Daily Insolvency News Headlines

Australia (1)
China (1)
Europe (1)
Ireland (1)
Japan (1)
Russia (1)
Venezuela (1)

Tue., September 1, 2015

Tue., September 1, 2015

Eurozone consumer prices were barely higher than a year earlier in August, keeping pressure on the European Central Bank to consider additional stimulus measures to bring inflation closer to its target near 2%, The Wall Street Journal reported. The European Union’s statistics agency Monday said consumer prices in August were 0.2% higher than a year earlier, a rate of inflation that was unchanged from June and July. Inflation was restrained by a renewed fall in energy prices, which were down 7.1% from a year earlier. But food-price inflation picked up significantly, and there were signs that the prices of manufactured goods are rising more rapidly. Excluding prices for energy, food and alcohol that are largely beyond the ECB’s influence, the core annual rate of inflation was unchanged at 1.0%. The stability in core inflation makes new steps unlikely at Thursday’s ECB meeting, analysts said. Volatile swings in financial markets and oil prices have made it difficult to gauge inflation’s longer-term path. Further clouding the consumer price outlook in Europe, the euro rose sharply at the height of market tensions over China and emerging markets, though it has come down since late last week as financial markets settled. A weak exchange rate typically boosts inflation through higher prices for imported goods. Read more. (Subscription required.)

Tue., September 1, 2015

China’s wobbly response to the bursting of its stock market bubble, the sudden devaluation of the renminbi and the mystery over the true health of the country’s economy continue to spook investors, large and small, the Financial Times reported. But China’s wealthiest people know exactly what to do in these bewildering times: get some of their money out. More than 60 per cent of wealthy Chinese people surveyed in July by FT Confidential, an investment research service at the FT, said they planned to increase their overseas holdings in the coming two years. Residential property was the most popular future investment, followed by fixed-income securities, commercial property, trust products and life insurance policies. A significant proportion of China’s wealthy are self-made business people who have managed to profit from the nation’s economic expansion — a phenomenon that has led to massive inflows of foreign investment into China. Read more. (Subscription required.)

Tue., September 1, 2015

Toshiba again delayed announcing its annual financial results on Monday, as new accounting errors prevented the company from drawing a line under Japan’s worst corporate scandal in four years, the Irish Times reported. Toshiba, which was scheduled to post its earnings for the business year ended in March, said the newly discovered problems included incorrect impairment charges on fixed assets at several subsidiaries and improperly timed booking of loss provisions at a US subsidiary. “We deeply apologise for the situation we are in yet again, and for the inconvenience and concern we have caused to our stakeholders including shareholders and investors,” chief executive Masashi Muromachi said before making a deep bow of contrition to a packed, late-night news conference. The laptops-to-nuclear conglomerate had already delayed announcing its results by around three months due to an independent investigation over its past accounting practices. That probe found Toshiba had overstated past results by around $1.2 billion over several years, prompting its then-CEO and several other executives to step down last month. Read more. (Subscription required.)

Tue., September 1, 2015

Russian President Vladimir Putin will discuss “possible mutual steps” to stabilize the global price for oil at a meeting with Venezuelan President Nicolás Maduro in China on Thursday, a Kremlin aide said, as both countries grapple with lower prices for their main export, The Wall Street Journal reported. Venezuela, a Russian ally that has been hit hard by plunging oil prices, has been pushing for an emergency meeting with the Organization of the Petroleum Exporting Countries in coordination with Russia to work out a strategy to halt the recent retreat in prices, people familiar with the matter said. The Kremlin aide, Yuri Ushakov, didn’t expand on what potential steps could be taken but said they could be “within the context of Russia’s cooperation with OPEC.” Russia also has been hurt by lower crude prices, as oil and gas account for half of federal budget revenue. But officials have repeatedly said that Russia, which vies with Saudi Arabia for the position of top global oil producer, won’t cut output to prop up prices. Read more. (Subscription required.)

Tue., September 1, 2015

Troubled SVOD player Quickflix has again suspended trading in its shares on the stock market as it attempts a restructure and head off potential financial insolvency, mUmBRELLA reported. The company, which in its last market update on June 30 reported it had lost $1.096m in the last quarter and had only $913,000 in cash on hand, today told the ASX that the purpose of the restructure was for “Quickflix to become a viable and sustainable business in which losses from its existing consumer business are significantly curtailed or eliminated.” At the time it was suspended Quickflix shares were valued a $0.001 giving the company a market capitalisation of just $2.2m. The announcement also said Quickflix would seek to address “the legacy issues of accumulating minimum guarantee obligations from from SVOD licensing arrangements entered into several years ago that have not generated an adequate return for Quickflix and that are restricting the Company’s ability to secure necessary new funding.” Back in June the company announced it had restructured some $5m in licensing arrangements with the movie studios. “Quickflix is in discussions with SVOD licensors to seek relief from existing obligations and their co-operation ion restructuring the company,” it said in its announcement. Read more.

Tue., September 1, 2015

Loans to Irish households fell 2.8 per cent in July, new data from the Central Bank has shown, while lending to companies showed a decline of 6.9 per cent year on year, the Irish Times reported. The figures showed household loan repayments exceeded drawdowns by €346 million during the month, continuing a trend seen the previous month, as the number of loans issued for house purchases fell. During July, the number of loans drawn down for consumption and other purchases fell by €99 million. Year on year, loans for houses declined by 2.6 per cent, while other loans fell by 3.5 per cent compared with 2014. Ireland’s companies continued to decline in July, although the pace slowed from June when lending fell by 7.4 per cent. Read more.

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