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

 

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news