Markets

Markets

FTSE 100 and 250 reopen after glitch hits morning trading

Trading in FTSE 100 and 250 stocks has reopened after a software issue that delayed the starting bell this morning was resolved. The London Stock Exchange (LSE) said it had “experienced a technical software issue” that had “affected trading in certain securities” but that this had been resolved. Read more: London stock exchange seals $27bn Refinitiv deal Trading in shares in the UKs biggest 350 companies resumed at 9.40am, over an hour and a half between the usual 8am starting time. City A.M. understands futures trades data was still coming through to traders screens, but that cash equity trading in blue-chip and mid-cap shares had not begun as usual. David Madden, an analyst at CMC Markets, said earlier that he had not received any official notice and no time frame when the issue would be resolved. Outages on the stock exchange are relatively common. This is the second time in 18 months that the London Stock Exchange has suffered a technical fault. Last time, the exchange was d..

Markets

FTSE 100 follows European stocks upwards after it reopens

The FTSE 100 copied European stock indices and rose sharply this morning when it finally opened after the worst outage in eight years. Read more: FTSE 100 and 250 reopen after glitch hits morning trading Britains blue-chip index had risen 0.4 per cent shortly before 11am UK time. Londons traders were over an hour and a half late to get going, however, due to what the London Stock Exchange called “a technical software issue”. Investors were buoyed by the news that China is planning to inject some stimulus into its economy. Its state planning office said this morning it would act to increase disposable income. European investors were also in a good mood after a week of trade war-induced anxiety. Germanys Dax index had climbed 0.8 per cent, Frances CAC 40 had risen 0.9 per cent, and the pan-European 100 was up 0.9 per cent. Chinas Shanghai composite index closed 0.3 per cent higher, Hong Kongs Hang Seng finished up one per cent, while Japans Nikkei closed 0.1 per cent higher. Trade..

Markets

Trade war has no impact on India; can’t blame Trump for everything: Andrew Freris

We cannot possibly link Indias GDP to the United States imposing tariffs on China. It almost makes me laugh, says Andrew Freris, CEO, Ecognosis Advisory. Excerpts from an interview with ETNOW. Some experts including the former Central banker Janet Yellen believes that perhaps a recession can be avoided and that the bond market is predicting low growth but not a full blown downturn. What is your view? First we have to know which markets have got the inverted yield curves and how frequently this has happened. I would like to know if the yield curve is inverted in India. If it is inverted right across the range because in the United States, this morning, it was only inverted between two and five years, it is not inverted anywhere else. I am afraid an enormous amount of noise is being made about the inversion forgetting two things, that for the inverted yield curve to forecast a recession, you have to look at least 20 to 30 years worth of inversions and these are not worth a penny now bec..

Markets

We burn cash: deciphering the WeWork IPO filing

Embed from Getty Images It burns through boats loads of cash, no one knows if it will ever make money and its going to be snapped up by millennials with their Robinhood accounts – WeWork is perfect IPO material in 2019. The last funding round valued the company around $47bn, but this looks lofty. 2019 has been hit-and-miss for unicorn IPOs – WeWork may find it tough going. There is a major whiff of the theyre not losses but investments nonsense. The company today released its S-1 filing ahead of its much-anticipated IPO, which is expected in September. It did not say how many shares or offer a price, we do know it plans to raise at least $3bn. It did report losses of $900,000 on revenues of $1.535bn in the first six months of 2019. Fast growth, high losses: IWG it is not. Heres our very rough first take on the document. Profit? 1) WeWork may not be profitable, ever: Management says: “We cannot predict whether we will achieve profitability for the foreseeable future. Although we..

Markets

European stocks back in red on China trade threat to US

European stock markets have fallen firmly into the red after Chinas finance ministry said the government has to retaliate against the latest US tariffs on $300bn worth of its goods. Read more: Recession warning lights flash red as UK and US yield curves invert The ministry also said the move by US President Donald Trump to threaten tariffs of 10 per cent on the goods breached a consensus reached by the leaders of the two sides. The escalation by the Trump administration would mean tariffs applied to almost all Chinese exports to the US. The US has since suspended over $150bn of the 10 per cent tariffs but it currently levies over $250bn of Chinese goods at a higher rate. Britains FTSE 100 fell 0.9 per cent in morning trading to multi-month lows, the German Dax index fell 0.6 per cent and Frances CAC 40 fell 0.4 per cent. The statement came after Asian markets closed. The Shanghai composite index finished up 0.3 per cent while Hong Kongs Hang Seng rose 0.8 per cent after Trump twee..

Markets

Walmart’s earnings beat allays worry over tariff impact for now

WASHINGTON: US retailer Walmart Inc reported strong second-quarter results and raised its earnings expectations for the year, temporarily sidestepping concerns around consumer demand in the wake of tariffs on imports from China. Walmart's performance was helped by shoppers who spent more at its stores and websites, indicating the U.S. consumer economy has not lost steam, sending its shares up 4.6% in early trading. The world's largest retailer posted a 20-quarter, or five-year, streak of U.S. growth, unmatched by any other retail chain. On Wednesday, Macy's Inc lowered its annual earnings outlook amid worries over tariff-related price hikes and the resultant impact on demand. On Thursday, JC Penney posted a 9-percent drop in sales. Analysts said the contrast in performance indicates there is no evidence to suggest a broad drop in demand in the economy and retailers posting lower growth need to improve their business strategies. U.S. retail sales surged in July,..

Markets

City watchdog failing to protect consumers from high-risk investment firms

Another day another investment scheme collapse. This time it is mini-bond firm Asset Life. News broke today that the company had crashed into administration last month owing more than 500 investors £8m. Asset Life had close links with fellow mini-bond firm London Capital & Finance (LCF), which went bust in December owing 11,600 investors £236m. While LCF may grab headlines, it is only the most prominent of a string of investment firms to have gone bust in recent months, leaving investors millions of pounds out of pocket. In March, bond investment firm MJS Capital which raised up to £30m from investors went into administration; in May property investment firms Harewood Associates and Mederco both went to the wall owing investors and creditors £32m and £27m respectively; and in June foreign exchange investment firm Hudspiths shut up shop owing clients £40m. Read more: London Capital & Finance investors rage against the FCA Although the FCA belatedly intervened in LCF and the S..

Markets

European equities fall back after German economy shrinks

European stock markets have fallen into the red this morning after Germanys economy shrank in the second quarter. Read more: German economy shrinks in second-quarter as exports slump Equities were also levelling out after US President Donald Trump put a rocket under global markets yesterday by announcing his country would hold back on some planned tariffs on Chinese goods. Germanys benchmark stock index, the Dax, slipped 0.5 per cent this morning after official data showed the countrys economy contracted by 0.1 per cent in the second quarter compared to the first. The weakness in Europes largest economy dragged down Frances CAC 40 by 0.5 per cent, while the pan-European Euronext 100 had dropped 0.4 per cent in early trading. Britains FTSE 100, more detached from the Eurozone economy, was flat-lining. Investors selling equities moved towards so-called safe-haven assets such as government bonds. The yield, which moves inversely to the price, on 10-year German Bunds fell 1.6 per cen..

Markets

Beware picking an investment – or a football team – for its glory days

Football being what it is, Liverpools triumphant Champions League campaign – with that extraordinary semi-final comeback against Barcelona to the fore – was never going to have every single club fan in the country up on their feet and cheering. Nevertheless, the weeks from the teams victory over Spurs in June to the start of the new season this week have been a reminder of just how many Liverpool supporters there are. We are not just talking about the 750,000 people who turned out to cheer the players during an open-top bus parade through Liverpool the day after the final. No, the phenomenal success the club enjoyed in the 1970s and 1980 has ensured a surprising number of fans up and down the country – and largely of a certain vintage. As they now look confidently towards the new Premiership season and the possibility of going one better than last terms runner-up position, however, to what degree we wonder were their younger selves guilty of the behavioural sin of base rate neglect..

Markets

US pulls back from applying fresh tariffs to Chinese tech goods

The Trump administration has pulled back from slapping tariffs on certain products from China such as laptops and mobile phones, providing relief for jittery global investors. Read more: Tariffs hurting US manufacturers, says Trumps ex-economic adviser At the start of the month the US announced it would apply 10 per cent tariffs to $300bn of Chinese goods, meaning nearly all imports from China are levied following a ramping up of tariffs in May. Yet the US trade representatives office said today in a statement that tariffs would be delayed until mid-December for products such as “cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing”. “Certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent,” it said. The announcement sent US stocks rocketing after they opened lower. The tech-heavy Nasdaq index ro..

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