Tuesday, November 18, 2014

Japan's Economy Contracts Into Recession

Japan economy, world economy, business, finance

Japan's (3rd largest economy in the world) economy shrank for the second consecutive quarter that put them in recession surprised the world. Gross domestic product (GDP) went down at an annualised 1.6% from July to September, compared with forecasts of a 2.1% rise. It followed a revised 7.3% contraction in the second quarter, this is the biggest fall since the March 2011 earthquake and tsunami.

Japan's Prime Minister Shinzo Abe will be calling a snap election to obtain a mandate to delay sales tax rise to 10%, which is scheduled for 2015.

The economy shrank 0.4% in the third quarter from the quarter previous. The data showed that growth in private consumption, which accounts for about 60% of the economy, was much weaker than expected.

Saturday, November 1, 2014

Manufacturing Growth in China Falls in October Unexpectedly

BEIJING, November 1 - China's manufacturing growth fall to a five-month low in October along with a slowing economy and a weak global demand. The official Purchasing Managers' Index (PMI) fall to 50.8 in October from September's 51.1, according to a survey from the National Bureau of Statistics that was released on Saturday. They also noted that it is still above the 50-point level that separates growth from contraction on a monthly basis.

The PMI showed foreign and domestic demand fall to five- and six-month lows, respectively, with overseas orders shrinking slightly on a monthly basis.

China's growth fell to 7.3% in the third quarter, its lowest level since the 2008 and 2009 global financial crisis, as the housing market sagged and domestic demand and investments are down.

Chinese government have said that full-year economic growth may fall short of their 7.5% target, but that it would be acceptable as long as inflation stays low and the economy continues to produce jobs.

The World Bank has said that China's growth could possible go down to about 7% next year, they said that Beijing should found a way to promote competition and efficiency through reforms in their labor and real estate markets along with its state-run financial system.

Thursday, October 23, 2014

Spain Jobless Rate Drops Economy Recovers

Spain Jobless Rate, Spain economy, Spain news

The unemployment rate of Spain went down to its lowest since the end of 2011, Spain's economy is now the fastest-growing in Europe. The jobless rate is down to 23.7% in 3 months up to September. Previous quarter's jobless rate is at 24.5%. Their economy grew about 0.5%.

Prime Minister Mariano Rajoy go easy on laws about wage cuts and dismissal from work back in 2012 to encourage the hiring of people from companies. However, unemployment rate is still the 2nd highest in the European Union after Greece.

Analyst Diego Trivino said that “It’ll take the economy about 8 years to recover pre-crisis job levels. Unemployment will remain high and close to 18% for the next five years.”

Economists surveyed by Bloomberg News forecast a decline in joblessness to 24.1 percent in the third quarter.

The number of jobs rose 1.59 percent from a year ago in the third quarter, INE data released today show. In seasonally adjusted terms, job creation increased from the previous three months, marking the fourth straight quarterly gain.

Friday, October 17, 2014

AMD US Chip Maker to layoff 7% of employees to increase profits

AMD US Chip maker, AMD layoff, AMD workers

U.S. chip maker Advanced Micro Devices Inc which is struggling recently announced on Thursday October 16 that they will be reducing their global workforce by 7% to raise profits.

The company's performance for the last three quarters are below the market expectations. Because of this announcement the shares of AMD went down by around 5% to $2.51.

AMD on their 2014 Third Quarter reports stated that they have a Net income of $17 million which is earnings of $0.02 per share.

The earnings balanced for depreciation costs, which is close to 3 cents per share. In the previous year the organization earned $48 million which is 6 cents for every share.

AMD's revenue went down from 1.46 billion to 1.43 billion last year. Besides, the company is expecting its Q4 revenue to decline by 13%.

Friday, October 10, 2014

World stocks fall after Wall Street plunge

World stocks fall, Wall Street plunge, wall street falls, finance, investment

World stocks falls this Friday following the cue from Wall Street after it suffered its worst day of the year. The anemic German trade data didn't help and it added worry that Europe is heading into recession.

Asia: Asian markets fell sharply Friday and oil prices plunged. Tokyo's Nikkei 225 index tanked  1.3 percent to 15,286.25 points and Hong Kong’s Hang Seng index dropped 1.9% to 23,144.81. China’s Shanghai Composite fell by 0.6% to 2,375.28. Seoul fold by 1.3 percent and Sydney and Singapore also declined.

Europe: Markets across Europe traded lower. Analysts are worried that Europe is heading to recession after Germany, Europe's biggest economy, reported their weakest year-on-year export growth in 5 years. The president of the European Central Bank, Mario Draghi, gave no indication of any further monetary stimulus, suggesting in a speech in Washington that governments need to do more on the fiscal side.

DAX of Germany fell 1 percent to 8,921.50. Britain's FTSE-100 was down by 0.8 percent to 6,431.85 and France's CAC-40 slide by 0.7 percent to 4,111.50.

Wall Street is looking weak and is heading for more declines, with the future for the Dow Jones industrial average down 0.1 percent in pre-market electronic trading and the Standard & Poor's 500 flat. On Thursday, the Dow were down 335 points, or 2%, to 16,659, the blue chip index’s biggest drop since a 354 point slide on June 6, 2013. The Standard & Poors 500 slumped 2% to 1,928. The Nasdaq composite slid 2% to 4,378.

ENERGY: Benchmark U.S. crude plunged $1.34 to $84.43 per barrel on concerns slowing global economic growth will reduce demand while production stays high. The contract lost $1.56 on Thursday to $85.77. Brent crude, used to price international oils, lost $1.17 to $89.19.

CURRENCY: The dollar rose to 107.95 yen from Thursday's 107.87 yen. The euro fell 1 U.S. cent to $1.26.

Tuesday, September 30, 2014

Hang Seng Index Went Down Amid Hong Kong protests

Hang Seng Index, business, finance, stocks

The Hang Seng index went down 1.3%, after the 1.9% decline on Monday. The total accumulated loss in September is now to more than 7%. There are fears that the ongoing pro-democracy protests in Hong Kong spread to China that may disrupt business and trading.

The ongoing political problems in Hong Kong and wariness over the potential extent of monetary policy divergence in the United States and Europe are making markets nervous and trading is cautious as the third quarter nears to a close. The FTSE Eurofirst 300 struggled to have gains and US index futures are flat. Eurozone inflation had fallen to 0.3% in September which is its weakest in five years.

Europe inflation went down to a 5-year low that raised expectations of more stimulus from the European Central Bank ECB as a result the Euro went down and stocks gain.

Tuesday, September 16, 2014

World stocks Slipped to one-month low Ahead of Fed Meeting

Global stock markets closed mostly lower Tuesday September 16, 2014 as investors played it safe in preparation for the Fed Meeting. U.S. central bank may raise interest rates sooner than previously expected

Germany's DAX fell 0.3 percent to 9,620.59 and France's CAC-40 declined 0.5 percent to 4,404.69. Britain's FTSE 100 shed 0.2 percent to 6,791.57. Wall Street appeared set for more losses. Standard & Poor's 500 futures were down 0.1 percent and Dow futures fell 0.2 percent.

The MSCI world equity index .MIWD00000PUS, which tracks shares in 45 countries, was down 0.2 percent after hitting its lowest level since mid-August earlier in the session. In Europe, the benchmark FTSEurofirst 300 .FTEU3 was down 0.4 percent.

Asian shares also slipped. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS shed 0.7 percent to its lowest since late June, while Japan's Nikkei .N225 snapped a five-session winning streak to close down 0.2 percent.

The euro held steady at $1.2937 EUR=, hemmed in a $1.2859-$1.2980 range after a sell-off sparked by the European Central Bank's interest rate cut early this month faded.

The British pound has turned volatile in recent weeks as opinion polls narrowed ahead of Thursday's independence referendum in Scotland, which could spark a sizeable panic in U.K. markets. On Monday, the pound was 0.2 percent lower at $1.6231.