Inditex, the world's leading clothes retailer, reported unexpected increase in profits by 10% supported by rise in Asian online sales. The total net profit for the first three quarters of 2011 jumped to 1.3bn euros as compared to 1.17bn euros for the same period in 2010 with increase is sales by 10% to 9.7bn euros. The company claimed it would not raise prices but will increase the
In the UK, the number of residents applied for unemployment benefits increased much less than analysts expected while the unemployment rate remained the highest since 1996, according to official data. The number of claimants increased by 3,000 on a seasonally adjusted basis in November compared to 17,000 previously expected. The unemployment rate stays at 8.3% with 2.64 million people being unemployed.
The pace of economic expansion of Germany is expected to decrease to 0.4% next year due to weak world's economy and debt crisis in the euro-zone, reported Ifo Institute. The institute predicts the GDP to expand by 3% in 2011 after 3.7% increase last year. The company outlined high instability in the euro-zone as the major factor that may severely impact Germany.
Thomas Cook, a large travel agency, announced it would close about 200 stores in the UK in two years as compared to 125 close downs previously reported. About 661 people lost jobs on Wednesday due to closure of 115 stores. The closures and layoffs followed the Thomas Cook's report on ВЈ398m loss for 2011.
Worsening situation both in the euro-zone and in the US affect the economic expansion of China. The country may use government spending instead of bank lending to ensure sustainable growth of the infrastructure and manufacturing sectors in the next year, claimed Lin Yifu, the World Bank's senior vice-president. The GDP is likely to remain above 8% in 2012, he added.
Residents of Egypt are going to vote in the second round of the elections after the revolution period. The first election's round indicated that Islamist parties gained about 47% seats. The new parliament is expected to appoint a committee to create a new constitution outlining civil rights for the post-revolution period.
Sweden's Tele2, telecommunications operator, decreased its forecast on the growth of the number of customers in Russia and announced it will concentrate on the existing customer base rather than attracting new clients. Currently, the company expected to have about 20.7 million clients in Russia next year as compared to 21 million earlier predicted. However, Tele2 believes Russia is the main growth market for the company.
Norwegian central bank is likely to cut its repurchase rate for first time since 2009, as European debt turmoil harms growth. Norges Bank is expected to reduce its overnight rate by 0.25 percentage points from 2.25% to 2.0%, said majority of economists surveyed by Bloomberg. Norway faced shrinkage in manufacturing output in November, first time since in 18 months.
Russian PM Vladimir Putin may distance himself from President Medvedev to recapture public support ahead of presidential elections due March 2012, said researchers familiar with the matter. Vladimir Putin has less than 3 months to implement a new plan as United Russia party has become highly unpopular amid accusations of election fraud.
The UK national currency extended gains against 17-nation currency on London Wednesday trade. British Pound reached less than ВЈ0.84 per euro, for the first time in 10 months. The Pound appreciated 0.3% both against Euro and Greenback to ВЈ0.8393 and $1.5517, respectively. EUR/GBP currently is trading at 0.8402 while GBP/USD is trading at $1.5520.
Italian five-year bills declined on Wednesday as country was going to sell notes with a total value of around 3bn euros. Borrowing costs on Italian bonds surged 11 b.p. reaching 6.9% in London morning trade. 10-year yields climbed 9 b.p. to 6.77%, while yields for 2-year bills ascended 25 b.p. at 5.91%.
On Wednesday European equity markets opened lower led by mining companies and financials after Federal Reserve decided to keep benchmark interest rates untouched and did not extend quantitative easing program. Stoxx Europe 600 index lost 0.5% at 236.18, while French CAC 40 index tumbled 0.8% reaching 3,053.09. UK FTSE 100 index traded down 0.7% at 5,451.84 and German DAX 30 index declined 0.8% attaining 5,736.54.
Italian officials have received letters containing bullets and letter bombs in last few days as extremists protest against austerity plan. An official from Equitalia, Italian tax collection agency was injured in face and hand after opening a letter bomb. Italian radicals claimed they have also tried to attack Josef Ackerman in a similar way. Monti said that violence should be stopped before it turns into
China is likely to experience difficulties in the foreign trade next year as world's economic outlook remains bleak, said commerce official. The country faces new challenges like higher production costs, weaker demand and tough competition, the official added. The expansion of foreign trade has slowed to 17.6% last month, edging down 4% from the preceding month's level.
On Tuesday loonie depreciated against greenback after the Federal Reserve announced it will not change benchmark interest rate to support US dollar. Canadian dollar fell 0.7% reaching C$1.0343 per US dollar, the lowest figure since November 30. Lonnie appreciated 0.5% against euro. Currently USD/CAD is trading at 1.0339 while EUR/CAD is trading at C$1.3476.
Aussie and Kiwi traded 0.5% from 2-week record low against their US peer as worries European debt turmoil may cause national downgrades undermined need for less secure assets. Australian Dollar traded at $1.0023 on Wednesday's Sydney trade while New Zealand Dollar dropped to $0.7541. AUD/USD currently is trading at $1.0018 while NZD/USD is trading at $0.7563.
The Group of Twenty will increase the IMF resources, said Felipe Calderon, Mexican President. During closing session of G20, Felipe Calderon will lead the members to achieve consensus on economic stability stipulating design of new mechanisms. New tools should boost resources of the IMF to support the euro-zone in short-term needs. It is important for European countries to make firm and effective decisions to combat
Nexon, Japanese gaming company, has lukewarm response to its IPO worth $1.2bn, the largest Japanese IPO in 2011. The stocks opened higher by 0.5% on the Tokyo Stock Exchange but were 0.5% lower on the broader markets. Analysts say the most promising prospects for the company are in China where the gaming market is expected to become the world's largest by 2014.
China will try to seek fast but sustainable growth over the next year, according to statement following economic work conference. The crucial issue for the next year is to maintain stable macro-economic strategy, sustainable growth and stable prices. The country has to adjust its economic model to changing environment, the statement adds. oHHHHhhhhyyhhHHHHHH However, China's officials claim no changes in prudent fiscal policy for the
The rupee's decline has a moderate effect on the Indian businesses, according to Moody's Investors Service. The rupee has fallen dramatically against dollar on the high inflation rate and slower growth. The companies dependent on import, especially on foreign supplies of oil are the most likely to be impacted by the currency slump; however, export-led companies can gain on the weaker rupee, said Vikas Halan,
Apple Inc. has sold its founding papers for about $1,594,500 at the recent auction. The papers were signed by company's co-founders Steve Jobs, Steve Wozniak and Ronald Wayne in 1976. The buyer is Eduardo Cisneros, the CEO of Cisneros Corporation based in Miami and engaged in property development and telecommunications.
Crude oil futures were rising rapidly on the growing threats that Iran, one of the man oil exporters, might disrupt operations due to western economies opposition to its nuclear program. However, on Wednesday light, sweet crude oil started to decline. On the New York Mercantile Exchange, crude futures for January delivery traded at USD99.88 a barrel at the Asian morning trade, edging down 0.26% since
Almost a half of financial asset managers now believe in the partial euro-zone's breakup, according to new survey. More than 40% consider at least one country will leave the euro-zone in the end of 2012. Moreover, 75% project further downgrade of the US debt by rating agencies. About 200 major investors with almost 600 billion US dollars under management were surveyed by Merrill Lynch/Bank of
Iraq PM, Nouri al-Maliki, said US corporations have to invest in the Iraq economy to support country's recovery after war. The announcement came after troops of the US started preparation for pulling out from Iraq. The security of the country has improved and businesses not generals should lead the future of Iraq, added PM. Currently US contributes about tenth part of the foreign investment and