BGN Entrepreneur » Economic Outlook

US Economy Grows Faster than Expected

Sky — Sat, 28 Jan 2012 08:09:46 +0000

The pace of economic growth in the U.S. increased in the last three months of 2011, according to official figures. The economy grew at an annual rate of 2.8%, the Commerce Department said.

This was supported by the annual rate of 1.8% the previous quarter, although it was predicted slightly lower than the 3% rate of analysts. But the growth came largely from companies stockpiling goods they had produced, instead of selling them. Although the storage raised the numbers, analysts do not believe companies continue to do so, resulting in a lower growth rate for the current quarter. The pace of consumer spending rose by 2% compared to 1.7% in the previous quarter.

Much of it was attributed to an increase in sales of new cars rose by 14.8% over the quarter. The Japanese tsunami in March interrupted production and delivery of models for the major manufacturers, so that customers wait preordered cars.

Samsung got bumper Profits from Smartphone Sales

Sky — Sat, 07 Jan 2012 05:16:52 +0000

Samsung Electronics has said it’s about a big jump in profits for the last three months of last year report, primarily due to smartphone sales record. The South Korean company said it expects an operating profit for the period up to 5.2tn won ($ 4.5 billion, £ 2.9) are 73% higher than a year.

Samsung overtakes Apple as the world’s best-selling smartphone manufacturer in the second half of last year. The companies have been locked in a series of patent applications fighting in recent months. Analysts said Samsung’s profits were likely to grow again this year. “Samsung is expected to continue to record results this year will improve as income on flat screens and memory chips that make up for any potential slowdown in handset growth rates,” said Lee Seung-woo at Shinyoung Securities.

“Won I would expect profits to grow by one 5tn this year. The company is due to publish its official results for the fourth quarter of 2011 later this month.

Hong Kong Airlines $ 3.8 billion Airbus A380 Order

Sky — Sat, 07 Jan 2012 05:13:20 +0000

Hong Kong Airlines (TCA) has placed an order for 10 Airbus A380 aircraft worth about $ 3.8 billion (€ 2.5 billion) at list prices. The contract will be a relief for the European plane maker, because the order risked his derailed by a dispute between the European Union and China.

Beijing rejects an EU plan to tackle the international airlines comply with a system for carbon dioxide emissions. But Kenneth Thong, HKA corporate governance head, said a television interview, the order would go ahead. The carrier, which has ambitious expansion plans, is likely to have a great discount on the purchase order for the super-jumbo aircraft.

Mr. Thong said the planes were needed to help boost the airline’s growth, particularly in the development of business-class services with Europe. PCA before Airbus A330, which are used for services between Hong Kong and several European cities ordered.

Mr. Thong Bloomberg TV in Hong Kong said: “We think the relationship between Asia and Europe will be very exciting for the next couple of years after the current (economic) crisis is over we are planning for the aftermath .. It was expected that PCA would be a tall order for the A380, known in the past year. But the Financial Times reports that this has to be connected to China’s opposition to the EU carbon emissions trading system, the airlines pay the additional costs instead.

The U.S. has raised concerns about the scheme. The contract is to take the Airbus order book to 188th According to Airbus refused before an official announcement of the contract on 17 January position to take.

US Economy Boost 200,000 jobs in December

Sky — Thu, 05 Jan 2012 05:05:51 +0000

The U.S. economy created 200,000 jobs in December for the sixth consecutive month of gains, official figures show. The rise was much more than expected. Analysts had forecast a rise of about 150,000 jobs.
The unemployment rate fell to 8.5%, its lowest level in almost three years, from a revised 8.7% in November, said the Labor Department. Large job gains were seen in trade, manufacturing, transportation and housing and healthcare.
For 2011 as a whole, some 1.6 million jobs were created, which was the highest since 2006, growing out in the private sector. Employment in the private sector rose by 212 000 in December and by 1.9 million over the previous year.

Calls for United to Eurozone Crisis

Sky — Thu, 29 Dec 2011 16:25:27 +0000

Mario Monti, the Italian prime minister has called for a “common response” to the debt crisis of the Euro zone, because he plans to Italy announced out of the recession. He added that despite the two recent successful Italian bond auctions, he did not believe that the period had ended the financial market turbulence.

On Thursday, the government raised about 7 billion euros ($ 8.96bn, £ 5.86bn) of debt. The interest on the Italian 10-year bonds remained unchanged at 6.98%, a barely sustainable levels. Mr. Monti, on the occasion of traditional Prime Minister end-of-year press conference, stressed that the problems of Italy in the markets to larger problems at European level, a “united front, joint and convincing answer,” that increase could also necessary growth were connected.

He said his new government is working hard to prepare a package of measures to the Italian economy moving again. He will detail his economic plan, which EU leaders will present on 23 January. The plan would focus on the promotion of competition and liberalization of the Italian labor market, said Mr Monti.

He said that Italy had been seen heading towards a debt crisis in Greece as sliding doors, but had “dug in their heels” on the edge and not fall. “We’re very close to the situation in Greece,” he said. “We were in the South East [towards Greece] heading and we put on the brakes. He added that until the government took action, “there were many vultures circling in the sky of the European and international markets. Italy is the euro zone’s third largest economy, but investors worry about their mix of low growth, high debt and spiraling debt.

There are fears the country could be a bailout like the other euro zone members Greece, Ireland and Portugal have. Although the yields on Italian bonds fell from recent highs on Thursday’s debt auction, the country remains the cost of borrowing is relatively expensive.

Huge Demand for ECB’s three-year Loans

Sky — Wed, 21 Dec 2011 16:08:12 +0000

Euro zone banks have rushed to take favorable three-year loan, offered by the European Central Bank, borrowing € 489bn ($ 643bn, £ 375bn). The central bank had originally hoped, loans up to € 450bn to stop another credit crunch crippling the banking system.

More than 500 banks went to borrow from the scheme, which was well above market expectations. The euro rose sharply on the news, but then fell again later. When the plan was announced, French President Nicolas Sarkozy said banks could use the money to invest in the euro-zone government bonds.

However, analysts were uncertain whether the banks use the money in this way. The very serious takeover of the ECB’s three-year, long-term refinancing operation offers some encouragement that the bank’s liquidity needs are met plenty,” said Jonathan Loynes at Capital Economics said.

But while this may help to remain the recent signs of renewed tensions in the credit markets and support bank lending address, we skeptical about the idea that the operation of the debt crisis easily, since the banks use the funds to produce large amounts of peripheral government bonds buy. This was the European Central Bank, the first offering of the three-year loan and was the largest amount of money the central bank pumped into the financial system, beating the € 450bn offer is put in with his 2009 one-year loan.

Today’s UK Stock News

Sky — Fri, 09 Dec 2011 10:07:35 +0000

The markets seem unsure how to take the latest developments. The FTSE 100 opened 35 points lower, but recovered slightly to 5461.77, falling 22 points.
Lloyds Banking Group, Barclays and Royal Bank of Scotland all lost around 2% initially but recovered some ground since. But they are likely to continue after yesterday showed stress tests, volatile European banks had a net loss of € 115 billion compared with € 106bn in October. Banks in Germany are particularly fragile than expected, which will certainly give Angela Merkel additional impetus for a deal to get together.
And French banks are also under pressure. Moody’s has three French banks, including Societe Generale, which it says may need government support downgraded.

PMI Drop Indicating Further Slowdown

Sky — Sat, 03 Dec 2011 09:38:27 +0000

In November, China’s manufacturing sector shrank for the first time in nearly three years. According to figures by China Federation of Logistics and Purchasing, it is revealed that the purchasing manager index, which is a main gauge of manufacturing activity, tumbling from 50.4 to 49 in October..
According to the analysts, it is indicated that it has become a fresh sign of a further economic slowdown and may prompt the country to loosen monetary policies. A lull in China’s property market is also said to be contributing to the economic slowdown with both prices and sales dropping significantly under the previous round of credit tightening.

Belgium Credit Rating Also got Downgraded

Sky — Sat, 26 Nov 2011 05:00:48 +0000

Belgium has downgraded its credit rating by rating agency Standard & Poor’s had. The country could downgrade it more expensive to borrow for Belgium in the future. Belgium-rating was cut one notch to AA from AA + by S & P expressed concern about the funding and market pressures.

The move comes as the euro-zone threatens to continue to grow, and with continued concerns over Italy’s debt. We believe the Belgian government’s ability to increase the public debt, which we avoid as already at a high level, forced that by rapid private sector debt in Belgium and in many major trading partners Belgian partner,” said S & P in a statement.

He also said the outlook was “negative”, meaning possibly Belgium rating could be lowered further in the future.

Italy Forced to Pay Record Rates

Sky — Sat, 26 Nov 2011 04:58:47 +0000

The interest rate for new debt due in six months should be paid back 6.504%, compared with 3.535% in the last comparable sale on 26 October. The price for two-year bond was 7.814%, up from 4.628% last time.

The Bank of Italy said that the demand was high for the bonds, the demand for debt exceeds supply by 50%. But the European Economic and Monetary Affairs Commissioner Olli Rehn dismissed the idea that the euro zone crisis could lead to a disintegration of the single currency. “It is clear that the Heads of State and Government of the Euro-zone, very firmly, that they do everything to ensure that the future of the euro is solid and stable takes underlined,” he said.

Italy is a founding member of the European Union and a founding member of the euro and a central part of the euro, and it will remain so in the future.