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

 


While you were sleeping: Temporary relief for US debt

While you were sleeping: Temporary relief for US debt

Jan 24 (BusinessDesk) – Wall Street extended gains after the US House voted in favour of a plan that allows the Treasury to borrow beyond the US$16.4 trillion limit until May 19 to avoid the threat of default.

Republicans are seeking cuts to spending in return.

"The bill we are passing today, we think, will give us the ability to have a debate that will last a number of months about contrasting visions," House Budget Committee Chairman Paul Ryan told reporters before the vote, Reuters reported.

"We see this as a very defining moment for this session of Congress and our caucus on getting a down payment on the debt crisis, on averting it," Ryan said.

Earnings also helped propel gains. Shares of Google, IBM and Advanced Micro Devices rallied on earnings that surpassed expectations, last up 6.3 percent, 4.9 percent and 10 percent respectively.

Sales forecasts of Texas Instruments, however, missed the boat, sending its shares 1.1 percent lower. So did Coach and its shares sank more than 15 percent as a result.

Apple is set to report earnings after the market close today. Its shares were last up 1.3 percent at US$510.84, well below the record US$705.07 reached in September 2012.

"Pretty much all eyes are on Apple to see what they are going to do this evening. What happened to Apple is they had some misses in the second and third quarters of 2012 and the explanation was anticipation of the new iPhone 5, so this quarter they really have to deliver on that story," Troy Logan, managing director and senior economist at Warren Financial Service in Exton, Pennsylvania, told Reuters.

Of the 99 S&P 500 companies that have reported earnings so far, 67.7 percent have topped expectations, above the 62 percent average since 1994 and the 65 percent average over the past four quarters, according to Thomson Reuters data.

In afternoon trading in New York, the Dow Jones Industrial Average gained 0.53 percent, while the Nasdaq Composite Index rose 0.38 percent, and the Standard & Poor's 500 Index rose 0.09 percent.

In Europe, the Stoxx 600 Index finished the day with a 0.2 percent increase from the previous close. National benchmark indexes in the UK and Germany gained as well, rising 0.3 percent and 0.2 percent respectively.

Spain’s recession worsened in the final three months of 2013. Gross domestic product shrank 0.6 percent in the last quarter of 2012 from the previous three months, according to an estimate by the Bank of Spain.

The International Monetary Fund lowered its forecast for global economic growth to 3.5 percent, from 3.6 percent previously. In the update of its World Economic Outlook report, the IMF predicted the euro-zone economy will contract 0.2 percent this year, compared with an October forecast for 0.2 percent expansion.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Constructing Consent: Annual Housing Consents Highest In Over A Decade

More than 29,000 new homes gained building consent in the year to June 2016, up 16 percent from the previous June year, Statistics New Zealand said today. More>>

ALSO:

OceanaGold: Man Killed In Waihi Mine Accident

A 29-year-old man had died following a work place accident at OceanaGold mine, Waihi last night. The man was killed after the front end loader he was in rolled down a slope. The accident happened at approximately 6.30pm on Thursday night. More>>

ALSO:

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news