The Reserve Bank of India conducts its tough monetary policy aimed at lowering the inflation rate thus impacting the development of industrial sector, reported ASSOCHAM. Net sales in Q2 decreased to 20.41% as compared to 27.67% in Q1. The government encourages companies to concentrate on output increase rather than on imports as depreciating rupee will put additional pressure on such imports as oil, coal and
China's gold production soared in the period from January to October by 4.9% on a yearly basis to 290.75 metric tons, according to Ministry of Industry and Information Technology. The ten largest producers of gold saw about 12.04% increase in the yellow metal production to 151.28 metric tons.
Westmoreland Coal Co. plans to purchase Wyoming coal mine from Chevron Corp. paying over $74 million in cash and assuming $118 million in liabilities. The deal followed Chevron's announcement it would abandon coal industry and would sell its Wyoming mine. The transaction is expected to close at the end of the next month.
Gold prices are likely to continue declining approaching the previous low of $1560 per ounce. COMEX gold futures for delivery in February are currently trading near $1598.3 an ounce, losing $7.7 since opening. The market is expected to remain weak as investors are anticipating US CB consumer confidence data; the expected reading is 58.5.
Petroplus Holdings announced its creditors have frozen $1bn of the company's credit facilities. After the announcement Petroplus share price declined by 40%, losing 83% since the beginning of 2011. The company reported $147 million loss in Q3 as demand for oil products weakened on the dismal economic outlook. The company plans to cut its production by 24% next year.
NYMEX crude oil is trading near $100/bbl as tensions between Iran and Western economies increased. Iran has run series of navy exercises to demonstrate military strength to the EU and US. Earlier western economies warned about serious consequences Iran will face if it does not stop its nuclear programme while Iran answered it would completely block Strait of Hormuz in case of any action against
Italian retailers experienced the worst Christmas in last 10 years, as approved austerity measures curbed household spending, reported Codacons consumer group. Italians spent on average €48 or $62.75 less per individual than in corresponding period during last five years. Clothing and shoe sector was harmed the most, giving up 30% of sales compared to previous holiday seasons.
Copper futures decreased during the quiet trade as worries over the worsening economic situation worldwide undermined the sentiment on base metal. Copper futures for delivery in March traded at USD3.431 per pound at the early European trade on the Comex division of the New York Mercantile Exchange, edging down 1.1%.
India is expected to increase its coal imports to 197 mln tons by 2017 to satisfy growing energy demand, reported Pratik Prakashbapu Patil, Minister of Coal. The country has lately become more energy depended with its energy dependency growing from 6% to 13% in the last six years, according to PTI. The domestic coal output is likely to jump to 770 MT while coal
Crude oil futures decreased in the year-end trading on the worries about global economic stability; however, the commodity found support on the growing tensions between Iran and western economies. Light, sweet crude oil futures for February delivery traded at USD99.50 a barrel at the early European trade, losing 0.36% since opening.
China's copper imports from Japan increased by almost one third in November. Copper cathodes imports rose by 40% to 44,532 tonne while imports of refined copper soared by 35% to 46,278 tonnes. China took advantage of lower copper prices; LME Copper decreased from $10,000/tonne in the beginning of 2011 to $8000/tonne. Arbitrage opportunities between London and Shanghai exchanges also supported demand of copper.
Saudi Arabia announced $81.6bn budget surplus this year, being a two times higher income as compared to initial forecast. Revenues jumped to $296bn as compared to $184bn expected. More than 90% of the revenue growth was contributed by oil exports.
Samsung Electronics buys out the entire stake of Sony Corp. in the LCD joint venture. Samsung will pay $939m in cash for Sony's stake. The sale followed Sony's restructuring of its TV operations that have made loss for seventh consecutive year. After acquiring the stake Samsung will become number one manufacturer of TVs and screen panels.
Tepco was asked for additional $9bn to pay compensation to the victims of Fukuhima nuclear disaster. The company faced about $100bn in claims for compensation as more than 80,000 people were affected by the March disaster at the Fukushima Daiichi plant. Currently, Tepco is short of funds thus uncertainty over the company's future is increasing.
Swiss UBS consumption indicator decreased in November, falling for the first time in the last three months. The indicator eased down by 0.09 points to 0.81 last month from 0.90 in October. Analysts claim the indicator was affected by lower prices and increased number of purchases made abroad. After the data release, the Swiss Franc appreciated against the USD with the pair USD/CHF edging down
Brazil has outperformed the UK as it has become the sixth largest economy in the world, according to an economic research group. Brazilian economy expanded by 7.5% in 2010 and is expected to growth by 3.5% this year as the negative headlines from the Euro Zone impacted Brazilian economy.
Cuba plans to expand its free-market reforms by opening retail sector to private companies to a larger extent. Starting from January 1 next year various workers like repairmen and photographers will be permitted to be self-employed. The shift is aimed at stimulating socialist economy of the country by boosting private sector.
Industrial companies in China reported yearly profit growth as 24.4% this year, being lower than record profits last year. The first 11 months profits totaled 4.66 trillion yuan, according to NBS. The fastest growth in profit saw private companies with 46.2% yearly increase while telecommunications and power generation sectors experienced 1.5% and 8.3% profit drop, respectively.
India and Japan are expected to announce new currency swap agreement with the purpose to ease problems with liquidity. The agreement will allow two countries to swap currencies for the USD and use each other's foreign-exchange reserves. The pact followed the growing volatility in currencies of both countries. The deal is likely to be concluded during Yoshihiko Noda's, Japan's PM, next visit to India due
China has gained possibility to recover millions barrels of crude oil after China received the approval for oil extraction in Afghanistan. China National Petroleum Corporation will develop the Amu Darya Basin that is estimated to have about 87 million barrels of the commodity. The move followed China's oil companies seek overseas expansion in view of the increasing domestic demand for energy.
The number of construction orders in Japan received by 50 largest construction companies added 21% in November totaling Y812.4 billion, eyeing an increase for the second consecutive month, reported the Ministry of Land, Infrastructure. The orders expanded by 24.3% in October.
The Centre for Economics and Business Research reported that World Economic League Table indicates Asian countries moving up while European countries moving down. It expects European economy to shrink 0.6% in case the crisis is solved and by 2% in case it is not. Russia is likely to become the ninth largest economy next year and approach the forth place by 2020. India is predicted
European shares opened higher after Christmas holidays, though trading volumes are predicted to be relatively low. Stoxx 600 gained 0.2% at 242.41, whereas France's CAC 40 added 0.5% to 3,116.11. German benchmark DAX index surged 0.4% attaining 5,902.32. London markets stayed closed in prolonged holiday break.
European shares advanced last week as better-that-expected US economy data signalled recovery of the world's leading economy. Stoxx 600 gained 3.5% reaching 241.86 this week, while French CAC 40 added 4.4% to 3,102.09. German DAX surged 3.1% to 5,878.93 and UK's FTSE 100 jumped 2.3% finishing at 5,512.70