The economy of the UK is likely to decrease more than previously projected. The British economy may contract by 1.3% next year as compared to expected growth of 0.6%, according to economists from Standard Chartered bank. The economy of the euro-zone will contract even more by 1.5%. However, the experts from the Office for Budget Responsibility expect the economy of the UK to expand
Qatar Airways Co is going to increase the number of flights to China to about 70 flights a week in 2013, said the CEO of the Qatar Airways. The number of China's residents traveling abroad is rising and the occupancy of flights is about 75% thus making the industry highly attractive. In case Chinese aviation authority allows increasing the number of flights, the company
European equity markets opened generally flat with mining companies gaining and financials declining. Stoxx Europe 600 index added 0.3% reaching 236.76, French CAC 40 index traded flat at 3,088.47 while German DAX 30 index increased 0.4% to 5,808.88 and UK's FTSE 100 gained 0.1% to 5,435.49.
The US dollar hit a 2-month record high against the euro, before bond auction on concern that Standard & Poor's may reduce national debt ratings in the euro area. The greenback touched $1.3161 against euro on Tuesday, highest since October 4. The dollar is appreciating on euro weakness, said Sacha Tihanyi, Scotia Capital's currency strategist. EUR/USD currently is trading at $1.3196.
New Zealand and Australian dollar recovered from 2-week lows before US retail report which is expected to show that retail sales in US surged in November. Economists surveyed by Bloomberg predicted an increase of 0.6%. Australian dollar gained 0.1% against greenback on Tuesday reaching $1.0086 in Sydney trade, while its New Zealand counterpart added 0.2% to $0.7643. AUD/USD currently is trading at $1.0110 while NZD/USD is
Central bank of China plans to introduce investment vehicle aimed at managing $300 billion of foreign reserves, according the source familiar with the matter. The mechanism is likely to improve returns on foreign exchange reserves and will target investments in the US and Europe. China's foreign exchange reserves achieved $3.2 trillion in September. China's officials have not confirmed this information yet.
Hundreds of Americans expressed their protest against exorbitant profits of multinational corporations. People blocked the docks of harbors with hope to impact the income of corporations which run the ports. The demonstrations resulted in partial closure of harbors in Oregon, Washington and California states, but not in clashes.
Japanese tertiary index, the leading gauge of the economic health, increased more than expected in November, according to official data. Japanese tertiary industry activity index increased by 0.6% on a seasonally adjusted basis from -0.7% in October, reported METI. Economists expected the index to increase by 0.4% in the period.
China's banks are attempting to increase lending that might lead to higher number of bad loans, according to the government's decision makers. In the end of November four large commercial banks unexpectedly increased lending by 70 billion yuan. It appears very hard for central bank to restrict the accelerated lending of the banks, said government's decision-makers. The banks have to take responsibility of probable non-performing
The government of Switzerland decreased its growth forecast for 2012 citing the spreading euro-zone debt crisis. The rate was lowered from 0.9% to 0.5%. The country may not be severely impacted by the recession in the Eurozone but the decline in prices is worrying. The Swiss bank lowered the franc to limit the economic weakness of the country and the measure proved to be
Philippines faced a drop in exports in October due to weak global demand. Shipments from the country declined by 14.6% in October on a yearly basis but the indicator was 4.9% higher as compared to previous month. The country's strategic industry, electronic goods, exports declined by 36.5% in October, reported census department.
Growing foreign demand for yuan may have a little impact on the China's financial industry due to tight government's control and low amount of currency in circulation on the overseas markets, said analysts. However, the large increase in the yuan use overseas could create difficulties for country's financial industry as many local companies are trying to sell yuan-bonds to the foreign markets with lower interest
The federal budget balance of the US decreased less than previously projected in November, according to official data. The US federal budget balance decreased by -137.3 billion from -98.5 billion in October on a seasonally adjusted basis. Experts predicted the balance to decrease to -138.0 billion in November, reported Department of the Treasury.
The EU is planning to introduce carbon emission scheme that will cost about 800 million yuan for China's airlines next year, according to China Air Transport Association. China's airlines are projected to spend about 17.6 billion yuan on the emission scheme by 2020. The US and Russia strongly opposed the carbon scheme citing infringement of sovereignty of the world's carriers; however, the European Court of Justice
The Indian rupee decreased to 53.42 against the USD, losing over 10% since the beginning of 2011. Investors' sentiment was impacted by the decrease in factory output by 5.1% on a yearly basis as compared to 0.5% expected. The government also cut the growth forecast to 7.25% from 9% projected previously. The rupee is Asian worst-performing currency, said Thomas Harr, a currency strategist at Standard Chartered Bank.
Gold prices edged down on stronger dollar and concerns over the euro-zone. The warnings of Moody's rating agency, that the EU did not make a large progress in solving the debt crisis stimulated sell-off of bonds, stocks and commodities. On the Comex division of the New York Mercantile Exchange, gold futures for delivery in February were traded at USD1,667.45 a troy ounce at the Asian
Chinese share of world exports may decrease after rising for 16 years in line. The country's share of world's exports may shrink due to weaker global demand and stronger yuan. Bleak economic outlook in the EU and US might increase protectionism against China's products, said Zhang Qizi, from the Institute of Economics at the Chinese Academy of Social Sciences. Country's trade surplus is likely to
China is expected to face slower growth in construction and home sales next year, said Fitch Ratings. Moreover, analysts from UBS AG predict stagnant exports for the second-biggest economy in 2012. Slowdown may create extra pressure on fiscal and monetary easing, added UBS. Nevertheless, Fitch expects Chinese government to stick to tight control of developers in order to alleviate property prices.
Disagreements the Finnish parliament may hinder other euro region governments to relieve the affirmation process for financing bailouts of trouble nations. Finland already hampered second rescue package for Greek earlier this year after it demanded collateral on Greece bailouts. Leading parties in AAA rated Finland have been discussing collateral from indebted nations since spring to limit Finland's liabilities.
Canadian dollar depreciated as Moody's Investors Service reported it will revisit the debt ratings of EU countries, after disappointing results of last week's meeting. The loonie lost 1% to C$1.0271 per US dollar in Toronto trade, reaching record low since November 30. The Canadian national currency gained 0.5% against euro reaching C$1.3545. USD/CAD currently is trading at C$ 1.0257, while EUR/CAD is trading at C$1.3536.
Australia's government is going to work on better conditions for individual investors in order to encourage them to trade sovereign bonds. Such decision would develop country's corporate bond market, said Treasurer Wayne Swan. Promoting trading of government bonds would deliver good pricing benchmark for corporate deals and initiate more interest in bond markets, added Swan.
Australian sovereign bonds surged on Tuesday, pushing the 10-year bill yield down to record lows on investor concern European governments may face credit rating reductions as last week's summit did not provide enough short-term measures. The borrowing costs for 10-year Australian bonds declined 9 b.p. or 0.09 p.p. reaching 3.79%, while yields on 3-year notes tumbled 7 b.p. to 3.05%.
US stocks declined sharply on Monday as disbelief about latest European agreement amid depressed Intel Corp. outlook boosted a drop in markets. Dow Jones Industrial Average lost 1.3% or 162.87 points finishing at 12,021.39, S&P 500 Index sank 1.5% or 18.72 points to 1,236.47, whereas Nasdaq Composite fell 1.3% or 34.59 points closing at 2,612.26.
On Monday Moody's Investors Service placed 8 Spain's banks and 2 holding companies on assessment for potential downgrades. The action was provoked by Moody's revaluation of all Spanish financials which denoted a forecast drop in earnings creation capacity caused by lowered economic outlook for Spain. Possible downgrades are also bolstered by the fact that many Spanish financials are exposed to commercial real estate losses.