Author: The Telegraph

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Business

Blow for China as economy slides back into deflation Business

Thanks for joining me. China edged back into deflation territory as the world’s second largest economy was hit by weaker consumer demand during public holidays.

The consumer price index fell 0.2pc in October, declining in large part as a result of a 30.1pc plunge in the price of pork.

5 things to start your day 

1) Why Lloyd’s of London’s slavery reckoning is just the start for the City | Efforts to address historic links to slavery are opening up a wider debate about reparations

2) M&S’s secret weapon: discount outlets | Sales are booming as cash-strapped shoppers flock to retail parks in search of bargains

3) Questor: This bargain investment trust is poised to deliver strong share price growth | JP Morgan investment trust is poised to deliver strong share price growth

4) Government bonds have become the most attractive investment there is | As we reach the top of the interest rate cycle, now is the moment to time the market

5) The risks our children face online are just as serious as those in the real world | We must tackle digital risks head on for our children’s sake

What happened overnight 

Asian share markets rallied, even as global investors again sold off the troubled mainland Chinese property sector.

Australian shares were up 0.3pc, while Japan’s Nikkei stock index rose 1.5pc.

Hong Kong’s Hang Seng Index reversed an early gain and was down 0.3pc in the afternoon while China’s bluechip CSI300 Index was 0.1pc higher.

China’s troubled property sector is being closely watched after most major stocks rallied on Wednesday following a Reuters report that Ping An Insurance Group had been asked by the Chinese authorities to take a controlling stake in Country Garden Holdings .

A spokesperson for Ping An said the company had not been approached by the government and denied the report.

The Hang Seng Mainland Properties Index shed 3.7pc and the Hang Seng Properties Index, which covers Hong Kong developers, was down 0.7pc.

On Wednesday, the S&P 500 rose 0.1pc and the Nasdaq Composite added 0.1pc. This extended their winning streaks to eight and nine consecutive sessions respectfully. The Dow Jones Industrial Average fell 0.1pc.

The two-year Treasury yield, which reflects interest rate expectations, rose two basis points to 4.938pc, while the yield on the benchmark 10-year note slid 6.2 basis points to just above 4.50pc.

Oil prices enjoyed a small bounce but made little impact on the losses of nearly seven percent seen in the previous two days caused by demand worries and easing fears over the Middle East crisis. 

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Source: www.telegraph.co.uk
This notice was published: 2023-11-09 06:47:38

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Business

M&S losses in Ocado deepen as it pursues turnaround plan – latest updates Business

Thanks for joining me. Marks & Spencer has revealed a sharp increase in losses in its partnership with Ocado as it closed a warehouse under its turnaround plan for the tie-up.

M&S suffered an adjusted loss of £23.4m in the six months to September from its share in the Ocado Retail partnership.

However, overall pre-tax profits grew by 56.2pc to £325.6m and sales were up 10.8pc to £6.2bn.

5 things to start your day 

1) The rise and fall of online dating queen Whitney Wolfe Herd | Departure of Bumble’s founder comes at a critical juncture for online dating

2) Winter arrives early for the consultant class as job cuts hit the City | Scandals, falling demand and a worker glut have thrown the professional services industry into crisis

3) City environmental and diversity red tape plans dropped in bid to boost competitiveness | Move follows concerns that the Square Mile is losing its competitiveness to Wall Street

4) JD Sports faces questioning over former chief’s non-compete deal | Peter Cowgill’s exit package is being questioned as he backs sports equipment maker

5) Bungalows near extinction as construction falls to 80-year low | Downturn in construction of the homes is being blamed in part on high interest rates

What happened overnight 

Stocks in Asia fell as investors waited to hear more from Federal Reserve officials who are due to speak this week, including chairman Jerome Powell. 

Tokyo stocks gave up early gains and fell despite Wall Street rallies, as the market was weighed down by losses of bank and steel shares.

The benchmark Nikkei 225 index fell 0.3pc, or 105.34 points, to end at 32,166.48, while the broader Topix index lost 1.2pc, or 26.96 points, to 2,305.95.

Hong Kong’s Hang Seng shed 0.5pc to 17,585.60, while the Shanghai Composite declined 0.2pc to 3,049.92. 

Gloom over worse-than-expected export data offset any positive momentum from an upgrade to China’s growth forecast by the International Monetary Fund. It raised its GDP growth forecast for 2023 to 5.4pc from 5pc but forecast that growth will slow next year.

South Korea’s Kospi lost 0.9pc to 2,421.62. Australia’s S&P/ASX 200 gained 0.3pc to 6,995.40.

It was a strong day for American stock markets on Tuesday. 

The S&P 500 rose for a seventh day, fuelled by enthusiasm for cloud computing shares. Microsoft hit a all-time high, reaching a record $360.53 a share (up 1.1pc). 

During the day, the S&P 500 gained 0.3pc, the Nasdaq Composite grew 0.9pc and the Dow Jones Industrial Average rose 0.2pc.

Treasury yields fell as US Federal Reserve officials on Tuesday suggested that the central bank could be near the end of its tightening cycle. The two-year’s yield, which reflects interest rate expectations, fell 2.8 basis points to 4.913pc. The 10-year dropped 8.7 basis points at 4.575pc.

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Source: www.telegraph.co.uk
This notice was published: 2023-11-08 07:21:17

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Business

House prices unexpectedly rise amid seller caution Business

Thanks for joining me. House prices rose in October, breaking a cycle of six consecutive monthly falls, according to mortgage lender Halifax.

It said homes were worth 1.1pc more than in September, raising the average price of a UK property by around £3,000 to  £281,974.

5 things to start your day 

1) Britain unable to process up to half of North Sea oil from new wells, campaigners warn | Lack of refineries suited to processing heavy crude oil means exports are unavoidable

2) Why Sunak is gambling his legacy on overhauling pensions in the King’s Speech | Despite the risks the Tories are betting on the appeal of reforms ahead of an election

3) Rishi Sunak risks walking headlong into the next tech bubble | Our first LinkedIn PM should heed the warnings of a very recent history

4) EV uptake stalls after Sunak pushes back net zero deadlines | New figures pile pressure on the Government to unveil incentives to boost sales

5) Hunt plots overhaul of pensions tax to boost investment | Easier access to fund surpluses could provide an immediate investment boost

What happened overnight 

WeWork, the SoftBank-backed start-up, has filed for bankruptcy. 

The firm reported liabilities of up to $50bn, according to a bankruptcy filing in a New Jersey court. The filing gives WeWork some legal protection from creditors as it negotiates more favourable leases with landlords. 

WeWork shares have fallen about 98.5pc so far this year and on Monday night were trading at just $0.84, down from $88.80 in February. 

Meanwhile, shares mostly fell in Asia after a mixed close on Wall Street, where wild recent moves calmed a bit at the beginning of a quiet week for data releases.

Benchmarks dropped more than 1pc in Hong Kong and Tokyo. South Korea’s Kospi gave up 2.7pc of its big gains from a day earlier.

Tokyo’s Nikkei 225 declined 1.3pc to 32,271.82 and the Hang Seng in Hong Kong dropped 1.4pc to 17,710.68. The Shanghai Composite index slipped 0.1pc to 3,055.74.

Stocks markets in America failed to gain much traction on Monday as bond yields rose. 

The Dow Jones closed up a mere 0.1pc at 32909.6, while the S&P 500 rose 0.18pc to end at 4,365.98. The Nasdaq rose 0.3pc to finish at 13,518.78.

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Source: www.telegraph.co.uk
This notice was published: 2023-11-07 07:08:16

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Business

Sir William Lewis, former editor of The Telegraph, named as Washington Post publisher Business

Sir William Lewis, the former editor of The Telegraph has been named publisher and chief executive of the Washington Post.

His appointment was announced by the Washington Post on Saturday night.

Sir William was editor of the Daily Telegraph when the paper broke the story of the MPs’ expenses scandal.

The Telegraph was named newspaper of the year in 2009  for its coverage of the scandal which led to a raft of resignations and several prosecutions.

Sir William, who was knighted earlier this year, joined the Murdoch-owned News Corporation in 2010.

He also served as CEO of Dow Jones and publisher of the Wall Street Journal from 2014 to 2020.

Sir William is now an entrepreneur with The News Movement, a start-up which aims to deliver non-partisan news to a young audience.

His appointment at the Washington Post was announced to the staff by the paper’s owner, Jeff Bezos, who said Sir William’s background in journalism made him a “strong fit” for the post.

“As I’ve gotten to know Will, I’ve been drawn to his love of journalism and passion for driving financial success,” Mr Bezos wrote.

“Will embodies the tenacity, energy and vision needed for this role. He believes that together we will build the right future for The Post. I agree.”

Sir William, who replaces Fred Ryan, takes over with the paper facing financial challenges with a decline in readers and subscribers.

The company, which is aiming to reduce its headcount by approximately 10 per cent, is offering redundancy packages to staff.

According to the paper, it is projected to make a $100 million loss this year.

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Source: www.telegraph.co.uk
This notice was published: 2023-11-05 03:58:30

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Business

Global shipping giant Maersk announces 10,000 job losses Business

Thanks for joining me. Shipping giant Maersk has announced it will cut 10,000 jobs next year as it tries to save $600m amid falling demand for freight.

It comes as the company suffered a  $10.6bn (£8.7bn) decline in revenues in the third quarter of the year.

5 things to start your day 

1) Sam Bankman-Fried found guilty of defrauding FTX customers | A jury in Manhattan federal court convicted him on all seven counts of fraud, embezzlement and criminal conspiracy

2) Apple suffers longest slump in over 20 years as Chinese sales suffer | The downturn comes as Apple battles a global drop off in smartphone sales

3) Britain faces recession risk in election year, warns Bank of England | Threadneedle Street slashes growth forecasts after holding rates at 5.25pc

4) ChatGPT boss says lack of AI skills risks locking older workers out of the job market | Research shows younger employees are much more likely to make use of chatbots at work

5) Elon Musk tells Sunak AI will mean people no longer need to work | Tesla boss said AI would “do everything” in the future and people would decide to have jobs only if they want to for “personal satisfaction”

What happened overnight 

Asian shares advanced after Wall Street roared higher on bets that market-rattling interest rate hikes are coming to an end.

Hong Kong’s Hang Seng added 1.2pc to 17,296.34, while the Shanghai Composite edged 0.1pc higher to 3,026.32. Tokyo markets were closed for a holiday.

In China, a services industry survey showed a slight improvement in October, though retail sales hit its lowest level in 10 months. Similar surveys for the manufacturing sector released early this week showed more sluggish market conditions overall.

Australia’s S&P/ASX 200 gained 1.2pc to 6,978.40. South Korea’s Kospi surged 1pc to 2,367.53. India’s Sensex was 0.8pc higher and Bangkok’s SET rose 0.6pc.

Wall Street stocks rallied amid hopes the Federal Reserve may finally be done with its aggressive monetary tightening.

The S&P 500 gained 79.92 points or 1.9pc at 4,317.78 in its biggest one-day gain since April, and placed the benchmark on track for its best week since November last year. Markets in Japan are closed Friday for a holiday..

The Dow Jones Industrial Average rose 564.5 points or 1.7pc to 33,839.08, while the Nasdaq Composite added 232.72 points or 1.78pc at 13,294.19.

The yield on the 10-year Treasury dropped to 4.67pc from 4.74pc late Wednesday.

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Source: www.telegraph.co.uk
This notice was published: 2023-11-03 07:23:20

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Business

Sam Bankman-Fried found guilty of defrauding FTX customers Business

His defence lawyers, who objected to several rulings by Judge Kaplan before and during the trial, are expected to appeal the verdict.

Once the darling of the crypto world, Bankman-Fried – who was known for his mop of unkempt curly hair and for wearing shorts and t-shirts rather than business attire – instead joins the likes of admitted Ponzi schemer Bernie Madoff, “Wolf of Wall Street” fraudster Jordan Belfort and insider trader Ivan Boesky as notable people convicted of major US financial crimes.

The jury began deliberations on Thursday after hearing the prosecution’s rebuttal to the defence closing arguments delivered a day earlier.

Prosecutors argued during the trial that Bankman-Fried siphoned money from FTX to his crypto-focused hedge fund, Alameda Research, despite proclaiming on social media and in television advertisements that the exchange prioritised the safety of customer funds.

Alameda used the money to pay its lenders and to make loans to Bankman-Fried and other executives – who in turn made speculative venture investments and donated upwards of $100 million to US political campaigns in a bid to promote cryptocurrency legislation the defendant viewed as favourable to his business, according to prosecutors.

Bankman-Fried took the calculated risk of testifying in his own defence over three days near the close of trial after three former members of his inner circle testified against him. He faced aggressive cross-examination by the prosecution, often avoiding direct answers to the most probing questions.

He testified that while he made mistakes running FTX, such as not formulating a risk-management team, he did not steal customer funds. He said he thought Alameda’s borrowing from FTX was allowed and did not realise how large its debts had grown until shortly before both companies collapsed.

“We thought that we might be able to build the best product on the market,” Bankman-Fried testified. “It turned out basically the opposite of that.”

Prosecutors had a different view.

“He didn’t bargain for his three loyal deputies taking that stand and telling you the truth: that he was the one with the plan, the motive and the greed to raid FTX customer deposits – billions and billions of dollars – to give himself money, power, influence. He thought the rules did not apply to him. He thought that he could get away with it,” prosecutor Danielle Sassoon told the jury on Thursday.

The jury heard 15 days of testimony. Former Alameda CEO Caroline Ellison and former FTX executives Gary Wang and Nishad Singh, testifying for the prosecution after entering guilty pleas, said he directed them to commit crimes, including helping Alameda loot FTX and lying to lenders and investors about the companies’ finances.

The defence argued the three, who have not yet been sentenced, falsely implicated Bankman-Fried in a bid to win leniency at sentencing. Prosecutors may ask Judge Kaplan to take their cooperation into account in deciding their punishment.

Bankman-Fried has been jailed since August after Judge Kaplan revoked his bail, having concluded he likely tampered with witnesses. 

Judge Kaplan blocked Bankman-Fried from calling several proposed expert witnesses, and ruled he could not testify about the involvement of lawyers in FTX decisions at issue in the trial.

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Source: www.telegraph.co.uk
This notice was published: 2023-11-03 00:04:19

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Business

Interest rates more likely to rise than fall, warns Bailey Business

Thanks for joining me. Oil giant Shell managed to avoid the fate that befell rival BP earlier in the week as its earnings for the third quarter stayed largely in line with expectations.

The oil and gas giant revealed it had increased adjusted earnings from $5.1bn (£4.2bn) in the second quarter to $6.2bn (£5.1bn) in the three months to September.

5 things to start your day 

1) Fed chief warns still ‘long way to go’ on inflation fight | The central bank chief left the door open for future interest rate rises even as the Fed voted to hold borrowing costs unchanged

2) Warning for Bank of England as Lagarde is accused of hammering eurozone economy | There are fears central banks may have taken their determination to tame inflation a little too far

3) Thames Water to cut 300 jobs as it battles £14bn debt pile | UK’s largest water company targets retail and digital divisions in bid to improve finances

4) Private equity giant behind Six Nations delays stock market listing | This is the second time CVC Capital Partners has put its IPO plans on hold

5) Blow to Putin as Russia faces UK trial over $60bn Yukos oil battle | Three former shareholders of the oil giant are fighting to enforce a 2014 arbitration award

What happened overnight 

 Asian shares were mostly higher after the US Federal Reserve indicated it may not need to raise interest rates again after deciding to hold monetary policy steady for a second straight meeting.

Japan’s benchmark Nikkei 225 gained 1.1pc in afternoon trading to 31,950.61. Australia’s S&P/ASX 200 jumped 0.9pc to 6,899.70. South Korea’s Kospi surged 1.8pc to 2,341.96.

Hong Kong’s Hang Seng added 0.9pc to 17,246.87, while the Shanghai Composite edged 0.3pc lower to 3,015.33.

In Japan, Prime Minister Fumio Kishida announced an economic stimulus package worth about $113bn (£92.8bn) that is meant to cushion the blow to household budgets from rising inflation and timed to counter weakening public support for his government. The package includes tax breaks for individuals and companies and subsidies to reduce rising energy costs.

Wall Street stocks rallied Wednesday after the Federal Reserve paused interest rates, with the Dow Jones Industrial Average rising 105.95 points or 0.32pc to 33,158.82. 

The S&P 500 gained 20.88 points or 0.50pc to 4,214.68. The Nasdaq Composite added 96.25 points or 0.75pc to 12,947.48.

Meanwhile, the benchmark 10-year Treasury yields fell to 4.766pc, the lowest since October 17.

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Source: www.telegraph.co.uk
This notice was published: 2023-11-02 12:41:20

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Business

Surprise jump in house prices as sellers bide time Business

Thanks for joining me. House prices made a surprise increase last month, according to the closely-watched Nationwide house price index, amid low levels of enforced selling in the market.

It said the average property was worth £259,423 in October, which was up 0.9pc compared to the previous month, although it was down 3.3pc compared to the same month a year earlier.

5 things to start your day 

1) BP chief dismisses takeover speculation after string of oil megadeals | Comments come as energy giant announces sharp fall in profits following a turbulent quarter

2) Nick Clegg accuses governments of overreacting to the danger of AI | Former deputy prime minister spoke ahead of the Bletchley Park summit that will discuss the risks posed by the technology

3) Crispin Odey’s hedge fund to close after sexual assault claims | City tycoon was ousted from the fund in June as allegations emerged

4) Asda vows to cut prices as billionaire Issa brothers raise $500m to pay down debt |  Supermarket promises to make products available to ‘hundreds more’ after completing £2bn EG Group deal

5) WeWork poised to file for bankruptcy | WeWork shares have lost nearly 98pc of their value in the past 12 months

What happened overnight 

Asian shares were mostly higher Wednesday after Wall Street advanced to claim back some of the ground it gave up in another losing month.

Investors are awaiting a decision later today by the Federal Reserve on interest rates and updates on the state of the US economy. 

The overwhelming expectation is that the Fed will keep its overnight interest rate steady. The bigger question is how long it will keep that main rate high.

Tokyo’s Nikkei 225 index added 2.1pc to 31,515.94 a day after the Bank of Japan held back from any major changes to its near-zero interest rate policy, though it adjusted its controls on government bond yields.

The dollar weakened against the Japanese yen, trading at 151.27 yen. It jumped on Tuesday after the central bank’s decision.

In Hong Kong, the Hang Seng edged less than 0.1pc higher, to 17,119.12. The Shanghai Composite index gained 0.2pc to 3,023.64.

South Korea’s Kospi advanced 1pc to 2,300.48 and the S&P/ASX 200 was up 0.7pc at 6,826.50.

Wall Street stocks ended higher ahead of the Federal Reserve’s latest interest rate decision due later today. 

The S&P 500 rose 26.98 points or 0.6pc to 4,193.80. The Dow Jones Industrial Average rose 123.91 points or 0.4pc to 33,052.87. The Nasdaq Composite rose 61.75 points or 0.5pc to 12,851.24.

Benchmark 10-year Treasury yields reached 4.875pc, as investors await the latest comments from Federal Reserve chairman Jerome Powell.

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Source: www.telegraph.co.uk
This notice was published: 2023-11-01 07:17:23

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Business

Putin turns screws on Western businesses trying to exit Russia Business

Thanks for joining me. Western companies trying to exit Russia will effectively face capital controls that could mean they face long delays or losses on the sales of assets in the country.

Businesses will either have to agree for a sale price in roubles or be hit with long waits or losses on the amounts that can be transferred abroad, according to the Financial Times.

5 things to start your day 

1) TikTok faces fresh calls for ban over Hamas content | Platform is under scrutiny once more as terrorist videos proliferate online

2) Twitter’s value has fallen by $25bn since takeover by Elon Musk | Social media platform’s new valuation revealed in employee share scheme

3) Princess of Wales’s friend building ‘AutoTrader for adults’ dating app | Platform will create a space for adult conversations without ‘shame or guilt or judgement’

4) Big Tech is stoking fears over AI, warn scientists | Critics say tech giants’ endorsement of regulation is designed to hamper industry upstarts

5) Unilever to freeze chief executive’s pay after shareholder backlash | Hein Schumacher’s fixed packet of £1.62m will not increase for next two years

What happened overnight 

Asian equities slid as disappointing activity data from China revived some worries over the world’s second-largest economy, while the yen weakened past 150 per dollar after the Bank of Japan tweaked its bond yield control policy.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.9pc lower, hovering close to the one-year low it touched last week. The index is down 4pc in October and on course for third straight month in the red.

The yen fell 0.8pc against the dollar to touch a session low of 150.25 after the central bank said the 1pc ceiling on benchmark 10-year yields would be an upper bound rather than a rigid cap. It maintained the 0pc target for the yield under its yield curve control (YCC) policy.

Japan’s benchmark Nikkei 225 reversed course and added 0.3pc in afternoon trading to 30,796.81. 

Australia’s S&P/ASX 200 gained 0.1pc to 6,780.70. South Korea’s Kospi lost 1.3pc to 2,280.48. Hong Kong’s Hang Seng shed 1pc to 17,059.78, while the Shanghai Composite declined 0.4pc to 3,008.37.

Wall Street stocks ended higher ahead of the Federal Reserve’s two-day monetary policy meeting and subsequent interest rate decision.

The S&P 500 rose 49.45 points or 1.2pc to close at 4,166.82, in the first trading session after the benchmark index dropped more than 10pc below its high point for the year.

The Dow Jones Industrial Average rose 511.37 or 1.6pc to 32,928.96 points. The tech-heavy Nasdaq Composite rose 146.47 or 1.2pc to 12,789.48.

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Source: www.telegraph.co.uk
This notice was published: 2023-10-31 07:07:19

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Business

Mortgage approvals at eight-month low ahead of interest rates decision Business

Mortgage approvals have fallen to an eight-month low as higher interest rates hammer buyers.

Banks approved 43,300 mortgages last month, according to the Bank of England, the lowest number since January when the market was reeling in the wake of the mini-budget and the crunch in gilt markets which followed.

This is down by around one-third on lending volumes a year ago, and takes the mortgage market back to activity levels last seen on a sustained basis in the years following the financial crisis.

It comes as Bank of England policymakers, led by Governor Andrew Bailey, prepare for Thursday’s interest rate meeting. Economists expect the Monetary Policy Committee to hold interest rates at 5.25pc as they assess the impact of higher borrowing costs on the economy.

The average interest rate charged on new mortgages in the month rose to 5.01pc. This marks the first time since 2008 that the average homebuyer has paid more than 5pc to borrow. A year ago the typical buyer paid 2.84pc, while two years ago the cost was just 1.78pc.

Total mortgage debts dropped by £940m in the month as homeowners paid off more debt than new borrowers took out.

Remortgaging is also increasingly unpopular at high interest rates. Just over 20,500 borrowers remortgaged last month, the lowest number since January 1999.

Thomas Pugh, economist at RSM, said low activity levels indicate “house prices probably have further to fall”.

“Admittedly, interest rates on new mortgages will probably drift down a little over the next few months now that interest rates seem to have peaked,” he said.

“But they will remain close to the highest level since the financial crisis. We still expect a peak to trough fall in house prices of a little under 10pc.”

Read the latest updates below.

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Source: www.telegraph.co.uk
This notice was published: 2023-10-30 12:54:52