Volkswagen agreed on buying Porsche's rest 50.1% stake for which it will pay $5.6bn. The deal was closed already in 2009 and the intention was to merge in 2011; however, there were obstructive legal obstacles. The agreement is intended to diminish VW's costs as well as lift its profits so that to become the biggest car producer in the world.
According to surveys of Markit, services sector of the Eurozone continued to diminish in June while business confidence dropped. The situation adds pressure on ECB to reduce Eurozone's borrowing costs. Moreover, in the last six months the companies providing services cut their workforce due to the lower demand and increased expenditures. In June the composite index of the service and manufacturing industry of the Eurozone was
The Australian Dollar lost 0.1% to USD 1.0264 on Thursday as the stocks in Asia weakened on concerns about global financial problems. The MSCI Asia Pacific Index diminished by 0.2% and the interest rates on the 10-year bonds reduced by 9 basis points to 3.11%.
According to official data presented by Italian government, the budget deficit of Italy expanded from January to March. Budget shortfall reached to 8% of GDP, which is 1% more than in the previous year. Due to decline of 1% in tax revenues and 1.3% increase in public expenditures, the country had to raise its debt further. In 2012 the government
Asian stocks moved lower on Thursday ahead of Bank of England and ECB meetings on speculations officials may decide on additional stimulus. Shanghai Composite index shed 1%, Japan's Nikkei 225 gave up 0.3% and Australian S&P/ASX 200 traded flat. Hang Seng modestly climbed 0.1% and South Korea's Kospi edged down 0.1%.
European stock markets experienced a low volume trading session on Wednesday as US markets were closed for the US Independence Day. Stoxx Europe 600 traded flat at 257, German DAX slipped 0.2% and Spanish IBEX 35 lost 0.7%. French CAC 40 and British FTSE 100 each gave up 0.1%. Athens General Index rallied 4.9%.
The British Pound depreciated for a third consecutive day versus greenback after government report showed nation's service PMI in June dropped more than forecast. The Pound fell 0.6% against US Dollar to USD 1.5594. Forex strategist Lee Hardman expects Sterling to reach two-year low at USD 1.50 in upcoming three months. Currently GBP/USD is trading at USD 1.5595.
The Japanese Yen trade close to flat versus Euro on Thursday but weakened against the US Dollar as investors bet central banks will add stimulus. The Yen fell versus greenback to JPY 79.83 during Asian trading hours. Currently USD/JPY is trading at JPY 79.75. US markets were closed yesterday.
Retail sales in common currency area unexpectedly surged in May, as improvement in France, Ireland and some other countries managed to offset the falling demand in Germany. Sales climbed monthly 0.6% in May compared to a 1.4% drop in April. Economists predicted the indicator to remain flat. On yearly basis, however, sales have declined by 1.7%.
Australian trade deficit expanded in May for a fifth straight month on higher level of imports of fuel and industrial equipment. Imports outperformed exports by AUD 285 million (USD 292 million) compared to a AUD 26 million shortfall reached in April, Bureau of Statistics reported on Thursday. The report adds pressure on RBA to prolong interest rate cuts.
On Tuesday the IMF claimed that the economic activity of Germany is notable taking into account the latest encumbrances related to the demand growth and banks' vulnerable situation. Economists also mentioned that country's current fiscal policy is appropriate. IMF also highlighted the importance of the Landesbanken restructuring and Germany's recession management improvement.
As the Euro declined the amount of holdings in gold increased to a record high 2412,4 tons on Tuesday. Bullion prices reached two-week high of USD 1625.07 an ounce whereas futures for August-delivery became USD 1616.70 an ounce, which is 0.3% lower than previous. At the same time silver lost 0.4% amounting to USD 28.1625 for ounce now. Platinum decreased by half percent
Hillary Clinton`s, US Secretary of State, apology about a baleful border conflict was followed by Pakistan renewing military supply. Pakistani decision was urged by several conversations as as Obama administration prepares to exit Afghanistan. While the reopening of supply-line was the first sign of progress amid agreement on more than $1bn US funding for Pakistan, both sides still have their
Asian currencies increased against the US Dollar on Wednesday. The Indian Rupee and the South Korean Won both rose 0.2% to conversion rate of KRW 1135.70 and INR 54.26 per USD. The Taiwan Dollar and the Thailand Baht both climbed 0.1%, reaching level of TWD 29.866 and THB 31.46 per USD. Moreover the Yuan appreciated by 0.07% to CNY 6.3477 per USD.
The Euro fell against 13 of its counterparts on Wednesday. The single currency lost 0.3% against the Yen and the US Dollar and current rate is JPY 100.35 per EUR and USD 1.2572 per EUR. Moreover, the Euro depreciated against the Swedish Krona to SEK 8.7093 per EUR. Experts attributed the drop to services sector contraction in Germany and lower risk-appetite
Francois Hollande, a new French president, has announced that tax rates for businesses and households with the highest income will be increased. French government expects to collect additional 7.2 billion EUR. Such policy is aimed to reduce budget deficit to 4.5% instead of previous 5.2% in 2011. GDP growth forecasts were also changed and now it is considered to increase by 0.3% this year and
Service economy contracted in UK in June reaching eight-month low at 51.3. Consequently, the economy of Great Britain has declined by 0.1% during the last quarter. Firms are weighed down by lower prices while input costs are rising much faster. To stimulate the economy the Bank of England plans to inject 50 billion Pounds adding to existing 325 billions by the end
Rural commodities surged on Tuesday as crop-damaging drought is expected to persist next week in the US. At the same time rainfalls in Brazil continued to dampen harvest prospects in the top coffee and sugar grower.Wheat approached 10-month high on US supply worries. However, the upward trend was capped after Ukraine announced it does not plan to restrict wheat exports
Energy markets were bullish on Tuesday amid lingering supply concerns as tensions over nuclear programme of Iran increased.Crude oil surged on weaker greenback and expected fall in supplies as oil workers' unrest in Norway continued to hurt oil exports from the world's eighth-largest oil producer.Brent oil jumped on speculation that Iranian officials proposed a bill calling the government to halt
Industry metals skyrocketed on Tuesday after US factory orders posted stronger than expected gain of 0.7% in June. Aluminum caught momentum on increased US vehicle sales and rising fuel efficiency awareness. However, the upswing was subdued by weak PMI releases in the beginning of the week.Copper rallied on potential demand increase and supply worries. Newmont mining dispute in Peru is
Precious metals rallied on Tuesday amid broadly weaker US Dollar after the IMF lowered the US growth forecast for this year from 2.1% to 2%. Gold rose on speculation about monetary easing by central banks all over the world. The strongest support was provided by hopes for QE3 after US manufacturing activity unexpectedly contracted in June.Silver surged amid mixed world
Rubber reached five-week record high on Wednesday on intensified speculations about increase in demand for the commodity. Rubber for December delivery gained 2.2% on the Tokyo Commodity Exchange. General Motors Co., Ford Motor Co. and Chrysler Group LLC documented sales that helped the industry to achieve the best year from 2007. Rubber futures for September advanced 0.2%.
UK soccer club Manchester United Ltd. has announced its plans for an initial public offering, seeking for $100m in new investments. Documents presented together with the Securities and Exchange Commission said that that the club was to enter the New York Stock Exchange after refusing a $1bn flotation on the Singapore stock market last year. Man United documented a profit
Gold is likely to gain after intensified investments demand and speculation about banks' intention to boost economic growth. Cash gold was slightly changed, rising by 1.3% to trade at USD1,618 per ounce. Meanwhile cash silver dropped 0.6% to USD28.10 per ounce. Spot platinum was almost unchanged, trading at $1,487.87 an ounce while palladium advanced 0.9% to USD605.60 in the