financializer news A weblog highlighting financial topics making news in the international media.

aer lingus: This comes on top of a €148m currency hit in the second quarter, according to The Guardian. Bookings also suffered because of the Brexit vote, especially for business travel. IAG, which also owns Vueling, Iberia and Aer Lingus, had a bumpy ride in the third quarter as profit took a €162m hit from the pound tumble and air traffic control strikes, which led to repeated flight cancellations. Facebook Twitter Pinterest Willie Walsh, the IAG chief executive, said operating profit was expected to be about €2.5bn for this year. The vote to exit also created volatility in the foreign exchange markets. Photograph: Niall Carson/PA The IAG chief executive, Willie Walsh, said: The group experienced weak trading conditions in June leading up to and following the vote, with an emphasis in premium cabins. (news.financializer.com). As reported in the news.

australia wheatbelt: Related Story: Australia solar power production set to triple Map: Cunderdin 6407 The company behind a proposed $160 million solar farm in Western Australia Wheatbelt says it has been spoilt for choice when it comes to investors, according to Australian Broadcasting Corporation. Sun Brilliance Power plans to start building a 100 megawatt solar farm, the largest in Western Australia, early next year and will be finalising financial agreements at the end of October. This could also be the scene at a proposed WA solar farm. What was originally designed as a 25 megawatt facility has been expanded four-fold after the company purchased what it described as an ideal location two kilometres east of Cunderdin in May this year. We are confident that process will be concluded at the end of this month and we'll be able to make an announcement." Professor Wills said the farm would house 320,000 solar panels, brought in from overseas and would generate 200 million kilowatt hours of electricity a year. Spokesman for the company, Ray Wills said it would be the first fully commercial solar farm in the country built without any government funding. "We're very confident we'll go ahead, we've had that much interest," Professor Wills said. "We've been speaking to groups right around Australia and the world, the US, Europe, Japan, China and Korea. (news.financializer.com). As reported in the news.

bottom line: Those objectives have pushed the document, which Morneau will deliver Tuesday afternoon in the House of Commons, beyond its traditional role as a laundry list of refreshed predictions for growth and the federal bottom line, according to The Toronto Star. At its core, the document will be a two-pronged sales pitch. By Andy Blatchford The Canadian Press Fri., Oct. 28, 2016 OTTAWA—Next week fall economic statement from Finance Minister Bill Morneau will be heftier than a typical fiscal update — the result, sources say, of its two major goals: convincing the public the Liberal economic plan is working and promoting Canada abroad as an enticing investment destination. For institutional investors, it will help to promote Canada as a safe investment haven in an uncertain world for their firms, which together hold trillions of dollars of capital — money that could fuel the country economic engines. Article Continued Below Tuesday statement comes with the economy stuck in a slow-growth ditch following months of disappointing data and downgraded forecasts, and the Trudeau government engaged in a long-term effort to pull it out, with the help of Morneau external council of economic experts. Taxpayers will hear Morneau try to ease their fears about a growing deficit, arguing that Liberal measures like infrastructure spending and richer child benefits have already begun to help at a time of deteriorating economic conditions. (news.financializer.com). As reported in the news.

chinese company: Berlin has initially rejected and later decided to review the acquisition, which would take months, according to Xinhua China. The alarming move came only days after Berlin, without explanation, re-opened review of the sale of the German semiconductor maker Aixtron to a Chinese company for "security concerns," in a sudden annulment of the clearance certificate it issued last month that confirmed the buyer credibility. Local business news magazine Wirtschafts Woche reported Thursday that the German Economy Ministry has suspended a bid of Chinese companies to take over Osram general lighting lamps business. Germany repeated scrutiny of deals with Chinese investors does not bode well for potential purchasers from other parts of the world. The country protectionist moves could also rid its troubled firms of the chances for revival thanks to overseas capital. If such relentless government interference continues, German tax payers will bear the brunt of their government unpredictability and untrustworthiness in global trade policies. (news.financializer.com). As reported in the news.

commerce: Don't believe the polls': Donald Trump supporters back him against the odds Read more The US commerce department on Friday reported that gross domestic product increased by 2.9% in the third quarter, up from 1.4% in the second quarter and higher than economists' expectations of a 2.5% expansion, according to The Guardian. The figures, the strongest since the third quarter of 2014, are the last official health check on the US economy before the election on 8 November. The news represented a blow to Donald Trump hopes of winning the White House. US gross domestic product Trump, the Republican presidential nominee, has highlighted the weakness of the economy and attacked his Democratic rival Hillary Clinton failed economic agenda . In the final presidential debate last week, Trump said GDP was hovering about 1% and falling. Decades of strong economic growth and global leadership have been replaced with low-paying jobs, global chaos and a national debt that has doubled under Obama-Clinton. He has promised that if elected on his mandate to make America great again , growth will exceed 3%. Despite growth coming in far ahead of that prediction, the Trump campaign said Friday figures were dismal . Growth hasn't risen above 3% for a full year in any of the Obama presidency, Dan Kowalski, Trump deputy policy director, said in a statement. (news.financializer.com). As reported in the news.

anti-establishment upsurge: For starters, most populist voters are neither poor nor unemployed; they are not victims of globalization, immigration, and free trade, according to Market Watch. The main demographic groups behind the anti-establishment upsurge have been people outside the workforce: pensioners, middle-aged homemakers, and men with low educational qualifications receiving disability payments. But there are several reasons to question the link between populist politics and economic distress. In Britain, where detailed analyses of the votes actually cast in the Brexit referendum are now available, the group most directly affected by low-wage competition from immigrants and Chinese imports — young people under 35 — voted against Brexit by a wide margin, 65% to 35%. Meanwhile, 60% of pensioners who voted backed the Leave campaign, as did 59% of voters with disabilities. Duterte Promises God He Will Stop Cursing Philippine President Rodrigo Duterte, who is known for his foul language and his short fuse, said he would stop cursing after God told him to do so. By contrast, 53% of full-time workers who participated wanted Britain to remain in Europe, as did 51% of part-time workers. (news.financializer.com). As reported in the news.

cloud services: A total of 51.9 million shares became available on the market after the IPO, accounting for a quarter of the company total capitalization, according to Global Times China. Xinhua News Agency holds more than 80 percent of the shares. Xinhuanet.com, the website of China official news wire Xinhua News Agency, rose 43.99 percent to 39.87 yuan per share, boosted by huge orders on the Shanghai Stock Exchange. According to the company prospectus, it plans to use the funds raised to expand its multi-media business, cloud services, mobile Internet services, and online education. Thanks to the rapidly-growing business in information services and mobile networks, Xinhuanet has witnessed rising net profits in the past three years, from 167 million yuan in 2013 to 261 million yuan last year. Xinhuanet will continue to integrate technology, capital and talent into its media business in the future to speed up the drive toward a world-class Internet culture company, Xinhuanet chairman Tian Shubin said. (news.financializer.com). As reported in the news.

investment: The policy of Chinese government to encourage Chinese companies to invest abroad had benefited Malaysia, which has enthusiastically welcomed Chinese investment in several sectors, said Majid, according to Global Times China. The total estimated value of Chinese investment committed since 2012 in the non-manufacturing sector is as high as 123 billion ringgit , while direct investment flows in the manufacturing sector jumped to 13.6 billion ringgit in 2015 from a mere 164 million ringgit in 2009. In an article published on the local Star newspaper, former Malaysian ambassador to China Abdul Majid Ahmad Khan pointed out the increasing Chinese investment to Malaysia on top of the already flourishing bilateral trade in recent years. The former diplomat called for a "win-win" for Chinese investment in Malaysia, urging his country to attract investment in sectors such as high-tech, ICT, capital market and relevant services, which could contribute much to the upgrading of Malaysia value chain. "There is much that China can contribute to Malaysia economic transformation and capacity building," he said. On Malaysian Prime Minister Najib Razak official visit to China next week, Majid said regular visits to China had been the practice of all successive Malaysian prime ministers since the two countries established diplomatic ties in 1974. "These visits signify the importance Malaysia attaches to its relations with China, particularly in enriching the economic component of bilateral relations," he said. "We are confident that the prime minister visit to China will be another significant as well as a successful journey to further cement the existing close ties, particularly in the economic partnership for mutual benefit and prosperity of the two countries," he concluded. (news.financializer.com). As reported in the news.

friday ruling: Prime Minister Theresa May welcomed Friday ruling, with a spokesman saying it would allow the British government "to proceed to trigger Article 50 as planned". One of the plaintiffs, human rights activists Raymond McCord, said he would appeal against the ruling in the Supreme Court, Britain highest judicial body, according to Nine News Australia. The case is the first judgment in legal disputes around Brexit that are being closely watched by politicians and markets. But it said it would defer to English courts on the wider issue of whether the British government has the right to invoke Article 50 of the EU Lisbon Treaty to leave the bloc, without the explicit backing of the British parliament. A case in London will rule on whether May can use the government "royal prerogative" power to trigger Article 50 without consulting parliament."The fact that the government has won in the Northern Ireland case could be seen to indicate that its prerogative power is holding up pretty well," said Stephen Tierney, director of the Edinburgh Centre for Constitutional Law."I would personally be surprised if the High Court in England reached a different conclusion," he said. Overall, 52 per cent of the UK voted in favour of leaving the EU in June referendum, but 56 per cent of those voting in Northern Ireland backed remaining in the bloc. Sterling hit an eight-day low against the euro after the ruling. (news.financializer.com). As reported in the news.

half years: Marketwatch reported: The U.S. economy grew in the third quarter at the fastest pace in two and a half years, aided by a surge in exports and a rebound in the size of inventories companies keep on hand for sale, according to MSNBC. The government said gross domestic product, the official scorecard for the economy, expanded at a 2.9% annual clip from July through September. If so, they probably won't be pleased this morning. That a marked improvement from the first half of the year when the U.S. grew just barely over 1%. The full report from the Commerce Department is online here. Bad news on the GDP front might have given Republicans some rhetorical ammunition as Election Day draws closer. There are concerns, of course, that the positive news on economic growth may encourage the Federal Reserve to raise interest rates, but in the short term, there are more immediate electoral considerations. (news.financializer.com). As reported in the news.

rmb: According to the minister, steps in Ghana to make the RMB a tradable currency predated the IMF decision. "In Ghana we did recognize the strength of the RMB already and the Bank of Ghana in its basket actually uses the RMB as part of its mix of currencies ... I am also aware that some commercial banks have established RMB windows for businesses," Terkper disclosed, according to Xinhua China. The reason, according to him, is that trade between Ghana and China has been picking up steam and an RMB window would save much trouble for traders. The IMF announced the decision in September to include the RMB in its Special Drawing Rights . He told Xinhua that the decision was a laudable one given the key position China occupied in the global economy. "China economy has been enlarging and has been propelling the global trade as well as growth and, despite the cooling off, you still have China being very strong," Terkper noted. The minister also touched on the benefits of the IMF decision to the fortunes of bilateral trade with China, explaining that an exporter who earns RMB in China could use that currency which is now convertible to buy input back to facilitate his or her business. "This was cumbersome in the past when the RMB was not a convertible currency. So it is early yet but you can see the trade and investment benefits," Terkper added. (news.financializer.com). As reported in the news.

laurie monsebraaten: Order this photo By Laurie Monsebraaten Social justice reporter Fri., Oct. 28, 2016 Retired Toronto aeronautical engineer Ian Burns has struggled with his weight and high blood pressure for as long as he can remember, according to The Toronto Star. Daily medication has helped him lower his blood pressure to the high-normal range, but he says he'd love to control it without drugs. One in five Canadians is on the cusp of developing hypertension, which is the leading cause of stroke and a key risk factor for heart disease. Exercise has never been a major part of my lifestyle. Experts in the field of high blood pressure, or hypertension, think they may have the answer for Burns and for the one in five Canadians on the cusp of developing the disease which is the leading cause of stroke and a key risk factor for heart disease. My wife does her best, but there only so much nagging you can take, adds Burns, 66, with a laugh. (news.financializer.com). As reported in the news.

merchandise trade: In terms of foreign service trade, China reported a deficit of 23.3 billion dollars in September, down from 25.4 billion dollars in August, according to Xinhua China. Distinct from merchandise trade, trade in services refers to the sale and delivery of intangible products such as transport, tourism, telecommunications, construction, advertising, computing and accounting. Income from merchandise trade stood at 178 billion U.S. dollars last month, while expenditure was 133.9 billion dollars, resulting in a surplus of 44 billion dollars, according to data from the State Administration of Foreign Exchange . The September surplus was lower than 52.7 billion dollars in August and 50 billion dollars in July. China service trade volume grew from 362.4 billion dollars in 2010 to 713 billion dollars in 2015, doubling the average international growth speed in the sector. The State Council has pledged measures to improve the development of services trade, including gradually opening up the finance, education, culture and medical sectors. The country is aiming to increase its service trade volume to over 1 trillion dollars by 2020. (news.financializer.com). As reported in the news.

ipo proceeds: It was the biggest US IPO by a Chinese company after the home-grown e-commerce giant Alibaba raised some 21.8 billion US dollars in 2014, according to Global Times China. Most of the IPO proceeds will be used to buy more lands, facilities, equipment and trucks, according to its prospectus. The Shanghai-based company raised some 1.4 billion US dollars and boasts a market value of over 12 billion US dollars with the stock market debut. Founded in 2002, ZTO has seen its package throughput soaring to 2.94 billion in 2015 from the 279 million in 2011, the prospectus said. Chinese delivery service sector is leaping forward on the back of a booming e-commerce market, with its players seeking public listing to shore up competitiveness in a vigorously contested market. The courier raked in some 4.2 billion yuan of revenues in the first half of 2016, a 70.8 percent year-on-year increase, with a profit rate of 24.9 percent. (news.financializer.com). As reported in the news.

jubilee germany: The government had kept the existence of these loans secret, according to Deutsche Welle. When the details were finally exposed, the International Monetary Fund responded by freezing payments to Mozambique. In a letter to its creditors, it asked for the deferment of "hidden debts" - a reference to loans totaling 1.3 billion euros which three state-owned concerns had taken out with international banks. This was a severe blow to the southeast African country which has been plunged into an economic crisis by falling commodity prices and the depreciation of the national currency, the metical. Its currency has fallen by 70 percent against the US dollar this year Jürgen Kaiser from Jubilee Germany , an NGO which campaigns on behalf of developing countries with unsustainable debt levels, told DW that simply suspending repayments won't be enough to put Mozambique back on the road to fiscal health. "Our assessment is that the country is already insolvent," he said. Lower commodity prices have hit Mozambique hard. (news.financializer.com). As reported in the news.

rate: Luke Bartholomew, fixed income investment manager at Aberdeen Asset Management in London, said the US economy was "roughly on track" after growth had reached an average of just 1.1 percent in the first half of 2016. "It a natural bounce back following a pretty underwhelming year so far," he told the news agency Reuters, according to Deutsche Welle. Consumer spending still supported the economy in the third quarter, even as the pace slowed from the second quarter robust 4.3-percent rate. The rise in US gross domestic product was stronger than expected by analysts, who had forecast a third-quarter growth rate of 2.5 percent. Consumer spending, which accounts for more than two-thirds of US economic activity, increased at a 2.1-percent rate. Farm exports drive expansion The biggest quarterly jump in exports since late 2013 drove the surprisingly strong expansion. Spending was held back by a decline in purchases of goods which are not meant to last long. (news.financializer.com). As reported in the news.

street: That a tall order, since it requires them to keep those expectations artificially low over the three months prior to earnings season, according to Market Watch. While you might think this is perhaps possible for one or two quarters, it hard to imagine them getting away with it quarter after quarter. What those companies are trying to do, of course, is report that they have beat the consensus of Wall Street analysts' earnings estimates. Wouldn't Wall Street analysts—who presumably are quite intelligent—eventually catch on to the game Believe it or not, however, it appears as though either companies have become more skilled at playing this game over the years, or Wall Street analysts have become more clueless, or both. Among the firms in the S&P 500 SPX, -0.31% that have reported this earnings season, for example, 76.1% beat the analyst consensus and just 16.8% missed. Consider the percentage of recently-reporting companies that beat Wall Street expectations. (news.financializer.com). As reported in the news.

week-to-date declines: However, indexes also ended well off their lows of the session as investors digested the news and its potential implications for the coming election, according to Market Watch. The restarted probe came after FBI Director James Comey said he had learned of emails that appear to be pertinent to its investigation, though he added that the FBI cannot yet assess whether or not this material may be significant. Major indexes had traded higher earlier in the session, supported by a strong GDP reading, but the news prompted a turnaround and extended the week-to-date declines of the S&P 500 and Nasdaq. In July, Comey had said that charges against Clinton—who controversially used a private email server while secretary of state—weren't appropriate. This throws such a monkey wrench into anyone ability to predict what will happen over the next couple of weeks, said Wayne Kaufman, chief market analyst at Phoenix Financial Services. See also:FBI probe into new Clinton emails hit Wall Street in 4 key ways Polls have strongly indicated that Hillary Clinton, the Democratic presidential candidate, will win out over Republican Donald Trump in next month election, an outcome that analysts said markets had priced in. (news.financializer.com). As reported in the news.

october: The South Australian politician announced his resignation on October 17 after his company Home Australia went into liquidation, according to Australian Broadcasting Corporation. The party had met on the weekend to work out the succession process, but those plans are now on hold. Related Story: Bob Day could stay in Senate if white knight saves troubled company Related Story: Family First senator urged to explain business demise Related Story: 'I will repay all debts': Day pledge as political career ends Map: Australia Family First Bob Day says he may stay on as a senator if new investors manage to save his troubled construction company. In a statement, Senator Day said he would return to Parliament in the next sitting week following investor interest in his business. "If new investment revives the company, if houses are being completed and trade contractors and others are being paid, then I may continue as a senator," he said. "If not, my resignation will proceed and I will devote myself to assisting those affected by the Group closure." Senator Day said that liquidator McGrath Nicol had been assessing offers and would be holding a creditors' meeting early next month. Senator Day is a shareholder in Home Australia and has made personal guarantees to some of the creditors. Earlier this week, a spokesman for McGrath Nicol told the ABC there had been a lot of interest in Home Australia assets. (news.financializer.com). As reported in the news.

points government: Key points:Government accepting applications from Monday for licenses to grow cannabis Applicants will have to demonstrate their proposed growing site is secure Concerns that if system becomes too complicated people will stick with the blackmarket The Office of Drug Control will start accepting applications for cannabis cultivation licences on Monday, according to Australian Broadcasting Corporation. People or organisations wanting a licence will need to show they will be supplying either a licensed medicinal cannabis manufacturer or researcher. Map: NSW Growing cannabis legally will be a step closer on Sunday when federal legislation comes into effect allowing the drug to be grown for medicinal purposes. They will also have pass a "fit and proper person test" and show that their proposed growing site is secure. Do you know more about this story Email There are three medicinal cannabis companies listed on the Australian Stock Exchange and a fourth set to list soon. Information briefings on the licencing scheme have attracted hundreds of interested people in the past few weeks, from international companies to small operators. (news.financializer.com). As reported in the news.

pound sterling: It the latest example of the Brexit effect, with prices updated to account for the new low exchange rate between the US dollar and pound sterling, according to The Guardian. While the new laptops introduced on 27 October are significantly more expensive than the ones they are replacing, even machines that have seen no change at all have had their prices raised, in some cases by many hundreds of pounds. Apple used the cover of introducing three new Mac Book Pros at its latest event to quietly raise the prices of every single computer in its line. The 13in Mac Book Air, now the cheapest laptop in Apple range, starts at £949. Facebook Twitter Pinterest Apple unveils new Mac Book Pro with new Touch Bar feature – video The 12in Mac Book, Apple smallest computer, starts at £1,249 for the very same model which sold for £1,049 24 hours ago. A day earlier, it started at £849, while an even cheaper model, the now discontinued 11in Mac Book Air, started at just £749. (news.financializer.com). As reported in the news.

securities: The bank will also pay $3 million to the Ontario Securities Commission toward its mandate of protecting investors, while a further payment of $50,000 will go to cover the costs of the investigation, according to The Toronto Star. The OSC approved the no-contest settlement Friday with CIBC World Markets Inc., CIBC Investor Services Inc., and CIBC Securities Inc. after the bank agreed to the deal without admitting or denying the conclusions of the OSC staff. By The Canadian Press Fri., Oct. 28, 2016 Canadian Imperial Bank of Commerce has agreed to compensate clients a total of $73.3 million after collecting excess fees for certain mutual funds and investment services over 14 years. The OSC alleged that short-comings in systems and controls at the CIBC dealers resulted in some customers being overcharged from as early as Jan. 1, 2002 until as recently as Jan. 31, 2016. Article Continued Below It also says CIBC has implemented additional controls and supervision to prevent a recurrence. The OSC says its staff have found no evidence of dishonest conduct by CIBC, which self-reported the problem. (news.financializer.com). As reported in the news.

face: People will also be able to apply for licences to grow and manufacture medicinal cannabis in Australia, according to Nine News Australia. But Lucy Haslam, who became the face of the campaign for change after medicinal cannabis helped her late son Dan with the severe nausea caused by chemotherapy, says patients still face many hurdles to access."I've got a lot of calls from patients saying how do I get it," Ms Haslam told AAP."The reality is there nothing to get yet."Elaine Darby, chief executive of medicinal cannabis company Aus Cann, says patients should be able to start accessing Australian-grown cannabis from late 2017. From November 1, cannabis for therapeutic use will become a controlled drug rather than a prohibited one. It now up to other states and territories to enact their own legislation to enable access, as NSW and Queensland have done. Once licences are granted, growers will need to import stock to get started, grow and manufacture the product, and then get it approved by the Therapeutic Goods Administration. But Ms Haslam says access from late 2017 is the best-case scenario. (news.financializer.com). As reported in the news.

estate agent: The pair were selling agents for three lots and introduced the buyers in each sale, Consumer Protection said, according to Nine News Australia. All six lots were first sold to an intermediary company controlled by another son Michael King, who was not a licensed real estate agent or sales representative, then on-sold to Malaysian-based investors at higher prices. Former licensees The King and I, formerly trading as Colin King Real Estate, its director Colin Maxwell King and his sales representative son Paul Anthony King breached the Code of Conduct for Agents and Sales Representatives between 2008 and 2010. Regarding the three lots sold through Colin King Real Estate, the SAT found the pair misled and failed to act in the best interests of the seller, failed to act fairly and honestly in facilitating the on-sale scheme, and had a conflict of interest. Colin King also asked the SAT to review Consumer Protection decision not to renew his licence in August 2014 but the decision was upheld. The pair were also found to have acted dishonestly by facilitating the on-sale scheme for the three other lots. (news.financializer.com). As reported in the news.

group: The group, one of at least three bringing claims related to the rights issue in 2008, said: We look forward to seeing Fred Goodwin and RBS in court in March, according to The Guardian. The group said it was the only one suing Goodwin, who was chief executive of RBS at the time of its £45bn taxpayer bailout, and three of the bank former executives. Clydesdale Bank makes offer for 300 RBS branches Read more The RBoS Shareholder Action Group, which represents 27,000 retail investors, issued its warning after a report that other shareholders were considering settling out of court. The legal action is said to be on behalf of thousands of investors, both private and institutional, who lost money by subscribing for shares during the 2008 RBS rights issue . The announcement was made ahead of RBS third-quarter results, which will be scrutinised for any further provisions relating to the case. The total claim by all the investors involved comes to £4bn. In August, RBS set aside £700m for the case after an attempt at mediation talks in July failed to reach a settlement. (news.financializer.com). As reported in the news.

hillary clinton: None of the documents released, however, showed a clear indication that any of the paid speeches or access to Bill Clinton directly resulted in influence at Hillary Clinton State Department, according to CNN. Expressing concern about the relationship to foreign donors and her parents' work and any appearance of conflicts of interest as Hillary Clinton was secretary of state, Chelsea Clinton pushed to hire law firms to audit the foundation operation. The anxiety -- centered around the nexus of Clinton Foundation fundraising, paid speeches and requests for access to former President Bill Clinton dubbed "Bill Clinton Inc." by a top aide -- dates back to late 2011, when Chelsea Clinton began to take on a greater role in the family foundation and spearheaded an effort to clean house. The review found problems with management, budgeting and potential conflicts of interest, recommending more oversight and a more independent board. Podesta hacked email contained foundation details from the time because he was working as a special adviser while the foundation chairman recuperated from an illness. The Foundation adopted many of the recommendations. (news.financializer.com). As reported in the news.