Themes from September
Global interest rates headed down in September. The US Fed cut federal funds by 0.25% to a range of 1.75%-2% whilst the ECB cut deposit rates by 0.1% to -0.5% and will restart a €20bn monthly bond buyback.
Thomas Cook declared insolvency after a rescue effort over 28th-29th September failed to find the requisite £200m in extra funding requested by RBS. The package holiday group sold 22m holidays in 2018.
President Trump is facing a Congressional Impeachment inquiry after a whistleblower reported to Congress having witnessed Trump abusing his powers by seeking to pressure a foreign leader to open an inquiry into former US Vice President Joe Biden.
Hong Kong Exchange made a takeover approach to the LSE, which was promptly rejected. The board of HKEX has since said it will woo LSE holders with an improved offer.
The Financial Reporting Council (FRC) has issued a revised going concern standard following a spate of corporate failures in which auditors had failed to flag up concerns about the company’s viability.
IAG updated investors to expect 2019 operating profits of €3.27bn saying recent strikes cost €170m.
UK government declined to provide financial assistance to Sirius Minerals during its talks to secure US$500m of extra bond financing from investors.
Prudential expects to divest its M&G fund management business no later than the 21st October.