Japan's deficit grew to a record 1.5trn yen in January, as economic growth disappoints
 |
| Japan's current account deficit grew to a record 1.5trn yen Photo: Alex Segre / Alamy
9.42 Back in the stock market, engine-maker Rolls-Royce is among the biggest risers, up 2.5pc after it was disclosed on Friday evening that it would buy-out Daimler’s 50pc stake in their power systems joint venture. Cantor Fitzgerald analyst Andy Chamber said:
The acquisition should be modestly accretive as RR generates little income from its cash and Rolls-Royce Power Systems contributed almost £300m to earnings before interest and taxes last year (15pc).
French central bank holds Q1 growth forecast at 0.2pc
09.13 The French economy is expected to grow by 0.2pc in the first quarter, the country's central bank said Monday, confirming a preliminary forecast issued a month ago.
The bank makes its forecasts based on a monthly survey of a panel of private sector executives, who have reported that business confidence remained largely unchanged in February.
The central bank noted that industrial production was "steady"across almost all sectors in February. This was particularly so in the chemical, pharmaceutical as well as machines and equipments industries.
"Deliveries are intensifying" while "the order books are filling out somewhat", said the bank which also expects business activity to improve slightly in March.
In the services sector, a "slight rise in activity" is seen in March.
Weak China data hits miners
09.04 Over in the FTSE 100, weak economic data from China - the world's biggest metals consumer - has hit mining shares, with Glencore Xstrata down 1.7pc, Anglo American off 1.6pc and Antofagasta 1.3pc lower. Rebecca O'Keeffe, head of investment at broker Interactive Investor, said:
China's 7.5pc growth target may only be a week old, but it is already under threat from some truly awful export numbers. The shock drop in exports raises serious questions about how realistic Chinese growth prospects are and casts doubt on their current target. This increased uncertainly is not helpful for either the commodity market or wider global equity markets.
Asian markets down
08.28 Asian stock markets are down, battered by weak Chinese trade and a reduced estimate for Japan's economic growth. Shares in Malaysia Airlines tumbled on news of the weekend disappearance of one its jets enroute to Beijing.
Japan's Nikkei closed down 1pc and Hong Kong's Hang Seng dropped 1.75pc.
Markets were also down in Australia, Taiwan, South Korea and Southeast Asia.
Data released on the weekend showed China's exports fell by an unexpectedly large 18 pc in February, possibly denting hopes trade will help drive the slowing economy while communist leaders push ambitious reforms.
China's official 2014 economic growth target of 7.5pc, announced last week by Premier Li Keqiang, assumes trade also will grow by 7.5pc. But customs data show combined imports and exports so far this year have shrunk by 4.8pc.
08.15 Europe's main stock markets fell at the start of trading on Monday, with London's benchmark FTSE 100 index down 0.1pc.
Frankfurt's DAX 30 slid 0.48pc to 9,305.51 points and in Paris the CAC 40 dipped 0.08pc to 4,363.02 compared with Friday's closing values.
City briefing
08.09 Louise Armistead has rounded up some of the major business news this morning in her City Briefing email.
In company announcements today, Clarkson, the shipping services group, has announced a 12pc rise in full year revenues to £198m and a 26pc jump in underlying pre-tax profits.
GlaxoSmithKline, has increased its stake in its Indian subsidiary from 50.7pc to 75pc following a voluntary open offer.
Greggs has appointed two new non-executive directors, Peter McPhillips and Sandra Turner, to replace two retiring directors at the annual meeting in May. Armour Group has announced the disposal of its automotive division to AAMP of America for £10.9m. And Helical Bar has acquired two interlinked office building in Manchester for £34m.
Labour has announced that its "jobs guarantee" scheme for young unemployed people will be extended to cover the whole of the next election, should the party win in May 2015.
Under the scheme, 18 to 24 year olds who have been out of work for a year will be offered a tax-payer funded job for six months - which they will have to take or lose their benefits. The Tories reckon Labour's sums "don't add up" but Ed Balls has promised to use a bank bonus tax to pay for it.
Banana companies merge
07.50 Chiquita and Fyffes have combined to create the world's largest banana company.
Together, the two banana producers have an equity value of $1.07bn, and plan to be listed on the New York stock exchange.
The massive banana firm will be called chiquitafyffes.
Japan's deficit hits record as economic growth disappoints
07.30 Japan's current account deficit grew to a record 1.5trn yen (£8.7bn) in January, the largest since records began in 1985.
The deficit is far above estimates for a 1.4trn yen deficit as shipments failed to increase despite a weaker yen.
The country's fourth quarter growth was revised down with Japan's economy growing at an annual rate of just 0.7pc in 2013, below the estimates of 1pc.
The disappointing figures add to a recent run of soft indicators that have raised doubts about Prime Minister Shinzo Abe's strategy to spark sustainable growth through massive monetary and fiscal stimulus, as well as structural reforms.
"Abenomics" helped the economy grow above an annual clip of 4pc in the first half of last year - the best among advanced economies - but growth slowed to below 1pc in the second half as exports, capital spending and private consumption lagged.
The Bank of Japan began a two-day policy review today amid growing expectations the central bank will further ease policy as early as next month to steer the economy through some speed bumps.
Today's business stories
07.15 Here's what's leading our business pages this morning
• The Co-operative Group defends plans to pay chief executive Euan Sutherland £3.6m for his first year in the job, report Rebecca Burn-Callander and Emily Gosden
• Szu Ping Chan reports that UK will surpass pre-crisis levels earlier than expected, according to the BCC
• Amazon is to develop its own computer games, pitting the retail giant head to head against the likes of Nintendo and Electronic Arts, reports Katherine Rushton
|
09.04 Over in the FTSE 100, weak economic data from China - the world's biggest metals consumer - has hit mining shares, with Glencore Xstrata down 1.7pc, Anglo American off 1.6pc and Antofagasta 1.3pc lower. Rebecca O'Keeffe, head of investment at broker Interactive Investor, said:
China's 7.5pc growth target may only be a week old, but it is already under threat from some truly awful export numbers. The shock drop in exports raises serious questions about how realistic Chinese growth prospects are and casts doubt on their current target. This increased uncertainly is not helpful for either the commodity market or wider global equity markets.
News Source: www.telegraph.co.uk
.jpg)
0 comments:
Post a Comment