China's state-owned enterprises and holdings' profits increased to 2.04 trillion yuan, reported Ministry of Finance. Revenue of companies amounted 33.48 trillion yuan being 23.2% higher than revenue in 2010. At the same time the costs of companies rose by 23.9% on a yearly basis. The top performers are chemical, coal and construction materials sectors.
Nike reported the increase in profit in Q2 supported by high demand for its products. The earnings of the company surged from $457m to $469m in Q2 with 18% increase in revenue to $5.7bn. However, higher production costs impacted profit margins that declined by 2.6% to 42.7%.
Gold futures advanced during the electronic trade following the common upward commodity trend supported by lower value of the USD. On the Comex Division of the New York Mercantile Exchange, gold futures for February delivery traded at $1,626.00 per ounce, gaining 0.5% since opening.
Federal Reserve plans to introduce new rules for big US banks aimed at strengthening financial sector against collapse. The new rules stipulate that banks having over $50bn in assets will be obliged to raise minimum amount of cash hold. The biggest banks as Bank of America and Goldman Sachs will have even stricter requirements. The banks oppose the measure citing the possible drop in lending.
China's tough monetary policies aimed at cooling real estate market undermined the property mania in the country. The volume of transactions on the real estate market tumbled sharply in October by 27.56% coupled with weaker sales price that fell by 1.65%. Experts believe the market approaches turning point after recent exorbitant growth.
The Central Bank of Hungary raised the interest rate from 6.5% to 7% on Tuesday. The increase came in for government's criticism as it may impact economic growth. Currently, the country is in talks for 15-10bn euros worth aid package provided by the IMF and the EU. Moreover, Hungary is trying to adopt new law that would decrease the central bank's independence while the EU
Despite recent political turmoil that affected Russia's stock markets with its benchmark RTS index falling from 2,100 to 1,300, investments in Russia are likely to pay off in the long-run. Russia is rich in natural resources, has qualified labour and low level of indebtedness. The country may become the most promising emerging market over the next years. Even now, when world's strongest economies dive in financial
Japan's exports decreased in November on the weak demand from Western economies. Foreign shipments declined by 4.5% last month on a yearly basis, according to the Ministry of Finance. Experts claim the strong Yen and European crisis are the underlining causes for decrease in exports. Meanwhile, the Bank of Japan left the interest rate unchanged between zero and 0.5%.
Shanghai's population of overseas and foreign Chinese is the second biggest in the country. About 27.3% of foreign Chinese arrived to the city seeking better job opportunities, reported the municipal statistics bureau. The trend of the overseas Chinese coming to large cities for long-term employment is likely to expand further given expected growth of the local economy, said Sun Haode director of the labor and
On Wednesday European markets opened up ahead of ECB report about three year loan results on speculation fresh cash will be flooded into tumbling Euro Zone. Stoxx Europe 600 index gained 0.8% at 240.41, whereas French CAC 40 index jumped 1% reaching 5,463.22. FTSE 100 index climbed 0.8% attaining 5,462.90 and German DAX 30 index added 1% at 5,907.63.
ECB is set to provide Euro Zone banks with cheap financing. Today ECB will offer its three year loans. European banks are going to ask for around €293 bn ($384 bn), predict economists surveyed by Bloomberg. The cash will be offered at average ECB benchmark rate of 1%. ECB is attempting to provide banks with low-priced money for medium term, so that financials can continue
New Zealand and Australian Dollars surged on Wednesday reaching one-week record high as Asian markets rallied ahead of ECB report about the results of unlimited three-year bonds. Investors are speculating the ECB will prompt debt purchases. Aussie gained 0.8% reaching $1.0157,while Kiwi climbed 0.7% attaining $0.7731. Currently AUD/USD is trading at $1.0174 while NZD/USD is trading at $0.7742.
17-nation currency appreciated for a second straight day ahead of ECB report about unlimited 3-year bonds. Investors expect ECB to boost purchases of Euro Zone's debt. Euro gained 0.2% against US Dollar reaching $1.3114 in Tokyo trade. European common currency also climbed 0.2% against Japanese Yen attaining ВҐ102.05. Currently EUR/USD is trading at $1.3109 while EUR/JPY is trading at ВҐ101.91.
US markets surge close to 3% on Tuesday after Federal Reserve issued capital proposals which were less burdensome than expected. Dow Jones Industrial Average added 2.87% or 335.73 points finishing at 12,103.58, while S&P 500 Index gained 2.98% or 35.95 points closing at 1,241.30. Nasdaq Composite Index edged up 3.19% or 80.59 points at 2,603.73.
Accelerating prices and slowing growth will be the main challenges the government will face next year, said Wen Jiabao, Chinese Premier. The government is going to focus on stable export policies while support tax cuts by increased fiscal spending, Jiabao added. PM characterized current economic situation as healthy, nevertheless he admitted than country is facing many new problems.
Japanese exports dropped for a second month in a row and Bank of Japan again cut its economy outlook as fading demand in Asia and Europe hampers global growth. Shipments fell 4.5%, or 0.2 percentage points more than predicted by economists. Japanese producers are lowering revenue forecasts as Yen has appreciated close to post-war record high against the Greenback.
The Bank of Japan decided to leave its key interest rate unchanged, said officials after the policy meeting. Central bank policy makers voted unanimously on keeping overnight rate at 0-0.1%. Country's economy has slowed down amid global uncertainty, appreciation of Yen and Thailand flooding. BOJ claimed no changes will be implemented until prices reach at least medium term stability.
Asian stock markets experienced a sharp increase on Wednesday led by resource firms and exporters, as investors regained optimism about the global economy outlook. China's Shanghai Composite rallied 0.4%, Hong Kong's Hang Seng Index rocketed 1.6% while Japan's Nikkei Stock Average jumped 1.4%. Australia's S&P/ASX 200 index advanced 2.1% and South Korea's Kospi rallied 3.1%.
Germany's business confidence surprisingly surged in December for the second consecutive month, indicating the country is coping well with Eurozone's debt crisis. Business climate index, estimated by Ifo institute advanced from 106.6 in previous month to 107.2 in December. Economists surveyed by Bloomberg predicted a decline to 106. Reading show German firms do not believe in worst crisis scenario, said Alexander Koch, UniCredit's economist in Munich.
France is expecting the UK to support the IMF fund aimed at combating with the Euro Zone's debt crisis, according to Valerie Pecresse, Budget Minister. The Eurogroup counts on the countries that are outside the EMU to boost the IMF fund by EUR50 billion, including EUR30 billion contributed by the UK. Moreover, Henri Guaino tried to reassure investors citing the successful Monday's auction and
Repsol YPF SA announced it plans to repurchase 10% of its shares from the largest shareholder Sacyr-Vallehermoso SA. Trading of two companies' shares was suspended on Tuesday before the opening of the market. Sacyr has a large portion of debts and its shares were traded at EUR4.03 while Repsol shares closed at EUR22.18. The share repurchase will end management clashes of two companies and will
The HTC was found guilty of Apple Inc.'s patent infringement. All phones that contain the technology stipulated by the Apple Inc. patent will be prohibited for sale at the US territory starting from 19 April, 2012. Initially Apple Inc. submitted 10 patent infringement claims but the court satisfied only one claim and the HTC is pleased with the court decision.
Europe's stocks increased being supported by banks. The Stoxx Europe 600 index added 5% to 234.94 mainly due to higher banking shares with UniCredit SpA and BNP Paribas SA both gaining 3.6%. The France's CAC 40 index rose by 1% and German DAX 30 index increased by 0.7%. However, the drug shares suffered losses with AstraZeneca and GlaxoSmithKline PLC edging down by 1% and
17-nation currency recovered on Tuesday after European finance ministers agreed to provide extra funding worth $195 bn through IMF. Euro appreciation was also fuelled by unexpected rise in German business confidence. European common currency gained 0.3% against US dollar, reaching $1.3040. Currently EUR/USD is trading at $1.3079.