The rate of growth of the China's currency against USD is likely to slow down in 2012. The yuan is likely to rise by 3.3% against the USD in the next years as compared to 5.5% in 2011 when the government allowed freer currency trade. The national account surplus is likely to decline by 2.3% of the GDP causing less demand for China's currency, explained
European Commission has proposed the introduction of united Euro-area bonds, joining the debt of 17 countries, as previous efforts to combat continuous crisis have failed. Germany, the flagman of the European economies, is strongly against such measures, as it is afraid of being stuck with returning other countries' debts. However, euro-bond advocates are much more optimistic, as overall euro-area Debt-to-GDP
On Friday FTSE 100 closed at 5,253.68 experiencing a loss of 2.04% or 109.26 points. During last week index lost total of 3.3%. Similarly to other stock indices, FTSE 100's diminishing value reflected growing concerns about Spanish and Italian yields. Miner companies added major negative impact to index. Rio Tinto PLC and Xstrata PLC each fell 1.4%, while Anglo American PLC lost 1.5%. Banks also
On Monday trading session stocks prolonged their 3 week losses as US lawmakers did not manage to approve budget reductions. Stoxx Europe 600 Index slumped 1.9% continuing previous week's 3.7% drop as approximately 40 stocks declined per every gaining share. Mining stocks contributed most negatively to index as their prices experienced a decrease of 3.3%. Euro depreciated 0.5% against US dollar reaching $1.3463.
On Friday November 18 the index ended up at 2,572.50 giving up 15.49 points or 0.6% compared to Thursday. During last week Nasdaq dropped 4% as markets reflected sharply anxiety that debt crisis in Europe could extend and hit US banks. The index was affected negatively by Salesforce.com's drop in stock price of 10% after reporting its lower-than-expected quarterly results.
On Friday November 18 Dow Jones Industrial Average Index closed at 11,796.16 experiencing a slight increase of 0.22% or 25.43 points compared to Thursday. Over last week, however, index experienced a total decline of 2.94%. Alcoa Inc, JPMorgan Chase & Co and Chevron Corp. lead drop in index value as their shares lost at least 8% during week. Hewlett-Packard Co. rocketed 2.6 per cent, the
On Friday November 18 S&P 500 Index closed at 1,215.65, reaching the record low since October 20. The index fell 0.04% or 0.48 points compared to Thursday. During the last week index experience a total drop of 3.81% as Italian, Spanish and French borrowing costs surged and Fitch Ratings warned that European debt turmoil postures a threat to US banks. Technology and commodity stocks created
The deposits of the Euro-zone banks in the ECB have been increasing for eight days already indicating low confidence in the local markets. Banks deposited EUR236.781 billion in the ECB, reported on Monday as compared to EUR230.899 billion on Thursday. The banks prefer to deposit in the ECB than lending to another banks because of growing risk of recession, said Mario Draghi, the president of
The British utility company Centrica signed a 10-year contract with Norway Statoil. The contract is worth ВЈ13bn and envisages Centrica purchases 5bn cubic metres of gas per year from Statoil. The amount of natural gas bought is over 5% of the total UK's gas consumption between 2015-2015. The deal will increase Centrica's production by 25% and will enhance the UK energy security.
CPI in Canada increased more than expected in October to 0.2 % while analysts expected the indicator to rise by 0.1%, showed the official data. The Canadian dollar fell against the USD by 0.41% in early trading being 0.9691USD.
The New Zealand dollar decreased to seven-week low against USD as the uncertainty about the Eurozone debt crisis undermined the investors' sentiment. The New Zealand dollar lost 0.37% to 0.7528 USD being the lowest since October 4. However, the kiwi improved its position against Australian dollar to NZD/AUD being 0.7592.
French chemicals firm Arkema SA announced about purchase of two China's chemical companies for $365 million in line with acquisition plan presented in November last year. The company plans to purchase Hipro Polymers and Casda Biomaterials that most probably report about report $230 million revenues this year. The takeovers still require an agreement of China's government.
Australian dollar dropped to the lowest level against USD in last five weeks as US lawmakers today may declare failure to reach a deal regarding budget cuts boosting the concern that US might face one more credit downgrade. On Monday Australian dollar lost 0.3% $0.9974 in Sydney evening trading session which is the lowest level since October 12.
According to Renmin University of China's report, the China's GDP in 2012 may slow down to 9.2%, a slight decline compared to 9.4% this year. Report also predicts the country's consumer price index will ease next year and reach 3.3% on yearly basis. University of China suggests the government will be forced to switch its monetary policy from tightening to growth supporting in order to
US stocks closed lower on Friday as investors continued to watch development of bond yields across Europe. Borrowing rates of 10-year Italian notes surpassed 7% level while Spanish bonds fluctuated around that level. Amid uncertainty S&P 500 lost 3.8%, Nasdaq gave up almost 4% whereas Dow Jones industrial average declined 2.9%.
One of three principals in Greek technocratic coalition Antonis Samaras rejected to sign a pledge that he approves austerity measures, generating a new complication for country's bailout deal. Samaras, the leader of Greek conservative party, claimed that despite refusal to authorize the oath, he supports Greece's budget for 2012. Nevertheless, Samaras's refusal creates a risk of getting aid worth €8bn euros.
According to ratings agencies, institutional weaknesses and investment climate in Russia might hinder its prospects to receive higher debt rating despite joining WTO. Standard & Poor's who has rated Russian debt at BBB does not predict instant impact from entering WTO as high level of corruption may offset all Russia's benefits of WTO membership. Russia's debt grade hasn't been upgraded since 2008-2009 financial crisis.
Thailand's government expects a drop country's of 3.7% in this quarter as nation has experienced the most terrible flooding in 70 years. National Economic and Social Development Board have revised the estimate of 2011 growth rate from 4% to 1.5% while Bank of Thailand is planning to cut borrowing rates to stimulate growth. Floods in Thailand destroyed thousands of industrial plants and disturbed supplies for
In October Japanese exports decline more than was predicted. According to Japanese Finance ministry, foreign shipments fell 3.7% in October when compared on yearly basis, indicating Japan's recovery from earthquake has slowed down. Drop in Japanese exports is reported amid announcement of Singapore about shrinkage of its growth and China's expectations of worldwide slump.
Elections in Spain, exorbitant cost of borrowing in Italy and expected failure of the US supercommittee to implement deficit-reduction policies contribute to high volatility of the financial markets. Investors' confidence will continue correlate with instability in the most developed economies, said Jeff Sica, president of Sica Wealth Management.
1. According to a questionnaire of 80 financial intermediaries by ICAP Plc, the overseas bank deposits at Fed have increased more than two times reaching $715 bn compared to $350 bn at the end of 2010. A surge in Fed deposits is strengthening US dollar on rising investors' concerns about European region's financial stability. Despite budget cuts and unemployment at 9% level, investors still see US
On Sunday Mariano Rajoy gained the largest parliamentary majority in Spain elections, since 1980s and squeezed out Socialists who have been the leading force for eight years. Rajoy's Peoples' Party won 186 of 350 places in Parliament while his main competitor Alfredo Perez Rubalcaba from Socialists gained 110 seats. In his speech Rajoy warned Spaniards to be ready for hard times as nation currently is
MF Global Holdings Ltd.'s Australian unit has not had any business offers for last time and is planned to be closed down in the next months, administrators of the company announced. Joint Administrator Chris Campbell reported balance is 34 million Australian dollars versus 36 million Australian dollars at time when he was appointed.
Asian equities extended slump on Monday on investors' anxiety about US and European debt trouble. Shanghai Composite index dropped 0.4%, while Hong Kong's Hang Seng Index traded down 0.4%. Korea's Kospi gave up 1.3% whereas Japan's Nikkei Stock Average and Australia's S&P/ASX 200 index declined 0.2% and 0.4% respectively. According to analysts, enduring uncertainty in Europe is boosting investors' speculations on worst-outcome scenarios.