Key Economic News
UK house price balance advanced in February
In February, house price balance registered a rise to 50.00 in the UK, at par with market expectations. In the previous month, house price balance had recorded a revised level of 48.00.
UK NIESR estimated GDP advanced in the December-February 2016 period
The NIESR estimated gross domestic product (GDP) in the UK recorded a rise of 0.30% in the December-February 2016 period on a monthly basis. NIESR estimated GDP had advanced 0.40% in the November-January 2016 period.
UK manufacturing production fell less than expected in January
Manufacturing production registered a drop of 0.10% in the UK on a YoY basis in January, compared to a fall of 1.70% in the previous month. Markets were expecting manufacturing production to fall 0.70%.
UK manufacturing production rose more than expected in January
Manufacturing production recorded a rise of 0.70% in the UK, on a MoM basis in January, more than market expectations for an advance of 0.20%. In the previous month, manufacturing production had fallen by a revised 0.30%.
UK industrial production surprisingly rose in January
On an annual basis, industrial production recorded an unexpected rise of 0.20% in the UK, in January, more than market expectations for a steady reading. Industrial production had fallen by a revised 0.20% in the prior month.
UK industrial production rose less than expected in January
On a MoM basis in January, industrial production registered a rise of 0.30% in the UK, less than market expectations for an advance of 0.40%. In the prior month, industrial production had registered a drop of 1.10%.
French business sentiment index slid unexpectedly in February
In February, the business sentiment index in France fell unexpectedly to a level of 98.00, compared to a reading of 101.00 in the previous month. Market expectation was for the business sentiment index to record a steady reading.
Spanish housing price index slid in 4Q 2015
On a QoQ basis, the housing price index recorded a drop of 0.10% in Spain, in 4Q 2015. In the previous quarter, the housing price index had climbed 0.70%.
US wholesale inventories surprisingly climbed in January
In the US, the seasonally adjusted wholesale inventories unexpectedly climbed 0.30% on a MoM basis in January, higher than market expectations for a drop of 0.20%. In the previous month, the wholesale inventories had registered a revised unchanged reading.
US mortgage applications recorded a rise in the last week
Mortgage applications recorded a rise of 0.20% in the US on a weekly basis, in the week ended 04 March 2016. In the prior week, mortgage applications had dropped 4.80%.
BoC held its key interest rate
The Bank of Canada (BoC) held its key interest rate at 0.50%. Markets were anticipating the central bank to hold its key interest rate at 0.50%.
BoC kept interest rate steady
The BoC chose to keep its overnight interest rate unchanged at 0.5% as widely anticipated. In a statement accompanying the rate announcement, the central bank stated that the global economy has progressed largely as it had projected in its January Policy Report. In addition, the statement pointed out that both the price of oil and the Canadian Dollar are close to levels the bank had forecasted in January. The BoC was generally upbeat about near-term economic conditions and added that recent inflationary pressures will likely unwind in the coming months.
Japanese domestic corporate goods price index dropped as expected in February
The domestic corporate goods price index dropped 3.40% on an annual basis in February, in Japan, meeting market expectations. The domestic corporate goods price index had recorded a revised drop of 3.20% in the previous month.
Japanese investors became net buyers of foreign bonds in the previous week
Japanese investors remained net buyers of ¥1537.90 billion worth of foreign bonds in the week ended 04 March 2016, as compared to being net buyers of a revised ¥932.40 billion worth of foreign bonds in the prior week.
Japanese domestic corporate goods price index declined less than expected in February
In February, the domestic corporate goods price index fell 0.20% in Japan on a monthly basis, compared to a revised drop of 1.00% in the previous month. Market anticipation was for the domestic corporate goods price index to ease 0.30%.
Japanese average office vacancies in Tokyo recorded a rise in February
In February, on a MoM basis, average office vacancies in Tokyo registered a rise of 4.04% in Japan. Average office vacancies in Tokyo had risen 4.01% in the prior month.
Japanese machine tool orders recorded a drop in February
The preliminary machine tool orders fell 22.60% on an annual basis in Japan, in February. In the previous month, machine tool orders had dropped 17.20%.
Japanese investors became net buyers of foreign stocks in the previous week
Japanese investors remained net buyers of ¥252.40 billion worth of foreign stocks in the week ended 04 March 2016, from being net buyers of ¥382.30 billion worth of foreign stocks in the prior week.
Foreign investors turned net sellers of Japanese bonds in the previous week
Foreign investors turned net sellers of ¥86.30 billion worth of Japanese bonds in the week ended 04 March 2016, from being net buyers of ¥211.80 billion worth of Japanese bonds in the previous week.
Foreign investors remained net sellers of Japanese stocks in the previous week
Foreign investors remained net sellers of ¥138.50 billion worth of Japanese stocks in the week ended 04 March 2016, from being net sellers of a revised ¥1015.80 billion worth of Japanese stocks in the prior week.
Chinese consumer price index rose more than expected in February
On an annual basis, the consumer price index in China climbed 2.30% in February, compared to an advance of 1.80% in the previous month. Markets were expecting the consumer price index to climb 1.80%.
Chinese producer price index declined as expected in February
The producer price index in China registered a drop of 4.90% in February on an annual basis, compared to a drop of 5.30% in the prior month. Markets were expecting the producer price index to fall 4.90%.
The Times
Drinks baron sought after making spirited disappearance: Mystery surrounded the whereabouts of Vijay Mallya as a consortium of international bankers sought a court order to prevent the former drinks baron from leaving India.
Shares follow same spiral as G4S’s ragged reputation: The soaring costs of a duff government asylum-seekers contract and falling cashflows sent G4S shares plunging to their worst levels since the depths of the global financial crisis.
Deutsche Borse raises $1.1 billion in Nasdaq deal: Deutsche Borse is to sell one of its businesses for more than $1 billion days before it is expected to announce a deal with the London Stock Exchange.
Don’t block exports to Iran, banks told: David Cameron has rebuked Barclays for hampering companies trying to export to Iran as Ministers prepare for a high-level trade mission.
Hunt continues for missing Congo miners: Glencore is searching for five workers unaccounted for after a landslide at one of its copper mines.
The rag trade just turned to riches for Inditex staff: Thousands of workers at Inditex are to share a big cash payout after another stellar year of sales and profits for the world’s biggest fashion retailer.
Pension cuts on horizon for BHS workers: Thousands of BHS staff are set to have their retirement entitlements cut in one of the biggest pension shortfalls in the U.K.
The Independent
Ryanair launches corporate jet service for business travellers: Ryanair is launching a corporate jet service that even offers passengers fine dining.
George Osborne faces GDP downturn despite manufacturing bounce: U.K. growth slipped in the quarter to February but the economy could be over the worst of its recent blip, a leading forecaster said.
Sports Direct’s Mike Ashley warned by MPs after dodging Parliament hearing: Mike Ashley, the billionaire Founder of Sports Direct, has been threatened with being found in contempt of Parliament after failing to agree a date to be questioned by MPs on the influential Business, Innovation and Skills Select Committee.
Suitcase maker Trunki loses design copyright fight against Hong Kong rival PMS in Supreme Court: The maker of Trunki-ride on suitcases has lost a Supreme Court fight against a rival it claimed was breaching its intellectual property rights.
Bank of England rapped for misleading public on U.K. financial safety: A senior official at the Bank of England has been accused of misleading the public about the safety of U.K. banks.
Financial Times
Google computer beats world champion of Chinese board game Go: Google has hit a milestone for artificial intelligence, as its AlphaGo computer outwitted the world champion of the ancient Chinese board game of Go.
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MPs reject plans to extend Sunday opening hours: Plans to extend Sunday shop opening hours suffered a setback after the government was defeated by 31 votes in the Commons — a reminder of the Conservatives’ fragile parliamentary majority.
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U.K. manufacturing shows signs of life: British industry started the new year in better shape than had been feared, with overall industrial production and manufacturing rebounding from a poor pre-Christmas period.
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Miguel Galuccio resigns from Argentina’s YPF: Miguel Galuccio, Chief Executive of Argentina’s state-controlled oil company YPF, has resigned amid tensions with the new government.
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Moody’s to withdraw from Russian domestic market: Moody’s is withdrawing from the Russian domestic market as global rating agencies are caught in a dilemma between new Russian laws and western sanctions.
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Rusal in talks over debt restructuring: Rusal, the world’s second-largest aluminium producer by output, has renegotiated its banking covenants and asked lenders to refinance some of its $8.4 billion debt pile, underlining the painful impact of the rout in commodity prices.
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Yoox Net-a-Porter defies China slowdown with revenue rise: Yoox Net-a-Porter, the online seller of Gucci handbags and Jimmy Choo shoes, defied the Asian economic slowdown to beat expectations with its 2015 results.
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Shutterstock signs distribution deal with Associated Press: Shutterstock has inked a three-year distribution deal with the Associated Press to add the news agency’s photos, videos and image archive to the U.S. stock picture service.
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Sunil Mittal readies for a 4G battle against Mukesh Ambani: Billionaire tycoon Sunil Mittal has warned that India’s battered telecoms market must brace for new price wars, as his Bharti Airtel group prepares for the return of Mukesh Ambani, the country’s richest man, to the sector this year.
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WeWork raises $430 million for push into Asia: WeWork has raised $430 million from Chinese investors in a fundraising that values the office space start-up at $16 billion and will help it expand into Asia.
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Lex:
U.S. MLPs: courting disaster: MLPs firms were typically pipeline operators. Their revenues were codified by strict contracts with drillers, calling for minimum volumes and payments over long periods.
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G4S: safety in numbers: G4S specialises in security. The U.K.-listed company helps manage prisons, ensures the safe movement of cash between retailers and banks, and generally provides a watchful eye. How well the company protects shareholder value is another matter.
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U.K. rail: dogged by uncertainty: In the U.K.’s privatised rail industry, competition is the dog that did not even whimper, let alone bark. More than 20 years after British Rail was broken up, trains that run under franchise agreements — essentially regulated monopolies — account for 99% of passenger miles.
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Lombard:
Pru Boss is halfway between Superman and Clark Kent: Prudential’s new Boss Mike Wells bears a passing resemblance to Superman in his Christopher Reeves-era incarnation. Mr Wells has some ability to soar. The insurer’s annual pretax profits, the first which he fronted, were some £500 million higher at £3.1 billion.
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Chocs aweigh: Restaurants customarily involve an element of theatre. But you would need to suspend your disbelief from a tower crane to imagine that a Frankie & Benny’s on a retail park in Slough is a family-run joint in Little Italy.
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The Daily Telegraph
Britain warned it wields no power in German dominated EU: Britain has little or no say over decisions made in a European Union increasingly dominated by German interests, Iceland’s prime Minister has said.
Google’s Eric Schmidt says driverless cars could hit U.K. streets: Google is considering trialling its driverless cars in the U.K., the Chairman of its parent company has revealed.
Oil shares soar as Brent breaks above $40: Shares in U.K. oil explorers have climbed as much as 50% in the past week as Brent crude repeatedly broke above the $40-a-barrel mark and smaller oil players have shown the first signs of emerging from the global downturn.
Sky turns to Vice to draw in millennials: Sky has agreed a deal with the youth media company Vice to launch Viceland, its first European television channel, later this year.
UBS and Deutsche Bank lose ‘Houdini’ bonus tax dodge case: Investment banks UBS and Deutsche Bank must cough up taxes they attempted to dodge in 2004 when paying bonuses to staff, the Supreme Court has ruled.
Eon doubles record loss as renewables bite: Energy giant Eon doubled its record losses last year after writing off €8.8 billion (£6.8 billion) from its coal and gas power plants as the rise of renewables continues to erode profits in Europe’s wholesale electricity markets.
Turkey leads global house price league table with 18% rise: House prices in Turkey rose by 18% last year, faster than anywhere in the world, according to a new global league table.
Housing costs must be included in inflation measure, says top official: Britain’s statistics office is a step closer to including homeowner costs in the official measure of inflation after the U.K.’s top statistician recommended the move.
Bank watchdogs clash over stability rules: The Bank of England has not watered down the capital requirements for big banks, deputy Governor Andrew Bailey insisted, hitting back at criticism from Sir John Vickers.
The Guardian
Michael Horn, VW’s U.S. President, resigns ‘effective immediately’: The head of Volkswagen in the U.S. resigned “effective immediately” on Wednesday night as the company struggles to agree on a settlement with the U.S. government over its emissions cheating scandal.
No legally binding contract in £18 billion Hinkley Point nuclear project: The energy company behind the Hinkley Point nuclear project has still not signed off a contract with its Chinese partner that is needed for the £18 billion plant to go ahead.
Osborne’s climbdown on pension tax relief was ‘missed opportunity’: George Osborne’s decision to back down from making radical changes to pensions tax relief was a “missed opportunity” to boost the retirement pot of the average British worker by more than 14%, according to an analysis by the Resolution Foundation thinktank.
U.K. factory output soars after three months of decline, official figures show: Britain’s factories bounced back from a dismal 2015 to post a solid increase in output in the first month of the new year, official figures have shown.
Daily Mail
Hopes of a takeover at Burberry fade after mystery investor is revealed to be a group of clients: Burberry shares slammed into reverse as hopes of a takeover battle for the British fashion chain appeared to be dashed.
We’ll all be working in hospitals, offices and classrooms by 2025 thanks to the rise of the robots: More than three million jobs will be created over the next decade as British workers swap the factory floor for offices, schools and hospitals, according to a report published.
Dividend windfall for Prudential shareholders as strong life performance boosts profits 22%: Prudential will pay its shareholders a 10p special dividend and hike its 2015 total payout to more than 38p a share after profits for the year rose 22%.
Pent-up demand driving car sales says Boss of Lookers dealership chain who predicts sales will increase 5% this year: Britain’s car sales boom looks set to roll on as the Boss of a leading dealership chain predicted there was still ‘pent-up demand to fill’.
Shares plunge 23% at Restaurant Group as its dated brands are left behind in Britain’s dining-out revolution: More than £260 million was wiped off the value of the Restaurant Group, which owns Garfunkel’s, Frankie & Benny’s and Chiquito, as fears grow that it is losing Britain’s dining-out revolution.
Bank of England ‘still more likely to raise than cut interest rates’ as industry makes feeble comeback: The Bank of England is still more likely to raise interest rates than to cut them over the next two years, one of its policymakers said, amid speculation that his colleagues could be considering new ways to revive a stalling economy.
Firms must spell out Brexit costs to investors, corporate watchdog says: British companies have been told they must warn investors if leaving the European Union poses a threat to their business.
Daily Express
Bank of England Governor Mark Carney should ‘consider resigning over pro-Europe comments’: The Bank of England Governor should consider resigning after his warning that a Brexit is the biggest threat to the economy, critics said.
Zero hour contracts jump to record high ‘crisis’ level: A surge in workers who don’t know how many hours they will work from one week to the next has created a national crisis, according to critics.
Proof economy will survive Brexit: Amazon to create 1,000 U.K. jobs: Online shopping giant Amazon has announced the creation of 1,000 jobs in Manchester proving business investment is not being deterred by the prospect of Britain leaving Europe.
The Scottish Herald
Experts predict growth in Scotland will lag U.K. this year: Growth in Scotland’s economy will lag behind the U.K. average this year, experts have predicted citing concern about the country’s performance in key areas such as investment in research and development.
Glasgow brewer West says investment highlights scale of ambition as it enters second decade: The Founder of Glasgow brewer West has declared that recent multi-million-pound investment in increased capacity and a wedding venue underlines ambitions to take the business “much further” in its second decade.
U.K. oil and gas extraction tumbled in January amid stormy weather but up year-on-year: U.K. oil and gas extraction tumbled by 6.3% during January amid stormy weather, limiting growth in broader industrial production to 0.3%, official figures have shown.
Scottish businesses get help to scale up from Harvard and MIT: Harvard Business School and Massachusetts Institute of Technology are to help Scottish entrepreneurs grow their businesses.
EP Global relies on Japan to stay ahead: EP Global Opportunities saw net asset value rise by 1.6% last year, and made a total return of 2.9%.
The Scotsman
Cairn buoyed by results from latest Senegal test well: Oil and gas explorer Cairn Energy said it was “delighted” with the results from its latest test well off the coast of West Africa.
Hotel Chocolat looks to raise £50 million in market debut: Chocolatier and retail chain Hotel Chocolat unveiled plans to raise about £50 million by floating on the London market.
Thistle Foundation turns to the cloud with Pulsant: An Edinburgh charity that helps people with disabilities and health conditions has updated its IT systems through a deal with cloud computing firm Pulsant.
Property body calls for forum to spark revival: The Scottish Property Federation (SPF) will call upon the Scottish government to create a cross-departmental “real estate forum” that it claims could provide momentum to restore jobs and economic clout to the sector to pre-2008 levels.
City A.M.
PwC: U.K. economy to add another three million jobs over the next decade: The sector will drive economic growth over the next decade as the U.K. creates another three million jobs, a financial services giant has forecast.
U.K. immigration: British Bankers Association (BBA) says plans to tighten immigration rules would undermine the City: Plans to tighten immigration rules and impose a new tax for employing non-EU migrant workers would damage the City, a leading business group is warning.
Nearly three-quarters of U.K. Executives report M&A deal delays because of data loss, research finds: Nearly three-quarters of U.K. Executives involved in mergers and acquisitions (M&A) have admitted to deals being delayed because of critical data loss, according to new research.
Facebook acquires special effects photo-sharing app creator Masquerade: Facebook is acquiring Masquerade, the creator of the MSQRD app.
Teva expected to win European Commission approval for $40.5 billion Allergan deal: Teva Pharmaceutical Industries is expected to win antitrust approval from the European Commission for a $40.5 billion (£28.5 billion) bid for Allergan’s generics unit.
Societe Generale to cut 550 jobs over next five years: Societe Generale is to cut 550 jobs over the next five years. The bank confirmed it is targeting 550 job reductions in the back offices of its French retail banking network, resulting in the closures of six out of 20 locations.
Portmeirion breaks sales record for seventh year in a row: Ceramics group Portmeirion hailed its seventh consecutive year of record sales in spite of the slowdown South Korea and challenges presented by the building of a new kiln at its Stoke-on-Trent factory.
