India plans to pay for Iranian oil in Euros through a Turkish bank as it is difficult to convert the Rupee to other currencies across the sea. The payments are proceeding regardless of US and EU recently imposed sanctions on Iranian oil exports. This case affected the Rupee negatively: it fell 0.9% against the US Dollar with INR/USD trading at
On Thursday, Barry Callebaut AG, the manufacturer of Swiss chocolate, claimed that the prices on cocoa are expected to stay flat in the nearest term. The company is one of the biggest cocoa consumers, which clients in turn are Nestle SA and Kraft Foods Inc. The company's CEO , Juergen Steinemann, told that during the previous weeks cocoa prices were
The Ireland National Treasury is set to sell EUR500 million of five-month bonds as a consequence of the favorable outcome of the EU Summit on June 28-29. Previously, Ireland sold EUR 400 million of bills, maturing in 4 1/2 month and 6 1/2 months with average yield of 1.907 and 2.23%. The result is a positive indication of Ireland re-entering the
On Thursday, the government of Spain sold EUR3 billion of 3,5 and 10- year debt with increasing interest rates.During the auction sale of 10-year bonds, Spain paid an average interest rate of 6.43%, while in the beginning of June it was 6.04%.
Moody's has cut Barclay`s Bank PLC standalone financial strength rating on the C-/baa2 from stable to negative. The downgrade came after the UK government reduced Barclay`s A2 senior debt and deposit rating. Moody's says that shareholders' pressure may lead not only to resignation of the bank`s administration but also to changing the business model from investment banking.
Japan's competition administration announced the plans of the Tokyo Stock Exchange and Osaka Securities Exchange to merge on January 1 next year. This move will form the third biggest in the world and Asia`s biggest stock exchange. Such a step is caused by overall decline in share sales on the back of the global economy downturn.
Kenya has stopped crude oil import from Persian Gulf after US and EU sanctions came into effect amid concerns about Iran`s nuclear program. The contract signed previous month stated an agreement to import at around 4 million tonnes of crude oil from the Iranian National Oil Company. However, according to Patrick Nyoik, permanent secretary of the energy ministry, international pressure
US apartment market has become the best performing sector of commercial freehold since 2011. Vacancy rate decreased by 0.2% during the last quarter and reached ten-year low of 4.7% . Rent prices jumped by 1.3% compared to prior quarter. Average effective rent (excluding concessions) now is USD 1,041 per month. New York is considered to be the most expensive place to live, monthly tab of
Orders for German factories unexpectedly rose in May. Demand mainly came from Europe and an increase was equal to 0.6% compared to April indicators. Investment goods sales rose by 0.2%, whereas orders from EU jumped by 11%. Experts attributed an increase to active exporting and record low unemployment rate in Germany. Meanwhile the ECB may cut interests rates on Thursday 04.07.2012 to stimulate lending and
As Credit Suisse cited, the Central Bank in South Korea plans to lower the interest rates during their administration session on July 12. The consumer inflation slowed to annualized 2.2% last month after averaging at 5.3% in 2011. The speculation about rate cuts appeared after previous meeting of the central bank that resulted in no changes in the interest rates.
Brent crude oil decreased to USD99.49 pert barrel amid slowdown in the three biggest economies, USA, Europe and China. Traders await the outcome from the meetings of the ECB and the Bank of England in regards cutting down the interest rate. Lower interest rates are likely to increase energy demand.
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