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

 


While you were sleeping: Budget talks turn frosty

While you were sleeping: Budget talks turn frosty

Dec 21 (BusinessDesk) – Momentum stalled on Wall Street as did budget talks between Democrats and Republicans aimed at preventing the US from falling over a fiscal cliff at the end of the month.

Today Republicans in Congress will vote on House Speaker John Boehner’s plan to raise taxes on incomes over US$1 million, a plan President Barack Obama would veto as he's now seeking a US$400,000 threshold.

Officials from Obama’s administration told leaders of US business and financial-services groups that negotiations with Boehner have deteriorated in the last 24 hours, Bloomberg News reported, citing a person familiar with the meeting.

"The market still believes that there will be an announcement of some sort. But as the clock is ticking, the most you're going to get is a stop-gap measure," Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey, told Reuters.

Whether those expectations will prove correct is increasingly challenging to ascertain.

"It is very difficult to say if the optimism out there is warranted," Alec Young, global equity strategist at S&P Equity Research in New York, told Reuters. "We don't know what's going on behind the scenes, and that makes it very difficult to account for all the uncertainty out there."

In afternoon trading in New York, the Dow Jones Industrial Average gained 0.11 percent and the Standard & Poor's 500 Index rose 0.09 percent. The Nasdaq Composite Index slipped 0.14 percent.

The latest data showed that the US economy expanded 3.1 percent in the third quarter—stronger than previously estimated, and that existing home sales rose a better-than-expected 5.9 percent in November.

However, the number of Americans filing new claims for jobless benefits climbed more than predicted in the latest week.

"It is great to see this kind of growth, but investors know it could all disappear if there's no deal on the cliff," Todd Schoenberger, managing partner at LandColt Capital in New York, told Reuters. "Macro data may be on the back burner for a while."

In Europe, the Stoxx 600 Index closed with a gain of almost 0.1 percent for the day. Shares in Frankfurt and Paris eked out an advance of nearly 0.1 percent, while those in the UK slipped by a similar narrow margin.

UK retail sales unexpectedly shrank in November, raising concerns the nation's economic outlook is darkening.

"The economic outlook has got worse and consumers are probably still really uncertain,” Rob Wood, an economist at Berenberg Bank in London and a former Bank of England official, told Bloomberg. “There’s no good news ahead for them in the near term.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news