Today's Most Watched Stories
- Drowned migrant boys buried as Hungary warns of ‘mass inflow’ of refugees
- Migrant Chaos Mounts While Divided Europe Stumbles for Response
- Click go the shears on overgrown sheep as top shearer Ian Elkins gets to work
- Badger cull is flawed and must now stop | Letter from Ranald Munro, John Bourne and others
- US stock markets off more than 2.8% at close as China’s troubles spread west – as it happened
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Category Archives: Business
Lower commodities prices and bond yields, slower growth in China and narrowing interest rate differentials all contributed to the fallOngoing global economic worries have pushed the Australian dollar to a fresh six-year low.The Aussie is currently buyi…
José Dirceu accused over alleged involvement in massive fraud involving state-owned oil company Petrobras
Federal prosecutors on Friday filed corruption, racketeering and money-laundering charges against José Dirceu, Brazil’s former presidential chief of staff, for his alleged involvement in a massive fraud involving state-owned oil company Petrobras.
Sixteen other people were also charged, including João Vaccari Neto, the former treasurer of Brazil’s governing Workers’ party and Renato de Souza Duque, Petrobras’s former head of corporate services.
173,000 new jobs were created in America in August, fewer than expected, giving few clues into when the Fed might raise rates
- Latest: More fears over global economy
- NFP misses forecast, but jobless rate hits seven-year low
- Wage growth picks up…
- …but labour force participation still weak
- Preview: A crucial NFP day
Another volatile week finished with further woe for investors. Among the day’s data, German factory orders fell 1.4% month on month in July, but the big event was the US non-farm payroll numbers. As it turned out the headline figure disappointed, with 173,000 jobs added in August compared with the 220,000 or so expected. But the unemployment rate dipped to 5.1% and hourly wages were steady, so there were few clues as to whether the US Federal Reserve would raise interest rates this month or not.
Despite the turmoil caused by worries about China, many analysts believed there was nothing in the jobs data to prevent an increase. Equally, many others believed the Fed would keep its powder dry. The markets seemed to side with the hawks, especially since just before the figures were released, Richmond Fed president Jeffrey Lacker said the non-farm numbers should not derail the case for a rate rise.
Meanwhile Moody’s has downgraded the senior debt ratings of four Greek banks to C, in the expectation that holders will suffer losses in the forthcoming recapitalisations. It said:
The downgrade…primarily reflects Moody’s expectation that junior and senior debt holders will be bailed in and sustain material losses as part of the upcoming recapitalisation process…
Although Moody’s expects uninsured depositors to be excluded from bail-in, as indicated by a recent Eurogroup statement, the negative outlook reflects the ratings agency’s opinion that the recapitalisation process remains fluid and banks continue to face significant credit risks.
US Food and Drug Administration approval comes a week after European heart experts endorsed the longer-term use of BrilintaAstraZeneca received a much-needed boost when its blood-thinning drug, Brilinta, a potential blockbuster, was approved by the US …
Mario Draghi marks his birthday by cutting the ECB’s inflation forecasts and hinting at more QE to tackle low inflation
- ECB lowers inflation and growth forecasts
- Press conference highlights start here
- ECB leaves rates unchanged
- Lunchtime summary: Markets bounce back
Can the ECB do anything to address the refugee crisis that is unfolding in Europe?
Draghi replies that:
“Any European should be horrified by the tragic loss of life on our doorstep. [But] the ECB simply doesn’t have any democratic mandate to act in this sphere”.
Is the worst of the market turbulence over, or does the ECB expect more volatility?
Draghi says we must wait to see whether the last few weeks is short-term volatility, or permanent volatility. The latter would increase risk premia, and mean that today’s forecasts on growth and inflation may be too optimistic.
Draghi: “Inflation expectations have been pretty volatile: they went down then went up”. Could be EM, could be risk premium went up.
As Eurostar train delayed by people on roof finally arrives, Eurotunnel reports increased security is resulting in more desperate tacticsPeople who are taking ever greater risks to reach Britain from Calais have targeted UK-bound passenger trains for t…
Housing charity Shelter says 17,000 renters have called its helpline during the last year with complaints including harassment, threats and assaultsThousands of private tenants have suffered abuse at the hands of landlords, including harassment, threat…
IMF chief fears ‘bumpy’ ride and warns that global growth is weaker than hoped, as China’s manufacturing shrinks at fastest rate since 2012
- The Dow is off by more than 400 points
- Summary: Another bad day in the markets
- Wall Street falls sharply, with US manufacturing weak
A long day of down selling without much respite across the globe has ended with the US’s Dow Jones Industrial Average stock index closing down lower in a single day than it has since the country’s national debt was downgraded by Standard & Poor’s. The Nikkei lost a full 3.8% today and the FTSE lost 3.03%, with other European markets faring poorly as well.
The bad news that appears to have kicked off the crunch comes primarily from the Chinese manufacturing sector, which was lower Monday than it has been in three years. Those specific economic woes aren’t solely Chinese: the French manufacturing sector contracted at a faster rate in August than it had the month prior, and growth in US manufacturing has slowed, as well.
The Dow, the Nasdaq and the S&P 500 all closed far below their opening prices today after a day of panicked selling of a kind not seen since Black Monday 2011.
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Dow Jones loses more than 450 points, or 2.8%, at closing bell in sell-off that came after more signs of weakness in China’s economy
World stock markets got off to a rocky start in September closing sharply down on fears that China’s slowing economy will hurt economies across the globe.
In the US all the major indices closed down, the second fall of the week, following similar falls in Europe and Asia. The Dow Jones Industrial Average closed down 2.8% at 469 points, the S&P 500 closed down 2.95% and the Nasdaq down 2.95%. US stocks are on course for their worst performance since the end of 2011.
Accused of spreading fake information, Wang Xiaolu detained over stock market story published at sensitive time
A journalist from one of China’s top financial magazines has been paraded on state television to make an on-air “confession” for supposedly triggering stock market chaos with his reporting.
Wang Xiaolu, a business reporter for Caijing, was detained last Tuesday after writing a story that claimed China’s securities regulator was pondering ending interventions aimed at stabilising the stock market.
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