Asian shares witnessed a considerable increase on Thursday following the minutes of the Federal Reserve which managed to raise market anticipation for further financial stimulus. But any gains generated were trimmed by a less than satisfactory reading from a survey conducted on Chinese manufacturing operations.
Deutsche Bank AG reported a fall in its first-quarter net profit by one-third from a record level a year earlier. Deutsche Bank blames this on the sluggish client activity, which has continued to pressurize investment banking activities across the board and due to exceptional charges has resulted in the bank’s effort to reduce risks.
Spain is considered to be an epicenter. The country is expected to be in extreme difficulty by the nation’s Prime Minister, Mariano Rajoy. Luis de Guindos, Economy Minister believes that an outline is being prepared by Spain, as to how it will comply with European budget-deficit rules, after its borrowing costs reached the highest since December.
A real big step was taken by the European Union Monday en route for structuring a strong financial firewall to prevent the spread of fiscal infectivity to major economies like Spain. The move came after Germany dropped its opposition to bringing the Continent’s total bailout capacity to more than 690 billion Euros.
Job gains have been the long discussed thing every since the progress on eurozone debt crisis is slowing improving and the world’s economy is gaining grip. There is a wave of jobs being generated in industries, and unemployment seems to go down.
The Bank of Japan sliced its growth forecast for the financial year 2012, starting in April, keeping its zero-interest policy on hold, with the global demand reducing and keeping yen strong due to eurozone debt crisis. The BOJ is also counting on spending for reconstruction after last year’s earthquake to support a fragile recovery.
All the 27 European leaders will also prepare the final sketch of another treaty that will look after sharply tightening fiscal discipline in the euro zone, called the fiscal compact that is designed to ensure another sovereign debt crisis does not happen in future. European leaders are in talks of signing off on both treaties on January 30, allowing the ESM to start operating from July.
Asian stocks climbed up for a second day as Australian building permits beat estimates and U.S. consumer credit supplementing to signs the global economy is weathering Europe’s debt crisis. The South Korean won saw the highest rise in three weeks pointing out that Eurozone leaders are working hard to tackle the debt crisis.
As per the Bureau of Economic Analysis, corporate earnings before taxes rose to $1.97 trillion in the third quarter of 2011. The fourth quarter results could perhaps more importantly tell us what is 2012 looking like. U.S. corporate earnings grew at the slowest pace in the fourth quarter. Business magazines and analysts are expecting that [...]
The manufacturing industry is starting to see positive numbers around the world, despite continuing global economic problems. The United States, India, China, and Europe are starting to see some growth, although the not all of the European manufacturing industry is on the up and up. It turns out that global manufacturing has managed to do well despite the Eurozone crisis and global economic woes, but time will tell if global manufacturing can continue to make improvements as economic conditions are projected to remain the same.
After the eurozone debt crisis and the sluggish economy in the U.S. hit Asia’s export economies harder, South Korea and Taiwan saw a slowdown in their manufacturing activities. Manufacturing in South Korea contracted for a fifth straight month and Taiwan contracted in a fifth consecutive month and in Taiwan, manufacturing contracted for the seventh consecutive month.
Even as the economic depiction in the United States has brightened up recently with more positive employment figures, Europe remains held up in a slump. Most economists are estimating a recession for 2012, which will heighten the pressure faced by governments and financial institutions across the Continent.
It is the final week for stock market in 2011 and analysts are expecting a quiet time in the market. Most market players, traders and investor took time off and extended their Christmas weekend to a lazy Monday. The stock markets were closed on Monday and will resume trading from today on a normal schedule. [...]
With financial turmoil creeping in the country and the borrowing rate of Italy towering above 7 percent, many small European countries are forced to hunt for help. The eurozone finance ministers are considering a financial aid package for the country. 17 ministers of the eurozone have quickly managed to raise adequate money in order to build confidence among the world markets that their currency won’t give up.
France is beginning to feel the pressure as its borrowing costs rose this week. On top of that, France and Germany, the two largest economies in the Euro Zone are clashing on a solution, particularly on how the European Central Bank is going to help. France insists that the ECB needs to play a stronger role in ensuring the stability of the euro and in helping to fix the debts that have started this crisis in the first place. Germany doesn’t want the ECB’s involvement in the Eurozone debt crisis
As the Eurozone debt crisis continues, attention is turning from Greece to Italy as Europe’s third-largest economy is beginning to buckle and worries emerge of more widespread economic collapse than previously thought. Yes, Greece’s debt is bad at $500 billion. But, Italy is at $2.6 trillion (five times larger than Greece’s), and is also at risk of defaulting. Italy is also a much larger economy than Greece, so Greece defaulting is one thing. Italy is completely another.
Five hundred billion dollars. That’s how much Greece has borrowed, and now owes to many others. Five hundred billion dollars is also the same as half a trillion dollars, and no matter how it’s described that’s a lot of money for Greece and the Eurozone to remedy. It took years of mismanaged spending and widespread tax evasion to get the country in this mess, while the Eurozone has only a very limited time to get Greece, and other countries out of the mess before the largest economic zone in the world falls apart.
MF Global, a now-bankrupt brokerage firm has roots that go back more than two centuries to a London trading firm. Unlike other brokerage firms, MF Global is not in the business which revolves around buying and selling of stocks or into selling of European bonds. MF Global has been in the market for a long time and it primarily focused on assisting investors on placing bets on where stocks or bonds or commodity prices are headed by selling so-called futures contracts.