Crude oil futures fell after approaching seven-week high as investors' confidence was dampened by fresh worries over the Euro Zone's recession. The ECB deposit facility's use hit a new record high of EUR453.1 billion on Tuesday, indicating banks' unwillingness for interbank lending. Light, sweet crude oil futures for February delivery traded at USD102.59 a barrel at the early European trade, on the New York Mercantile
Crude oil and gold prices are likely to surge soon on the US-Iran war, claims Jim Rickards. He says the war has been started as tensions and sabotage between two countries reached a peak. The price for crude oil is likely to soar to above $200 a barrel while gold will jump to a range between $3000/oz and $5000/oz in 2012. Hedge funds as
The contraction of the service sector in the Euro Zone slowed last month. The Markit Euro Zone purchasing managers' index approached 48.8 in December, being a three-month high. Analysts expected the figure to hit 46.9 in December after being 46.4 in November. However, the results still show there is a high risk of new recession in the region.
China's National Audit Office has found $84bn of irregularities in the government debts. The irregularities include irregular collateral and credit guarantees. The incident raised worries over the amount of bad debts held by the government. Figures showed bad debts totaled $1.7tn in 2010. Currently, the State Council plans to review the debt management practices to reduce the fiscal risks.
German DIW Institute cut Germany's growth forecast on Wednesday. The institute expects the GDP to expand by 0.6% this year as compared to 1% initially projected. The GDP is likely to accelerate the pace of growth in 2013 to 2.2%. The forecast is based on assumption that the Euro Zone leaders will manage to control the debt crisis in the area.
France's household expenditure on goods declined by 0.1% seasonally adjusted in November after 0.1% rise in October. The demand for durables increased by 1.5% mostly due to 3.2% increase in car purchases while the consumption of textile goods and energy products tumbled 2.1% and 0.5%, respectively.
Copper futures declined after hitting three-week high on the increasing worries over the Euro Zone's crisis and weaker demand for the commodity in China. COMEX copper March contracts traded at USD3.490 a pound at the early European session, on the New York Mercantile Exchange, losing 1.1%.
The Germany's government sold about 4.1 billion euros of debt during today's auction. The Bundesbank got the bids amounting 5.14 billion euros; bids surpassed the supply 1.3 times. The yield on the bonds declined to 1.93% from 1.98% in November, reported the Bundesbank.
Ecuador's court supports the claim that Chevron has to pay $18.2bn instead of $8.6bn previously agreed as compensation for Amazon oil pollution. The company denies accusations. Initially, Texaco was charged for dumping toxic waste in Ecuadorean Amazon but in 2011 Chevron took over Texaco.
Ireland's real estate prices fell to the lowest level since 2000. Home prices in Dublin lost 65% in the last five years with 60% price decline across country over the period. The house price index indicates the net worth of property nationally declined by about 58.8% since 2006. The market is in the freefall with accelerating deflation pace and lack of mortgage availability, said Marian
Qingdao Kingking Group will provide $100 million to develop copper and gold mines worldwide over the next three years. The company plans to purchase 100 square kilometers mine in Mozambique. The company's CEO explains that many European companies, which invest heavily in African energy projects, have faced difficulties due to recession thus providing China with an opportunity to invest in natural resources there.
US Fed announced it plans to publish interest rates projections to improve transparency in the central bank. The move will allow the public to see how the Fed expects the rates to fluctuate in future. The Fed will include the data on the projected interest rates into the economic outlooks with the first release on 25 January.
Gulf airlines faced less optimistic growth in 2011 due to global slowdown that made the expansion of the industry more complicated and caused delays in deliveries. Surging oil prices and tensions in the Middle-East weighted on the companies' income. Despite challenges, carriers managed to expand last year but taken cooling demand in 2012 the companies' wellbeing is likely to suffer. The industry growth pace slowed
China is likely to experience power shortfalls in 2012 with coal prices increasing after expiration of the government control. Experts predict energy shortage to vary in a range between 8 million kW and 14 million kW. Some analysts claim the increase of the government's coal price ceiling will cause a surge in coal prices while some believe further intervention in the market by continuation of
Natural gas prices dropped below USD3.00 per million British thermal units as increasing inventory level persists to impact market sentiment. Natural gas futures for February delivery traded at USD2.968 per million British thermal units at the early US trade on Tuesday, on the New York Mercantile Exchange, losing 0.15%.
Natural gas prices dropped below USD3.00 per million British thermal units as increasing inventory level persists to impact market sentiment. Natural gas futures for February delivery traded at USD2.968 per million British thermal units at the early US trade on Tuesday, on the New York Mercantile Exchange, losing 0.15%.
Swiss bank dismissed an employee who leaked confidential data on currency deals of the wife of the Swiss National Bank president. The employee who worked as IT specialist admitted his guilt. The Bank Sarasin expressed its regret about the situation and apologized for unpleasantness for clients. The incident caused political scandal in Switzerland as it indicated how wife of SNB President Philipp Hildebrand benefited from
Indonesia was the only emerging stock market that saw real gains last year. The world saw a 20% decline in MSCI and downturn in the developed economies. Indonesia saw surging growth last year supported by rising commodity prices. Moreover, the country returned its credit rating that was downgraded in 1997 during the Asian crisis.
Mitt Romney has won lowa Republican caucuses on Wednesday morning, said the chairman of Republican Party. Romney's victory was a stimulus to his campaign aimed at Republican presidential nomination. Romney got only eight votes more than Rick Santorum and he did not receive the decisive win as expected.
China's Yuan appreciated by 8 basis points against the USD and hit the record level of 6.3001, reported China Foreign Exchange Trading System. On China's foreign exchange spot market the Yuan is permitted to advance or decrease by 0.5% from central parity rate during each trading day.
Next announced its sales during autumn and pre-Christmas time met the target as they were supported by strongly performed online business. The sales between August and the end of December increased by 3.1% on a yearly basis despite an increase in the VAT. Online sales of Next increased by 16.9% in the period and the company expects ВЈ565m yearly profit.
Gold futures approached two-weeks high on the hopes for Fed decision on QE and increased tensions over the Iranian nuclear programme. COMEX gold futures for delivery in February traded at USD1,613.85 a troy ounce during the morning European session, on the New York Mercantile Exchange, jumping 0.83% from yesterday's close.
Sinopec Group announced it will buy one third of Devron interest in five ventures in the US for 2.2 billion US dollars. The company will gain one-third interest in Mississippian, Niobrara, Utica Ohio, Tuscaloosa and Utica Michigan. The companies aim to generate energy from shale deposits and expect to drill more than 125 gross wells this year.
Greece and other troubled Euro Zone economies will face long period of recovery even if they succeed in debt restructuring. The prospects of staying in the Euro Zone appear so dismal that they would better exit the common currency union even despite exorbitant leaving costs. Fiscal devaluation looks more preferable than remaining in the Euro Zone as it would give country control over monetary policies