Week 44

31 October – 04 November

 

31 October

 

Sterling and euro-denominated debt issued by US phone company AT&T weakened in early trading after the company confirmed plans to buy media conglomerate Time Warner for $85.4bn.

 

ANZ Banking Group is selling its wealth management and retail business in Singapore, Hong Kong and three other Asian markets to DBS for S$110m above book value, making it the latest lender to retreat from the region after Barclays sold its Asia wealth management business this year.

 

Mr Carney came under pressure last week from supporters of Britain’s vote to leave the EU, leading to speculation the Canadian might resign after five years in the post rather than seeing out a full eight-year term.

 

Some of the biggest traders in the US equity market are lining up for a fight with the Chicago Stock Exchange over a so-called “speed bump” to slow down high-frequency trading.

 

1 November

 

The eurozone does not need a big leap in political and fiscal integration, the head of the bloc’s bailout fund has said, arguing the continent’s moderate economic recovery was proof the current arrangements “work well”.

 

The Bank of Japan says it will not reach 2 per cent inflation before the end of Haruhiko Kuroda’s term as governor in a stark illustration of its struggle to escape the country’s entrenched deflation.

 

Shareholders in Cofco Meat Holdings look unlikely to bring home the bacon today after the stock dropped by almost a quarter on its debut in Hong Kong. The Chinese state-backed meat supplier raised HK$1.95bn ($252m) by offering 975.6m shares at HK$2, which was right at the bottom of its price range.

 

Thousands of small businesses that are refused about £4bn in loans by big banks each year will have the chance to join a new scheme connecting them with alternative providers of finance, such as peer-to-peer and online lenders.

 

2 November

 

Less than one week remains in the US presidential election, and financial markets are spooked as polls tighten amid a flood of fresh controversies. Mostly, investors fear a victory by Republican candidate Donald Trump.

 

Euro-area manufacturing sector was in its rudest health in 33 months in October, according to a closely-watched business survey that reported bumper output growth and higher prices in the 19-country bloc.

 

Shire, the acquisitive London-listed pharmaceuticals group, suffered a loss in the third quarter as the group missed revenue expectations and absorbed the costs of its $32bn takeover of Baxalta.

 

There was, according to the stock market, a clear winner and a loser when Royal Dutch Shell and BP reported third-quarter results on Tuesday. Shares in Shell closed up 3.8 per cent at £21.15 after it announced a rise in profits while BP’s stock fell 4.5 per cent to £4.62 after revealing a sharp drop in earnings.

 

3 November

 

The Federal Reserve signalled that an increase in short-term interest rates is in prospect as soon as its next meeting amid a pick-up in inflation, even as it held rates unchanged on Wednesday.

 

Berlin’s attempts to curb Chinese investment have come under fire from some of Germany’s top economists who say the country would benefit by remaining open for business despite trade restrictions by Beijing.

 

G4S, the world’s biggest security company, posted a strong performance in the US for the third quarter, boosting its share price nearly 10 per cent. The company, which is continuing to recover from a series of scandals under the previous management, said revenues in the first nine months were up 5.7 per cent on the same period last year to £4.82bn.

 

The London Metal Exchange faced pressure from one of its oldest members during its annual gathering as veteran hedge fund trader Michael Farmer called the cost of trading “prohibitive”.

 

4 November

 

Two weeks ago Paddy Power, the Irish bookmaker, felt so confident that Hillary Clinton would win the US presidential election that it started paying punters who had bet on her victory. Big mistake. This week Donald Trump’s chance of success, according to the Iowa Electronic Markets, has jumped from 10 per cent to about 40 per cent following revelations that the Federal Bureau of Investigation is reopening its probe into Mrs Clinton’s emails.

 

Traders of the Australian dollar are in a mild quandary this morning as they weigh up a slight downgrade to the Reserve Bank of Australia’s growth forecasts against solid retail sales data.

 

Whole Foods shares rallied on Thursday after the upmarket grocer said it was ending its co-CEO structure that has existed since 2010, naming John Mackey as chief executive. That accompanied upbeat fiscal fourth-quarter profits and disappointing comparable sales.

 

Renewed volatility in the oil markets provided a further reason for caution, while participants also continued to digest the latest policy statement from the Federal Reserve, which appeared to increase the likelihood of a rise in US interest rates next month.