Drop of net income of half of 760 listed Chinese companies may pressure Premier Wen Jiabao and the government to lower corporate taxes. In order to stop the second largest world economy from losing pace of expansion the government has to implement more measures on top of boosting investment and monetary stimulus, according to a senior economist at Credit Agricole,
As demand for Spanish bonds weakened and interest rates jumped to a crisis-peak-time high of 6.46%, Spain already has cut public salaries by 7% and raised VAT up to 21%. Leader of the Socialist Party Alfredo Rubalcaba claimed Spain might loose up to 600 000 jobs next year and unemployment could reach 32%. Moreover, Cristobal Montoro, treasury minister, proposed second VAT rise in the future in order
Ahead of the decision regarding the Spanish bailout, the German government bonds are getting stronger. The interest rates for the two-year bonds are still negative at minus 0.048%, while the yield for the ten year notes rose by 0.01%.
The Canadian Dollar appreciated against its U.S. counterpart, reaching a two-month high. Previously, the Federal Reserve disclosed information with respect to plans to boost U.S. economy, thus spurring demand for risky assets. Moreover, Canadian gross sales exceeded forecasts in May. The Loonie gained 0.3% to CAD 1.0074 per one unit USD on Thursday, July 19, in Toronto. However, the Australian Dollar keeps gaining value
After writing down Aquantive (USD 6.2 billion), Microsoft faced a loss of USD 492 million for the past three months. The company has not registered any losses since 1986, when it first entered the stock market. It purchased Aquantive in 2007 for USD 6.3 billion, but targeted profits were not reached.
Thursday's, July 19, rise in Spanish borrowing costs caused immediate depreciation of the Euro. On Friday morning, July 20, European currency fell 0.2% against the US Dollar to USD 1.2252 per EUR. Loss in value versus the Yen also amounted to 0.2% leading to trading rate of JPY 96.30. In general, this week, the Euro fell 0.7% against the Japanese national currency and was little changed
Manufacturing in Philadelphia declined for a third month in a row, as the outlook for new orders declined and the unemployment rate jumped. Philadelphia's general economic index dropped to minus 12.9 in July compared to a 16.6 in a previous month. The deterioration can be explained by the external factors, as worsening Eurozone's debt crisis, slowdown in China's and Brazil's economies, as well as by
The world's third-largest economy is still expected to develop faster than its developed nations during this year, but slower than it was foreseen in June. The growth forecast was slashed by 0.1 per cent to 2.2 per cent, while the GDP seen to slow down to 1.5 per cent. Meanwhile, the industrial output to grow 3.6 per cent in this year and 3.2 in the
On Wednesday, July 18, an unexpected decline in U.K.'s unemployment rate boosted markets higher. The FTSE 100 index advanced 1.01 per cent to 5,685.77 and British pound strengthened versus the single currency 0.17 per cent to 0.7839. Meanwhile, the boost was supported by the increase of Fresnillo PLC shares by 1.56 per cent, BHP Billiton rose 2.02 per cent and Rio Tinto PLC also increased
The Canadian dollar strengthened against its major counterparts on Wednesday as U.S. stocks and commodities, such as copper and crude oil, edged higher. The loonie jumped 0.4 per cent to C$1.2397 against the shared currency, and increased by 0.1 per cent to C$1.0114 a U.S. dollar. At the same time, the yields on Canada's 10-year government bonds declined by 0.03 percentage point, to 1.61 per
Scottish economy contracted during two consecutive quarters and fell into a double-dip recession, following the UK economy. Scottish GDP dropped 0.1 per cent in the first three months of this year, while construction output declined dramatically by 6.9 per cent. Still, there is some positive news with the growth in production sector by 1.2 per cent, services grew by 0.2 per cent, and the jobless
Deutsche Bank to fire around 1,000 employees, almost a tenth of its investment banking staff at the end of this month. In order to fight a deceleration in capital markets activity, Germany's flagship lender to follow global investment banks, such as Credit Suisse, UBS and Goldman Sachs to cut staff. According to sources familiar with the matter, staff will be redundant mainly outside Germany.
On Thursday, July 19, gold futures for August settlement advanced 0.7 per cent, to $1,581.90 per ounce, after gold lost $21 during the past three trading sessions, as the disappointment with Ben Bernanke's testimony dragged prices down. At the same time, other precious metals also increased in value. Copper for September delivery rose 1.6 per cent, to $3.53 per pound, and September silver also jumped
During today's New York trading session, oil futures for August delivery rocketed 0.9 per cent, to $90.65. The commodity has traded higher than psychologically important $90 level for the first time since May 29. Meanwhile, Asian and American stocks turned green on Thursday, pushing oil prices even higher. The Dow Jones Index rose 0.3 per cent, to 12,894, the S&P 500 index advanced or
As reported by the Labor Department, more first-time claims for jobless benefits were filled during the previous week. The number of applications for unemployment insurance payments increased by 34,000 to 386,000, as a schedule of automobile plant layoffs changed. Soon after the report, U.S. stocks jumped. The contract on the S&P 500 Index maturing in September increased by 0.3 per cent to 1,372, while yields
Volume of purchases of previously owned houses was expected to climb by 1.5% in the USA in June. Analysts supposed that the annual rate of such sales might amount to USD 4.62 million, whereas the real number published by the National Association of Realtors is 4.37 million. House market was anticipated to be boosted by record low mortgage rates and property
Spanish daily newspaper El Pais misinterpreted Eurogroup's decision and published an article saying that the money left out of 100 billions Euro issued by Eurozone to Spain might be spent on buying public debt. Though on Thursday, July 19, the EuropeanCommission clarified on this announcement. It turned out that 100 billion euro could be used for recapitalizing Spanish banks only, without exception. All other types of
Unemployment in Hong Kong may rise in the upcoming month as the global economy weakens. Moreover, school graduates and recent alumni add pressure to the labor market. Economists suppose that jobless rate might advance by 0.1% in June, from 3.2% to 3.3%. Hong Kong's second largest bank's economist, Joanne Yim, proposed unemployment could rise to 4% by the end of 2012, nonetheless, there are
Spanish borrowing cost rose after EUR 2.98 billion (out of maximum EUR 3 billion)of notes were sold. Bonds' due 2014 yield climbed from 4.335% to 5.204% since June 7. Five-year bond gained 0.378% since June 21 and were sold at interest rate of 6.459%, while seven-year securities' average yield became 6.701%. Though Spain is oriented on selling short-term debts as paying 7% interest for investors
Regarding the official figures, next to England, Scotland has entered the second wave of the crisis. In 2012 in the first quarter the GDP of Scotland reduced by 0.1%. Also there was a rapid reduction in construction sphere equal to 6.9% whereas the production and services sectors improved by 1.2% and by 0.2% respectively. The rate of unemployment was 8%
Sales of U.K. retailers decreased this summer. Consumers spent less due to slow increase of personal income, negative impact of bad weather on demand of seasonal goods and imposition of austerity measures by the government in order to deal with a record high debt. Moreover, Eurozone's debt crisis adds pressure on U.K.'s economy. The official readings implied that retail sales volume decreased
Australia faced decelerating growth pace over the recent months. As threat of further slowdown looms, economists suppose the Reserve Bank of Australia might be forced to cut interest rates again. By most of analysts' estimates, overnight cash rate might be lowered by 0.25%. Still, the Australian Dollar appreciated for five days in a row and reached two and a half month high
Brent crude oil increased to $106 on Mid-East tension on Thursday, reaching a seven-week high. At the same time Fed chairman Bernanke's comments signalled diminishing double-dip recession risks and renovated hopes of oil demand recovery. Brent benefited for already a seventh day, increasing to $106.01. U.S. oil advanced to $90.62, which is also its seven-week highest value.
After the eight-month long fall, prices for property fractionally grew in 70 China's cities in June. In Beijing the increase of prices was 0.3%, whereas in Shanghai - 0.2%. Most probably the rise was caused by two interest rate cuts by the PBOC in the last months, which presumably encouraged real estate sector to recover.