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

 


While you were sleeping: Jitters over US debt ceiling

While you were sleeping: Jitters over US debt ceiling

Jan 16 (BusinessDesk) – Wall Street was mixed as concerns about the US debt ceiling, and the potential impact on the economy, moved to the fore.

Treasury Secretary Timothy Geithner warned that failure to lift the US$16.4 trillion debt limit by early March would “impose severe economic hardship.”

Fitch Ratings on Tuesday said it expects that Congress will raise the debt ceiling and that the risk of a US sovereign default "remains extremely low".

However, failure to do so "in a timely manner will prompt a formal review of the US sovereign ratings," the ratings agency said in a statement.

Federal Reserve Bank of New York’s general economic index fell to minus 7.8 in January from a revised minus 7.3 in December, signalling the sixth straight month of contraction for the region's manufacturing.

"The manufacturing sector in general has been stuck in neutral for several months now,” Thomas Simons, an economist with Jefferies Group in New York, who had forecast an improvement in the Empire index to minus 2, told Bloomberg News. “It still hasn’t shown any progress. We’re still stuck in the mud here.”

At least there was some relief from retail sales, which climbed a better-than-expected 0.5 percent last month after gaining 0.4 percent in November, according to Commerce Department data.

"Consumers continue to provide underlying support for the economy," Eric Green, chief economist at TD Securities in New York, told Reuters.

The report also helped underpin retail stocks including JC Penney, last up 1.9 percent.

In afternoon trading in New York, The Dow Jones Industrial Average edged 0.02 percent lower, while the Standard & Poor's 500 Index slipped 0.01 percent and the Nasdaq Composite Index fell 0.24 percent.

In Europe, the Stoxx 600 Index finished the session with a decline of less than 0.1 percent from the previous close. The FTSE 100 managed a 0.2 percent gain, though France's CAC 40 slid 0.3 percent and Germany’s DAX sank 0.7 percent.

The German economy probably contracted about 0.5 percent in the last three months of 2012, compared to the previous quarter, according to Federal Statistical Office data. For the whole of 2012, Europe's largest economy still grew, albeit at the slowest pace in three years.

Spain drew solid demand for its bond auction today, selling 5.75 billion euros of bills.

Italy is selling 6 billion euros of 15-year bonds via banks today, to be priced to yield 30 basis points more than the rate on the current benchmark, Bloomberg News reported, citing information from a person familiar with the offering, who asked not to be identified because terms aren’t established. The security will be set against the 4.5 percent bond due March 2026.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news