UK's PM David Cameron spoke at the Confederation of British Industry conference about the impact of the Eurozone economic difficulties on the UK's economy. However, he claimed that there are promising signs in the UK economy like higher retail sales, increase in the exports and rise of the number of loans taken by small and medium companies.
On Friday Germany's DAX closed at 5,653.42 experiencing a 146.82 or 2.53% drop compared to Thursday. During last week index lost total of 4%. On Monday trading session the index is extending its losses and at the moment of writing trades down at 5,651.40. Index is mainly hurt by Commerzbank AG's decline of 5% and Deutsche Bank AG's slip of 4.5% as Moody's reported
Tyson Foods, the large meat producer reported its profit to decline to $97 million in Q4 as compared to $213 million in the same period in 2010. Experts expected the company to gain 31 cents on share on the sales revenue of $8.2 billion, according to the forecast of FactSet Research. Tyson Foods predicts revenues of $34 billion in the next year.
On Monday Japan's Nikkei Stock Average traded down 0.32% or 26.64 points and closed at 8,348.27. Japanese index was pushed down by worsening export and growth outlook. Japanese exporters depreciated index with Sony Corp. giving up 2.8%, Elpida Memory Inc. dropping 7.3% and Toyota Motors Corp. declining 2.6%. Honda Motor Co. shares lost 2.2% and also contributed negatively to index as its supplies have been disrupted by Thailand flooding.
On Monday Hong Kong's Hang Seng Index fell 1.44% and closed at 18,225.85 or 265.38 points down compared to Friday. Mining companies added negatively to index: oil producer Cnooc Ltd lost 3% while China Coal Energy Co gave up 4.9%. Hong Kong property companies also suffered a decline and depressed the index. China Resources Land Ltd. dropped 4.5%, Hang Lung Properties Ltd decreased 5%, while
The euro zone reported about current-account surplus of 0.5 billion euro in September as compared to deficit of 5.9 billion euro in August, according to ECB. The improvement is essential but may be unsustainable, said Dominique Barbet, senior economist at BNP Paribas. The surplus was mainly a result of fall in imports caused by slight decrease in commodity prices, he added.
Higher cost of borrowing in France and slow economic growth raise concerns about possible decrease of the French AAA credit rating, reported Alexander Kockerbeck, senior credit officer, in Weekly Credit Outlook. Yield on 10-year bonds increased by 6 basis points reaching 3.51%, according to FactSet Research.
The rate of growth of the China's currency against USD is likely to slow down in 2012. The yuan is likely to rise by 3.3% against the USD in the next years as compared to 5.5% in 2011 when the government allowed freer currency trade. The national account surplus is likely to decline by 2.3% of the GDP causing less demand for China's currency, explained
European Commission has proposed the introduction of united Euro-area bonds, joining the debt of 17 countries, as previous efforts to combat continuous crisis have failed. Germany, the flagman of the European economies, is strongly against such measures, as it is afraid of being stuck with returning other countries' debts. However, euro-bond advocates are much more optimistic, as overall euro-area Debt-to-GDP
On Friday FTSE 100 closed at 5,253.68 experiencing a loss of 2.04% or 109.26 points. During last week index lost total of 3.3%. Similarly to other stock indices, FTSE 100's diminishing value reflected growing concerns about Spanish and Italian yields. Miner companies added major negative impact to index. Rio Tinto PLC and Xstrata PLC each fell 1.4%, while Anglo American PLC lost 1.5%. Banks also
On Monday trading session stocks prolonged their 3 week losses as US lawmakers did not manage to approve budget reductions. Stoxx Europe 600 Index slumped 1.9% continuing previous week's 3.7% drop as approximately 40 stocks declined per every gaining share. Mining stocks contributed most negatively to index as their prices experienced a decrease of 3.3%. Euro depreciated 0.5% against US dollar reaching $1.3463.
On Friday November 18 the index ended up at 2,572.50 giving up 15.49 points or 0.6% compared to Thursday. During last week Nasdaq dropped 4% as markets reflected sharply anxiety that debt crisis in Europe could extend and hit US banks. The index was affected negatively by Salesforce.com's drop in stock price of 10% after reporting its lower-than-expected quarterly results.
On Friday November 18 Dow Jones Industrial Average Index closed at 11,796.16 experiencing a slight increase of 0.22% or 25.43 points compared to Thursday. Over last week, however, index experienced a total decline of 2.94%. Alcoa Inc, JPMorgan Chase & Co and Chevron Corp. lead drop in index value as their shares lost at least 8% during week. Hewlett-Packard Co. rocketed 2.6 per cent, the
On Friday November 18 S&P 500 Index closed at 1,215.65, reaching the record low since October 20. The index fell 0.04% or 0.48 points compared to Thursday. During the last week index experience a total drop of 3.81% as Italian, Spanish and French borrowing costs surged and Fitch Ratings warned that European debt turmoil postures a threat to US banks. Technology and commodity stocks created
The deposits of the Euro-zone banks in the ECB have been increasing for eight days already indicating low confidence in the local markets. Banks deposited EUR236.781 billion in the ECB, reported on Monday as compared to EUR230.899 billion on Thursday. The banks prefer to deposit in the ECB than lending to another banks because of growing risk of recession, said Mario Draghi, the president of
The British utility company Centrica signed a 10-year contract with Norway Statoil. The contract is worth ВЈ13bn and envisages Centrica purchases 5bn cubic metres of gas per year from Statoil. The amount of natural gas bought is over 5% of the total UK's gas consumption between 2015-2015. The deal will increase Centrica's production by 25% and will enhance the UK energy security.
CPI in Canada increased more than expected in October to 0.2 % while analysts expected the indicator to rise by 0.1%, showed the official data. The Canadian dollar fell against the USD by 0.41% in early trading being 0.9691USD.
The New Zealand dollar decreased to seven-week low against USD as the uncertainty about the Eurozone debt crisis undermined the investors' sentiment. The New Zealand dollar lost 0.37% to 0.7528 USD being the lowest since October 4. However, the kiwi improved its position against Australian dollar to NZD/AUD being 0.7592.
French chemicals firm Arkema SA announced about purchase of two China's chemical companies for $365 million in line with acquisition plan presented in November last year. The company plans to purchase Hipro Polymers and Casda Biomaterials that most probably report about report $230 million revenues this year. The takeovers still require an agreement of China's government.
Australian dollar dropped to the lowest level against USD in last five weeks as US lawmakers today may declare failure to reach a deal regarding budget cuts boosting the concern that US might face one more credit downgrade. On Monday Australian dollar lost 0.3% $0.9974 in Sydney evening trading session which is the lowest level since October 12.
According to Renmin University of China's report, the China's GDP in 2012 may slow down to 9.2%, a slight decline compared to 9.4% this year. Report also predicts the country's consumer price index will ease next year and reach 3.3% on yearly basis. University of China suggests the government will be forced to switch its monetary policy from tightening to growth supporting in order to
US stocks closed lower on Friday as investors continued to watch development of bond yields across Europe. Borrowing rates of 10-year Italian notes surpassed 7% level while Spanish bonds fluctuated around that level. Amid uncertainty S&P 500 lost 3.8%, Nasdaq gave up almost 4% whereas Dow Jones industrial average declined 2.9%.
One of three principals in Greek technocratic coalition Antonis Samaras rejected to sign a pledge that he approves austerity measures, generating a new complication for country's bailout deal. Samaras, the leader of Greek conservative party, claimed that despite refusal to authorize the oath, he supports Greece's budget for 2012. Nevertheless, Samaras's refusal creates a risk of getting aid worth €8bn euros.
According to ratings agencies, institutional weaknesses and investment climate in Russia might hinder its prospects to receive higher debt rating despite joining WTO. Standard & Poor's who has rated Russian debt at BBB does not predict instant impact from entering WTO as high level of corruption may offset all Russia's benefits of WTO membership. Russia's debt grade hasn't been upgraded since 2008-2009 financial crisis.