Zambia's nickel mine, Munali Nickel Mine, announced it will resume its operations in January after implementing restructuring program. The company ceased its operations because of the cash flow difficulties in the beginning of November. The company plans to attract investors to finance the company and make its capital structure more stable, said the official.
Standard & Poor's has decreased the credit rating of Egypt from BB- to B+ pushing Egypt's debt close to junk status. The agency explains this downgrade as a result of political and economic situation in the country that continues to deteriorate. There were four days of demonstrations in Egypt before parliamentary elections due 28 November.
Copper futures surged after the German report indicated an unexpected increase in German business confidence. On the Comex division of the New York Mercantile Exchange, copper futures for December delivery were traded at USD 3.298 a pound at the early European trading, gaining 1.05%. Copper earlier decreased by 1.95% and was traded at USD 3.205 a pound, being a four-week low.
United Continental Holdings Inc. is planning to renew its flotilla of single-aisle airplanes and is currently participating in talks with Airbus SAS and Boeing Co regarding an order of about 200 jets. United Continental Holdings, world's biggest airline is considering Airbus A320 and Boeings 737 as well as new models with more effective engines. United Continental Holdings Inc. was created in 2010 after a merger
Britain's benchmark stock index increased by 0.6% on the increased business confidence in Germany. The strongest gainers are British banks and miners; the Royal Bank of Scotland Group PLC increased by 3.9%, Lloyds Banking Group PLC gained 3.6% and Barclays PLC rose by 3.5%. The top gainers among miners are Vendanta Resources PLC and Xstrata PLC that gained 3.9% and 3.7% respectively.
Today Portugal faces general strike, first since November 2010, as unions engage into demonstrations against austerity measures approved by Portuguese parliament to ensure the international bailout. Unions have disrupted shipping, services and travel. Serious distractions are expected in airports and rail stations. Strike takes place exactly one year after demonstrations against the first austerity implementation.
Consumer confidence in Italy significantly increased in November indicating the end of political turmoil by arrival of new government, according to the official data. The consumer confidence index increased to 96.5 in November from 93.3 in October. The increase exceeded the forecast of 0.9 point decrease. Monthly survey also showed more optimism in the market, Istat stated.
Standard & Poor's increased Iceland's credit rating outlook from negative to stable as country's economy returns to progress after recovering from financial crisis in 2008. According to Standard & Poor's yesterday's statement, Iceland has received �BBB-/A-3' credit rating. Iceland has put much effort to stimulate recovery, admitted S&P in its statement.
German Chancellor Angela Merkel refused the idea of issuing Eurobonds offered by European Commission. Merkel emphasized that the creation of Eurobonds will not pull the region out of debt crisis. German Chancellor also criticized European Commission's inappropriate switching to Eurobonds proposal, as it gives other countries misleading signal that more borrowing could resolve the crisis.
Crude oil futures have started to rise after a two–day decline. On the New York Mercantile Exchange crude futures for January delivery were traded at USD 96.75 a barrel at early European trade, being 0.6% higher. Experts claim that lower Dollar and strong oil demand in the US stimulate growth of the oil prices.
Germany's business confidence index increased in November despite unanimous pessimistic forecasts. Ifo institute in Munich reported that index has actually increased from 106.4 to 106.6. Experts surveyed by Bloomberg predicted a drop to 105.2. Carsten Brzeski, ING Group's economist in Brussels, pointed out that Germany's position in reality is rather strong.
Small and medium-sized Airbus suppliers have difficulties to get financing as the banks are concerned about deteriorating situation in the euro-zone. Banks avoid even viable financing in the aircraft, said Thomas Enders, Airbus Chief Executive. The company expects essential increase in production in 2012 taken the strong demand, he added.
European equities rose during Thursday's morning trade on speculation Germany may settle to release Euro-bonds. Stoxx 600 gained 0.4% to 221.1. Nevertheless, index has lost 20% throughout year. Standard & Poor's 500 Index futures expiring December climbed 0.5% indicating that US stocks might interrupt the six day decline. Dow Jones Industrial average futures advanced 0.4%.
The US Dollar was slightly lower against the Euro after news about increased business confidence in Germany. Higher level of confidence backed up the demand for riskier assets; however, debt crisis in the euro-zone still makes the outlook pessimistic. US Dollar is 0.27% lower and EUR/USD is 1.3382.
Shares of Banco de Valencia, seventh-largest Spain's bank, decreased on Thursday when they restarted trade after its bailout bySpanish central bank. Spain provided EUR1 billion to the Banco de Valencia. During the first 45 minutes shares fell by 22% causing decrease in equity to EUR286 million.
The growth in yuan deposits in Hong Kong slowed down but the overseas market for yuan will continue to rise, said Norman Chan, chief executive of the Hong Kong Monetary Authority. The inflow-outflow yuan ratio decreased to 0.8-to-1 in September. The decline in yuan deposits does not imply yuan lost appeal in foreign market, the decline is likely to be a short-term, said Chen Daofu,
European stocks increased after the Germany's Ifo business confidence index increased. The Stoxx Europe 600 index gained 1% to 222.36. The German DAX 30 index increased by 1.5% while French CAC 40 index rose 1.6%. The FTSE index increased by 0.6% to 5,171.88.
China's Central Bank announced the reduction in reserve requirements for rural banks. The ratio is decreased back to 16%. Each November the central bank checks the financial situation in rural banks and adjusts reserve requirements depending on the banks' ability to meet the lending target for farming businesses set by the central bank. The program is aimed at stimulating growth of the rural areas.
Arcadia, owner of Top Shop and BhS, announced a 38% profit fall and plans to reduce costs by closing down 260 shops in the next years. The total sales worldwide in 3,100 shops decreased by 4.4% from the beginning of the financial year. The company decided to cut its profit margin by 1.8% that would cost company ВЈ52.4m.
Credit Suisse Group announced it plans to close its US unit, Credit Suisse Private Advisors, as part of strategy aimed at increasing profitability of private banking sector. The US unit will be merged with Credit Suisse's private banking unit in US. The shift will allow the company to streamline its operations and increase efficiency, said Alex Biscaro, Credit Suisse spokesman.
German GDP growth increased in Q3 meeting the forecasts, according to Federal Statistics Office. Country's output increased by 0.5% in Q3 as compared with Q2. Experts stressed that large investments and consumption ensured stable economic development of the country in Q3. Private consumption increased by 0.8%. However, the economists claim that there is a probability of recession in next quarters.
Boss of Indian-based microfinance company SKS announced about his resignation after being accused of speculation. The company was top-performer on the Indian markets; the share price cost 1,304 rupees in August. However, the company was accused of charging exorbitant interest rates and using aggressive methods for debt collections. The share price lost 90% after accusations.
China is going to introduce the iron ore physical trading platform in the end of 2011 aimed at providing more transparent business transactions for local and foreign traders. China Beijing International Mining Exchange plans to introduce own iron ore index in line with launching online platform for trading, said Dong Chaobin, exchange president.
The euro edged up against USD after being seven-week low. EUR/USD achieved 1.3394 on the Asian trade, gaining 0.31%. However, euro position remains unstable as recent failure of the German bond auction creates fears about debt crisis keeps spreading to the strongest EU economies thus increasing investors' risk-aversion.