In October Japanese exports decline more than was predicted. According to Japanese Finance ministry, foreign shipments fell 3.7% in October when compared on yearly basis, indicating Japan's recovery from earthquake has slowed down. Drop in Japanese exports is reported amid announcement of Singapore about shrinkage of its growth and China's expectations of worldwide slump.
Elections in Spain, exorbitant cost of borrowing in Italy and expected failure of the US supercommittee to implement deficit-reduction policies contribute to high volatility of the financial markets. Investors' confidence will continue correlate with instability in the most developed economies, said Jeff Sica, president of Sica Wealth Management.
1. According to a questionnaire of 80 financial intermediaries by ICAP Plc, the overseas bank deposits at Fed have increased more than two times reaching $715 bn compared to $350 bn at the end of 2010. A surge in Fed deposits is strengthening US dollar on rising investors' concerns about European region's financial stability. Despite budget cuts and unemployment at 9% level, investors still see US
On Sunday Mariano Rajoy gained the largest parliamentary majority in Spain elections, since 1980s and squeezed out Socialists who have been the leading force for eight years. Rajoy's Peoples' Party won 186 of 350 places in Parliament while his main competitor Alfredo Perez Rubalcaba from Socialists gained 110 seats. In his speech Rajoy warned Spaniards to be ready for hard times as nation currently is
MF Global Holdings Ltd.'s Australian unit has not had any business offers for last time and is planned to be closed down in the next months, administrators of the company announced. Joint Administrator Chris Campbell reported balance is 34 million Australian dollars versus 36 million Australian dollars at time when he was appointed.
Asian equities extended slump on Monday on investors' anxiety about US and European debt trouble. Shanghai Composite index dropped 0.4%, while Hong Kong's Hang Seng Index traded down 0.4%. Korea's Kospi gave up 1.3% whereas Japan's Nikkei Stock Average and Australia's S&P/ASX 200 index declined 0.2% and 0.4% respectively. According to analysts, enduring uncertainty in Europe is boosting investors' speculations on worst-outcome scenarios.
Josef Ackermann, CEO of Deutsche Bank AG suggests Europe should have firewall to avoid spillover from its debt turmoil. Ackermann recommends increasing the size of European Financial Stability Facility to prevent spillover if it takes place. According to Ackermann, the EFSF should be enlarged to €2 trillion; however, Ackermann did not explain the exact meaning of firewall.
UK's bank Northern Rock was forced to be prioritized by 2013 under the agreement of Chancellor George Osborne. The reason is that the European Commission under the government's aid to banks demanded the government to sell the largest part of its stake by 2013. The bank was sold on Thursday to Virgin Money for ВЈ747m. George Osborne claimed that it was the best possible
In South Africa investment banks are competing for providing financing for port, road and energy power projects as revenue from M&A declined sharply during last seven years. Firms in South Africa report 235 takeovers worth $13.1 bn this year, the lowest number of deals since 2004. To offset loss in M&A earnings, banks are trying to gain access to investment opportunities worth $93bn in sub-Saharan Africa infrastructure
Australia is aiming to be the second large liquefied natural gas exporter. The country invests substantially into development of the sector; it invested more than $140 billion since 2007. However, it is doubtful that Australia is able to fulfill all its ambitious plans as it cannot develop seven project simultaneously, claimed Andrew Blakely, oil and gas analyst at Perpetual in Sydney. In the beginning of
The US supercommittee is expected to admit failure as reported by media on Sunday. The congressional committee was formed to work out a plan for decreasing the country's deficit by $1.2 trillion over the next 10 years. The plan envisaged that the sum would be automatically reduced from governmental spending. The failure to implement measures will lead to unsolved issues as payroll tax increase and
Large demonstration in Cairo's Tahrir Square continues for three days already. People protest against Egypt's military measures. Over the weekend more than 13 people died in violence. The protests may impact the elections due next week. People argue that Council of the Armed Forces tries to retain his monopolized power.
Gold futures for December delivery decreased in electronic trade by 0.1% or by $1.50 to $1,723.60 an ounce on the Comex division of the New York Mercantile Exchange. The yellow metal lost 3.55% during the last week at North American session. Silver also declined by 1.1% to $32.06 an ounce. However, despite price fall the trader's sentiment remains bullish as reported by BNP Paribas.
Qantas, the Australian airline cannon reach an agreement with its staff. The ground staff and pilots of the company demand better working conditions, higher wages and more job security. The negotiations have been continuing for 15 months already. The delays in the Qantas business activity have impacted more than 80,000 travelers in October. The failure to reach a consensus means that parties have to go
Rationalization of the euro area by dividing the members of the Eurozone into two groups- creditors and debtors appears to ease the financial difficulties in the Eurozone. Creditors, more stable countries around Germany, would have to accept a trade-weighted appreciation of 20% that might impact the exports but at the same time consumers and importers will gain on the better terms of trade. The measure
Brazil is investigating oil spill in 120km from the coast of Rio de Janeiro state. The responsibility of the spill lies on the US company Chevron. About 600 barrels of oil shaped a slick on the water. Fortunately the spill moves away from Brazilian coast as more than 17 ships clearing up the spill. In case Chevron does not fulfill its obligations to clean
The center-right party headed by opposition leader Mariano Rajoy is expected to win elections on Sunday. Spain is facing hard times as markets are focusing on its prospective debt trouble. On Thursday auction Spanish bonds hit 6.8 % while Spain's IBEX-35 index on yearly basis lost 16%. Analysts predict that Sunday's vote could provide short-term release for investors, as the Popular Party promises to support
Share prices across the globe are falling as the situation in Europe remains uncertain. Asian shares were severely impacted as Japan's Nikkei index declined by 1.6%, South Korea's Kospi decreased by 2% and Hong Kong's Hang Seng dropped by 1.9%. Financial and tech stocks lost 2%. Investors' risk aversion remains high and affected financial markets overnight. Brent oil decreased by 4%.
On Thursday US equities experienced substantial losses as borrowing costs in Spain and France increased. Investor anxiety erased gains from reported improvements in jobs and housing statistics. S&P 500 lost 1.7% or 20.74 points to 1,216.18, Dow Jones Industrial Average fell 1.1% or 134.64 points reaching 11,770.95 while Nasdaq Composite dropped 2% or 51.62 points to 2,587.99.
The Sanghai Gold Exchange increased requirements on silver margin to 18%. Brokers claim that the rate is exorbitant and may severally impact retail traders. The measure is aimed at decreasing extremely high white metal's volatility thus protecting small traders from losses. The requirement the most likely to came into force on Monday, reported by Reuters. New measure impacted also COMEX silver futures that lost 1.1%
NYSE Euronext and Deutsche Boerse, two large stock exchange operators announced a merger recently. The EU is concerned that the merger will have dominating position hence too much of power in the industry. The companies wrote a proposal to the EU outlining the absence of high impact on competition.The proposal will be reviewed in the beginning of 2012.
At the moment UK economy is at bad condition with extremely low confidence, reported CBI chief, John Cridland. Decreasing consumer spendings and threat of Eurozone's debt crisis impact the economic growth of the country. Only businesses and exports can help UK economy to survive. UK companies have quite strong financial position and enough resources to invest, the only thing they lack is confidence in the
US treasure prices declined on Friday increasing yields first time since Wednesday as a response to the deteriorating situation in Europe. Moreover, experts also claim that Congress is planning further deficit reduction. Yields on 10-year notes increased by 4 basis points to 2.02%.
Following the EU bailout strategy to write off Greek debts, ABN Ampro a Dutch bank suffered losses. The bank today reported a net loss of 54m euros in period between July and September this year as compared to 341m net income for the same period in 2010. The bank possesses 1.4bn euros of Greek loans and had to write off 500m euros from this