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A look at global economic developments (AP)

admin — Sun, 04 Jul 2010 01:04:13 +0000

A look at economic developments and activity in major stock markets around the world Friday:

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BEIJING — China’s economy grew even faster in 2009 than previously reported, adding to concern the flood of stimulus spending and loans that drove its rebound left a dangerous glut of unneeded factories and other assets.

In Asian trading, In Japan’s Nikkei 225 stock average gained 0.1 percent to 9,203.71 after closing at a seven-month low on Thursday.

Elsewhere, South Korea’s Kospi fell 0.9 percent, Hong Kong’s Hang Seng dropped 1.1 percent and China’s Shanghai Composite Index gained 0.4 percent.

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BERLIN — German lawmakers approved a government bill that would cement in law and extend curbs on speculative trading practices following the country’s abrupt imposition of restrictions in May.

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BEIJING — Bank of China Ltd. will raise up to 60 billion yuan ($8.9 billion) in a new effort by a major Chinese state-owned lender to replenish capital following last year’s lending boom.

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BRUSSELS — European Commission PresidentJose Manuel Barroso urged EU nations to quickly back “stricter and smarter” rules making it possible to fine countries that chalk up oversized deficits and debts.

In European trading, the FTSE 100 index of leading British shares ended 0.7 percent higher, Germany’s DAX dropped 0.4 percent and France’s CAC-40 added 0.3 percent.

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MADRID — In the ashes of Europe’s debt crisis, some see the seeds of long-term hope. That’s because the threat of bankruptcy is forcing governments to implement reforms that economists argue are necessary to help Europe prosper in a globalized world — but were long viewed as being politically impossible because of entrenched social attitudes.

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MADRID — Spain says the number of people seeking unemployment benefits fell by nearly 84,000 in June as companies stepped up hiring for the summer tourism season.

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CANBERRA, Australia — Australia’s government retreats from a planned 40 percent tax on booming profits in the mining industry, defusing a damaging row with big business and clearing the way for national elections to be called at any time.

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JOHANNESBURG — The International Monetary Fund and the World Bank have set the stage to relieve Congo of a massive $12.3 billion in debt, most of it dating back more than 20 years to loans made to the corrupt regime of dictator Mobutu Sese Seko.

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BEIJING — Bank of China Ltd. will raise up to 60 billion yuan ($8.9 billion) in a new effort by a major Chinese state-owned lender to replenish capital following last year’s lending boom.

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ATHENS, Greece — A union representing Greek public servants says it will join a protest planned by other unions on July 8. The protest would be Greece’s sixth general strike this year against economic austerity.

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Weekend Forex Report: Key Economic Releases and Events

admin — Sun, 25 Apr 2010 10:43:35 +0000

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Economic Preview for April 15th 2010

admin — Thu, 15 Apr 2010 00:50:15 +0000

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Economic confidence within the Eurozone is at 22 month highs

admin — Tue, 30 Mar 2010 00:18:01 +0000

The US Dollar fell back once again, as momentum shifted to the downside. As the Greeks launched their 5 billion EUR fund raising via a bond auction, confidence appeared to be increasing, and investors eyed so-called ‘riskier’ assets, leaving the relative safe haven that is the greenback. All eyes will now move to the release of today’s consumer confidence figures released this afternoon.

Market News

The Greek government announced the sale of a 5 billion EUR seven year bond with a 5.9% coupon, a yield twice that of what Germany pays
German inflation data came in surprisingly strong, alerting economists to the notion of spiralling inflationary concerns
Economic confidence within the Eurozone is at 22 month highs
Consumer spending in the US rose for a fifth straight month, which will further the cause of those who see rates rising in the US sooner rather than later

Major Economic News


TIME	MARKET	DATA
1400	US	CONSUMER CONFIDENCE

Published on Tue, Mar 30 2010, 08:07 GMT

fxstreet.com

Wall Street futures flat; economic data awaited (Reuters)

admin — Tue, 02 Mar 2010 17:19:28 +0000

, the
and the Nasdaq 100 were little changed at 0950 GMT.
At 1245 GMT, ICSC/
versus the prior week. In the previous week, sales were up 2.3 percent.
of department and chain store sales for February versus January. In the prior period, sales rose 1.6 percent.
U.S. automakers release February sales. Economists in a Reuters survey expect median annualized sales of 3.7 million cars and 4.2 million trucks. In January, the figures were 3.8 million cars and 4.18 million trucks.
.O), a technology bellwether, rose 2.1 percent to $36.29 after the bell on Monday after the company announced a new $3 billion share buyback plan and raised its quarterly dividend by 12 percent.
Top U.S. and Chinese diplomats will grapple with how to deal with the nuclear ambitions of
in meetings that Washington hopes will help ease tensions with Beijing.
.N) rose 4.8 percent to $5.03 after the bell on Monday following the company's quarterly results.
At 2200 GMT, ABC News releases its consumer comfort index for the week ended
versus the prior week. In the previous week, the index read -50.
(4503.T) shares fell 2.1 percent on Tuesday after it went hostile with a $3.5 billion bid for U.S.-based
.O) and its prized Tarceva cancer drug, highlighting concerns over the Japanese firm's drug pipeline and whether it would get into a bidding war against other possible suitors.
, the largest U.S. auto-parts retail chain, is expected to post a rise in earnings to $2.34 per share from $2.03 in the February quarter of 2009.
.O) is also due to announce results.
Japan's government called for fresh action on Tuesday from the central bank to lift the economy out of deflation this year despite widespread skepticism that such a goal is feasible.
to 4.0 percent on Tuesday and flagged further hikes ahead, saying a surprisingly strong recovery allowed it to move policy toward more normal settings.
(GM.UL) said it will triple its funding of European arm Opel and cut its request for state aid, in a bid to win over European governments and labor.
Oil was steady below $79 a barrel as the dollar stiffened on European sovereign risk woes and forecasts for rising U.S. crude and gasoline inventories capped prices.
European shares were flat in early trade, with falls in drugmakers offsetting gains in mining stocks.
Japan's Nikkei average rose 0.5 percent on Tuesday, buoyed by gains in chip-linked stocks such as
(6857.T) after a bullish outlook from flash memory maker
.O) pushed up shares of their U.S. peers.
U.S. stocks rose for a second straight day on Monday, boosted by AIG's record-setting deal to sell a major Asian unit and on gains in semiconductor shares after SanDisk Corp raised its revenue forecast.
(.DJI) gained 78.53 points, or 0.76 percent, to 10,403.79.
& Poor's 500 Index (.
) added 11.22 points, or 1.02 percent, to 1,115.71. The
(.
) rose 35.31 points, or 1.58 percent, to 2,273.57.

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3-2 Economic Calendar

admin — Mon, 01 Mar 2010 13:56:21 +0000

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A look at global economic developments (AP)

admin — Mon, 01 Mar 2010 09:41:14 +0000

and the release of fairly upbeat manufacturing surveys in the 16 countries that share the euro and the U.K.
Meanwhile, other data said that unemployment in the 16 countries that use the euro held steady at 9.9 percent in January for the third month running.
of leading British shares closed up 1 percent,
rose 2.1 percent and the CAC-40 in
was 1.6 percent higher.
ATHENS, Greece —
pressed Greece on Monday to make more painful, permanent
soon, as markets speculated that the bloc or heavyweights France and Germany are preparing a financial lifeline to get the country out of its debt crisis.
that additional measures were necessary “in the coming days,” a view he said was shared by the
and the International Monetary Fund.
Rehn said it was up to the Greek government to announce specific spending cuts, which he said must be permanent and structural. But he refused to be drawn on a possible bailout, saying that the bloc “has the ways and means to secure stability in the eurozone.”
BERLIN — Germany’s chancellor says she is opposed to EU countries bailing out fellow eurozone member Greece.
SHANGHAI — Growth in China’s manufacturing slowed in February amid efforts to curb overcapacity in some industries and cool inflation by tightening control over bank lending, according to two surveys.
climbed 1.2 percent. Elsewhere in Asia, other stock markets rose. Japan’s benchmark
stock index advanced 0.5 percent,
jumped 2.2 percent, Singapore rose 0.9 percent and
climbed 1.9 percent.
, India and
were closed.
FRANKFURT — The Federal Statistical Office says German import prices rose 1.7 percent in January compared with December 2009.
HELSINKI — The Finnish and Swedish economies shrank in the fourth quarter of last year, as the global downturn continued to hit the
.
MEXICO CITY — Money sent home from Mexicans living abroad is still plummeting, falling nearly 16 percent to $1.3 billion in January, from $1.6 billion the same time last year.
’s No. 2 source of foreign income after oil exports. They totaled $21.2 billion in 2009, a 15 percent drop from 2008. The bank has blamed the U.S.
.
The central bank also said Mexico’s economy will grow 3.9 percent in 2010, improving its previous forecast of 3.3 percent.

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Stocks edge higher after mixed economic news (AP)

admin — Fri, 26 Feb 2010 12:59:21 +0000

NEW YORK – The stock market eked out a gain Friday as investors took downbeat economic news in stride.
and the Standard & Poor’s 500 index logged their best month since November.
The latest bad news came from several corners including the financial industry.
. reported a larger than expected fourth-quarter loss. The company said its primary insurance business was hurt in part by the economy.
The National Association of Realtors said sales of previously occupied homes fell 7.2 percent in January. It marks the second straight month of a big drop. Analysts had predicted a gain. The Realtors’ report comes two days after the Commerce Department said that
fell last month.
Meanwhile, the Commerce Department reported that the nation’s economy grew at a faster pace than initially estimated for the end of 2009. The stronger growth from the third quarter to the fourth quarter was welcome news but analysts say much of the gain is tied to businesses rebuilding inventories.
grew at an annual rate of 5.9 percent, above the 5.7 percent previous estimate. Growth is expected to slow in the coming quarters.
The mixed reports added to investors’ confusion about the economy. Analysts are divided over whether a recovery is on track. That has led to swings in the stock market after nearly a year of huge gains. Major stock indexes were strong in February but are down about 1 percent for the year. This week, stocks have fallen, jumped and slid again as worries about the economy intensified and eased.
“We’re in a time period where the range of potential outcomes is probably wider than it’s been for some time,” said Colleen Supran, a
at Bingham, Osborn & Scarborough in San Francisco. She pointed to concerns about everything from unemployment and housing to heavy debt loads in Greece and other parts of Europe causing another recession.
“Are we going to have a double dip? Are corporations going to be able to grow earnings? That’s sort of the bottom line for stock prices in the long run.”
The Dow rose 4.23, or less than 0.1 percent, to 10,325.26. It fell 0.7 percent for the week but rose 2.6 percent for the month. That’s the best run since it jumped 6.5 percent in November.
rose 1.55, or 0.1 percent, to 1,104.49. It fell 0.4 percent for the week and climbed 2.9 percent in February.
rose 4.04, or 0.2 percent, to 2,238.26. It fell 0.3 percent for the week. For February, the gain came to 4.2 percent.
Bond prices rose, pushing yields lower. The yield on the benchmark 10-year Treasury note fell to 3.62 percent from 3.64 percent late Thursday.
The dollar fell against other major currencies. Gold rose.
Crude oil rose $1.49 to $79.66 per barrel on the
.
hitting the Northeast. More than 20 inches fell in New York’s Central Park.
Investors were unwilling to make big moves ahead of economic reports next week. Most important, the
is expected to release its February payrolls report on Friday. Reports are also due on
and spending, manufacturing, construction spending and home sales.
Inconsistent reports are a part of economic recoveries but the size of the problems like unemployment and housing have brought concerns that a recovery will stall.
“It’s just complicating the ability to forecast with any degree of confidence how this is all going to settle out,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.
The questions about the economy have been tugging at the market. Stocks fell Monday and Tuesday after
. and Campbell Soup Co. warned that
will be slow to recover and after a drop in consumer confidence. The market then barreled higher Wednesday after
reiterated that interest rates would stay low to help the economy. On Thursday, stocks plunged and then recovered most of their losses as concerns shifted about unemployment and Greece.
“It really speaks to the level of angst that’s out there,” Luschini said, referring to the swings.
The report from AIG brought a reminder of the strains that still exist in the financial system. AIG said it lost $8.87 billion in the fourth quarter of 2009. That’s improved from a year earlier but weaker than analysts expected. AIG fell $2.74, or 10 percent, to $24.77.
Private equity firm Thomas H. Lee Partners said it is planning to acquire the parent of Carl’s Jr. and Hardee’s restaurants. The offer for
. totals $619 million in cash and $309 million in debt. Analysts like to see takeovers because it is a sign of confidence in the economy. CKE jumped $2.46, or 27.6 percent, to $11.37.
Meanwhile, a fifth straight monthly increase in the
provided some hope about the strength of manufacturing. The Chicago PMI rose to 62.6 in February from 61.5 in January.
, where consolidated volume came to 4.22 billion shares compared with 4.58 billion Thursday.
of smaller companies fell 1.90, or 0.3 percent, to 628.56.
Overseas, markets rose after improved economic reports in Britain and Japan boosted optimism about a global recovery. The U.K. government revised higher its estimate of the nation’s economic growth for the fourth quarter. In Japan, output from factories rose by more than expected in January and February retail sales jumped.
Britain’s FTSE 100 rose 1.5 percent,
gained 1.2 percent, and France’s CAC-40 rose 1.9 percent. Japan’s Nikkei stock average rose 0.2 percent.
closed the week down 77.09 points, or 0.7 percent, at 10,325.26. The Standard & Poor’s 500 index fell 4.68, or 0.4 percent, to 1,104.49. The
fell 5.61, or 0.3 percent, to 2,238.26.
The Russell 2000 index, which tracks the performance of small company stocks, fell 3.06, or 0.5 percent, for the week to 628.56.
U.S. Total
— which measures nearly all U.S.-based companies — ended at 11,343.17, down 48.18, or 0.4 percent.

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A look at global economic developments (AP)

admin — Thu, 25 Feb 2010 18:30:25 +0000

LONDON — Economic sentiment in the 16 countries that use the euro worsened in February for the first time in nearly a year, the
said, in a further sign that the recovery from recession has lost momentum.
With sentiment fragile and debt worries mounting across the single currency area, particularly in Greece, the Commission said it was sticking to its November forecast that the eurozone economy would grow by a very modest 0.7 percent this year.
The eurozone’s failure to build on its exit from recession last year was evident in the Commission’s monthly economic sentiment indicator, which fell 0.1 point to 95.9 in February, partly because consumer confidence deteriorated.
The decline is the first after ten consecutive monthly increases.
. The
of leading British shares closed down 1.2 percent,
slid 1.5 percent and the CAC-40 in
was 2 percent lower.
The worst performing main index in Europe was Athens, which ended down 2.8 percent.
TOKYO — Asian shares were mostly lower. The
stock average fell 1 percent, South Korea’s Kospi lost 1.6 percent,
fell 0.3 percent and Australia’s market dropped 1.2 percent. Shanghai’s benchmark defied the downward swing, rising 1.3 percent.
may not have emerged from recession at the end of 2009 after all, as statistics showed a dramatic fall in business investment in the last three months of the year.
The surprise 5.8 percent decline in business investment led many economists to reconsider their expectations that a 0.1 percent rise in gross domestic product in the fourth quarter would be revised upward in new data due out Friday — with some warning of a downward revision instead.
of 2009 had officially ended an 18-month downturn, the country’s worst recession since
.
BERLIN — The euro is in a difficult situation for the first time since its launch, but the 16-nation currency will come through,
said.
The euro, introduced in 1999, has suffered in recent weeks from worries over the ability of Greece in particular, but also countries such as
, to rein in their large
.
, Merkel said the currency proved itself during the
was spared deeper turbulence, but noted that the crisis has led to an increase in public debt.
BERLIN — Unemployment in Germany, Europe’s biggest economy, edged up only slightly to 8.7 percent in February despite a particularly hard winter.
disrupted flights on the third day of a walkout that looks set to extend into the weekend.
are upset at a restructuring plan that would jeopardize their status as public servants.
BEIJING — China accused Washington of abusing trade relief measures after U.S. regulators increased import duties on Chinese-made steel pipes.

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A look at global economic developments (AP)

admin — Tue, 16 Feb 2010 15:05:59 +0000

, who are reluctant to bail
out if it can’t pay its bills.
Greece’s debt problems have plunged the 16 nations that use the euro into a crisis. Greece broke rules on debt and deficits that underpin Europe’s currency union, and has investors worried that its problems could be even bigger because its public finance figures cannot be trusted.
The EU’s top economy official, Olli Rehn said he wanted the Greek government to supply answers by Friday on how it used
and how that affected debt and deficit figures.
also gave Greece a deadline of March 16 to show that it can make big spending cuts to bring its deficit down from the EU’s highest.
, the
of leading British shares ended up 1.5 percent,
rose 1.5 percent and the CAC-40 in
advanced 1.7 percent.
U.S. Treasury securities
fell by the largest amount on record in December, with
reducing its holdings by $34.2 billion.
The reductions in holdings, if they continue, could force the government to make higher interest payments as it is running record
.
reported that foreign holdings of U.S. Treasury securities fell by $53 billion in December, surpassing the previous record of a $44.5 billion drop in April 2009.
of U.S. Treasuries, dropping to second place behind
.
DUBAI, United Arab Emirates
— As world markets warily eye Greece’s financial crisis, investors are once again focusing on unresolved questions surrounding how deeply-indebted Dubai will pay its bills.
In one indication of the re-emerging concerns,
default this week shot to the level it was at the peak of the city-state’s debt crisis in November, before neighboring Abu Dhabi pumped in emergency bailout funds.
and delay repaying $26 billion in debt. Talks with creditors, which include big
and Standard Chartered, continue.
PORT-AU-PRINCE, Haiti — The main development bank for
says the Jan. 12 earthquake that ravaged Haiti’s capital might have caused nearly $14 billion in damage.
The preliminary study says the magnitude-7 earthquake could be the deadliest and costliest disaster on a list that dates back four decades.
chief signaled differences with the U.S. over how to overhaul
, saying he wants binding rules on pay and rejecting
’s plans to limit banks’ size and risky trading as wrong for Europe.
ATHENS, Greece — Greek customs officials and
designed to pull the country out of a debt crisis that has shaken the entire eurozone.
TORONTO — Canada is tightening mortgage lending rules as historic low rates are raising fears of a potential housing bubble.
said there is no compelling evidence of a bubble but says the government is taking proactive measures to prevent one.
FRANKFURT — German investor confidence slipped for the fifth month in a row in February amid dim prospects for the nation’s retail, consumer goods, steel and chemical sectors.
The confidence index of the ZEW Institute showed investors’ outlook for the next six months dropped to 45.1 points from 47.2 points in January. The survey is viewed by many as an accurate barometer for the economic outlook in Germany, Europe’s biggest economy.
LONDON — Britain’s consumer price inflation rate rose to 3.5 percent in January from 2.9 percent in December, due to a hike in the national sales tax and more expensive energy, the
said.
ended modestly higher though trading levels were extremely low because of holidays in Shanghai, Hong Kong, Taiwan,
.
Japan’s Nikkei 225 stock average rose 0.2 percent, South Korea’s Kospi and Australia’s benchmark each climbed 0.5 percent, Indonesia’s market added 0.8 percent and New Zealand’s stock index advanced 0.9 percent.

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