Economy News - part 2
ECONOMY December 15, 2011 | 3:52 PM
- Credit Agricole stocks fall 52% in 2011, third-quarter profit down 65%
- Global banking sector sheds 120,000 jobs in 2011
- Moody’s downgrades top three French banks
France’s third-biggest bank Credit Agricole has announced plans to let 2,350 of its employees go, mostly from its investment-banking sector, in an effort to cut costs in the face of the Eurozone debt crisis.
Among the cuts are 600 jobs in Credit Agricole’s factoring and consumer finance branch and 1,750 jobs at its corporate and investment bank, which has a staff of 13,000 total. Among the 1,750 corporate and investment positions to be axed, 500 will be cut in France.Read more »
ECONOMY December 6, 2011 | 5:02 PM
- European PMI falls to 46.4, lowest rate since 2009
- Manufacturers cut jobs due to low sales, unemployment rises to 10.3%
- Czech and British factories slow output, German manufacturing declines
- Reuters poll: 60% chance of EU recession
Europe's manufacturing sector fell in November at its fastest pace in 28 months, with production and new orders down to levels not seen since the height of the credit crisis in mid-2009.
Markit's, a financial services firm, Purchasing Managers' Index (PMI) for the Eurozone fell from 47.1 to 46.4 in November, marking the lowest PMI since the summer of 2009. A PMI under 50 marks a contraction, while anything above suggests growth. This is the Eurozone's fourth consecutive month below 50.Read more »
ECONOMY December 1, 2011 | 10:37 AM
- Central bank lowers banking reserve, promotes capital flow
- Global stocks improve as Chinese stocks fall
- China's real estate market, manufacturing sector drops
China is reducing its banking reserve requirements for the first time since 2008. According to the central bank's website, the reserve ratios will be cut by 50 basis points on December 5, leading to an increase of 350 billion yuan ($55 billion) to their money supply.
Bloomberg News speculates that the shift in China's monetary policy might signal that the government believes that the world's second-largest economy may be entering a deeper slowdown.Read more »
ECONOMY November 29, 2011 | 9:51 AM
- Heavy opposition to FDI in India's retail sector, government to meet today
- Participating foreign companies must invest minimum $100 million in next 5 years
- Discussion represents a significant change in India’s legislation on foreign ownership
India’s cabinet has voted to allow foreign investment in the nation’s $500 billion retail sector, a move touted by India’s Commerce Minister Anand Sharma, who hopes it will provide farmers fairer compensation and create 10 million jobs.
Potential investors, including retail giants such as Wal-Mart, Carrefour and Tesco, are eager to enter a market that analysts estimate will double to over $780 billion by 2015. Moreover, the Indian government promises foreign investment will curb India’s high inflation rate and low rupee, and reduce the waste caused by the rotting of 40% of fruits and vegetables prior to selling.Read more »
ECONOMY November 24, 2011 | 10:17 AM
- Revised quarterly GDP 0.5% lower than predicted, 2.5% yearly rate expected
- Inventory slump may boost fourth-quarter growth
- Banks and corporations record quarterly profits
Third quarter gross US domestic progress figures have been adjusted by the Department of Commerce, revealing a downward revision from 2.5% to 2% growth.
The slower growth figure surprised economists, who expected the figure to remain in tact, and disappointed those who were eagerly awaiting an economic rebound in the first half of 2012. Despite the downward revision, the new figure is still much higher than the meager 1.3% growth reported in the second quarter.Read more »
ECONOMY November 21, 2011 | 11:35 AM
- Unemployment claims lowest in 7 months; state unemployment benefits down to a 3-year low
- New building permits up 11% last month
- Home-builder sentiment index reaches 20
In the latest data to suggest an economic recovery, separate reports were posted that reveal a decline in unemployment claims and a spike in home construction permits: Unemployment claims dropped 5,000 to 388,000, while building permits for housing development soared to nearly 11% last month to a seasonally adjusted annual rate of 653,000.
As the US begins its economic recovery, the European debt crisis and rising gas prices remain two major obstacles to growth. Despite these promising figures, Europe's debt kept global stocks low.Read more »
ECONOMY November 18, 2011 | 11:01 AM
- Benchmark crude jumps over 25% since end September
- Report of rising consumer spending for 5 months fuels oil prices
- Political tension in oil producing countries spurs oil prices
The benchmark West Texas Intermediate crude oil price has breached the $100 per barrel mark, climbing to $100.79.
The price of benchmark crude has jumped more than 25% since the close of September on the back of economic improvement. The impetus on the Federal Reserve to spur economic growth is mounting in the face of slowing inflation.Read more »
ECONOMY November 18, 2011 | 10:54 AM
- Industrial output grows 0.7%, exports up to $180 billion
- Labor Department shows 0.1% CPI drop, 3.5% decline in inflation
- Corporate spending boosts economy with over 17% rise
New manufacturing and inflation figures suggest that the US economy is weathering Europe's financial and political problems better than expected: the Federal Reserve has recorded a 0.7% improvement in industrial output, the quickest growth in three months, while the Labor Department reported a 0.1% decline in the consumer-price index (CPI) as the cost of living dropped for the first time in four months.
Analysts told the Associated Press that exports to Europe account for one-fourth of all US corporate revenue, and that they expect the US economy to slow next year as the unstable Euro makes American goods more expensive abroad.Read more »
ECONOMY November 16, 2011 | 10:11 AM
- Japan reports 6% annualized growth in July-September quarter
- Exports up 6%, with economic output reaching $7 trillion
- Private sector machinery orders fell more than 8% in September
Japan is showing good recovery following the quake that shook its economy, reporting 6% annualized growth in the July-September quarter, its first growth in four quarters.
The March 11 earthquake and tsunami lead to a nuclear crisis in Japan, hitting industrial growth, especially in the automotive sector, which was hit by production shortages. The country’s economic recovery is likely to be slowed by a precarious wider economic climate and a strong yen.Read more »
ECONOMY November 14, 2011 | 3:54 PM
- Canada in talks with China about investment in Alberta’s oil sands, consumption of crude oil
- TransCanada’s Keystone pipeline project uncertain given heavy US opposition
- SNC Lavalin awarded $650 million contract to build oil sands treatment plant in Alberta
Despite a volatile global economy, Canada is looking to China to boost its forestry and oil sectors as both an investor and customer.
Currently, Joe Oliver, Canada’s Federal Natural Resources Minister, is at the tail-end of a trip to China proposing Chinese investment in the growing oil sands in Alberta as well as consumption of crude oil circulating through Enbridge’s future Northern Gateway Pipeline. This pipeline would transport crude oil to Kitimat, B.C., via Edmonton, and then to Asia by tanker.Read more »