Syrian government did not announce its decision on the Arab League observer mission despite being a couple of hours away from the deadline. The Arab League requires 500 observers to enter Syria to prevent violence as over 3,500 people were killed since protests started in March. In case Syria does not allow observers to enter its territory, the Arab League will meet tomorrow to decide on
On Thursday investors were expressing their anxiety regarding European crisis by demanding higher yields on region's notes. German 10-year borrowing costs reached maximum at 2.26% and ended at 2.19%. Meanwhile the yields of Italian 10-year bonds surged once more, attaining 7.13% and closing at 7.11%. French 10-year papers experienced modest increase and closed at 3.72%.
United Overseas Bank of China decided to target Chinese with high income level. The bank tries to attract clients with more than 1 million yuan in assets. According to statistics the wealth of affluent citizens of China will increase from $2.6 trillion to $8.8 trillion by 2015. More wealthy customers are more demanding in asset management so the bank has to meet their expectations, said
Australian Dollar fell against US Dollar and Japanese Yen as European officials struggle on tools to stop debt crisis, boosting demand for assets with higher borrowing costs. Australian Dollar lost 0.3% reaching $0.9701 in Sydney evening trade. New Zealand's Dollar remained unchanged. Thomas Averill predicts Aussie to plunge to $0.9550 in forthcoming weeks. AUD/USD is currently trading at $0.9711.
Japan's consumer prices decreased for first time since July. Core consumer prices declined by 0.1% in October, reported statistics bureau. Analysts claim the reason for price decline is weak domestic demand and deflation is mainly caused by a decrease in oil prices. High yen and low crude oil costs make energy import cheap thus weighting on prices. The yen advanced 6% against USD in the
Germany's inability to attract offers in its bond auction can be a signal that investors are becoming reluctant to lend even to the most creditworthy country in the EU. The yield on 10-German bonds exceeds 2% creating the biggest gap with US Treasuries in 30 months. Stuart Thomson, Ignis Asset Management's strategist compares weak demand for German bonds with Titanic's first class passengers who faced
Tight monetary policy implemented by the China's government has to be eased and the measures for it may be discussed at the annual Central Economic Work Conference due in December, said experts. The government already undertook the first step by reducing the reserve requirement ratio to 16%. HSBC Purchasing Managers' Index fell to 48 indicating the decline in manufacturing activity; the GDP growth is also
Maersk Line, the world leading container shipper, is going to decrease shipping capacity on the routes between Asia and Europe. The measures were caused by severe impact of crisis in the euro-zone on the international trade, reported a senior executive. However, the company sees promising prospects in transpacific routes as there are signs of US recovery.
According to Moody's statement, it has reduced Hungary's credit rating from Baa3 to Ba1 or to the highest junk. The downgrading took place after Hungary asked for help from International Monetary Fund to regain confidence as country has the highest level of sovereign debt among EU eastern members. Hungary has also received lower ratings from Fitch and Standard & Poor's.
Egyptians are going to organize new demonstrations on Friday in Cairo's Tahrir Square. The protesters demand postponing the elections due on Monday. The previous civilian-cabinet was forced to step down in the beginning of this week as it was demanded by protesters. Despite the announcement about faster approval of the civilian rules, many protestors expect the current government to hold on to power.
Asian stocks are traded lower eying the spreading debt crisis in the euro-zone. Energy and banking sectors are the top decliners. Australia's S&ASX index decreased by 1.7%, South Korea's Kospi lost 1.4%, Hong Kong's Hang Seng Index declined by 1.3% and China's Shanghai Composite fell by 0.4%. However, Japan's Nikkei Stock Average increased by 0.2%, but stayed near two-year low.
Deutsche Lufthansa AG, air carrier, announced it is going to stop its investments across the company because of economic recession. Lufthansa is greatly concerned about severe impact of the crisis on the aviation industry. The measure is going to last for six months, although the company did not report about the amount to be saved. The measure will come into force starting with Monday.
The Indian cabinet is going to discuss a proposal regarding opening the retail sector for foreign companies as Wal-Mart and Tesco. The country may allow 51% FDI in the sector that generates $450bn a year in sales. At the moment large foreign companies can be only wholesalers and are not allowed to sell directly to customers. The issue is controversial and it will be difficult
Microsoft Corp. has signed a contract with Yahoo! Inc. in order to gain access to Yahoo's financial information. Microsoft Corp. is going to use this information to estimate the value of bid. Yahoo's advisors required the bids to be submitted during next week. Bidders are expected to propose buying a minority stake as full takeover hasn't been arranged.
On Thursday German DAX 30 index managed to interrupt 8-day losses and edged up 1.5% to 5,543.91 as Ifo reported higher-than-expected business confidence index. German financial institutions recovered immediately: stocks of Commerzbank AG added 7.6%, Allianz SE gained 2.5% while Deutsche Bank AG advanced 2.9%. Downgrade of Portugal has offset part of gains but did not break the upward trend.
Nasdaq Composite index followed other leading US market indexes and declined 2.4% or 61.20 points ending at 2,460.08 amid fears that poor German bond auction could signal deepening crisis. Gilead Sciences was one of few gainers that added 2.27% on announcement of acquisition of biotechnology company Pharmasset. Major negative contribution from the index came from Sirius Xm Radio Inc. and Micron Technology that each gave
Standard & Poor's 500 Index lost 2.2% or 26.25 and closed at 1,161.79. All 10 industries in index experienced decline, led by banks, material makers and energy companies. Index declined for sixth consecutive day in a row which is the longest decline since August. Bank of America declined 4.28%, Janus Capital Group Inc. gave up 4.41%. Cabot Oil & Gas Corp. and Tesoro Petroleum Corp.
Although most Asian market indexes recovered on Thursday, Nikkei 225 closed lower at 8,165.18 giving up 149.56 points or 1.8%. Analysts explain Nikkei's loss as investors attempt to catch up to yesterday's developments in Europe. German poor auction amid poor manufacturing report from China had a negative impact on the index. Nikkei 225 was mainly hit by blue chip companies. Fujitsu Ltd. lost 2.6%,
On Thursday trade Hang Seng index experienced first increase this week as People's Bank of China agreed to ease reserve obligations for more lenders encouraging investors to believe in additional relaxation. Hang Seng closed at 0.4% or 70.67 points higher climbing to 17,935.10. Main positive contribution to the index was provided by property developers. China Overseas Land and Investment Ltd. jumped 5.6%, China Resources Land
Fitch Ratings decreased Portugal's government credit rating to BB- from BBB- putting Portugal in junk status. The agency took into account bleak economic outlook, high debt level and mass protests against austerity measures that can decrease the level of debt. However, experts admit the government commitment to the austerity plan is strong. The Portugal 20 index increased by 0.2%.
Raiffeisen Bank International AG third biggest lender in Eastern Europe, reduced its medium term profit outlook after it experienced sharp losses in Hungary. Vienna-based financial intermediary predicted the ROE before taxes to reach 15% in contrast to previous forecast between 15% and 20%. Raiffeisen�s net income dropped by 58% within a June-September period.
Wheat futures slipped to the lowest level since June being pushed by high competition for US exports and bleak economic perspectives of the euro-zone. On the Chicago Mercantile Exchange, wheat futures for December delivery were traded at USD 5.7950 a bushel during early European trade, declining 2.31%. Wheat prices were also impacted by unrest in Egypt as the country agreed to buy 240,000 tons at
Failure of the Germany's auction has led to increasing worries about the euro-zone debt crisis. The current German 10-year bonds cost 2.23% exceeding the French ones priced at 2.21%. Experts claim the UK has stronger appeal to investors as it is considered to be a safer investment option.
JPMorgan Chase & Co has confirmed it will buy shares of bankrupted MF Global at London Metal Exchange. JPMorgan is expected to pay for MF's stake about 25 million pounds ($38.8 m). Last month MF Global declared bankruptcy after making bets that failed on European debt. JPMorgan agreed to buy all of MF Global shares, said Richard Heis, special administrator of MF Global.