Japan's Nikkei Stock Average and the Australian S&P/ASX 200 index dropped by 0.9%, South Korea's Kospi lost 0.2%. Hong Kong's Hang Seng Index decreased by 1% and the Shanghai Composite Index lost 0.9%. Experts claim the investors' sentiment was impacted by developments in the Eurozone and failure of the US supercommittee.
Demonstrations in Egypt have been going on for 3 days. People protest against undemocratic government that fails to improve human rights. Thousands of people organize demonstrations in Tahrir Square in Cairo. More than 26 died in violence and hundreds were injured during these 3 days.
Many technical companies got listed last week. The successful IPO of Groupon Inc. gave a start to more than eight IPOs in the tech industry. When the market shows a sign of recovery, there will be a lot of IPOs, said Scott Sweet, research director of the IPO Boutique. However, the market is still too weak for large number of IPOs to be successful.
UBS AG, the Switzerland's biggest bank announced that Yasuki Matsui, chairman of the investment banking unit in Japan is going to resign. Matsui is the third UBS Japanese executive after Taiji Okusu, Credit Suisse's manager of investment banking and CEO of Credit Suisse Paul Kuo who resigns from European bank this year. UBS did not announce reasons for Matsui resignation. In September UBS reported $2.3
Credit Suisse the second largest Switzerland's bank is planning to reduce about 85 positions within its investment banking division. The job cuts in London and other cities are a part of 2000 job cuts reported in July. This month Credit Suisse claimed to remove 1500 jobs as bank's investment banking division reported for loss in 3rd quarter, the first since 2008. Additionally bank is pressed by
On Monday US stocks experienced a sharp decline as American lawmakers did not manage to reach an agreement on budget cuts that would allow reducing national debt. S&P 500 Index experience losses for a 4th session in a row and closed 1.9% or 22.67 points down. Dow Jones Industrial Average gave up 248.85 points, or 2.1% while Nasdaq Composite Index decreased 49.36 points, or 1.9%. According to
Tokyo Stock Exchange Group Inc is starting takeover process of Osaka Securities Exchange Co. The estimated value of deal is approximately $1.68 bn. Japanese stock markets have been decline since 1988. The country has lost its position as the world's second largest stock market to China. According to Takeshi Fukushima, asset manager at Yasuda Asset Management Co, the merger is reasonable strategy as volumes of trading in Japanese
World Bank claimed that Chinese economy is striving towards soft landing with 8% growth in 2012. What is more, also other Asian countries have enough fiscal capacity to protect their economies from intensification of Euro region's debt crisis. According to World Bank, Hong Kong, Japan, South Korea, India and Taiwan is likely to experience a slight slowdown in growth from 8.2% in 2011 to 7.8%
Recent figures show that the euro zone's crisis impacted Hungary severally. The country asked the IMF for financial help as the government's debt had increased by 82% of GDP and value of Hungary's currency, the forint, had fell. Hungary has sent an official request for financial assistance. IMF teams returned to Washington from Budapest to discuss further action.
Airline stocks fell on Monday as European debt crisis spreads. The NYSE Arca Airline Index experienced decline by 3%. The industry benchmark index fell even more than the Standard & Poor's 500 Index. Stocks of Public Airways declined by 4.4%, US Airways decreased by 3%, the Ryanair Holdings fell by 1.7%.
German Bundesbank predicts German growth may slow down next year as European debt crisis destroys exports demand. The central bank reduced its growth forecast for 2012 between 0.5% and 1% compared to prediction of 1.8% reported in June. According to Bundesbank's monthly bulletin, Germany is likely to face serious challenges during next months as several its export partners are exposed to default risk.
The ECB announced it settled 8 billion bond purchases as the European debt crisis continues to spread. At the moment bonds purchased by ECB from governments with financial difficulties totaled 194.5 billion euros since 2010. The majority of purchased bonds are Italian and Spanish, said experts in the field.
According to Li Daokui, associate of monetary policy board and consultant at the People's Bank of China, the country's economy may reach zero or even negative trade balance by the end of 2013. China's diminishing trade surplus is predicted to decline to $150bn this year while its yearly GDP may fall from 8% to 1.5%. Li pointed out that China is likely to face
The European Commission is going to discuss a green paper regarding three scenarios for issuing bonds by the members of the Eurozone, reported the Wall Street Journal. The first option implies discontinuing of the bond issuance and forcing the governments to raise funds on the bonds jointly guaranteed by all 17 members while the current bonds will be transformed into euro bonds. The second scenario
Treasury prices increased on Monday as lack of actions in the Congress put off investors from buying risky assets like stocks. Investors seek safer assets as dollar and treasuries. Higher treasury caused a decline in 10-year notes yields by 6 basis points to 1.96%.
US stock futures declined sharply on Monday as concerns about European and US leaders' inability to tackle debt turmoil surged. Chinese fuelled anxiety by predicting extended global slowdown. Futures on the Standard & Poor's 500 lost 16 points reaching 1,197.9, while those on Dow Jones Industrial Average dropped 139 points hitting 11,628. Nasdaq futures gave up 21 points attaining 2,228.75.
On Monday Gilead Sciences Inc. announced about the takeover of Pharmasset Inc. for $137 cash a share; the total sum being $11 billion. The share price of Pharmasset Inc. almost doubled after the announcement. Friday's closing price was $69.02. Gilead Sciences is going to finance the acquisition partly by cash on hand, partly by debt financing.
Softer energy market forced William Blair to decrease the profit forecast of the General Electric Co. However, its share price is predicted to increase by 13% to 68 cents annually as compared to 60 cents at the moment. William Blair declined his earning forecast for General Electric to $1.56 a share from $1.60. Fact Research expects even lower earnings of $1.54 a share. After
Stock markets in Spain decreased despite the center-right Popular Party winning the elections. Shares in Madrid declined by 2%. Stock markets in Europe also fell following the growing concerns about debt crisis. The main German and French indexes decreased by 2.5%, the UK's shares were also lower.
UK's PM David Cameron spoke at the Confederation of British Industry conference about the impact of the Eurozone economic difficulties on the UK's economy. However, he claimed that there are promising signs in the UK economy like higher retail sales, increase in the exports and rise of the number of loans taken by small and medium companies.
On Friday Germany's DAX closed at 5,653.42 experiencing a 146.82 or 2.53% drop compared to Thursday. During last week index lost total of 4%. On Monday trading session the index is extending its losses and at the moment of writing trades down at 5,651.40. Index is mainly hurt by Commerzbank AG's decline of 5% and Deutsche Bank AG's slip of 4.5% as Moody's reported
Tyson Foods, the large meat producer reported its profit to decline to $97 million in Q4 as compared to $213 million in the same period in 2010. Experts expected the company to gain 31 cents on share on the sales revenue of $8.2 billion, according to the forecast of FactSet Research. Tyson Foods predicts revenues of $34 billion in the next year.
On Monday Japan's Nikkei Stock Average traded down 0.32% or 26.64 points and closed at 8,348.27. Japanese index was pushed down by worsening export and growth outlook. Japanese exporters depreciated index with Sony Corp. giving up 2.8%, Elpida Memory Inc. dropping 7.3% and Toyota Motors Corp. declining 2.6%. Honda Motor Co. shares lost 2.2% and also contributed negatively to index as its supplies have been disrupted by Thailand flooding.
On Monday Hong Kong's Hang Seng Index fell 1.44% and closed at 18,225.85 or 265.38 points down compared to Friday. Mining companies added negatively to index: oil producer Cnooc Ltd lost 3% while China Coal Energy Co gave up 4.9%. Hong Kong property companies also suffered a decline and depressed the index. China Resources Land Ltd. dropped 4.5%, Hang Lung Properties Ltd decreased 5%, while