Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: Wal-Mart, euro-zone trouble

While you were sleeping: Wal-Mart, euro-zone trouble

Nov 16 (BusinessDesk) – The silver lining proved yet again hard to find today as Wal-Mart's profit outlook disappointed and the euro-zone economy fell into recession.

Shares of Wal-Mart dropped, last down 3.7 percent, after the retail giant predicted fourth-quarter profit that missed the mark.

“Current macroeconomic conditions continue to pressure our customers,” Charles Holley, Wal-Mart's executive vice president and chief financial officer, said in a statement.

There was plenty of evidence of that pressure, exacerbated by the effects of Hurricane Sandy. Applications for unemployment benefits jumped more than expected, rising 78,000 to 439,000 in the week ended November 10, according to Labor Department data.

A worrying sign indeed. "We will likely see a step back in job growth," Ryan Sweet, senior economist at Moody's Analytics in West Chester, Pennsylvania, told Reuters.

Separately, data from the Philadelphia Federal Reserve Bank and the New York Federal Reserve Bank showed that indexes of manufacturing shrank in those regions this month.

The latest data only add to the need for President Barack Obama and lawmakers to find a way to avoid the so-called fiscal cliff, a mix of tax increases and spending cuts that will kick in automatically on January 1 and risk hampering the already-fragile economy.

In afternoon trading in New York, the Dow Jones Industrial Average dropped 0.38 percent, while the Standard & Poor's 500 and the Nasdaq Composite Index each shed 0.48 percent.

In Europe, the Stoxx 600 Index ended the day with a 1 percent slide from the previous close. The FTSE 100 and Germany's DAX each dropped 0.8 percent. France's CAC 40 shed 0.5 percent.

There was more bad news for the euro zone economy. The latest data showed that the region's gross domestic product dropped 0.1 percent in the quarter, after a 0.2 percent decline in the second quarter.

A Reuters poll of more than 70 economists predicted the bloc's new recession will extend until the end of the year and 2013 promises little better than stagnation. Conducted before Thursday's data were released, the consensus was for a 2012 contraction of 0.5 percent and only 0.1 percent growth next year.

“The euro zone as a whole has slipped back into recession,” Nicholas Spiro, managing director of Spiro Sovereign Strategy in London, wrote in an e-mail to Bloomberg News.

“Europe’s economic downturn has not only deepened, it has also broadened with the core of the euro zone now much more affected. The bleak economic data out of Europe will further undermine sentiment,” according to Spiro.

In other news, BP said it reached a settlement with the US government to pay US$4.5 billion in penalties, settling all criminal charges and resolving securities claims relating to the Deepwater Horizon oil spill.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news