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

 


While you were sleeping: World Bank growth upgrade

While you were sleeping: World Bank growth upgrade

Jan 16 (BusinessDesk) – Stocks on both sides of the Atlantic rose as the World Bank upgraded its forecast for global growth and as US corporate earnings such as from Bank of America were better than anticipated.

The World Bank lifted its forecast for global growth, saying it expects the economy to expand 3.2 percent this year, up from 2.4 percent in 2013, and up from a previous estimate of 3 percent.

“Global economic indicators show improvement,” Kaushik Basu, senior vice president and chief economist at the World Bank said in a statement. “But one does not have to be especially astute to see there are dangers that lurk beneath the surface.”

In afternoon trading in New York today, the Dow Jones Industrial Average rose 0.74 percent, the Standard & Poor’s 500 Index gained 0.57 percent, while the Nasdaq Composite Index added 0.72 percent. Shares of Microsoft, last up 2.5 percent, and those of Caterpillar, last up 2.4 percent, led gains in the Dow.

Shares of Bank of America climbed 2.4 percent after the company reported results that surpassed expectations and bolstered optimism about the outlook.

"More than any of the recent quarters that I can recall, I think it really showed a bank that's well into recovery," Shannon Stemm, a banking analyst with Edward Jones, told Reuters.

Bank of America reported net income of US$3.4 billion for the fourth quarter of 2013, compared to US$732 million in the year-ago period.

“We enter this year with one of the strongest balance sheets in our company’s history,” Bank of America Chief Financial Officer Bruce Thompson said in a statement. “Capital and liquidity are at record levels, credit losses are at historic lows, our cost savings initiatives are on track and yielding significant savings, and our businesses are seeing good momentum.”

Shares of Apple rose, last up 2.4 percent. China Mobile, the world’s largest phone company by users, said pre-orders for the iPhone have reached about 1 million units ahead of sales in the carrier’s outlets that start at the end of this week, Bloomberg News reported.

On the economic front, the Federal Reserve Bank of New York’s general economic index increased more than expected to 12.51 in January, from a revised 2.22 in December. Separately, the producer price index rose 0.4 percent in December, after a 0.1 percent decline in November, according to Labor Department data.

“Pipeline inflation pressure is still pretty well contained,” Gennadiy Goldberg, a US strategist at TD Securities USA in New York, told Bloomberg. “The lack of inflation pressures will give the Fed more room to maneuver.”

In Europe, the Stoxx 600 Index ended the day with a 1 percent advance from the previous close, finishing at the highest level in six years. The UK’s FTSE 100 increased 0.8 percent, France’s CAC 40 rose 1.4 percent and Germany’s DAX jumped 2 percent.

Here, shares of Burberry jumped, up 4.6 percent, as the UK maker of luxury goods posted profit that exceeded expectations.

“At current levels, exchange rates will be a significant headwind in the second half and beyond, and the macro environment remains uncertain, but we are confident that our proven strategies will continue to deliver long-term value for shareholders,” Angela Ahrendts, Burberry Chief Executive Officer, said in a statement.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news