Deutsche Bank AG downgraded UK wealth managers by decreasing Man Group PLC rating from buy to sell on low cash flows that may affect company's earnings. However, the bank increased the rating of Ashmore Group PLC from hold to buy on inspiring investment performance. Following the news, stocks of Man Group PLC dropped by 2.6% while shares of Ashmore gained 0.9%.
Gold prices are likely to achieve $2000 an ounce in the first two quarters of 2012 as the long-term trend for precious metal remains bullish, said Jeff Nichols, Managing Director of American Precious Metals Advisors. The recent gold slump is not unusual and the price for precious metal will soon rebound loses and will climb above record high September's level of $1923 an ounce, he
Dell Inc. sees weaker PC demand in India on the hard disk supply disruptions and fell of rupee. Dell has a leading 15.5% market share in Indian PC marker and the fall in demand impacts the company's business. The prices of Dell's PC are expected to increase between 8% and 12% in the nearest future said Dell Inc. executives.
Silver flakes and powder are likely to be replaced by silver nanomaterials as they are more immune to silver volatility. Currently the market share of silver nano flakes and powder is negligent but it is projected to soar 80% annually to $300 million by 2016, according to NanoMarkets. During increasing silver prices the demand for hybrid material is growing and is likely to expand by
Slovakia plans to issue three new bonds with maturities three, four and five years, said Ardal, the Slovakia's Debt and Liquidity Management Agency. New bond lines can be added in case of investors demand. The country plans to hold bond auctions monthly and the first auction is due January 23, 2012.
Brent crude oil prices are likely to average near $111 a barrel this year being the highest during 150 years, reported IHS Cambridge Energy Research Associates. The crude oil price is the highest in the all history of petroleum age in both nominal and inflation-adjusted terms, said Daniel Yergin , IHS CERA chairman. However, global financial difficulties may weight down the oil price, he
Nickel was in surplus between January and October, the surplus achieved 5,600 tonnes, reported International Nickel Study Group. However, between January and September the market experienced deficit of 6,400 tonnes and the surplus appeared only in the last two months. The LME Nickel currently traded at $18,000/tonne, losing 35% over the year.
Bayerische Motoren Werke, the world's biggest producer of luxury cars, will launch a plant in Brazil to support its world-wide sales growth as deliveries in 2011 reached new record. BMW is planning to build a factory that would allow the company to boost sales to from 1.6 million to 2 million vehicles by 2020. BMW predicts a substantial increase of sales in China, Europe and US
In December France's business confidence declined for the sixth consecutive month as European debt turmoil deterred investment and threatening to push the country's economy into stagnation. Factory managers' index dropped from 96 to 94. Investors are reluctant to invest in France as S&P 500 is assessing whether to downgrade nation's AAA rating.
General Motors Co, PSA Peugeot Citroen and Fiat SpA ran the biggest drop in European vehicles sales in 5 months as the Europe's economy tumbled closer a recession. In November registrations lost 3% from 1.10 m vehicles in 2010 to 1.07 m cars this year, the biggest fall in 5 months, said the Association of European Automobile Manufacturers. 11-month sales fell 1.1% to 12.6 m registrations.
Treasury 10-year bonds traded down for a second consecutive day as positive employment and manufacturing data from US relieved investor concern that deepening Europe crisis will harm country's growth. Drop in anxiety boosted demand for riskier assets. Borrowing costs on 10-year notes added 2 b.p. or 0.02 percentage points reaching 1.93% in London trade.
European security markets opened higher on Friday led by financials and miners amid positive US employment and manufacturing data. Stoxx Europe 600 index added 0.3%, reaching 235.49, German DAX 30 index climbed 0.2% at 5,735.25 while UK FTSE 100 index advanced 0.3 trading at 5,417.36. French CAC 40 index traded flat at 2,996.3.
BP, large oil producer, announced a settlement over the oil spill in Gulf of Mexico. The suit was carried between BP and Cameron International, designer of the system, failure of which led to spill. The agreement stipulates settlement of mutual claims and obliges Cameron to pay $250m to BP. The funds will be included into $20bn program of BP aimed at supporting victims of disaster
The global downturn is spreading and no one is invulnerable to risks, said Christine Lagarde, the head of the IMF. All nations have to commence combating crisis, starting with Europe in order to resolve financial difficulties, she added. Largest economies already are on the threshold of recession; France may fall into downturn in the Q1 of 2012, reported INSEE, French official statistics agency.
China is pushing a free trade agreement with South Korea and Japan and is ready to start talks in 2012, reported officials. Three countries are of critical importance in East Asia and closer economic ties will benefit all of them by increasing trade and facilitating flow of investments, said Shen Danyang, from China's Ministry of Commerce.
Indonesian investment status was upgraded to the same level as Indian one by Fitch Ratings. Fitch agency said the decision was made based on the relatively resilient growth, low sovereign debt and tight policies. The country's government debt looks more attractive than that of some European economies, said Jerome Booth from Ashmore Investment Management. The increase is expected to stimulate flow of investments in
White metal fluctuated dramatically this year, approaching $49 an ounce in April and falling below $30 in November. The growing worries over the global economy continue to weight down on silver; however, analysts believe in case silver price remains above its support level of $28 an ounce, it has a potential to jump essentially next year, said James Carrillo from Swiss America Trading Corporation.
China's manufacturing is expected to remain below 50 indicating contraction, according to preliminary HSBC Purchasing Managers' Index. The index is expected to approach 49, being 1.3 points higher as final November's PMI of 47.7. Low PMI forces the government to change its growth-focused policies faster.
Citigroup Inc. was forced to cease its financial product retail sales in Japan for 30 days for not providing adequate disclosure about risks in one of the retail units. The suspension will come in force since January 10, according to FSA. Citigroup Inc. also needs to submit plan of business enhancement till January 31.
China plans to increase its efforts put in developing cotton-planting in four countries in Africa, reported the Ministry of Commerce. Analysts believe closer cooperation with Benin, Mali, Chad and Burkina Faso will help China to increase fairness of the cotton-trade conditions under the WTO requirements. China with supply African countries with seeds, fertilizers and machinery as well as enhance personnel training there.
EU leaders may abandon UK derivative legislation after PM Cameron's attempt to protect country's financial sector almost ruined EU summit, said 4 officials familiar with matter. Analysts suggest that possible crumbling of UK's derivatives could be a notice from EU officials that British veto alone cannot strengthen its financial system.
Fitch Ratings agency reduced credit ratings for 3 major US banks: Goldman Sachs Group Inc, Citigroup Inc. (C) and Bank of America Corp. Lenders' long term credit ratings were cut from A+ to A, reported Fitch yesterday. Fitch Ratings also downgraded several European banks including BNP Paribas SA, Barclays Plc, Credit Suisse Group AG and Deutsche bank AG.
Morgan Stanley, sixth-largest US financial institution, whose stocks experienced 45% drop this year is going to cut around 1,600 jobs worldwide as revenue in investment banking decreases sharply. Job cuts are planned to take place during the 1st quarter of 2012, said Mark Lake, a representative of company. The estimate equals around 2.6% job reduction of 62,648 workers.
The Reserve Bank of India decided to leave its key borrowing rate unchanged, the first time in 8 meetings as both inflation and growth slows down. The central bank of India left benchmark interest rate untouched at 8.5% meeting predictions made earlier by economists. India rupee appreciated 2.7% against US dollar on the RBI announcement.