Life in listings
IPO revival?
With the Direct Line float set to begin trading on Tuesday and a raft of other proposed new issues being put in front of investors, the London listings market is showing signs of life. While by no means close to the levels of previous years, companies of all sizes are beginning to test the water for investor appetite. In the past week, European logistics warehouse business, PointPark Properties, and Russia's second-biggest mobile business, MegaFon, have both declared their intention to list, and Sierra Leone explorer Sula Iron & Gold floated on Aim. Meanwhile, Michael Ashcroft's Shellproof announced its intention to buy a Sussex vineyard and list it on Aim.
IMF warning
UK concern
The International Monetary Fund (IMF) has issued a gloomy update on the state of the global economy, warning that the economic recovery is showing signs of slowing down. Focusing on the UK, the IMF said that George Osborne's spending cuts are already running behind plan, but the government should be prepared to consider deferring them further to allow recovery to take hold. The IMF also highlighted the eurozone for its efforts at addressing its economic issues, but warned that the economic bloc needs to act faster and deeper on economic integration to avert potential catastrophe.
Iraqi boom
Production to double
The International Energy Agency (IEA) has highlighted the potential growth in the Iraqi oil industry as relatively stable conditions lead to a huge uplift in production. The IEA highlighted Iraq's good geology and low cost of production as key factors in what is forecast to be a doubling of production by the end of the decade. But the agency also said that the current contracts in place could act as a drag on this growth as could the disputes between Baghdad and the autonomous region of Kurdistan, which has signed independent agreements with various oil majors that Baghdad considers to be illegal.
Hot Food
Prices to rise
The awful summer weather has severely hampered the UK's harvest and will likely result in upward pressure on food prices. The second wettest summer on record has led to a 15 per cent decline in wheat yields, which will only exacerbate the problems caused by drought in the US hampering yields there. The latest figures suggest wheat prices are already 29 per cent higher than a year ago. This will also feed into rising costs for livestock farmers as grain constitutes a large proportion of their feedstocks. Root vegetables have also been hit with yields reported to be down 25 per cent across most crops.
See: Profit from Asian appetites
Lending loosener
FSA boost
The Financial Services Authority (FSA) has been moderating its capital and liquidity rules for banks in an attempt to give them more free rein to lend more and stimulate the UK economy. Loans which qualify under the recently launched 'Funding for Lending' initiative will not require any additional capital to be held to cover the value of the loan, making it effectively risk-free. The initiative is aimed to improving the flow of credit to the corporate sector in an attempt to prevent the UK economy from continuing to stagnate.
Retail merry-go-round
Bostock goes online
Online retail success story ASOS has announced one of the worst kept secrets in the retail world with the appointment of former Marks & Spencer executive, Kate Bostock, as its executive director for product and trading, replacing Robert Bready. Ms Bostock's appointment follows the recent arrival of former Amazon managing director Robert McBride as chairman of ASOS. While the appointment suggests that ASOS has arrived as an established retailer, it remains to be seen what effect Ms Bostock will have on the company given its vastly different demographic and geographical reach to Marks & Spencer.
