Japan has revised its growth rate for the period between July and September down from 6% reported earlier to annual 5.6%. However, the figure still is above expectations of 5.2% annual growth for the period. Analysts are skeptical about growth perspectives after negative capital spending figure and buildup in inventories. The projected growth for the period between October and December is 0.67%.
The European summit failed to reach a full agreement among 27 members on the treaty changes that might help to combat the Europe's debt crisis by stricter fiscal policy. However, a number of members agreed to raise the capital of the IMF by 200 billion euros for fighting the recession in the region. The full agreement on close fiscal cooperation failed after the UK demanded
The US Senate blocked a Democrat's motion to prolong a workforce tax cut for employees in 2012 and compensating it by the cost by enforcing a 1.9% levy on revenue exceeding $1 million. The proposal failed as 50 voted for and 48 against. The bill had a shortage of 60 votes. The legislature would have reduced payroll tax from 4.2% to 3.1% on the first $110,100 of
European officials could agree on 150 bn euros ($201 bn) channelled through IMF to provide fresh financing source to tackle crisis, told EU diplomat. Euro region governments expect during the summit to get an affirmation from other non-euro countries to contribute extra 50bn euros. European leading economy Germany has not stated its position on the proposition.
South African production growth declined in October to 1% or significantly more than was previously predicted by economists. The deepening debt turmoil in Europe which accounts for about one third of South African produced goods has seriously undermined countries exports. Hampering output may force Gill Marcus, the Governor of Reserve Bank to leave key lending rate at 5.5% or 30-year record low.
17-nation currency declined against Japanese yen reaching 3-week low as well as fell to a 1-month record low against greenback after ECB President Mario Draghi told he did not indicate bank's intervention by purchasing bonds from debt-troubled countries to stimulate growth. Euro depreciated 0.6% to ВҐ103.55 against yen in New York afternoon trade and lost 0.7% to $1.3323 against US dollar. EUR/JPY currently is trading
Japanese securities regulators are willing to punish Citigroup Inc for trying to manipulateTokyo interbank offered rate. Workers at Citigroup Japanese division pressed other financials to submit interest rates which would guarantee Tibor moved towards brokerage's advantage. Japanese regulators are urging Financial Services Agency to punish Japanese unit of Citigroup Global Markets.
US stocks fell immediately after opening on Thursday, after ECB President Mario Draghi announced that bank won't purchase debt of troubled European countries. In New York morning trade Dow Jones Industrial Average lost 1.3% to 12,116.11 after climbing for 3 days in a row. Standard & Poor's 500 also gave up 1.3% reaching 1,244.85 while Nasdaq Composite dropped 1% to 2,623.83.
On Thursday Ford Motor Co announced it has re-established quarterly dividend. They dividend has been determined 5 cents per share payable due March 1 to equity holders registered as of January 31. Ford Motor Co has not distributed dividends since 2006. Bill Ford, company's CEO admitted that automotive giant have made substantial development in cutting debt and generating positive cash flow.
President Obama in his Thursday speech expressed worries about situation in Europe. Obama told he supported Sarkozy's and Merkel's idea to make stronger fiscal ties across Europe; however, the President emphasized fiscal union is a solution that may take years. Europe needs to resolve short term crisis immediately, he added. European region is rich enough to tackle crisis, but it must act jointly and responsibly.
On Thursday's conference in Frankfurt ECB President Mario Draghi was questioned why the bank does not expand its bond purchase program. Draghi reminded journalists that European Union accord forbids monetary financing. He also emphasized that key decisions and political obligations should be taken by European leaders. According to Draghi, ECB is ready to help banking sector to achieve liquidity but it will not exceed its
According to region regulators' documentation, European banks are required to raise 114.7 bn euros ($152.7 bn) in order to adequately react to measures introduced to tackle debt-crisis. Italian banks need €15.4 billion, while German financials need €13.1 bn. In total European banks must raise around €8bn more than earlier was estimated by European Banking Authority.
Canadian Imperial Bank of Commerce and Bank of Nova Scotia this year had the biggest jump in incentive compensations among six top banks in Canada as record profits created 6.9% surge in bonuses. According to reports, Canada's leading banks in total put aside $9.39 bn for incentive yearly compensations or about $0.5bn more than last year.
British stocks gained on Thursday after Bank of England decided to keep its key interest rate unchanged and ECB announced the cut of its lending rate. Main supporters for UK's benchmark FTSE 100 were tobacco producers and telecommunications firms. British American Tobacco PLC added 1.7% while BT Group PLC and Vodafone Group PLC ascended 1.6% and 1.4% respectively. Nevertheless, after Draghi's statement that ECB will not buy
On Thursday German stocks experienced sharp decline after ECB President Mario Draghi said the bank will not boost sovereign debt purchases. Germany's benchmark index DAX 30 fell for a third day in a row losing 1.1% to 5,927.27 in Frankfurt afternoon trade. Main downside contribution was provided from German financials as Commerzbank AG and Deutsche Bank AG gave up 5.3% and 1.6%, respectively. Automakers also declined with
After a two-day straight drop, Dow Jones Industrial Average Index gained 0.4% or 46.24 points and closed at 12,196.37 on Wednesday. Gain was mainly supported by a 2.3% increase in JPMorgan Chase & Co. after the bank reported it has decided to buy back extra shares after paying less than supervisors allowed in dividends. Mc Donald's Corp. also boosted index adding 1.4% after company announced
On Wednesday S&P 500 gave up 0.2% or 2.54 points up at 1,261.01. On the upside were financials: Morgan Stanley gained 4.58%, Goldman Sachs Group added 3.92% and Bank of America Corp. ascended 1.90%. Nevertheless, U.S. benchmark index opened lower on Thursday. At the moment of writing S&P 500 is trading at 1,252.80 or 0.65% down as ECB president Mario Draghi rejected the idea that
Japan's Nikkei Stock Average traded down 0.66% or 57.59 and ended trade at 8,664.58. The slight decline can be explained by investors' anxiety regarding Friday's summit and Germany's announcement it will not support two bailout funds. Main losers were Japanese exporters as US Dollar dropped against Japanese Yen. Honda Motor Co. lost 1.8%, and Mitsubishi Motors Corp. declined 3.2%. On the upside were Olympus
On Thursday Hong Kong's Hang Seng Index lost 0.7% or 132.77 points and closed at 19,107.81, as investors were concerned about the outcome of upcoming summit, ECB decisions on interest rate as well as German government's refusal to operate two bailouts simultaneously. Shares of companies that are highly exposed to Chinese markets provided most negative contribution. Tsingtao Brewery Co. fell 3.2%, Gome Electrical Appliances Holding Ltd. declined
Costco Wholesale Corp., reported net increase in revenues for the Q1 by 2.6% with the jump in sales by 13%. For the last quarter earnings approached to $320 million or 73 cents a share as compared to $312 million or 71 cents apiece in the same period last year. Current share price of the company is 87.47 a share.
The ECB decreased the key interest rate for the second month in line with the aim to boost the economic recovery of the area. The bank set the interest rate at all-times low of 1.0% down from 1.25% in the previous period. The move was expected by experts. Following the shift the, euro declined against the greenback with the EUR/USD pair trading at 1.3394,
The Bank of England announced it left the key interest rate unchanged at 0.50% for the 33rd month in line. The decision was expected by analysts. The asset purchasing programme's budget stayed at the same level of GBP275 billion. After announcement the pound advanced against the USD. At the moment of writing GBP/USD pair is trading at 1.5716, or 0.03% up.
Despite gold prices being below their absolute record of $1923 an ounce in September 2011, the worldwide trade is expanding. Last month investors put over $3.1 bn in SPDR Gold, the largest gold exchange fund. The Bank of Korea boosted its gold reserves to 54.4 tons, while Japan's gold exports hit the record of 955.6 metric tonnes. Moreover, many investors embarked on selling gold on
McDonald's Holdings Co. announced that sales in Japan grew by 8.7% in November, signaling extension in gains for three consecutive months. The launch of new products such as croquette burger coupled as aggressive sales campaign contributed to the performance improvement.