Italian retailers experienced the worst Christmas in last 10 years, as approved austerity measures curbed household spending, reported Codacons consumer group. Italians spent on average €48 or $62.75 less per individual than in corresponding period during last five years. Clothing and shoe sector was harmed the most, giving up 30% of sales compared to previous holiday seasons.
Copper futures decreased during the quiet trade as worries over the worsening economic situation worldwide undermined the sentiment on base metal. Copper futures for delivery in March traded at USD3.431 per pound at the early European trade on the Comex division of the New York Mercantile Exchange, edging down 1.1%.
India is expected to increase its coal imports to 197 mln tons by 2017 to satisfy growing energy demand, reported Pratik Prakashbapu Patil, Minister of Coal. The country has lately become more energy depended with its energy dependency growing from 6% to 13% in the last six years, according to PTI. The domestic coal output is likely to jump to 770 MT while coal
Crude oil futures decreased in the year-end trading on the worries about global economic stability; however, the commodity found support on the growing tensions between Iran and western economies. Light, sweet crude oil futures for February delivery traded at USD99.50 a barrel at the early European trade, losing 0.36% since opening.
China's copper imports from Japan increased by almost one third in November. Copper cathodes imports rose by 40% to 44,532 tonne while imports of refined copper soared by 35% to 46,278 tonnes. China took advantage of lower copper prices; LME Copper decreased from $10,000/tonne in the beginning of 2011 to $8000/tonne. Arbitrage opportunities between London and Shanghai exchanges also supported demand of copper.
Saudi Arabia announced $81.6bn budget surplus this year, being a two times higher income as compared to initial forecast. Revenues jumped to $296bn as compared to $184bn expected. More than 90% of the revenue growth was contributed by oil exports.
Samsung Electronics buys out the entire stake of Sony Corp. in the LCD joint venture. Samsung will pay $939m in cash for Sony's stake. The sale followed Sony's restructuring of its TV operations that have made loss for seventh consecutive year. After acquiring the stake Samsung will become number one manufacturer of TVs and screen panels.
Tepco was asked for additional $9bn to pay compensation to the victims of Fukuhima nuclear disaster. The company faced about $100bn in claims for compensation as more than 80,000 people were affected by the March disaster at the Fukushima Daiichi plant. Currently, Tepco is short of funds thus uncertainty over the company's future is increasing.
Swiss UBS consumption indicator decreased in November, falling for the first time in the last three months. The indicator eased down by 0.09 points to 0.81 last month from 0.90 in October. Analysts claim the indicator was affected by lower prices and increased number of purchases made abroad. After the data release, the Swiss Franc appreciated against the USD with the pair USD/CHF edging down
Brazil has outperformed the UK as it has become the sixth largest economy in the world, according to an economic research group. Brazilian economy expanded by 7.5% in 2010 and is expected to growth by 3.5% this year as the negative headlines from the Euro Zone impacted Brazilian economy.
Cuba plans to expand its free-market reforms by opening retail sector to private companies to a larger extent. Starting from January 1 next year various workers like repairmen and photographers will be permitted to be self-employed. The shift is aimed at stimulating socialist economy of the country by boosting private sector.
Industrial companies in China reported yearly profit growth as 24.4% this year, being lower than record profits last year. The first 11 months profits totaled 4.66 trillion yuan, according to NBS. The fastest growth in profit saw private companies with 46.2% yearly increase while telecommunications and power generation sectors experienced 1.5% and 8.3% profit drop, respectively.
India and Japan are expected to announce new currency swap agreement with the purpose to ease problems with liquidity. The agreement will allow two countries to swap currencies for the USD and use each other's foreign-exchange reserves. The pact followed the growing volatility in currencies of both countries. The deal is likely to be concluded during Yoshihiko Noda's, Japan's PM, next visit to India due
China has gained possibility to recover millions barrels of crude oil after China received the approval for oil extraction in Afghanistan. China National Petroleum Corporation will develop the Amu Darya Basin that is estimated to have about 87 million barrels of the commodity. The move followed China's oil companies seek overseas expansion in view of the increasing domestic demand for energy.
The number of construction orders in Japan received by 50 largest construction companies added 21% in November totaling Y812.4 billion, eyeing an increase for the second consecutive month, reported the Ministry of Land, Infrastructure. The orders expanded by 24.3% in October.
The Centre for Economics and Business Research reported that World Economic League Table indicates Asian countries moving up while European countries moving down. It expects European economy to shrink 0.6% in case the crisis is solved and by 2% in case it is not. Russia is likely to become the ninth largest economy next year and approach the forth place by 2020. India is predicted
European shares opened higher after Christmas holidays, though trading volumes are predicted to be relatively low. Stoxx 600 gained 0.2% at 242.41, whereas France's CAC 40 added 0.5% to 3,116.11. German benchmark DAX index surged 0.4% attaining 5,902.32. London markets stayed closed in prolonged holiday break.
European shares advanced last week as better-that-expected US economy data signalled recovery of the world's leading economy. Stoxx 600 gained 3.5% reaching 241.86 this week, while French CAC 40 added 4.4% to 3,102.09. German DAX surged 3.1% to 5,878.93 and UK's FTSE 100 jumped 2.3% finishing at 5,512.70
China reported it would lower export quotas for silver, tin and indium in 2012. The Ministry of Commerce announced the silver exports will remain under 3,232 metric tons, tin exports will be set at 10,800 tons and indium products' exports will be at 139,000 tons for the next year.
China, pursuing further diversification of its foreign-exchange portfolio, plans to take advantage of lower gold prices and increase its gold holdings, said Zhang Jianhua from the People's Bank of China. Bleak economic outlook, growing inflation and extensive monetary easing undermined investors' confidence. Gold is considered to be a �safe haven' as it is a sort of hard currency capable to limit risks inherent to the
Crude oil futures were slightly higher during the East Asian trade on Tuesday. Crude oil futures for delivery in February advanced to $99.78 a barrel at the electronic trade on the New York Mercantile Exchange, easing up 0.1%. The increase followed Syria's reports about 30%-35% decline in oil exports due to international sanctions against crackdown of the political protesters in the country.
Chinese industrial production growth may see further slowdown reaching around 11% next year, according to Miao Wei, Minister of Industry and Information Technology. The industrial value-added production expansion is likely to approach 14%, down from 15.7% growth last year. The country will stimulate the development of industrial sector by credit and fiscal policies to escape plunge in the industry growth, he added.
Credit Suisse Group sees stable development of the Swiss banking industry, said Brady Dougan, the CEO of Credit Suisse Group. The country is likely to hold its leading position in financial industry and even despite probable job cuts, Credit Suisse has high potential in long-run, he added. He also believes that the euro will exist in the next five years.
Analysts expect further easing of China's bank reserve requirement ratio amid lower inflationary pressure and economic slowdown. Earlier the People's Bank of China decreased reserve requirements by 0.5%, making the first decrease in the last three years. Credit control is also becoming a serious issue as loan-expansion rate coupled with money supplies are high to the nominal GDP growth.