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☆ The UK economy is sliding into recession and Europe is set to follow
▼ + stars: | 2022-11-11 | by ( Hanna Ziady | ) edition.cnn.com time to read: +4 min

London CNN Business —The UK economy shrank in the third quarter, signaling the start of a recession that is likely to hit Europe next. UK GDP fell 0.2% between July and September, ending five consecutive quarters of growth, the Office for National Statistics said on Friday. Recession stalks EuropeThe Bank of England warned last week that the UK economy could experience its longest recession since the 1940s. The European Commission warned Friday that high inflation and rising interest rates are likely to tip the euro zone into recession in the fourth quarter. Still, the Commission expects GDP growth in the euro area to remain positive next year and in 2024.

The frozen Russian assets were 6 billion pounds more than the amount reported across all other British sanctions regimes. It does not include physical assets such as real estate or assets held in Crown Dependencies such as Guernsey and Jersey. The European Union, a 27-nation bloc with an economy five times larger, said in July it had frozen 13.8 billion euros ($13.83 billion) of Russian assets over the war in Ukraine. While Russian assets are currently only frozen, there are discussions on what options are available to seize them. In the first test of Britain's approach to enforcing sanctions, Russian billionaire Petr Aven is challenging in a London court allegations that he evaded sanctions.

☆ The new UK government needs to think long term and fund the NHS and research, AstraZeneca CEO says
▼ + stars: | 2022-11-10 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe new UK government needs to think long term and fund the NHS and research, AstraZeneca CEO saysThe new U.K. government needs to think long term and fund the NHS and research, AstraZeneca CEO Pascal Soriot says

Summary 85 insurers make pledge to extend climate coverComes as COP27 talks focus on issue of loss & damageAfrican Climate Risk Facility to cover 1.4 bln peopleSHARM EL-SHEIKH, Nov 9 (Reuters) - A group of over 85 African insurers has pledged to provide $14 billion of cover to help the continent's most vulnerable communities deal with climate disaster risks such as floods and droughts. Demand for compensation for the so-called 'loss and damage' caused by global warming has long been rejected by wealthy countries, wary of accepting liability for the emissions driving climate change. Against that backdrop, the African insurance plan is based around creating a scaleable, local market-based funding tool for resilience, the group said. "This is the African insurance industry saying let's come together and try and solve this ourselves," said Kelvin Massingham, director risk and resilience at FSD Africa, one of the partners behind the launch. The African Climate Risk Facility (ACRF) will provide protection for 1.4 billion people against floods, droughts and tropical cyclones by providing $14 billion of climate risk insurance by 2030 to African sovereigns, cities, humanitarian organisations and NGOs, the insurers said in a statement.

☆ Energy security trumps the climate? London’s biggest IPO of the year is an oil company
▼ + stars: | 2022-11-09 | by ( Julia Horowitz | ) edition.cnn.com time to read: +3 min

That’s one lesson from the initial public offering on Wednesday of Ithaca Energy, a North Sea oil and gas producer — which went ahead as world leaders gathered for the UN climate summit in Egypt. The best performing stock so far this year on London’s FTSE 250 index is Energean, which focuses on gas projects in the North Sea and Mediterranean. The North Sea is an aging basin, and oil and gas giants like Chevron (CVX), Exxon (XOM) and Shell (RDSA) have been winding down their presence. Piper said an oil and gas company is one of few that could get away with a listing on the market right now. “That’s going to impact the value of all North Sea oil producers,” Piper said.

For the second time in less than three years, the Bank of England has made an emergency intervention in the market for UK government bonds. Investors rushed to liquidate assets, including money market funds which held UK government bonds. The latest intervention was triggered by excessive leverage in UK pension funds, which had borrowed to boost returns using a strategy known as liability-driven investing (LDI). To prevent future blow-ups, regulators could cap money market funds’ exposure to less liquid assets, reducing the risk of a run by investors. Financial market regulators in European fund centres like Ireland and Luxembourg have stepped up surveillance of LDI strategies used by UK pension funds, the Financial Times reported on Oct. 28.

CNN —Two British-Iranian journalists working in the United Kingdom have been warned by police of a “credible” plot by Iran to kill them, according to their employer, London-based news channel Iran International. The Iranian government has labeled Iran International as a “terrorist organization,” Iran’s state-aligned news agency ISNA reported Tuesday, citing the country’s information ministry. CNN reached out to Iran International for comment. Iran International’s protest coverageFounded in 2017, Iran International has been at the forefront of covering the recent demonstrations with exclusive footage of events on the ground. The sanctioned entities included what Tehran referred to as “anti-Iranian TV channels” such as Iran International, Tasnim reported.

☆ Levi Davis: Rugby player missing in Spain for over a week, former team says
▼ + stars: | 2022-11-07 | by ( Ben Morse | ) edition.cnn.com time to read: +1 min

CNN —Former rugby player Levi Davis has been reported missing for over a week, his former club said in an appeal for any information pertaining to his whereabouts. Bath Rugby Club issued an appeal Sunday for information about Davis, who they say was last seen in a pub in Barcelona, Spain, on October 29, 2022, on its Twitter account. The appeal described Davis as 5-foot-9 (176cm) and said that anyone with information could email findlevidavis@gmail.com. “If anyone has seen or heard from Levi Davis in the last two weeks could you please drop me a message asap. In a statement sent to CNN, the UK government’s Foreign, Commonwealth and Development Office said it was “providing consular support to the family of a British man who has been reported missing in Spain.”

☆ Asia stocks resilient as Wall Street slips, China trade disappoints
▼ + stars: | 2022-11-07 | by ( Wayne Cole | ) www.reuters.com time to read: +5 min

"With China going into winter, most analysts think a change in zero-COVID is unlikely until at least March." A little of that reversed on Monday, with the Aussie down 0.7% at $0.6421 after jumping 3% on Friday. S&P 500 futures dipped 0.2%, while Nasdaq futures lost 0.3%. EUROSTOXX 50 futures lost 0.2% and FTSE futures 0.6% amid reports the UK government was planning tax rises and spending cuts. Oil futures lost some of their recent gains with Brent off $1.07 at $97.50, while U.S. crude dropped $1.26 to $91.35 per barrel.

☆ UK government faces tough budget decisions, says minister
▼ + stars: | 2022-11-06 | by ( ) www.reuters.com time to read: +1 min

LONDON, Nov 6 (Reuters) - Britain's government is facing significant and difficult decisions on taxes and spending in an effort to plug a budget shortfall, cabinet office minister Oliver Dowden said on Sunday, declining to comment on possible measures. Prime Minister Rishi Sunak and finance minister Jeremy Hunt will set out plans to cover the shortfall of at least 40 billion pounds ($45.50 billion) with their first budget programme on Nov. 17. "It's right that we take difficult decisions," Dowden told Sky News. "I have to say to you and your viewers there will be, unfortunately, more significant difficult decisions to come in the autumn statement." Dowden added that, while focusing on protecting the most vulnerable people, the government faces difficult decisions on both tax and spending.

☆ Glencore fined $314 million for ‘endemic’ bribery of African oil officials
▼ + stars: | 2022-11-03 | by ( Anna Cooban | ) edition.cnn.com time to read: +2 min

London CNN Business —Commodities giant Glencore (GLCNF) has been ordered to pay a record £281 million ($314 million) penalty by a UK court for bribing officials across Africa to gain access to oil. The penalty announced on Thursday includes a fine, legal costs and confiscation of the profit Glencore made from its bribes. It also found that, between 2012 and 2015, a Glencore trader and Nigerian agent withdrew a total $13.7 million in cash from Glencore’s Swiss cash desk. Glencore said in May that it had resolved investigations into separate bribery charges brought by authorities in the United States and Brazil. The company has set aside $1.5 billion to settle its legal cases, including the UK bribery action, it said Thursday.

☆ Britain to go it alone for now on reining in 'shadow banking'
▼ + stars: | 2022-11-02 | by ( Huw Jones | ) www.reuters.com time to read: +5 min

Britain hopes the LDI crisis creates momentum for comprehensive global reform to improve data and liquidity in the sector. In Britain the Financial Conduct Authority (FCA) regulates UK-based managers of LDI funds, and The Pensions Regulator (TPR) regulates pension schemes. UK regulators face pushing ahead alone, for now, hoping global reforms eventually pressure others to follow suit. Most LDI funds are listed in European Union states like Luxembourg and Ireland, meaning structural changes would rely on the bloc. The Central Bank of Ireland said it has stepped up data collection, analysis and engagement with LDI funds.

And economic policy is only gradually being taped back together before the BoE meets again. It's also pulled the implied peak Bank rate next year some 150bp lower to 4.75% over the same period - back below the assumed 'terminal rate' at the U.S. Federal Reserve. "We see the risks skewed towards the BoE sounding dovish this week and ultimately "underdelivering" versus current pricing," the Deutsche analyst wrote. Central bank rate hikes and SterlingReuters Graphics Reuters GraphicsThe opinions expressed here are those of the author, a columnist for Reuters. by Mike Dolan, Twitter: @reutersMikeD; Editing by Josie KaoOur Standards: The Thomson Reuters Trust Principles.

☆ BP’s profit more than doubles as calls for windfall taxes grow louder
▼ + stars: | 2022-11-01 | by ( Hanna Ziady | ) edition.cnn.com time to read: +4 min

The UK-based energy company posted underlying profit of $8.15 billion in the July to September period, compared with $3.3 billion a year ago. BP (BP)’s earnings were boosted by “exceptional” results in its gas trading business, it said in a statement on Tuesday. Also last week, America’s largest oil company, ExxonMobil set a profit record for the second straight quarter, while Chevron (CVX) and French oil company Total (TOT)Energies posted similarly huge increases. The unprecedented set of earnings is fueling renewed calls in Britain and the United States for windfall taxes on energy companies to help households that are struggling to pay rising bills. EU governments, on the other hand, agreed a windfall tax in September that they hope will raise $140 billion.

☆ Russia's invasion of Ukraine has accelerated a nuclear renaissance. Europe's nuclear startups have raised a record $403 million in 2022.
▼ + stars: | 2022-11-01 | by ( Tasmin Lockwood | ) www.businessinsider.com time to read: +5 min

Nuclear power has long been shunned by policymakers due to disasters like Chernobyl and Fukushima. Rising energy costs caused by Russia's invasion of Ukraine have sparked a nuclear resurgence. For most, nuclear energy sparks memories of the large-scale disasters at Fukushima and Chernobyl. To generate energy via nuclear fusion, two atoms have to be combined – the same process that fuels the sun. Both are needed to fight climate change, according to Aneeqa Khan, a nuclear fusion research fellow at the Dalton Nuclear Institute.

☆ NatWest shows bank investors were right to fret
▼ + stars: | 2022-10-28 | by ( ) www.reuters.com time to read: +2 min

LONDON, Oct 28 (Reuters Breakingviews) - Investor scepticism in bank stocks might seem a bit odd. After all, rising interest rates mean banks can make a fatter margin on loans, and unemployment levels are low, which suggests customers will keep paying their mortgages. Investors already valued NatWest at only 0.8 times its tangible book value, and Friday’s 8% share price fall will push that down further. The bank, still 48% owned by the UK government after a 2008 bailout, is expected to deliver a 13% return on tangible equity next year, RBC analysts reckon. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

In an updated travel advisory issued Thursday, the State Department flagged 15 other Nigerian states in its “Do Not Travel” list due to risks ranging from terrorism to kidnapping and criminal activities perpetrated at sea. In a similar advisory to British nationals, the UK government advised against nonessential travel to the Nigerian capital, while warning against all travel to 12 Nigerian states. Nigeria’s police chief, Usman Alkali Baba, said there were “no imminent threats” in the country’s Federal Capital Territory. Nigeria also grapples with widespread kidnappings for ransom and maritime crimes in its southern region. Hundreds of prisoners were broken free in a prison raid in the country’s capital in July.

☆ Analysis: Catalonia's economic muscle weakened five years after separatist bid
▼ + stars: | 2022-10-27 | by ( Joan Faus | ) www.reuters.com time to read: +5 min

The fallout serves as a cautionary tale for the independence movement in Scotland, which is pushing to hold another referendum next year on breaking away from the United Kingdom. Junqueras was Catalonia's deputy government head when the region held an independence referendum banned by a Spanish court. Junqueras insisted the Catalan separatist movement is still strong, pointing out the increase in pro-independence lawmakers in the past decade. Like Scotland, Catalonia's independence movement is now pushing for another referendum, this time with the approval of the Spanish government. But as with the UK government and Scotland´s bid, Spain has so far rejected the proposal.

☆ Shell announces $4 billion share buyback as profits double
▼ + stars: | 2022-10-27 | by ( Hanna Ziady | ) edition.cnn.com time to read: +2 min

The UK company posted net income of $9.45 billion in the third quarter, more than double the $4.1 billion it recorded a year ago. The result was driven by a strong performance in its oil exploration and production business, Shell said. The additional buybacks will increase total share purchases for the year to $18.5 billion, some 10% of the company’s share capital. It posted a record $11.5 billion profit in the second quarter, when oil prices were above $100 a barrel. “We are delivering robust results at a time of ongoing volatility in global energy markets,” Shell CEO Ben van Beurden said in a statement.

☆ World Cup: UK foreign secretary under fire for saying LGBT soccer fans should be "respectful" at Qatar 2022
▼ + stars: | 2022-10-27 | by ( Amy Cassidy | ) edition.cnn.com time to read: +5 min

CNN —British Foreign Secretary James Cleverly is receiving backlash for suggesting gay soccer fans should be “respectful” in Qatar when attending the FIFA World Cup set to take place in the Gulf Arab state later this year. “One of the things I would say to the football fans is you know, please do be respectful of the host nation. “Two football fans going as a couple can’t hold hands? Leon Neal/Getty ImagesOn Tuesday, British LGBTQ activist Peter Tatchell protested by himself outside the Qatar national museum ahead of the World Cup. Wearing the armband together on behalf of our teams will send a clear message when the world is watching.”

Sunak, Britain’s third prime minister in seven weeks, took office on Tuesday with a pledge to fix the “mistakes” Truss made. Truss’ “mini” budget of September 23 crashed the pound and caused a rout in the bond market, sending UK borrowing costs — including mortgage rates — soaring. One area Sunak may be tempted to tap is the social welfare budget. That could save £7 billion ($8 billion) in 2023-24, according to the IFS, but would prove controversial. According to Hunt, the budget, when it comes, will set out how the government plans to reduce debt in the medium term.

☆ Morning Bid: Consumer drain as banks gain
▼ + stars: | 2022-10-26 | by ( ) www.reuters.com time to read: +5 min

Google's results in particular bode ill for Facebook parent Meta Platforms (META.O), especially reliant on advertising and reporting its results late on Wednesday. Consumer blues contrasted with bumper earnings from banks who are raking in huge windfalls from rising interest rates - direct cash injections from reserves they hold at central banks along with higher net interest margins and trading revenues flattered by volatile markets. read more read more read more read moreEuropean banks reporting this week matched Wall St counterparts on that score, raising conundrums for the European Central Bank meeting this week and Bank of England and U.S. Federal Reserve gatherings next week. They all plan further policy rate rises to rein in inflation - but this also involves direct transfers to their banks and potentially a drain on government finances. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Average two-year and five-year fixed rates hit 6.65% and 6.51% on Thursday, according to Moneyfacts, the highest since 2008. FALLING PRICESA drop in gilt yields following Rishi Sunak's victory in the Conservative Party leadership race could potentially feed through to lower mortgage rates. But the number of loans available for first-time buyers remains at less than half those on offer before the mini-budget, according to Moneyfacts. NEW FIXESAs well as first-time buyers, brokers are dealing with thousands of people whose fixed rate mortgages are due to expire in the coming months. Redmond, who has had an offer accepted in east London, said it felt as though every turn of political event only made the fixed interest rate higher.

☆ Tech tonic and Sunak salve
▼ + stars: | 2022-10-25 | by ( ) www.reuters.com time to read: +5 min

A massive week for top technology firms worldwide pits U.S. mega cap earnings against the withering slide in China tech shares amid domestic political and economic fears. read moreBut the decimation of Chinese tech stocks (.HSTECH) this week was more worrying. read moreU.S.-listed shares of Chinese companies such as Pinduoduo (PDD.O), JD.com and Baidu Inc plunged between 12% and 25% in New York on Monday. read moreHSBC's shares fell almost 7% in London, meantime, as investors digested a sudden management change and rising bad loan charges. As investors awaited the European Central Bank's latest interest rate rise on Thursday, German business readings were above forecast for October.

☆ Cryptoverse: British pound fiasco boosts bitcoin's hedge appeal
▼ + stars: | 2022-10-25 | by ( Lisa Pauline Mattackal | ) www.reuters.com time to read: +4 min

Oct 25 (Reuters) - As a developed nation, you know your currency's in a spot of bother when investors start to hedge with bitcoin. Register now for FREE unlimited access to Reuters.com Register"It was the first time we've seen such a huge increase in (bitcoin) volumes for the currency of a developed country," said Ed Hindi, chief investment officer at Tyr Capital. In fact, over the past month of market ructions, U.S. Treasuries have been equally or more volatile than bitcoin, according to Refinitiv data. The pound volumes echoed similar instances of investors jumping into bitcoin when fiat money came under pressure, including in Russia and Ukraine this year. Some crypto watchers say the September surge was nonetheless a reflection of bitcoin's enduring appeal as an asset outside mainstream finance.

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