Mario Monti, the Prime Minister of Italy, approved EUR26 bln spending cut to diminish the government`s expenditures' size and try to postpone destructive 2% point sales tax rise. Monti aims to calm down soaring bond yields and assure investors in his ability to meet deficit goals. The plan is to cut spending by EUR4.5b this year, EUR10b next year and
The sales of the largest French automobile manufacturer, Peugeot, went down by 13% in the first half of 2012 and its market share declined by 1% to 12.9%. A factor for the slowdown would be that the company's most profitable marketplaces, France, Italy and Spain, are suffering from financial problems.
European stocks dropped before US jobs reports and industrial output in Germany. US futures were slightly changed, shares in Asia declined. Peugeot SA recovered 1.7%. Banco Bilbao Vizcaya Argentaria SA fell 4%. The Stoxx Europe 600 Index slid 0.3% in London. Standard & Poor`s 500 Index futures lost 0.2%, whilst the MSCI Asia Pacific Index slipped 0.5%.
The budget deficit of the second largest euro economy increased a little in a period of five months, while the country is implementing changes in its tax system to close the deficit and reach EU targets. France`s budget gap expanded to EUR69.6b. The country has reported EUR7.2b of extra taxes revenues in 2012, although growth is to decelerate to 0.3%.
PASHR Philippines stocks are expected to increase by 25% in 2012 as reported by Jonathan Garner, chief strategist of Morgan Stanley. The Philippine Stock Exchange Index rose by 23% this year becoming one of the five top scorers, as the local administration is implementing reforms to decrease the current budget deficit.
India should avoid changes in taxation of foreign investors, said a key adviser to Prime Minister Manmohan Singh. The nation sets up the rule to liquidate tax avoidance, and this announcement should be interpreted as a welcoming step for investment not as a doubt in investor`s honesty. The BSE India Sensitive Index fell 0.4% today in Mumbai, while the Rupee
Samsung's shares decreased by 2% as the company's sales were lower than expected. ECB's decision to diminish the interest rate and the downgrade of loan yields in China, led the international demand for electronics to go down. As the biggest operating market for Samsung is Asia, the decline in the Asia-Pacific stocks led to the company's shares descent.
After almost two-year break Ireland, which was given a bank bailout of 85 billion euro, has come back to the capital market. On 5 June, the debt agency of Ireland raised 500 million euros in an auction of the three-month debt. The agency put up to the auction the three months Treasury bills at an interest rate of 1.8%, which
In June US employers increased hiring new people, however experts claim it does not imply that country's economy is in a safe zone and the debt crisis in the Eurozone is not a threat. Reuters analysts reported that in June the number of employed people grew by 90,000. Nevertheless, this most probably won't be enough to reduce the current 8.2% rate of
MSCI's Asia-Pacific index diminished by 0.9% while Japan's Nikkei 255 Index and Hong Kong Hand Seng Index both declined by 1 and 2%. On Thursday, PBOC decreased the benchmark interest rate to from 6.31% to 6%, cutting the rate for the second time this year to stimulate slowing economic growth in the country.
For the last year there has been a continuing decrease in platinum stocks. In Australia, Aquarius Platinum Ltd.'s shares have declined by 85% while South African Anglo American Platinum Ltd. tumbled 30% over the last year. Furthermore, the price for platinum has decreased since September 2011 to USD1,485.30 per ounce. Taken ample global supplies and moderate increase in auto-catalyst demand,
Christine Lagarde, Managing Director of the International Monetary Fund, said the growth outlook for 2012 is likely to be reduced amid worsening labour market, investment and manufacturing activity in the US, Europe, Brazil, India and China. New projections will be reported in the next 10 days. Meanwhile growth estimate for the US has been already lowered to 2% from 2.1%
As the European economy is still in the recession, the ECB cut its core interest rate to 0.75% from 1%, the lowest rate in the Eurozone's history. Moreover, the bank decreased the deposit yield to 0% from 0.25% to encourage the lending among banks. Meanwhile Mario Draghi, ECB president, announced that the Eurozone's economy is expected to grow slightly or
The second time during the last two months the central bank of China has cut the benchmark interest rate in attempt to prevent the economic slowdown. Benchmark lending interest rates were decreased from 6.31% to 6%, whereas deposit rates were diminished by 0.25%, from 3.25% to 3%. During the first three months of 2012, China had the slowest economic growth
China's economy may expand at slower pace in Q2 as industrial output growth remained at 9.6%, unchanged in June on a monthly basis, said Zhang Liqun, Development Research Center of the State Council. The GDP growth may fall below 7.5% in Q2, Zhang Liqun added. Meanwhile China's government is attempting to stimulate economic expansion by easing its prudent monetary policies.
The South Korea's Won is expected to experience the worst quarter in 2012 as Eurozone's financial woes are dampening demand for South Korea's exports, reported Ray Farris, Credit Suisse Group AG. The South Korean currency is likely to decline 5.4% against the greenback to trade at 1,200 per US Dollar over the third quarter of 2012, Ray Farris added. Meanwhile
Auto production in Brazil continued to contract last month despite recent government's tax breaks that have provided some support for the industry. Vehicle output dropped by annualized 9.4% in the first half 2012. At the same time auto sales declined by 1.2% on a yearly basis; however, sales were 23% up from the May's figure. The market has strong growth
Crude oil futures edged down in Asia session on Friday after posting moderate gains on Thursday on larger than expected fall in the US crude oil inventories last week. Experts claim that stronger greenback added pressure on the commodity. Light, sweet crude oil futures for delivery in August traded at USD86.75 per barrel on the New York Mercantile Exchange, declining
Activity of the service sector in the US expanded at slower pace in June, posting growth for 30th month in a row. US non-manufacturing PMI decreased by 1.6 points to 52.1 last month compared to May's reading of 53.3, reported the Institute of Supply Management. Experts predicted the PMI to lose 0.7 points to 53.0 last month. After the data
Gold prices climbed on Thursday after the ECB's interest rates cut. Spot gold increased by 0.2% to USD1,618 an ounce . However COMEX gold futures for delivery in August went down by 0.2% to USD1,618.70 per ounce. At the same time, silver rose 0.5% to trade at USD28.26 per ounce, platinum was up 0.61% to USD1,481.75 and palladium faced a 0.56% increase, trading at
On Thursday, the stocks on European markets were almost unchanged ahead of the ECB and the Bank of England meetings as well as Spain and Ireland's auctions. Traders awaited freash easing measures from the ECB and BoE. The Stoxx Europe 600 index stood at 257.41, with financials, oil, food and drug sectors facing strong pressure.
Treasuries grew, boosting benchmark yields to 15 basis points ahead of the key job reports due later in the week. The Federal Reserve expresses its intentions to purchase about USD5.5 billion of US government securities in a period between August 2020 and May 2022. Benchmark 10-year yields lost 4 basis points to 1.59% in London, reported Bloomberg Bond Trader data.
The central bank of China reduced its interest rate twice during two-month period.The decision followed the ECB announcement about the interest rates cut. China's benchmark interest rate was lowered to 6%, whereas deposit rates were sent down to 3%. Proposed lending rates will be applied since Friday 5th of July. Moreover, China has reduced the RRR three times since November 2011, injecting additional 1.2
On the 4th of June, in the ECB cut its rates of interest to record-low level. The ECB reduced the key interest rate from 1% to 0.75%. Marginal lending rate also was decreased from 1.75% to 1.5%, whereas overnight deposits rate was cut to zero.The bank attributed the move to weakening economic situation in the area. The reduction followed easing measures by