Week 50 2017

Week 50 2017

11 December – 15 December

 

11 December

 

The rapid growth the Trump administration is banking on in its budget will deliver around $1.8tn of extra tax revenue, the US Treasury said, as it aims to substantiate previous claims that tax cuts can pay for themselves.

 

Hyundai Motor is facing some Won1tn ($916m) in production losses this year as union members at the South Korean carmaker continue the spate of partial labour strikes, compounding the company’s sales woes in big markets.

 

Turkey has reported a sharp recovery in GDP growth rates, beating forecasts with 11.1 per cent growth in the third quarter of this year from the same period last year.

 

Trafigura, one of the world’s biggest commodity traders, has reported its lowest profits for seven years and a reduced payout to senior employees as intense competition and plentiful supplies cut margins in oil, one of its two core businesses.

 

12 December

 

The latest change to the public’s money-moving habits is online technology. While early proponents got going in the mid-1990s, according to the Bank for International Settlements, it is since the start of this decade that specialist online peer-to-peer (P2P) operators have been offering consumers a competitive rate of exchange for their money transfers.

 

ExxonMobil, the world’s largest listed oil and gas group, will start publishing reports on the possible impact of climate policies on its business, bowing to investor demands for improved disclosure of the risks it faces.

 

The governor of the Bank of England Mark Carney will be forced to write a letter of explanation to the UK’s finance minister explaining why the central bank has missed its inflation target, after the rate hits its highest level since March 2012.

 

A rising oil price and robust global growth has helped drive the amount of money invested in commodities to the highest in more than four years, according to Citigroup.

 

13 December

 

Glencore, the miner and commodity trader, has said it plans to grow through acquisitions and by expanding existing projects, as it raised earnings guidance for its powerful trading business.

 

Walt Disney is closing in on the entertainment assets of Rupert Murdoch’s 21st Century Fox in an all-share deal that stands to reshape Hollywood and the rapidly digitising global media industry.

 

Industrial production in the euro area grew by 3.7 per cent in the year to October, Eurostat said on Wednesday, after a 0.2 per cent rise on the month.

 

Asia Pacific equities lacked direction in early trading on Wednesday as investors awaited an interest rates decision from the Federal Reserve later in the day.

 

14 December

 

Myer Holdings sank to a record low on Thursday after the Australian retailer posted a profit warning amid deteriorating sales in the lead up to Christmas.

 

The world’s 12 biggest drug companies are making a return of just 3.2 per cent on their research and development spending this year — down from 10.1 per cent in 2010, according to Deloitte’s annual survey of pharma R&D investment.

 

Central banks are setting much of the agenda today, and after the dovish tone sounded by the Federal Reserve overnight as it lifted rates, the dollar is finding some support.

 

Sports Direct chief executive Mike Ashley is putting a characteristically brave face on a 67.3 per cent drop in reported profits for the half year to the end of October, trumpeting a “spectacular trading performance”, while the company also says it wants to “move on” after a tussle relating to payments for Mr Ashley’s brother.

 

15 December

 

Property developer Sunac China Holdings has said it will sell $1bn of new shares to its controlling shareholder to provide additional general working capital.

 

KKR, the US buyout fund, has won a fiercely contested auction to purchase Unilever’s spread business, which includes Flora margarine and other international brands, according to two people familiar with the process.

 

Business conditions in Japan improved still further in the fourth quarter as the Bank of Japan’s Tankan index registered the best quarter for the country’s big manufacturers in eleven years.

 

Tiffany was among the biggest gainers on the S&P 500 after analysts at Citi upgraded the stock and said there was an “increasing probability” that it becomes a takeover target for a European conglomerate.