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

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news