News

Blue Index News and Press Releases. Please visit this page often for regular updates regarding Blue Index as an organisation.

Rio iron ore price cuts show the economic downturn is still taking its toll

Traders returning to their desks this morning after the Bank Holiday weekend have had a rather mixed start to the short week, with the general lethargy due to a dearth of major corporate results announcements. Story of the day thus far is mining giant Rio Tinto (RIO), which has agreed to a one third reduction in the price it charges for iron ore, a move likely to set the standard for other miners and as good an indication as any that the economic downturn is still taking its toll on business. Rio has yet to resolve the ongoing funding issues and the Chinalco saga, and this coupled with the iron ore price cuts prompted a 3% slump in Rio shares. Conversely, Latin America focused miner Hochschild (HOC) leads the FTSE 350 leader board with a 7% share price rise after announcing at the AGM today that it is optimistic over prospects for the coming year.

A change of trading strategy as S&P downgrades the UK credit rating

Signs of a slowdown were there for all to see last week, as the tentative recovery in the economy and the sharp rebound in the stock market since March hit its first big stumbling block. An arguably long overdue cut in the UK’s credit rating this week has well and truly stopped the market in its tracks, catching out the bulls and optimists who hoped and believed we could pull out of recession with an unblemished record. The rest of the summer will see investors looking over their shoulder in case the warning shot from the S&P Credit Agency results in the loss of the UK’s Triple A rating

The trading diary for the week ahead: 2009-05-25 to 2009-05-29

A diary of major economic announcements, company reporting announcements and financial markets events scheduled for the week starting 25 May 2009

A severe wing clipping at British Airways

All the flying metaphors are in use today for British Airways (BAY), and unfortunately for bulls all refer to descent e.g. tailspin, severe turbulence, perfect storm etc. The flagship carrier announced its first loss in 7 years, and while this may have been factored in by the stock market, it has had a negative impact on the share price, currently down some 5%.