Japan decided to extend its tax breaks on fuel-efficient cars in an attempt to support its domestic car production. The tax breaks had to expire in April 2012 but now they are prolonged until April 2015. Domestic vehicle production was impacted by natural disasters as well as the strong yen and the new measure is likely to bolster the growth of the sector
Hu Jintao, China's Presidents, has promised to stimulate imports as part of the global trade boosting strategy. He said the imports might achieve $8 trillion in five years as compared to $1.39tn of imports in 2010. Imports of the country increased by 22% and exports jumped by 14% in November, according to official data.
The nuclear reactor owned by France's government, Areva, is likely to report about large loss this year, according to French industry minister. The financial position of Areva was impacted by Japan's nuclear disaster of Fukushima in March. The company is likely to write-down about 1 billion euros of its assets' value. Areva will unveil the new strategy later this week
The New Zealand dollar declined against the US following the EU leaders' summit which resulted in agreement on stronger economic integration but did not provide exact measures to combat the crisis. NZD/USD approached 0.7704 at the late Asian trade, being the daily low. The pair subsequently consolidated at 0.7695, losing 0.77% since opening.
The government of South Korea cut unexpectedly the growth forecast citing the fall in exports. The Asia's fourth-largest economy is projected to grow by 3.8% this year and by 3.7% next year, according to the Ministry of Strategy and Finance. Analysts predicted the growth to expand by 4.5% for 2011 and 2012. Korea exports growth are likely to fall to 7.4% in the next
Australia's trade surplus fell to 1.6 billion Australian dollars on a seasonally adjusted basis in October. The indicator was at A$2.2 billion in preceding month, reported Australian Bureau of Statistics. Exports achieved A$25.7 billion; analysts expected the surplus to be A$2.0 billion, according to ABS.
ABB Ltd announced it will take over Newave energy Holding SA for $183 million in cash as a part of its business expansion strategy. ABB Ltd offered 36% premium to the volume-weighted average stock prices for the last 60 trading days. The board of the Newave Energy supported the acquisition. ABB share closed 16.5% lower on Friday.
Natural gas futures fell to the lowest level in three weeks on Friday on the mild weather forecasts and high inventory level in the US. The weather group reported the projected temperatures are five degrees higher than normal level in the US. On the New York Mercantile Exchange natural gas futures for January delivery dropped to USD3.337 per million British thermal units on Friday, losing
The Eurozone's debt turmoil has affected negatively the global financial markets, increasing borrowing costs and pushing down debt issuance. Gross debt release in overseas markets declined to $1.66 trillion during July-September period, the record low since 2005. The drop in debt issuance was mainly caused by buyers' demand for higher compensation for risk.
Germany's leading banker denied speculations that ECB will expand its role after European officials agreed on new fiscal treaty. Jens Weidmann, the Bundesbank President told although new agreement indicated progress, the main responsibility in terms of financing should be held by national governments rather than ECB. On Friday ECB President, Draghi praised the fiscal treaty, fuelling optimisms among investors that ECB could involve in debt purchases.
The 17-nation currency depreciated against Japanese yen as France and Italy prepare to sell bonds on concern the Eurozone debt crisis is expanding to bigger countries. The euro lost 0.3% to ВҐ103.57. The yen was flat at ВҐ77.65, EUR/JPY currently is trading at ВҐ103.60, while USD/JPY is trading at ВҐ77.65.
The US dollar appreciated against most of its major peers on Monday, as analysts predict investor confidence in Germany to plunge to a 3-year record low, bolstering demand for securer assets. The German report on investor confidence will be released tomorrow and economists surveyed by Bloomberg expect the confidence index to be at around -55.8. The dollar gained 0.4% to $1.3338 in London morning trade.
Japan's Nikkei Stock Average added 1.46% or 124.97 points on Monday closing at 8,661.43. The gains for Nikkei 225 followed increase in US markets on Friday as European officials approved steps to create a tighter fiscal alliance. Export dependent technology shares were best performers with Toshiba Corp. gaining 3.9%, Fujitsu Ltd. advancing 2.9% and Samsung Electronics Co. adding 2.7%. Chip producer Elpida Memory Inc. rallied
Grain futures in the US declined essentially amid wheat and soybean prices falling to the number of months low following the US Department of Agriculture report on the record high production level of the grain commodities and lower US soybean exports forecast. On the Chicago Mercantile Exchange corn futures for delivery in March were traded at USD5.9338 per bushel on Friday, losing 1.47% over the
TNT Express NV announced it is going to sell its Indian road operations to India Equity Partners in order to concentrate on the international business. The sale is scheduled on 30 December and it follows TNT judicious revision of the India's road business' prospects in the TNT Express portfolio.
Gold prices decreased amid stronger US dollar that weighted down on dollar priced commodities. The USD index advanced to 78.76 from 78.622 at the North American trade on Friday. Gold futures for delivery in February decreased by $17.20 to $1,699.60 at the Asian trade, losing 1% since opening.
The government of Australia awarded several contracts of defense companies such as Rheinmetall AG, German defense firm. The country allocated 7.5 billion Australian dollars for the project aimed at increasing military vehicles by 7,500 to improve support of the armed forces. Australia also started discussion with Haulmark Trailers to provide 2,500 trailers for vehicles.
The pound declined against the US dollar on the Asian trading following the strengthening of the USD and pessimism over the euro-zone after the EU summit. GBP/USD lost 0.21% to 1.5638. However, the pound was higher in comparison with the euro with EUR/GBP falling by 0.07% to 0.8535.
Crude oil prices slightly declined from $100 a barrel in today's electronic trade, following the decline in US shares index and greenback's strengthening. Dow Jones Industrial Average declined by 26 points to 12,117 at the Asian trading. Crude oil futures for delivery in January lost 21 cents to $99.20 a barrel on Globex during the Asian trading hours.
Home loans in Australia increased more than expected in November, according to official data. The number of Australian home loans increased to 0.7% on a seasonally adjusted basis from 2.2% in October, reported Australian Bureau of Statistics. Experts projected the number of home loans to increase by 0.2% in November.
On Monday Hong Kong's Hang Seng Index gained 1.14% or 212.71 points and closed at 18,798.94. Hong Kong's benchmark was mainly fuelled by progress made during EU summit, bolstering investor hopes that crisis will be resolved. On the upside were Chinese banks listed in Hong Kong. Industrial & Commercial Bank of China Ltd. rallied 2.8%, Bank of China Ltd. ascended 2.5%, while HSBC Holdings PLC edged
Asian markets mostly climbed on Monday as European officials' achieved progress and eased investor worries about debt crisis. Hong Kong's Hang Seng Index advanced 1.1%, Japan's Nikkei Stock Average jumped 1.5% while South Korea's Kospi and Australia's S&P/ASX 200 index both gained 1.1%. China's Shanghai Composite was the only benchmark index that declined by 0.5%.
The US trade deficit contracted in October for the fourth consecutive month, creating the smallest trade gap in current year, reported the Commerce Department. The country's trade deficit declined 1.6% in October reaching $43.5 bn. Analysts surveyed by Marketwatch previously predicted a deficit to be at $43.6 bn. In October both exports and imports fell, with imports declining at a faster pace. Imports dropped 1.0% to
US consumer sentiment reached a record level of the last six months approaching to 67.7 as compared to 64.1 in the preceding month. The increase exceeded expectations as analysts projected the indicator to climb to 66.1; however, the confidence level is still below 74.5 in the last December reading. The increase is inspiring but experts claim it will not lead to sustainable growth