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

 


While you were sleeping: Growth worry caps Wall Street

While you were sleeping: Growth worry caps Wall Street

Jan 17 (BusinessDesk) – Wall Street was mixed as concern about the outlook for the global economy offset solid earnings including by Goldman Sachs.

The World Bank downgraded its economic forecast, estimating that global GDP will expand 2.4 percent in 2013, down from a June forecast of 3 percent, after growing 2.3 percent in 2012. Growth will "gradually" strengthen to 3.1 percent in 2014 and 3.3 percent in 2015, it said in its Global Economic Prospects report released yesterday.

"The economic recovery remains fragile and uncertain, clouding the prospect for rapid improvement and a return to more robust economic growth," World Bank Group President Jim Yong Kim said in a statement.

The World Bank said the euro zone economy will contract by 0.1 percent this year, before growing 0.9 percent in 2014 and 1.4 percent in 2015.

Separately, Germany downgraded its forecast for the pace of the nation's economic growth to 0.4 percent this year, down from a previous estimate of 1 percent, and down from 0.7 percent in 2012.

There was, however, good news on the earnings front. Shares of Goldman Sachs gained, last up 3.5 percent, after the bank’s profit nearly tripled.

And economic indicators also underpinned a sense of cautious optimism about the world's largest economy.

US industrial production rose 0.3 percent in December, while manufacturing output increased 0.8 percent last month, according to the Federal Reserve.

"There is every indication that the improvement may be a reflection of a broader pick-up in overall economic activity," Millan Mulraine, an economist at TD Securities in New York, told Reuters.

In afternoon trading in New York, the Dow Jones Industrial Average dropped 0.25 percent, while the Standard & Poor's 500 Index fell 0.10 percent. The Nasdaq Composite Index rose 0.11 percent underpinned by a rebound in Apple shares, last up 3.6 percent from the lowest level in 11 months.

Shares of Boeing dropped, last down 3.3 percent, after another incident involving its 787 passenger aircraft. This time, All Nippon Airways and Japan Airlines grounded their entire fleet of Dreamliners after one was forced to make an emergency landing.

"I think you're nearing the tipping point where they need to regard this as a serious crisis," Richard Aboulafia, a senior analyst with the Teal Group in Fairfax, Virginia, told Reuters. "This is going to change people's perception of the aircraft if they don't act quickly."

In Europe, the Stoxx 600 Index eked out a gain of just under 0.1 percent from the previous close. The UK's FTSE 100 fell 0.22 percent. France's CAC 40 advanced 0.3 percent and Germany’s DAX rose 0.2 percent.

Germany sold 4 billion euros of new 10-year debt today, drumming up solid investor demand. Investors submitted bids for 1.7 times the amount of new 1.5 percent bonds due in February 2023 allotted today, compared with 1.51 times at the previous auction of 10-year securities on November 21, according to Bloomberg News.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news