A re-run of 97?
Asian outflows
The spectre of the 1997-98 Asian financial crisis has emerged, complete with a sell-off in the continent's emerging market currencies, as concerns mount over how regional economies will fare when the US Federal Reserve starts withdrawing stimulus measures. India's rupee has been in a tailspin this week, exacerbated by a perpetual current account deficit, while the Indonesian rupiah slumped to a four-year low against the dollar, before the central bank allegedly intervened. Investors are wary that the flood of capital that flowed into emerging markets in recent years will dry up as the Fed gradually pares back its bond-buying programme.
See Capital takes flight north
Lloyds bolsters balances
Das ist Leben
Lloyds Banking Group (LLOY) has successfully offloaded its German life insurer, Heidelberger Leben, to a joint venture between private equity group Cinven and Hannover Re for approximately €300m (£256m). Lloyds will book a heavy loss on the sale of the subsidiary, which it inherited as part of the Halifax Bank of Scotland (HBOS) acquisition, but it will bolster its balance sheet to the tune of £400m.The sale, along with another £254m garnered from a separate sale of leveraged loans to Goldman Sachs could accelerate UK government plans to start selling down its 39 per cent stake.
Nordic sell-off
Statoil's $2.65bn bonanza
It has emerged that Statoil sold stakes in North Sea oilfields to Austria's OMV in a $2.65bn deal that will allow the Norwegian oil & gas giant to fund new projects. Statoil hived off minority stakes in the new Gudrun development, the mature Gullfaks field, BP's (BP.) Schiehallion and Chevron's Rosebank field in the UK. The sale, which was concluded at a decent premium, according to analysts, will help OMV to meet some fairly aggressive production targets, while providing exposure to one of Norway's biggest future oil developments, with optional co-operation in 11 of Statoil's exploration licences in the Norwegian North Sea, West of Shetland and the Faroe Islands.
Deutsche steadiness forecast
Increased June surplus
In its monthly report for August, the Bundesbank forecast that the German economy should return to "normal, steady growth" in the second half of 2013, but warned over investment levels. Recent statistics showed that German gross domestic product (GDP) expanded by a stronger-than-expected 0.7 per cent in the second quarter, having flatlined in the previous quarter. The report concluded that domestic investment was unlikely to recover until there is a long-term improvement in the economic prospects for Germany's neighbours, particularly within the eurozone, and it subsequently emerged that the German trade balance showed an increased surplus in June, with exports to countries outside the single currency area on the rise.
Brewers' droop
Russian sobriety blamed
Europe's biggest brewers are feeling the pinch - at least in their traditional markets. Dutch brewer Heineken NV reported a 16.6 per cent fall in first-half net profits, citing bad weather and soft demand in several of its northern hemisphere markets, although the group did confirm that it continues to make headway in emerging market economies. Its Danish rival, Carlsberg A/S, pointed the finger at the Russian government's attempts to curb domestic alcohol consumption (how dare they!) and relatively bad weather in Europe for a 36 per cent fall in second-quarter net profits. The recent fortunes of the brewing 'majors' stand in stark contrast to those of independent microbreweries, which have been flourishing.
Everything must go
RBS' high-street sale
RBS will soon need to choose from three bidders for the 315 high-street branches it has been forced to flog off by Brussels to meet European rules on state aid. W&G Investments, a City consortium headed by former Tesco finance director Andy Higginson, tabled the formal proposal subsequent to its admission to Aim, for a £1.5bn bid for the RBS branches. It joins rival Corsair Capital and a joint bid from AnaCap and Blackstone, but RBS has the option of floating the branches itself, utilising the Williams & Glyn's brand that disappeared from UK high streets in 1986.
