The deposits of the Euro-zone banks in the ECB have been increasing for eight days already indicating low confidence in the local markets. Banks deposited EUR236.781 billion in the ECB, reported on Monday as compared to EUR230.899 billion on Thursday. The banks prefer to deposit in the ECB than lending to another banks because of growing risk of recession, said Mario Draghi, the president of
The British utility company Centrica signed a 10-year contract with Norway Statoil. The contract is worth ВЈ13bn and envisages Centrica purchases 5bn cubic metres of gas per year from Statoil. The amount of natural gas bought is over 5% of the total UK's gas consumption between 2015-2015. The deal will increase Centrica's production by 25% and will enhance the UK energy security.
CPI in Canada increased more than expected in October to 0.2 % while analysts expected the indicator to rise by 0.1%, showed the official data. The Canadian dollar fell against the USD by 0.41% in early trading being 0.9691USD.
The New Zealand dollar decreased to seven-week low against USD as the uncertainty about the Eurozone debt crisis undermined the investors' sentiment. The New Zealand dollar lost 0.37% to 0.7528 USD being the lowest since October 4. However, the kiwi improved its position against Australian dollar to NZD/AUD being 0.7592.
French chemicals firm Arkema SA announced about purchase of two China's chemical companies for $365 million in line with acquisition plan presented in November last year. The company plans to purchase Hipro Polymers and Casda Biomaterials that most probably report about report $230 million revenues this year. The takeovers still require an agreement of China's government.
Australian dollar dropped to the lowest level against USD in last five weeks as US lawmakers today may declare failure to reach a deal regarding budget cuts boosting the concern that US might face one more credit downgrade. On Monday Australian dollar lost 0.3% $0.9974 in Sydney evening trading session which is the lowest level since October 12.
According to Renmin University of China's report, the China's GDP in 2012 may slow down to 9.2%, a slight decline compared to 9.4% this year. Report also predicts the country's consumer price index will ease next year and reach 3.3% on yearly basis. University of China suggests the government will be forced to switch its monetary policy from tightening to growth supporting in order to
US stocks closed lower on Friday as investors continued to watch development of bond yields across Europe. Borrowing rates of 10-year Italian notes surpassed 7% level while Spanish bonds fluctuated around that level. Amid uncertainty S&P 500 lost 3.8%, Nasdaq gave up almost 4% whereas Dow Jones industrial average declined 2.9%.
One of three principals in Greek technocratic coalition Antonis Samaras rejected to sign a pledge that he approves austerity measures, generating a new complication for country's bailout deal. Samaras, the leader of Greek conservative party, claimed that despite refusal to authorize the oath, he supports Greece's budget for 2012. Nevertheless, Samaras's refusal creates a risk of getting aid worth €8bn euros.
According to ratings agencies, institutional weaknesses and investment climate in Russia might hinder its prospects to receive higher debt rating despite joining WTO. Standard & Poor's who has rated Russian debt at BBB does not predict instant impact from entering WTO as high level of corruption may offset all Russia's benefits of WTO membership. Russia's debt grade hasn't been upgraded since 2008-2009 financial crisis.
Thailand's government expects a drop country's of 3.7% in this quarter as nation has experienced the most terrible flooding in 70 years. National Economic and Social Development Board have revised the estimate of 2011 growth rate from 4% to 1.5% while Bank of Thailand is planning to cut borrowing rates to stimulate growth. Floods in Thailand destroyed thousands of industrial plants and disturbed supplies for
In October Japanese exports decline more than was predicted. According to Japanese Finance ministry, foreign shipments fell 3.7% in October when compared on yearly basis, indicating Japan's recovery from earthquake has slowed down. Drop in Japanese exports is reported amid announcement of Singapore about shrinkage of its growth and China's expectations of worldwide slump.
Elections in Spain, exorbitant cost of borrowing in Italy and expected failure of the US supercommittee to implement deficit-reduction policies contribute to high volatility of the financial markets. Investors' confidence will continue correlate with instability in the most developed economies, said Jeff Sica, president of Sica Wealth Management.
1. According to a questionnaire of 80 financial intermediaries by ICAP Plc, the overseas bank deposits at Fed have increased more than two times reaching $715 bn compared to $350 bn at the end of 2010. A surge in Fed deposits is strengthening US dollar on rising investors' concerns about European region's financial stability. Despite budget cuts and unemployment at 9% level, investors still see US
On Sunday Mariano Rajoy gained the largest parliamentary majority in Spain elections, since 1980s and squeezed out Socialists who have been the leading force for eight years. Rajoy's Peoples' Party won 186 of 350 places in Parliament while his main competitor Alfredo Perez Rubalcaba from Socialists gained 110 seats. In his speech Rajoy warned Spaniards to be ready for hard times as nation currently is
MF Global Holdings Ltd.'s Australian unit has not had any business offers for last time and is planned to be closed down in the next months, administrators of the company announced. Joint Administrator Chris Campbell reported balance is 34 million Australian dollars versus 36 million Australian dollars at time when he was appointed.
Asian equities extended slump on Monday on investors' anxiety about US and European debt trouble. Shanghai Composite index dropped 0.4%, while Hong Kong's Hang Seng Index traded down 0.4%. Korea's Kospi gave up 1.3% whereas Japan's Nikkei Stock Average and Australia's S&P/ASX 200 index declined 0.2% and 0.4% respectively. According to analysts, enduring uncertainty in Europe is boosting investors' speculations on worst-outcome scenarios.
Josef Ackermann, CEO of Deutsche Bank AG suggests Europe should have firewall to avoid spillover from its debt turmoil. Ackermann recommends increasing the size of European Financial Stability Facility to prevent spillover if it takes place. According to Ackermann, the EFSF should be enlarged to €2 trillion; however, Ackermann did not explain the exact meaning of firewall.
UK's bank Northern Rock was forced to be prioritized by 2013 under the agreement of Chancellor George Osborne. The reason is that the European Commission under the government's aid to banks demanded the government to sell the largest part of its stake by 2013. The bank was sold on Thursday to Virgin Money for ВЈ747m. George Osborne claimed that it was the best possible
In South Africa investment banks are competing for providing financing for port, road and energy power projects as revenue from M&A declined sharply during last seven years. Firms in South Africa report 235 takeovers worth $13.1 bn this year, the lowest number of deals since 2004. To offset loss in M&A earnings, banks are trying to gain access to investment opportunities worth $93bn in sub-Saharan Africa infrastructure
Australia is aiming to be the second large liquefied natural gas exporter. The country invests substantially into development of the sector; it invested more than $140 billion since 2007. However, it is doubtful that Australia is able to fulfill all its ambitious plans as it cannot develop seven project simultaneously, claimed Andrew Blakely, oil and gas analyst at Perpetual in Sydney. In the beginning of
The US supercommittee is expected to admit failure as reported by media on Sunday. The congressional committee was formed to work out a plan for decreasing the country's deficit by $1.2 trillion over the next 10 years. The plan envisaged that the sum would be automatically reduced from governmental spending. The failure to implement measures will lead to unsolved issues as payroll tax increase and
Large demonstration in Cairo's Tahrir Square continues for three days already. People protest against Egypt's military measures. Over the weekend more than 13 people died in violence. The protests may impact the elections due next week. People argue that Council of the Armed Forces tries to retain his monopolized power.
Gold futures for December delivery decreased in electronic trade by 0.1% or by $1.50 to $1,723.60 an ounce on the Comex division of the New York Mercantile Exchange. The yellow metal lost 3.55% during the last week at North American session. Silver also declined by 1.1% to $32.06 an ounce. However, despite price fall the trader's sentiment remains bullish as reported by BNP Paribas.