
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• French elections; Obama’s world; The need to read

  28-11-2016 06:50 via ft.com
  François Fillon has won the French centre-right presidential nomination in a landslide vote
  
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• Hard Brexit could lead to '25 years of economic pain' for UK

  28-11-2016 06:06
  
  Renegotiating trade deals with the European Union on a sector-by-sector basis after a hard Brexit could take at least 25 years to complete and damage the UK economy, a study has warned. Citing research from the Centre for Economics and Business Research (CEBR), the Press Association reported that the creative and technology sectors would suffer badly if curbs on EU immigration were introduced. Pro-Remain MPs Nick Clegg, Anna Soubry and Chuka Umunna will present the full findings of the study at
  
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• China says promotes healthy outbound investment as outflow fears grow

  28-11-2016 04:26
  China said on Monday it promotes the healthy development of outbound investment, as a slide in its yuan currency to 8-1/2 year lows revives worries about capital fleeing the country. Officials from the National Development and Reform Commission, the Ministry of Commerce, the People's Bank of China and the State Administration of Foreign Exchange said the country will stick to its strategy of encouraging offshore investment, the official Xinhua news agency reported. The Wall Street Journal report
  
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• Oil tumbles as output cut looks elusive; dollar sinks

  28-11-2016 04:12
  By Hideyuki Sano TOKYO (Reuters) - Oil prices tumbled on Monday on fears that producer countries may fail to agree an output cut, pressuring U.S. stocks and the dollar as traders reversed their "Trumpflation" trade as weak oil prices would reduce pressure on U.S. interest rates to rise. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5 percent, led by gains in Hong Kong and Taiwan . In contrast, U.S. stock futures slipped 0.3 percent after their stellar performance this month o
  
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• Workers could get say over bosses' pay packets under proposed corporate reforms

  28-11-2016 03:13
  
  Workers may have a say in what their bosses are paid under corporate reforms that Theresa May is pressing ahead with this week. The prime minister will unveil a green paper on Tuesday (29 November) which also proposes forcing companies to reveal the difference in pay between their chief executives and average workers. Over the past 18 years, the average pay of chief executives of FTSE 100 companies has risen from £1m to £4.3m.
  
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• China says promotes healthy development of outbound investment - Xinhua

  28-11-2016 02:27
  SHANGHAI (Reuters) - China said on Monday it promotes the healthy development of outbound investment, the official Xinhua news agency reported. Officials from the National Development and Reform Commission, the Ministry of Commerce, the People's Bank of China and the State Administration of Foreign Exchange said the country will stick to its strategy of encouraging outbound investment, the agency reported. The Wall Street Journal reported on Friday that China plans to tighten controls on Chinese
  
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• WTO set to sanction Boeing over tax breaks - reports

  28-11-2016 01:51
  The World Trade Organization is set to rule this week that Boeing Co received illegal tax breaks from Washington state, according to reports in The Telegraph and The Wall Street Journal. The Journal said the trade organization will argue that the Washington state tax break is a prohibited subsidy and will have to be withdrawn, citing people familiar with the matter. The paper said the WTO is not likely to say what the value of the prohibited tax break is, but the European Union has argued that B
  
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