Posts belonging to Category Europe



Greece is looking towards China

Resentful Greece Embraces China’s Cash and Interests

After years of struggling under austerity imposed by European partners and a chilly shoulder from the United States, Greece has embraced the advances of China, its most ardent and geopolitically ambitious suitor.

While Europe was busy squeezing Greece, the Chinese swooped in with bucket-loads of investments that have begun to pay off, not only economically but also by apparently giving China a political foothold in Greece, and by extension, in Europe. Last summer, Greece helped stop the European Union from issuing a unified statement against Chinese aggression in the South China Sea. This June, Athens prevented the bloc from condemning China’s human rights record. Days later it opposed tougher screening of Chinese investments in Europe.

http://www.nytimes.com…  Mon.,  28  August 2017

Jackson Hole meeting in focus

Speeches by Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi on Friday will be scrutinized

U.S. stocks dipped on Thursday as political uncertainty in Washington kept investors cautious ahead of comments on monetary policy from central bankers gathered for their annual meeting in Jackson Hole, Wyoming. Speeches by Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi on Friday will be scrutinized for hints on the path of monetary policy, but neither of them is expected to give fresh guidance.

The focus on central bankers’ views will be a departure from the past two weeks, when the stock market was roiled by concerns over geopolitics, mayhem in Washington, and President Donald Trump’s controversial comments. President Donald Trump picked a new fight with fellow Republicans whose support he needs to advance his policy agenda, saying congressional leaders could have avoided a “mess” over raising the U.S. debt ceiling if they had heeded his advice.

http://www.reuters.com…  Fri.,  25  August 2017

Bank of America warns about BREXIT transition

Markets are too optimistic about Britain’s Brexit deal

As many as 70% of investors said that they “expect a transition of near-EU membership for at least 1-2 years,” according to a note circulated to clients on Wednesday from BAML’s European Economics group.

Analysts Robert Wood, Gilles Moec, and Sebastien Cross argued this is unrealistic.

http://www.businessinsider.com…   Thu.,  24  August 2017

Could Chrysler be sold to a Chinese company?

China’s Great Wall confirms interest in Fiat Chrysler

A direct overture by Chinese automaker Great Wall Motor Co Ltd to Italian-American automaker Fiat Chrysler Automobiles NV sent FCA shares up sharply on Monday, as investors cheered the potential sale of the storied Jeep brand. It was not immediately clear whether Great Wall Motor wanted all or part of FCA.

Automotive News first reported earlier on Monday that Great Wall Motor’s President, Wang Fengying, plans to contact FCA to discuss acquiring the Jeep brand. “With respect to this case, we currently have an intention to acquire. We are interested in (FCA),” an official at Great Wall Motor’s press relations department told Reuters. He declined to give his name and gave no further details.Two people familiar with the matter said Great Wall Motor had asked for a meeting with FCA to make an offer for all or part of the group.

FCA, which is incorporated in the Netherlands and based in London, said in a statement it had not been approached by Great Wall Motor, and was implementing its current business plan. Its main investor, Italy’s Agnelli family, declined to comment.

http://www.reuters.com…   Tue.,  22  August 2017

Pilotless planes could save airlines billions

Pilotless planes: would anyone fly?

The aviation industry could save $35 billion a year by moving to pilotless planes, according to a new report from UBS. Just one problem: The same report warns that only 17% of travelers are willing to fly without a pilot. UBS said that the technology required to operate remote-controlled planes could appear by 2025. Further advances beyond 2030 might result in automated business jets and helicopters, and finally commercial aircraft without pilots.

“The technologies in development today will enable the aircraft to assist and back up the pilot in all the flight phases, removing the pilot from manual control and systems operations in all types of situations,” the report said. Commercial flights already land with the assistance of on-board computers, and pilots manually fly the aircraft for only a few minutes on average.

http://money.cnn.com…   Fri.,  11  August 2017

Chinese tourists ditch shopping for culture

Shopping no longer the priority for Chinese tourists

This year’s National Day holiday in China saw record numbers of people taking trips at home and abroad, but many Chinese tourists now seem to be shunning the colossal shopping trips they were once renowned for in favor of a bit more rest and relaxation. More than 30,000 people a day visited the Chengdu Research Base of Giant Panda Breeding in southwestern Sichuan Province during the weeklong holiday. A police officer commented on his blog that he “could not tell if it was a center for breeding pandas or for people,” after directing traffic at the site.

Congestion at the newly opened Shanghai Disneyland reached epic proportions during the holiday. One local resident said he had to wait over two hours for a 5-minute ride. “It is more like hell than a magic kingdom,” he said. According to the National Tourism Administration, the number of people traveling domestically and abroad during this year’s holiday reached a record 593 million, up 13% from last year. Spending increased 14% to 482.2 billion yuan ($71.1 billion), also a record.

http://asia.nikkei.com…   Thu.,  10  August 2017

Tensions with North Korea worry markets

Wall Street swings lower after Trump warns North Korea

U.S. stocks closed lower on Tuesday after a late afternoon selling spree as investors fled for safety after U.S. President Donald Trump vowed to respond aggressively to any threats from North Korea. After scaling back from record highs earlier in the session, Wall Street’s three major indexes dipped after Trump said North Korea “will be met with fire and fury” like the world has never seen if it threatens the United States. “Trump’s response was aggressive and that’s why the market turned lower,” said Ken Polcari, Director of the NYSE floor division at O’Neil Securities.

Japan said on Tuesday it was possible that North Korea had already developed nuclear warheads and warned of an acute threat posed by its weapons programs as Pyongyang’s continues missile and nuclear tests in defiance of U.N. sanctions. Investors, who took the North Korea report from Japan in their stride earlier in the day, lost their appetite for risk after Trump’s comments to reporters during his vacation at his golf club in New Jersey.

http://www.reuters.com…   Wed.,  09  August 2017

Brexit exodus for Investment banking jobs

70,000 roles may be relocated from the City of London post-Brexit

A banking exodus from London will be costly. International lenders may need to shift as many as 40,000 investment banking jobs to the European Union to maintain activities on the continent after Brexit, according to financial consultants Oliver Wyman.

Banks may also have to pump as much as $50 billion in extra capital into EU subsidiaries “to support new European entities,” analysts at Oliver Wyman said in a report published on Tuesday.

Oliver Wyman is not alone in predicting a banking exodus. The Centre for London estimated last month that as many as 70,000 roles may be relocated from the City of London post-Brexit, while EY last year predicted 83,000 financial services jobs could be lost. Brussels think tank Bruegel made a more conservative forecast of 30,000 jobs lost.

http://www.oliverwyman.com…   Tue.,  01  August 2017

Brexit: Japan’s biggest bank moves investment operations to Amsterdam

Hundreds of MUFG staff could be leaving the UK

Japan’s biggest bank is reportedly set to move its European investment operations from London to Amsterdam because of the uncertainty posed by Brexit. MUFG could move hundreds of its 2,100 London employees to the Dutch capital, sources told the Financial Times.

Other banks are also looking to set up new offices in various European cities because of Brexit. The UK’s withdrawal from the EU is likely to have a significant effect on the financial services industry in the UK – along with numerous other areas – as companies in Britain will no longer be able to operate within the EU framework.

This could potentially block access to clients and significantly interfere with business. Amsterdam is already home to MUFG’s retail and corporate banking operations.

http://www.independent.co.uk…   Mon.,  31  July 2017

Exit from BREXIT?

Voters must be allowed another referendum  at the end of the two year Article 50 process

Sir Vince Cable has offered voters the possibility of an “exit from Brexit” after being confirmed as the new leader of the Liberal Democrats. The former business secretary, 74, succeeds Tim Farron, who stood down in the wake of the General Election because of questions around his faith. The June election saw the Lib Dems increase their tally of MPs by from eight to 12, a modest revival after being almost wiped out in 2015.

Sir Vince, who is the party’s oldest ever leader, said the Government’s handling of Brexit was taking the UK towards the “disastrous outcome” of crashing out of the EU. Negotiations were being conducted by a “dysfunctional, disorganised, disunited” Government, whose strategy was devised before the full complexity of Brexit became apparent, he said, and during a time when Theresa May had “serious political authority”, something she has now lost.

http://news.sky.com…   Fri.,  21  July 2017