The new sales of cars are expected to expand in 2012 as customers who postponed a car purchases last year are likely to return to the car market in the beginning of 2012, reported car-shopping website Edmunds.com. At least 100,000 deferred car purchases will return to car market by March 2012. Last week, car producers have already indicated strong sales in the US.
SuccessFactors shares increased over 50% to $39.71 following the announcement of the company's takeover by SAP AG, software developer, for $3.4 billion, or $40 a piece. Meanwhile, SAP AG shares lost 35 cents to $59.19. Other tech companies also experienced gains, Taleo Corp.'s shares increased by 18% to $39.04, Salesforce.com Inc. gained 5% to $125.97 and Oracle Corp. edged up 2% to $31.98.
Budget of 2012 Olympics security in London almost doubled to $1.6 billion, according to Associated Press. However, the event did not exceed the budget framework, said Hugh Robertson, Olympics minister. Initially, it was planned to have 10,000 security guards; however, now thousands of military staff are part of the games organization, said AP.
The pound increased against the US dollar following agreement of German and French leaders on struggling with the EU debt crisis. Angela Merkel, German Chancellor and Nicolas Sarkozy, French President agreed on automatic penalties imposed on deficit violators. GBP/USD approached to 1.5696 at the early U.S. trade consolidated at 1.5696, adding 0.62%.
UK Markit/CIPS PMI indicates a negligent growth of the service industry in November with the index increased to 52.1 from 51.3 in October. The indicator also signals on stagnating economy in the last quarter of 2011 and indicates that the pace of losing jobs is accelerating in the last 15 months, according to Markit.
Copper futures declined slightly on the increasing worries across lower PMI in China, the world largest consumer. China's HSBC services purchasing managers' index indicated that services sector activity declined to three-month low to 52.5 last month from 54.1 in October. On the Comex division of the New York Mercantile Exchange, copper futures for March delivery were traded at USD3.582 a pound at the early European
Activity of the service sector in the US deceased in November falling to the lowest level in the last 22 months, according to industry data. Non-manufacturing purchasing manager's index lost 0.9 points to 52.0 in November, reported the Institute of Supply Management. Meanwhile, analysts expected the indicator to increase by 0.5 points to 53.4.
US stock futures experienced gains at the early trading as hopes for resolving euro-zone debt crisis pulled the prices higher. Futures for the Dow Jones Industrial Average gained 95 points, or 0.8%, to 12,095, futures for the Standard & Poor's 500 index added 10.60 points, or 0.9%, to 1,254.10, Nasdaq 100 futures increased by 18 points, or 0.8%, to 2,321.25.
Crude oil futures approached to two-week high, being above USD102-a-barrel as increasing tensions between West economies and Iran weighted up on possibility of supply disruption from the third biggest oil exporter. On the New York Mercantile Exchange, crude oil futures for January delivery were traded at USD102.12 a barrel at the early U.S. trade, gaining 1.15% since opening.
UK manufacturers expect zero growth in the next three months as gloomy economic outlook continue to discourage manufacturing sector of the country, according to a survey. The government announced it will provide borrowing incentives for businesses but worsening situation may need more firm action from the government's side to stimulate economic growth, Engineering Employers' Federation stated.
Coffee futures increased on the unfavorable weather conditions in Brazil and Colombia, the world's largest coffee exporters. The Colombia's coffee output is expected to be steady in the 2011-2012 season as strong rains damaged plants, said the National Federation of Coffee Growers of Colombia. On the ICE Futures Exchange, Arabica coffee for March delivery was traded at USD2.3105 a pound at the early U.S. trade,
Service sector activity in the euro-zone decreased again in November with the highest decline in Spain, according to surveys. The euro-zone's PMI is 47, the level below 50 indicates contraction of the activity. Spain experienced a decline to 36.8 as compared to a drop to 41.8 in October, signalling an accelerated downturn in the country.
Gold futures remain steady, fluctuating between slight gains and losses with investors eying the situation in the euro-zone. On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were traded at USD 1,749.65 a troy ounce at the morning European trade, edging down 0.09% since opening.
European stocks increased on the optimism across the euro-zone as Italy adopted austerity measures and investors are inspired by the meeting of leaders of Germany and France. The Stoxx Europe 600 added 0.7% to 242.47 in the early trade. Financial shares also gained; KBC Group NV added 9.3% in Brussels, Lloyds Banking Group PLC increased by 6.3%, Banco Espirito Santo SA rallied 4.9%.
After the report of IAEA on possible development of nuclear weapons by Iran, Western economies warned Iran on blocking its oil exports. The country responded that in case the exports are ceased the average price for oil will jump above $250/bbl thus slowing down the global recovery after crisis, said Ramin Mehmanparast, spokesman of Iran's Foreign Ministry.
US factory orders dropped more than projected in October, decreasing for the second month in line, according to official data. Factory orders decreased by 0.4% on a seasonally adjusted basis in October while analysts expected 0.3% decline. After the data release greenback edged down against the euro. EUR/USD thus gained 0.55% to 1.3467.
COMEX silver trading is increasing, the volume of silver trade jumped by 39.3% last month to 1,327,376 contracts from 952,314 contracts in the previous month. Meanwhile, the open interest declined by 8% coupled with 4% fall in silver prices signalling that investors worry about assets' safety. The issue was also impacted by the CME Group inability to repay investors' money after MF Global collapse.
The GDP growth for Q3 is expected to be around zero while the largest market players such as Banco Itau and Banco Santander Brasil project a slight decrease in the economic growth of the country, according to Nelson Barbosa, the Finance Ministry's executive secretary. Some analysts claim the government is anticipating a slowdown after which it is likely to announce new stimulus for the economy,
Price of US Treasuries decreased, weighting up on yields as investors shifted to riskier assets like bonds and dollar amid hopes for euro-zone's leaders are moving towards resolution of the debt crisis. Yields on 10-year notes gained 4 basis points to 2.08% while two-year yields edged up one basis point to 0.27%.
US prices for corn and soybeans fell on Friday after weekly gains as worries over lower demand for US crops weighted down on prices; however, wheat futures approached two-week high after release of strong US export sales data. On the Chicago Mercantile Exchange, corn futures for March delivery were traded at USD5.9538 per bushel, adding 1.21% over last week.
Commerzbank AG, the second biggest bank in Germany, offered to repurchase hybrid instruments valued at €600 m ($806 m) as it tries to meet capital requirements set by European Banking Authority. Martin Blessing, CEO of Commerzbank, said the bank may need to acquire around €2.94 bn to fulfil requirements. While the buyback of hybrid instruments will secure Tier 1 ratio, further fund raising will be necessary, said analysts familiar with
Deutsche Bank AG faced a claim from Sebastian Holdings Inc., an investment fund that accuses bank in creating losses valued at $2.5 bn via miscarried foreign-exchange transactions. Sebastian Holdings insists that Deutsche Bank permitted a trader to break forex trading limits during period 2006-2008. Losses for Sebastian took place when company had to close positions and assemble margin calls. Deutsche Bank in its statement admitted only unpaid
Premier Mario Monti proposed austerity plan on Sunday requiring Italians to sacrifice €30 bn in order to reduce country's burden. Monti's plan includes linking pension to total employee contributions instead of last salary, revise property taxes and impose taxes on luxury goods. Monti's plan is the third attempt to introduce debt reduction since July and is expected to face resistance both from Parliament and Italian
Germany benchmark index DAX 30 maintains upward trend. Index closed last week 0.7% or 45 points up at 6,080.68, led by financial companies and auto producer stocks. It was the biggest weekly gain for DAX 30 since 2009. BMW AG gained 0.8%, Daimler AG rose 1.7% and Volkswagen AG edged up 1.5%. On Monday trade index kept upward path climbing 0.4% to 6,102.87. Industrial company