Barclays Capital cut China's GDP growth forecast from 8.4% to 8.1% for 2012 citing the downturn in the euro-zone. Investments are expected to fall next year but domestic consumption will play a role of stabilizing factor, reported Barclays. CPI is expected to ease from 5.5% projected in 2011 to 3.2% in 2012 due to decline in exports and risk of overcapacity, Barclays added.
Australia's LNG projects worth A$130 have to be completed in the next five years before the natural gas supplies becomes oversaturated, according to Australian Financial Review. The final investments should be done and the projects have to be placed on the market in the next five years, confirmed Dick McIlhattan, head of LNG at Bechtel.
The fall in the yuan value for the five consecutive days is a natural response of the market to declining trade surplus in China, claim analysts. The yuan value is likely to be balanced in long-run, they add. China's trade surplus tumbled by 36% in October on an annual basis weighting down on the country's currency value that fell essentially against the greenback to
European officials are negotiating probable boost the euro-zone members' capability to combat with spreading debt crisis by running two bailout funds, reported Financial Times. The new measure stipulates the euro-zone countries being able to access 400 billion euros bailout fund currently available and adding new 500 billion euros facility in 2012. The policy may be adopted along with revision of the treaties to impose stricter budget
China plans to increase its nuclear energy capacity and make nuclear energy a foundation of the power-generation structure in the next 10-20 years, according to senior official. China is going to expand its energy capacity by 2 billion kW in corresponding period with 300 million kW being generated from nuclear power, said Shi Lishan, deputy director of the National Energy Administration's department.
Southwest Airlines announced the increase in traffic by 2.5% pulling the revenue passenger miles to over 8.28 billion as compared with 8.07 billion in 2010. The capacity in November also increased by 0.7% to 10.14 billion available seat miles. The revenues are expected to rise by 9% in November.
Expenditure on buying Christmas trees in US will surge 3.1% this year, the record high since recession in 2008, said IBISWorld. Americans are planning to paid about $800 m for 25 m real trees and another $2.6 bn on 10 m non-natural trees during the Christmas time, predicts IBISWorld. Americans spent $3.14 bn to purchase Christmas trees in 2008.
On Tuesday's premarket trading Nasdaq, Dow Jones industrial average and S&P 500 futures float around breakeven as investors stay prudent after S&P European rating warning. US equity futures edge higher in advance of opening indicating direction for the morning trade. US stocks advanced on Monday but fell of their highest levels after S&P report.
Occupy Wall Street protesters have scheduled December 6 for making demonstrations across 25 US cities, involving Chicago, Los Angeles, and New York. The aim of activists is to express protests regarding maltreatment of homeowners and lenders. Demonstrators plan to halt police from removing residents from their homes as well as to occupy property that already foreclosed.
Treasury prices dropped on Tuesday increasing borrowing costs for the 4th day out of five as response to news from Europe. Yields for 10-year bonds surged 4 b.p. reaching 2.07%. Growth in yields were also stimulated by Standard & Poor's announcement to place 15 Eurozone countries on Creditwatch. 30-year borrowing costs added 3 b.p. to 3.04% while 2-year bond yields dropped 2 basis points to 0.25%.
Southwest Airlines announced the increase in traffic by 2.5% pulling the revenue passenger miles to over 8.28 billion as compared with 8.07 billion in 2010. The capacity in November also increased by 0.7% to 10.14 billion available seat miles. The revenues are expected to rise by 9% for November.
The Bank of England announced it plans to introduce new liquidity facility to ease the stress in the financial markets. The facility is known as Extended Collateral Term Repo and is aimed at decreasing risks to stability in financial market. The novelty will provide additional flexibility to the bank by offering British currency liquidity in the format of auction against wider range of the collateral.
Sugar futures decreased following India's approval of one additional million tonnes of sugar to be exported in this market season. On the ICE Futures U.S. Exchange, sugar futures for delivery in March were traded at USD0.2395 a pound at the European afternoon trade, losing 0.45% since opening. However, speculation over China's high demand for the commodity backed up prices slightly.
After two day gains German DAX Index dropped as Standard & Poor's positioned Germany and 14 other Euro-region countries on monitoring for potential rating downgrades. DAX lost 0.7% reaching 6,062.66 led by RWE AG, German 2nd largest utility company which plunged 9.1% after it had to raise $2.8 bn in a stock sale to lower debt. Metro AG (MEO) fell 9.9% after retail firm cut its profit
On Monday UK's benchmark index closed 0.3% up, on hopes European officials are ready to take crucial actions to tackle crisis. However, FTSE 100 opened lower on Tuesday morning trade after Standard & Poor's reported it may downgrade 15 Eurozone countries. Index lost 0.2% in morning trade led by mining stocks as Vedanta Resources PLC declined 2.3% and Eurasian Natural Resources Corp. PLC gave up
Corn futures declined to two-month low amid rising competition for US exports. Moreover, concerns on the recent warning by Standard & Poor's to lower 15 euro-zone members credit ratings weighted down on the commodity price. On the Chicago Mercantile Exchange, corn futures for delivery in March were traded at USD5.8312 a bushel at the early European trade, falling by 1.27% since opening.
Factory orders in Germany increased much more than projected after experiencing a decline in September. The factory orders soared by 5.2% on a seasonally adjusted basis in October as compared to 1.0% previously expected. Factory orders increased by 5.4% on an annualized rate in October after rising at 2.4% rate in proceeding month.
AutoZone, large auto parts retailer, announced its Q1 net income increased by 11% to $191.1 million, up from $172.1 million the same period last year. The sales of the company added 7.4% to $1.92 billion, slightly exceeding the forecast of $1.9 billion sales as projected by FactSet Research.
Copper futures declined to three-day low following the announcement of Standard & Poor's possible downgrade of credit rating of 15 euro-zone economies, including Germany and France. On the Comex division of the New York Mercantile Exchange, copper futures for delivery in March were traded at USD3.551 a pound at the early European trade, losing 1.8% since opening.
Netherland's authorities announced they embarked on investigation into various mobile providers in the country. However, the officials do not disclose the purpose of investigation. Royal KPN NV, leading Dutch telecommunications company, confirmed the start of investigation and said that the statement clarifying the situation will be issued later.
The euro zone's GDP rose at an expected pace in Q3, according to official data. The GDP increased by 0.2% on a seasonally adjusted basis in three months ended in September fully meeting the forecast. GDP increased by 1.4% on a yearly basis also being in compliance with previous projections. After the data release the euro moved higher against the greenback. EUR/USD is trading
UK stocks decreased following the announcement that Standard & Poor's Rating Services may downgrade the ratings in 15 euro-zone countries. The FTSE 100 lost 0.2% in the morning trade. Mining and energy stocks are top-losers, Vendanta Resources PLC declined by 2.3% while Eurasian Natural Resources Corp. PLC tumbled by 1.8%. Energy companies also experienced losses with Essar Energy PLC decreasing by 2.6%.
Dow Jones Industrial Average Index added 0.65% or 78.41 points and closed at 12,097.83 on Monday trade as Monti's austerity and growth plan stimulated investor hopes for resolving debt crisis. Most of index's shares gained. Appreciation in the index was led by banks and tech-companies. Bank Of America Corp. advanced 2.66%, and J P Morgan Chase & Co climbed 3.65%. Microsoft Corp. soared 1.9% while
On Monday S&P 500 benchmark index advanced 1.03% or 12.80 points reaching 1,257.08 after Italian PM Monti presented austerity and growth plan. Main supporters for the index were banking shares while health-care firms were among main decliners. Morgan Stanley added 6.77%, Citigroup Inc. rose 5.89%, while J P Morgan Chase & Co jumped 3.65%. Washington Post Company and Newfield Exploration Company pushed down the index as