The latest US readings published by the American Institute of Architects (AIA) on Wednesday, July 18, indicated improvement in construction activity in June. The changes are determined by architects' billing index (ABI) that shows the demand for construction services. Thus ABI gained 0.1% in June and stopped at 45.9. However, reading below 50 implies declined demand for such works. Although, the architects' service inquiries, not all
Although China is facing decelerated economic expansion, the latest data, published on Tuesday, July 17, showed that home sales recovered in June. Property sales revenues increased by 6.9% in comparison to 2011. Moreover, home prices slightly increased in June. Real estate in Beijing gained 0.3% while Shanghai's property prices rose 0.2%. However, in annual term prices still fell by 1% and 1.5%, accordingly. Analysts expect Chinese
The number of unemployed people in the U.K. declined by 65,000 to 2.58 million, or to 8.1 per cent in the quarter through May. The improvement can be explained mostly by the upcoming Olympic Games in London, which helped to create new working places. As reported by the International Labor Organization the number of employed people jumped 181,000 to 29.4 million, the highest level since
According to China's statistics bureau, new home prices increased in 25 cities out of the 70 that the government looks at in June. The biggest increase was noticed in Hangzhou, where prices rocketed 0.6 per cent, while major cities like Beijing and Shanghai recorder 0.3 increase. Despite the fact, that new home prices rose in June, China's home sales increased 41 per cent from
The People's Bank of China changed Yuan's reference rate. It appreciated by 0.04% to two-week high of CNY 6.3140 per USD on Wednesday, July 18. China's central bank decision took place after Ben S. Bernanke mentioned possible monetary easing in the USA. Non-deliverable one-year forwards gained 0.04% to CNY 6.4123 per USD. Moreover, contracts' trading rate was CNY 6.4150 this morning, July 18, in Hong Kong.
As economic growth in China slows down world luxury industry meets demand decline. By the end pf 2012 global luxury market might contract by 5.5%, whereas in 2013 losses might be equal 3.7%. Chinese entrepreneurs are switching to cheaper goods. William Li, manager at King's Watch Co in Hong Kong, who sells watches for USD 12 900, said majority of costumers started to pick brand
Analysts predict European companies will earn much less in 2012. Macquarie strategist, Daniel McCormack, claimed earnings might drop by 10% this year. Profit forecasts are cut in the fastest pace since 2009. Citing analysts, 32 out of 50 companies, members of the Euro Stoxx 50 (SX5E), Eurozone Blue-chip index, might cut their estimated profit target for 2012. This already did such companies as Danone, SKF, Burberry,
Sri Lanka sold USD1 billion of 10 year government bonds at an interest rate of 5.875%. The money received will be used to help boost the economy and there already are USD 10.5 billion of subscriptions. Furthermore, past debts could be repaid, the USD500 million of securities with an interest rate of 8.25% that were issued in 2007.
Ahead of Germany's vote regarding the Spanish aid program, on July 19, the European currency is losing its value against the US Dollar and the Yen. It decreased by 0.2% to $1.2270 and 0.3% to 96.88 Yen.
China's Premier Wen Jiabao denominated full employment as the main issue to consider for economic development targets. Revising China's economic indicators, GDP growth slowed to 7.5% in the second quarter of 2012. Wen added that achieving the existing unemployment of 4.1% might be much more difficult in the upcoming future and labor market might meet downturn. Currently youth is the most struggling labor segment since many Chinese
The U.S. dollar rallied and most of the stocks were down after the Fed's Chairman Ben Bernanke's semi-annual testimony. Soon after Bernanke announced that the Fed is ready to offer extra monetary aid to a slowing down U.S. economy, U.S. markets turned lower. The Dow Jones Index erased 0.61 per cent, to 12,650.17, the S&P 500 Index dropped 0.59 per cent, to 1,345.64 and
During today's New York session oil was trading near its record level in seven weeks on concern over Ben Bernanke's report, worsening tension with Iran and on data about declining U.S. supplies. Oil futures for August settlement jumped 0.6 per cent, or 49 cents, to $88.92 per barrel, while Brent oil for September delivery was up 1.1 per cent to $104.50 a barrel.
On Tuesday, July 17, German markets advanced before the Fed's Chairman Ben S. Bernanke's report. The DAX Index rose 0.5 per cent to 6,595.66, while Daimler AG and Volkswagen AG also increased after German car sales jumped 0.7 per cent in the first half of this year. Volkswagen shares advanced 1.5 per cent to 138.90 euros and Daimler climbed 0.8 per cent to 36.84
According to the Goldman Sachs Group Inc's quarterly report, their profit is down 12 per cent, as investment inflow declined. Bank lost $306 million on investments in Industrial and Commercial Bank of China and other stocks as well. Soon after the report, bank announced the new round of cost-cutting, after what shares dropped 0.4 per cent.
The Canadian central bank decided to keep its benchmark interest rate at a 1 per cent level, while not excluding the possibility of further increase. At the same time the Bank of Canada trimmed its economic forecast by 0.3 per cent to 2.1 per cent in 2012 and 2.3 percent in the next year, while the 2014 projection was even raised to 2.5 per
Despite the fact that factories are facing the challenges from slowing down global economy, high unemployment rate in the U.S and stagnant income growth, U.S. manufacturing output increased in June. Output at factories, utilities and mines jumped 0.4 per cent, after erasing 0.2 per cent in the previous month. Moreover, capacity utilization also rose by 0.2 per cent to 78.9 per cent.
German investor confidence continues to decline for several months in a row. Index of analysts and investors expectations published by Mannheim-based Center for European Economic Research declined from 16.9 below zero in June to -19.6 in July. This reading shows predicted economic development. Austerity measures in Eurozone are slowing global growth significantly. Moreover, on Monday, July 16, the IMF decreased the following year's global growth forecast from
Bill Gross, co-founder of Pacific Investment Management, stated on Monday, July 16, that the USA is just near recession period. Commerce Department presented readings, showing that retail sales declined by 0.5% in June. Moreover, employment increase did not reach its estimated level. Citing Labor Department report, 80 000 people were newly employed in June 2012, though the projected increase was 100 000. Government securities
The Office for National Statistics announced today in London that UK inflation fell in June. In May 2012 consumer prices increased by 2.8%, whereas in June inflation reached two and a half year low of 2.4%. Clothes and Footwear prices declined by 4.2% in June, the biggest loss for this month in UK's modern history. Core inflation, the one that excludes food, tobacco, alcohol and
Last week Mariano Rajoy, Spain's Prime Minister, introduced new austerity measures to deal with country's budget deficit. Analysts predict that in consequence of this Spanish borrowing costs might decline on Tuesday, July 17. On Monday, July 16, one-year bill decreased from 5.074% to 3.5%, though 18-month bill's interest rate fell from 5.107% to 4%. Moreover ,experts fear that tightening fiscal policy could bring Spain into
On Tuesday, July 17, the Bank of Japan reduced 0.1% interest rate for ten-year government bonds that have less than a year until maturity. This rather technical action is intended to stimulate easier purchasing at market operations. Japan decided not to stimulate the economy as its peers do, but rather rely on robust national demand.
European stocks rose following expectations about possible Ben S. Bernanke, Fed Chairman, hints about further encouragement at his semi-annual statement to Congress. CSR Plc plundged 36%; L`Oreal SA increased 1.4%; Alcatel-Lucent SA rose 12%. The Stoxx Europe 600 Index benefited less than 0.1%. The benchmark measure has accessed its seventh gains' week. Asian shares and U.S. index futures also climbed.
The situation in Eurozone worsens and unemployment rises, exceeding 11%. The European Union continuously forces Greece to introduce more austerity measures. The country already cut public spending significantly, trying to deal with budget deficit. However, the economy continues to contract and the country could soon become unsustainable. The output for 2012 is likely to fall by 7-9%, while in the following year contraction might amount
June foreign direct investment in China declined 6.9% compared to May as companies do not feel the need to expand on the back of economic recession. According to the Commerce Ministry representative Shen Danyang, the European Union crisis is the biggest downward pressure. Higher production costs and stricter property policy in China also facilitated the decline.