On Friday Toyota Motor Corp. cut its current fiscal year profit outlook by 54% as company's production output was seriously harmed by immense flooding in Thailand. Japanese leading car producer estimates its annual net profit to reach Y180 billion, revised down from Y390 billion. Global sales outlook has been reduced to 7.38 million cars.
In November UK housing value was unchanged, reported Acadametrics Ltd. The average value of a house in Wales and England was ВЈ220,043 ($343,800). The number of deals added 4.5%. On a yearly basis, however, property prices were down 0.7%. Acadametrics explain the increase in transactions by relatively low interest rates in market.
New Zealand and Australian home currencies dropped to one-week record lows on investor speculation EU summit will not provide a tangible solution for debt crisis, hampering demand for upward yielding assets. Australia's dollar lost 0.6% against the Greenback reaching $1.0102 in Sydney trade while New Zealand Dollar gave up 0.8% to $0.7668. The AUD/USD currently is trading at $1.0065 and NZD/USD is trading at $0.7646.
On Friday Asian trade Euro moved close to one-week record low against the greenback after European officials failed to reach unanimous agreement for halting debt crisis. 17-nation currency fell from $1.3341 yesterday to $1.3334 in Tokyo morning trade and in total has lost 0.4% since December 2. Euro has lost 0.9% against Japanese Yen this week. EUR/USD currently is trading at $ 1.3313 and EUR/JPY
1. On Thursday night European leaders worked on plan how to stop debt crisis that has been extending for more than two years and created much doubt on the stability of Euro. Officials discussed the fiscal impact aimed at restoring bondholder confidence and allowing ECB and IMF to provide contributions to the rescue fund. However, no consensus has yet been reached.
European watchdogs advised banks to avoid reducing lending or artificially inflating capital. European financials are required to strengthen their core capital ratios at 9% of risk weighted assets by the summer 2012. However, European Banking Authority said the money should be raised from retained earnings, lower bonuses and investors.
US shares started to decline in afternoon trade after Dow Jones disclosed details of draft plan, however, stock indexes plunged even further as Reuters reported that Germany opposed several measures in draft proposal. Standard & Poor's 500 sank 2.1% or 26.66 points at 1,234.35 whereas Dow Jones Industrial Average lost 1.6% or 198.67 points to 11,997.70. Nasdaq Composite traded down 2% or 52.38 points to 2,596.38.
Asian equities dropped sharply on Friday as EU summit failed to ensure full support from the 27 region's countries on tighter fiscal policy. Hong Kong's Hang Seng Index fell 2.5% and Shanghai Composite index gave up 0.6%. Australia's S&P/ASX 200 index plunged 2.2%, Japan's Nikkei Stock Average declined 1.6% and South Korea's Kospi edged down 1.7%.
Financial resources are going to be increased in order to support members in handling the recession, said Herman van Rompuy, European Council President. The euro-area and other countries will attempt to raise additional resources for the IMF up by 200 billion euros. The EFSF will also be expanded, he added.
China's CPI, the main indicator of inflation, increased by 4.2% last month on a yearly basis easing down from 5.5% increase in October, according to the National Bureau of Statistics. The inflation in November was the 13-month low, showed NBS data. Cost of living decreased by 2.2% last month on monthly basis, the bureau added.
Number of states in Australia has agreed on development of the uniformed law framework for rapidly-developing seam coal gas sector, said Martin Ferguson, federal Environment Minister. Ministers dealing with energy and resources have approved the proposal for creating a "national harmonized framework" for the sector and already organized the program to release these issues publicly, the minister added.
Following the news on the EU leaders could not reach a full agreement on closer fiscal ties, the greenback advanced against its major counterparts; the dollar index increased to 78.848 from 78.789 in late North American trade as investors perceive dollar as safer investment option.
China plans further expansion of its real estate tax initiative to larger number of cities after it assessed the results of test launch in Shanghai and Chongqing, reported Ministry of Finance. Since January Shanghai had a property tax of 0.6% and 0.4% depending on the house price causing a decrease in real estate prices and higher tax contribution to the region's tax revenue. Officials consider
The EU continues to work on deeper fiscal integration and may go on with intergovernmental deal not including all the members, said Nicolas Sarkozy, the French President. The leaders are putting all the possible efforts in saving the euro, he added. The agreement on the euro bonds had not been reached yet but countries continue to integrate further, said Herman van Rompuy, European Council President.
The OPEC has failed to approve issues related to oil-production during the last meeting and will try to reach an agreement next week. The forthcoming summit in Vienna next week is going to be quite complex amid instable situation on the oil markets due to protests over nuclear program in Iran, Libyan restart of oil production after war and spreading euro-zone crisis. The main issue
Japan has revised its growth rate for the period between July and September down from 6% reported earlier to annual 5.6%. However, the figure still is above expectations of 5.2% annual growth for the period. Analysts are skeptical about growth perspectives after negative capital spending figure and buildup in inventories. The projected growth for the period between October and December is 0.67%.
The European summit failed to reach a full agreement among 27 members on the treaty changes that might help to combat the Europe's debt crisis by stricter fiscal policy. However, a number of members agreed to raise the capital of the IMF by 200 billion euros for fighting the recession in the region. The full agreement on close fiscal cooperation failed after the UK demanded
The US Senate blocked a Democrat's motion to prolong a workforce tax cut for employees in 2012 and compensating it by the cost by enforcing a 1.9% levy on revenue exceeding $1 million. The proposal failed as 50 voted for and 48 against. The bill had a shortage of 60 votes. The legislature would have reduced payroll tax from 4.2% to 3.1% on the first $110,100 of
European officials could agree on 150 bn euros ($201 bn) channelled through IMF to provide fresh financing source to tackle crisis, told EU diplomat. Euro region governments expect during the summit to get an affirmation from other non-euro countries to contribute extra 50bn euros. European leading economy Germany has not stated its position on the proposition.
South African production growth declined in October to 1% or significantly more than was previously predicted by economists. The deepening debt turmoil in Europe which accounts for about one third of South African produced goods has seriously undermined countries exports. Hampering output may force Gill Marcus, the Governor of Reserve Bank to leave key lending rate at 5.5% or 30-year record low.
17-nation currency declined against Japanese yen reaching 3-week low as well as fell to a 1-month record low against greenback after ECB President Mario Draghi told he did not indicate bank's intervention by purchasing bonds from debt-troubled countries to stimulate growth. Euro depreciated 0.6% to ВҐ103.55 against yen in New York afternoon trade and lost 0.7% to $1.3323 against US dollar. EUR/JPY currently is trading
Japanese securities regulators are willing to punish Citigroup Inc for trying to manipulateTokyo interbank offered rate. Workers at Citigroup Japanese division pressed other financials to submit interest rates which would guarantee Tibor moved towards brokerage's advantage. Japanese regulators are urging Financial Services Agency to punish Japanese unit of Citigroup Global Markets.
US stocks fell immediately after opening on Thursday, after ECB President Mario Draghi announced that bank won't purchase debt of troubled European countries. In New York morning trade Dow Jones Industrial Average lost 1.3% to 12,116.11 after climbing for 3 days in a row. Standard & Poor's 500 also gave up 1.3% reaching 1,244.85 while Nasdaq Composite dropped 1% to 2,623.83.
On Thursday Ford Motor Co announced it has re-established quarterly dividend. They dividend has been determined 5 cents per share payable due March 1 to equity holders registered as of January 31. Ford Motor Co has not distributed dividends since 2006. Bill Ford, company's CEO admitted that automotive giant have made substantial development in cutting debt and generating positive cash flow.