It is expected that Britain's GDP (not considering GDP per capita) recovers from the loss which occurred during the financial crisis. Growth was forecast at 0.8%. However, there is not a consensus regarding this value, as a result of substandard statistics from construction and manufacturing. Some analysts consider this prediction to be overstated and that the actual figure may be
Corn fell to the lowest level over the last four years as global supplies are increasing. Deliveries for August went down 1.4%, reaching $3.7325 a bushel, the lowest since July 14 in 2010. Futures plummeted 25% during the previous year on expectations that more bumper harvest in the U.S. will increase global supplies.
British economy may be on its way to recovery as the economic indicators rose for the sixth consecutive quarter returning GDP to the levels experienced prior to the financial crisis. The gross domestic product added another 0.8% in the second quarter matching the first quarter's result. This year's economic output is expected to surpass its 2007 peak.
New Zealand Dollar strengthened for a second straight day against all of the 16 major currencies on speculation that the RBNZ will raise interest rates. According to a survey by Bloomberg, 14 out 15 economists expect a rise to 3.50% in the official cash rate on July 24. The Kiwi appreciated 0.3% to 87.09 U.S. cents, posting the largest increase
London real estate prices decreased for the second month in a row as the rising number of property for sale mitigated the market. Asking prices in U.K. dropped 0.4% and averaged at 587,174 pounds in July, whereas across England and Wales prices fell 0.8%. The property market is said to be losing pace after the BoE concluded it represented the greatest risk to the economic recovery.
A release of U.S. consumer sentiment report drove the Euro away from 1.3491, the lowest point since January. University of Michigan stated that CSI (Consumer Sentiment Index) dipped to 81.3 during a month. EUR/USD rose to 1.3513 and is likely to be supported at 1.3478, while the resistance is reckoned to be at 1.3540. Meanwhile, the Euro settled at 0.7918
Consumer expectations deteriorated for a third consecutive time, and consumer sentiment in the U.S. slipped. The preliminary July report based on Reuters and University of Michigan's research stated consumes sentiment index is at 81.3, a reading below expectations. Consumer confidence declined due to negative GDP growth in the first quarter and shallow employment gains.
June provided a 2.4% increase, following a 2.3% rise in May. Prices surged in all main components over the whole year. Respectively, shelter costs jumped 2.9%, electricity prices added 4.2%, food prices +2.9%, transportation index +2.2% and gasoline advanced 5.4%, clothing and footwear +1.6%, whereas the index for alcohol and tobacco advanced 4.1% during 12 months to June.
Sales grew by 2.2% to $52.6 billion in May, which is a second increase in a row. The gains were led by the motor vehicle subsector that expanded 9.3% to $9.3 billion. At the same time, the sales in tobacco, beverage and food subsector went up by 1.9% to $10.3 billion, making it the 8th positive score within the last 12
Trading patterns point at a possibility of the Pound strengthening against the 18-nation currency and predict around a 2% increase to 77.55 pence per Euro. The Sterling has risen 5% against the common currency this year so far and could potentially show strongest annual growth since 2009. Economists project more than 1% appreciation against the Euro until the end of the fiscal year.
China's Prime Minister Li Keqiang argued today the economic growth slightly beneath or above 7.5% will be satisfactory, whilst it increases the employment and drives up the salary levels. Accordingly to the official, China's economy is expected to rise at least 7.5% this year, despite an unconvincing start of the fiscal year.
U.S. debt obligations fell for the first time in the last three days, as safe investments assets lost demand after 10-year yields went down to a new low in seven weeks. The 2.5% note due in May 2024 dropped $3.75 per $1000. The yield went down to 2.44% yesterday, the lowest since since May 29. The five year yield also went up 4 basis
BoC Governor Stephen Poloz stated today the central bank is up for negotiating the interest rate that would allow the economy to function at the full output. The interest rate is being kept unchanged since September 2010 at 1 percent. The Bank of Canada is investigating the neutral interest rate and will raise the topic in the next economic report due in October.
West Texas Intermediate rose for the first time this week in a month's time after the Malaysian passenger aircraft incident in Ukraine. A general strategist at CMC Markets expects investors could sell Western Texas Intermediate contracts if prices go up to $105.20 per barrel. WTI futures went up 0.7% after a 2% increase yesterday, the largest since June 12.
The Yen touched its strongest level since February against the Euro, as investors searched for haven assets after the Malaysian Airlines incident. Japanese currency advanced for a second week against the Euro, as shares went down in Asia. The Yen fell 0.1% from yesterday's 136.71, but it has gained 0.7% this week overall.
China's home prices dropped in a large amount of cities, as developers decreased prices in order to boost sales. Prices decreased in 55 of 70 cities during the previous month, the most since January in 2011. In Shanghai and the southern city of Guangzhou the prices went down 0.6%, while declines of 0.4% and 1.7% took place in Shenzhen and Hangzhou
Despite a successful return to debt markets earlier this year, Greece may receive a third bailout loan from EU/IMF as soon as the next year. Such a view is supported to 60% of analysts. IMF forecasts the Greek budget to have a 12.6 billion euro gap next year, while such amount of money cannot be raised with a small yield,
Volvo AB, the biggest car manufacturer in Sweden, released its quarterly report for the work in the April-June quarter of this year. The report showed a 0.2% decline in sales, while profit of $521 million missed analysts' forecasts. The result was influenced by sales' drop in China and Brazil. Today, Volvo AB equities are losing as much as 4.1% to
Microsoft Corp. has finally announced a long-awaited job cuts program, which will include the elimination of 18,000 positions by the middle of the next year. As expected, the vast majority of lay-offs will come from the Nokia unit, which has been recently bought by American company. Yesterday, Microsoft Corp. shares jumped 1% to $44.53 per share during the trading session
Stock markets in Europe show a negative tendency for a second consecutive day, already being able to erase the weekly rise. Conflict between Russia and Ukraine continues to escalate, especially after yesterday's shot down of the Malaysia Airlines plane near the border between two countries. Today in the morning, the Europe Stoxx 600 Index is losing 0.6% to 337.6 points.
Japan's consumer price inflation is estimated to slacken slightly in June after the rise the inbound shipments costs from the weak Yen vanishes. The imports are unlikely to climb rapidly as a vast array of the Japanese companies outsourced much of their production. The inflation is surmised to keep on decreasing to about 1 percent, but will rise again in line
The Sterling dropped from its highest level in approximately two years against the Euro as Scotland's independence referendum draws near. The U.K. currency has risen the most last year amid the 10-developed country currencies. Experts believe the risk and the potential vagueness around the vote can increase the Pound volatility in the future.
After the revealed sanctions against Russia, the Rouble fell to a 34.39 low against the Dollar; however, the currency gained 0.5% to 34.83 later. A 0.6% decline was noticed in comparison with the Euro, trading at 47.15. Meanwhile, Sberbank Russia stock price slid down 2.8%, Gazprom OAO lost 2% and VTB Bank retreated 3%.
Japan's government raised the economy's growth projections as the negative effects of the sales tax on consumer spending are coming to naught. With personal consumption accounting for 60% of the economy the tight labor market and improving consumer sentiment were seen as good news. Further growth in the economy is expected, but a contraction in Q2 is unlikely to be