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

 


While you were sleeping: Germany's signs of recovery

While you were sleeping: Germany's signs of recovery

Jan 22 (BusinessDesk) – Equities in Europe advanced as Germany's central bank said the nation's economy is showing signs of recovery in the first quarter of the year.

"The largely stable labour market and a better outlook for output suggest that the economic weakness won’t last all that long,” according to the Bundesbank in its monthly report released today.

The bank forecasts the economy to grow 0.4 percent in 2013 year and 1.9 percent in 2014. Europe's largest economy contracted 0.5 percent in the fourth quarter of 2012, data last week showed.

Meanwhile, euro zone finance ministers gathered for their first meeting of the year. At the top of their agenda is the financial situation in several peripheral economies including Spain. In addition, the ministers will be discussing how to provide financial help directly to the region's banks.

Europe's Stoxx 600 Index ended the day with a 0.3 percent increase from the previous close. Germany’s DAX and France's CAC 40 both climbed 0.6 percent, while the UK's FTSE 100 rose 0.4 percent.

Transportation remains snarled in the UK and France as a winter storm buffets the area, renewing concerns about the economic outlook. In Germany, a weekend electoral loss for Chancellor Angela Merkel's coalition could block efforts for her government to pass legislation.

US markets were closed for the Martin Luther King Jr holiday on Monday as President Barack Obama celebrated the official start of his second four-year term.

Republicans are gearing up for a Wednesday vote that is expected to provide temporary relief for the US Treasury's debt ceiling, expected to be reached as early as next month.

The yen rose against the greenback, climbing from the lowest level since June 2010, amid expectations the Bank of Japan will announce further monetary policy easing measures.

The central bank's two-day policy meeting is expected to result in a doubling of the inflation target and an expansion of its asset-purchase program. The BOJ will increase asset purchases this week, according to all 23 economists in a Bloomberg News survey, with the median estimate for a 10 trillion-yen increase.

"It’s hard to see what the BOJ could say … that would exceed market expectations,” Daragh Maher, a currency strategist at HSBC Holdings in London, told Bloomberg News. “It’s a natural positioning ahead of the Bank of Japan’s meeting given the yen’s decline.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news