Plans by Germany and France to rescue euro via closer fiscal union face serious challenge from UK. Great Britain, the country that is not Eurozone member, is against broadening rights for Brussels, as it would lessen Britain's influence in the European Union. David Cameron said he is ready to defend UK's position in upcoming EU summit later this week.
Deutsche Bank AG reduced nearly 20 jobs in its Tokyo division. Koichiro Yasuda, manager of Deutsche Bank AG's finance investment banking in Japan quit after the cut. At least three management positions have been eliminated said bank in its statement yesterday. Before reductions Deutsche Bank provided employment for about 70 people in Japan. Job cuts are implemented amid bank's efforts to reduce operating costs globally.
Lehman Brothers Holdings has been approved by federal judge to start a final stage of the largest bankruptcy in US history. Company plans to raise $65 bn in next three years by liquidating its assets left. According to company's statement it is planning to distribute part of its $23 bn cash capital. Lehman Brothers, once the 4th biggest investment financial, failed in September 2008 with assets
In November UK shop price inflation diminished to a 1-year low as price wars among supermarket limited food-expense increases, said British Retail Consortium. Retail prices added 2% on a yearly basis compared to 2.1% in October. According to report, food prices climbed 4% and non-food items gained 0.8% compared to previous year. Mervyn King a governor of BoE predicts inflation to slow down in 2012.
On Tuesday Standard & Poor's rating agency confirmed its AA- credit rating for the world's second biggest economy preserving stable economic outlook. According to Standard & Poor's there is room for an upgrade if China restructures its debt capital market and allows more flexibility in exchange rate. Agency also warned China that its banking system may suffer if country's economy worsens.
European stocks slide lower at the afternoon trading after Germany opposed the reports claiming the probable running of two bailout funds to stimulate regional growth. The Stoxx Europe 600 index lost 0.1% to 241.58, the German DAX 30 index was steady at 6,025.33 and the French CAC 40 index added 0.2% to 3,186.05.
Wheat futures decreased for the third consecutive day being close to one-week low as the competition for US commodity exports weight down the market sentiment. On the Chicago Mercantile Exchange, wheat futures for delivery in March were traded at USD6.0988 a bushel at the early European trade, tumbling by 0.51% since opening.
German industrial production exceeded the forecast after declining for two months in line, according to official data. The country's industrial production rose by 0.8% on a seasonally adjusted basis in October while the experts anticipated only 0.3% increase, said Germany's federal statistical office.
Chile's CPI increased more than expected in November due to price raise of food and services, reported the government statistics institute. The CPI jumped by 0.3% in November on a monthly basis and gained 3.9% on an annualized rate. The expected increase was in range between zero and 0.2%.
The ECB provided $50.7 billion three-month loans at 0.59% fixed rate and seven-day loans at 0.58% fixed rate. The dollar-liquidity project is the first after the ECB and Fed agreed on decrease in dollar swaps. The shift of the central banks to decrease rate on the dollar swaps appeared amid rising dollar-borrowing costs and financial institutions' keeping cash.
US stock futures increased on hopes for progress in the euro-zone debt crisis resolution. Futures on the Dow Jones Industrial Average gained 58 points to 12,170, those of the Standard & Poor's 500 index increased by 6.10 points to 1,261 while Nasdaq 100 futures added 10 points to 2,331.
US shares extended gains on Tuesday as investors remained optimistic about forthcoming summit on December 9. S&P 500 Index added 0.1% or 1.39 points reaching 1,258.47while Dow Jones Industrial Average traded up 0.4% or 52.30 points to 12,150.13. Only the Nasdaq Composite Index experienced modest loss of 0.2% or 6.20 points and closed at 2,649.56. Nevertheless, Art Hogan Lazard Capital Markets' strategist suggests absence of
Germany sold 4.09 billion euros of notes maturing in five years with an average 1.11% yield. The Bundesbank, the responsible institution for conducting government's auction, announced it got 8.67 billion euros bids for the notes. The Bundesbank has set aside 910 million euros for secondary market operations made by Finance Agency.
European shares traded up on Wednesday morning trading session as European leaders reported they have agreed on significant bailout fund expansion. Stoxx Europe 600 index gained 1% reaching 244.18, German DAX 30 index rose 1.5% to 6,121.75 while French CAC 40 index added 1.8% attaining 3,235.31. FTSE 100 Index edged up about 1%, reaching 5,624.88.
Sweden is not expected to become a Eurozone member even in long term period after Swedish support for joining Euro dropped to all time low in November. According to Skop poll, less than 10% of Swedes support switching from krona to euro. Anders Borg, Sweden's FM said it will take a lot of time and much effort in terms of austerity measures before Sweden will
Narodowy Bank Polski is likely to leave its key interest rate untouched as drop in zloty can boost the inflation, said economists surveyed by Bloomberg. Central bank of Poland is expected to stick to interest rate of 4.5% for a fifth consecutive month. This is the highest benchmark rate in Poland since 2009. Central bank increased borrowing costs in June by from 3.5% to 4.5%
In 2007 Daimler, the maker of Mercedes-Benz lead over BMW as its market valuation was 39 billion euros more than that of BMW. Currently the gap has dropped to 700 million euros. Despite diminishing gap, BMW employs only about 50% Daimler's 270,000 workforce and produced 38% less revenue in 2010. Declining value gap mirrors Daimler's defeat in Germany's luxury vehicles' market.
In November Swiss unemployment level remained at record low in last three years indicating that labour market is stable despite cooling economic growth. The jobless rate in November stayed at 3%, the smallest since January 2009, reported State Secretariat for Economic Affairs. New jobs openings dropped by 1,355 reaching 17,395.
Canadian dollar rose second day in a row against its US peer after Bank of Canada officials told the growth in US and home economy is sounder than expected. Canadian currency gained 0.6% against greenback reaching C$1.0100 per US dollar in Toronto evening trade. Loonie is the November's second best performer after Japanese yen. USD/CAD currently is trading at C$1.0072.
Reserve Bank of New Zealand Governor is likely to stick to its current benchmark interest rate at 2.5% as global economic outlook worsens, predict economists questioned by Bloomberg. In case the country leaves interest rate unchanged, it will join Indonesia and South Korea that keep holding their benchmark rate at record low.
The 17-nation currency appreciated against US dollar and Japanese yen amid investor hopes that European leaders during summit will agree on bailout fund expansion to support most troubled countries. Euro gained 0.3% against greenback on Wednesday Tokyo trade reaching $1.3436 and advancing 0.3% against Yen, to ВҐ104.43. EUR/USD currently is trading at 1.3450 and EUR/JPY is trading at ВҐ104.48.
Italy's biggest lender, UniCredit SpA announced its plans to reduce the number of bank's corporate offices by more than 50% over next four years, saving €50 m ($67 million) per year starting from 2015. UniCredit SpA is considering cut 85 of its 160 main offices (292 000 square meters) by shutting rental contracts and selling portion of its real-estate.
Greek PM Lucas Papademos gained parliamentary approval for the country's 2012 budget. Premier's plan is aimed at reducing the deficit shortfall close to 50% from a debt write-off and ensuring Greece stays in the Eurozone. The motion was approved by 258 in favour and 41 against in 300-seat Parliament. Next year budget predicts 5.4% deficit of Greece's GDP in comparison with 9% deficit in 2011.
European leaders are considering creating and operating 2 bailout funds to boost region's capability to tackle debt turmoil. Discussions are concentrating on the possibility permitting Euro regions' 440 bn euro worth fund to stay in operation until a new €500 bn facility is implemented in 2012. The idea of double firepower will be introduced during Friday's EU summit.