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

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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