According to economists surveyed by Bloomberg Russia's inflation rate in November could turn out to be the lowest in 14 months. Analysts estimate inflation rate to be at around 7% which would be the slowest consumer price increase since 2010. Economists associate the drop in country's inflation with lack of cash in economy and slower appreciation of food prices.
According to Statistics Finland, country's economy added 0.9% in third quarter compared to 0.1% growth in second quarter. On yearly basis GDP has gained 2.7% as consumers keep increasing spending. Finland's GDP is surging at nearly four times the velocity of average growth in Eurozone. To compare, even Germany's GDP added only 0.5% in third quarter.
On December 9 European officials will come together for another summit aimed at tackling debt crisis. The main focus of this seminar will be discussing revision of European Union treaties. A key idea is to create a fiscal alliance that would adjust inconsistencies because currently EU has a shared currency and common monetary policy without any instruments to guarantee that members are financially healthy.
Canadian dollar is becoming another safe haven for forex traders amid European debt woe and US uncertainty with deficit cuts and political gridlock. Loonie who underperformed most of its major counterparts in until August, has recovered and outpaced all except Japanse yen and US dollar. Canada which is AAA rated may be the only country among G-10 that increases benchmark interest rates next year.
On Monday trade Australian dollar erased gains as investors expect the Reserve bank to cut benchmark interest rate at its policy meeting due tomorrow. New Zealand dollar declined after China reported its service index deteriorated. Aussie depreciated against its US peer from $1.0271 to $1.0213 while Kiwi gave up 0.1% reaching $0.7764. AUS/USD currently is trading at $1.0238 while NZD/USD is trading at $0.7791.
General Motors Co., large auto-producer, plans to recall 993 vehicles in China because of problems with gas tanks, announced China's quality control agency. In extreme cases, the gas tanks may leak causing a safety risk. The vehicles 869 Chevrolet Captiva cars and 124 Opel Antara manufactured between August 26 and September 15 are going to be recalled, according to the General Administration of Quality Supervision.
Peru declared emergency state in the North region where protests against new gold mine project occurred, according to Ollanta Humala, Peru's President. The measure is planned to last for 60 days with security forces restoring normal operating of the public services. Demonstrators protest against US firm's Newmont development of gold mine worth $4.8bn as the project can ruin water supplies in the region.
Trade development patterns have to be based on the promotion of balanced trade by stabilizing growth, said Wang Qishan, Vice Premier. The country has to increase import, stabilize exports and accelerate technological innovation integrated in the industries even despite bleak global economic outlook, he added.
Shares of retailers in India decreased essentially after the government started to discuss opening of the Indian retail market for overseas supermarket chains. Pantaloon Retail India, the largest retailer in the country, lost 11%. Smaller retailers like Shopper's Stop and Trent also experienced a decline of 9% and 4% respectively. However, the government paused opening up the retail market just before passing it as the
Labor unrest increases in China due to raising worries on economic slowdown. China's GDP increased by 9.1% from June to September, being the slowest rate in the last two years. China's government is concerned another slowdown may lead to public anger. It is urgent to create social management system to fit to the country's socialist market economy, said Zhou Yongkang, a member of the politburo.
The Australian Labor Party accepted cancellation of the ban on sale of uranium to India. India and Pakistan have not signed the nuclear non-proliferation treaty. Pakistan now hopes it will get access to Australian uranium as the country considers the cancellation of ban should apply not only to India but also to other countries, said Pakistan's high commissioner.
The number of highly qualified staff for one vacancy in the City of London hit the record of the last two years, reported financial services recruitment firm. At the moment there are 5 professionals for each vacancy as compared to 1.7 candidates in the beginning of 2010, according to Astbury Marsden. Banks are decreasing jobs eyeing the global slowdown of the UK economy and spreading
China plans to extend real estate growth's tightening policies after expiration of the current one, according to China's Ministry of Housing and Urban-Rural Development. Last year over 48 cities issued limitations on the number of houses the person can buy to combat speculation and booming prices. Analysts expected China to ease its property restriction measures as a part of fine-tuning of macroeconomic policies to adjust
A rapid increase in shale gas output helped US to raise natural gas supplies to a high level in recent years thus allowing the country sustain adequately low prices and enhancing the country's energy independence. US natural gas storage approached to record of 3.852 trillion cubic feet, reported the Energy Information Administration. The expansion of shale gas production can result in revolution in energy sector
European officials are going to take another attempt to resolve region's debt turmoil. Key event this week will be the European summit in Brussels that will take place on December 9. Today French President Sarkozy will meet German Chancellor Merkel to align their viewpoints on several issues regarding crisis resolution. Tomorrow Timothy Geithner, Treasury Secretary will meet political leaders but on December 8 ECB will held
Economists expect that service industries in US probably advanced most rapidly since May indicating that country's economy is picking up the pace during last months of 2011. Analysts surveyed by Bloomberg predict the index for non- manufacturing industries to be somewhere between 51.5 and 55. Index above 50 is indication expansion. Economists say US economy is signalling recovery, however, concerns over Eurozone remain.
Most of Asian stocks experienced a slight increase as investors expressed positive expectations for progress in tackling European sovereign debt crisis. Hong Kong's Hang Seng Index and Japan's Nikkei Stock Average both added 0.5%, while Australia's S&P/ASX 200 index advanced 1.1%. South Korea's Kospi closed flat and Shanghai Composite index declined 0.9%.
The US motor vehicles industry is recovering faster than expected as car producers are moving towards sales of $12.8 m, the best performance since 2008. Consumers demand has recovered ranging from large pickups to luxury vehicles. Chrysler Group LLC and General Motors Co. managed to get back market share from disaster-troubled auto makers Honda Motor Corp. and Toyota Motor Corp.
The European common currency appreciated versus its major counterparts, as Italy improved its deficit reduction plan ahead of European summit on Eurozone's debt crisis. Italian PM reported plan for austerity measures worth €30 bn euros. Euro gained 0.1% both against US dollar and Japanese yen reaching $1.3404 and ¥104.51 respectively in Tokyo trade. EUR/USD currently is trading at $1.3408 while EUR/JPY is trading at ¥104.55.
According to officials familiar with matter, the European leaders' proposal to guide central banks' loans through IMF could provide nearly €200bn to tame debt crisis. According to proposal central banks will recycle capital via IMF. As Germany is not willing to lend extra money to troubled countries, the proposal would reveal additional source of funding.
US jobless rate declined to 8.6% in November, the lowest level in the last two years. US economy succeeded in creating over 120,000 jobs in the period, reported Labor Department. However, experts claim that the decrease was mainly caused by fall in the total labor force as more than 315,000 people stopped searching jobs during November indicating the desperation among the society.
German benchmark index DAX 30 jumped by 1.4% on Friday with Deutsche Bank AG up 4.2% and Commerzbank AG gaining 5.2%. German Auto makers also provided a positive contribution to the index as BMW AG edged up 2.3%, Volkswagen AG added 2.4% and Daimler AG rose by 3.3%. Philip Shaw, Investec Securities' chief economist claims markets look forward next week's summit hoping for the positive
On Friday London trade UK's FTSE 100 jumped by 1.4% to 5,566.95 led by HSBC Holdings PLC and Standard Chartered PLC each adding 3% and 3.3% respectively. Among major gainers were also resource shares: energy giant BP PLC rallied 2% while miner company BHP Billiton PLC jumped above 3%. Simon Smith FxPro's chief economist said markets feel more comfortable during past few days as
Dow Jones Industrial Average closed lower on Thursday compared to previous day's rally. Index remained steady ahead of US jobs report and after applications for unemployment allowances increased last week. Index declined 0.2% or 25.65 points reaching 12,020.03. 20 out of 30 its constituents dropped. Biggest gainers were Boeing Company and Bank of America which advanced 3.33% and 1.65% respectively. On the downside were Alcoa