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

 


While you were sleeping: Procter & Gamble downgrade

While you were sleeping: Procter & Gamble downgrade

Feb 13 (BusinessDesk) – Wall Street edged lower as Procter & Gamble cut its earnings forecast because of the recent slides in emerging markets currencies, prompting concern more US companies will follow suit.

In afternoon trading in New York, the Dow Jones Industrial Average fell 0.24 percent, the Standard & Poor’s 500 inched 0.01 percent lower. The Nasdaq Composite Index added 0.20 percent.

Shares of Procter & Gamble, last 2.2 percent weaker, led the Dow lower.

Procter & Gamble downgraded its full-year profit and sales forecast for this year because of foreign exchange rates, particularly in Venezuela.

The downgrade also reflected the “devaluation of the Argentine peso, Turkish lira, South African rand, Russian ruble, Ukrainian hryvnia, Brazilian real and several other currencies to the US dollar,” the company said in a statement.

Ali Dibadj, an analyst at Sanford Bernstein & Co in New York, expects more companies will make similar announcements, according to Bloomberg News.

Meanwhile, there was positive news from China though analysts struggled to make sense of the data. China's total exports jumped 10.6 percent in January from a year earlier, according to a Customs Administration report, far above expectations.

Economists polled by Reuters had predicted a 2 percent rise, while those surveyed by Bloomberg News had forecast a 0.1 percent gain. Imports rose 10 percent.

"We find this strong level of export growth puzzling," Zhang Zhiwei, an economist at Nomura, told Reuters. "It is unclear to what extent the strong export data reflects the true strength in the economy."

In Europe, the Stoxx 600 Index finished the session 0.8 percent higher than the previous close. France’s CAC 40 gained 0.5 percent, while Germany’s DAX increased 0.7 percent.

The UK’s FTSE 100 edged less than 0.1 percent higher as investors digested the Bank of England’s inflation report in which it upgraded its expectations for growth this year, raising its forecast to 3.4 percent from the previous 2.8 percent.

While BOE Governor Mark Carney indicated interest rates will remain low, investors wonder whether that will be the case as the economy gathers momentum faster than expected.

"Carney's reference to interest rates being at 2.0 percent in three years' time marks a sea-change in policy," Trevor Welsh, head of UK sovereign and inflation at Aviva Investors, told Reuters. "Effectively, the Bank of England is now looking at time well within its forecast horizon when emergency interest rates will no longer be necessary."

The British pound rose 0.8 percent to US$1.6581 and strengthened 1.2 percent to 81.96 pence per euro.

Separately, industrial production in the euro zone fell a larger-than-expected 0.7 percent in December, down from a revised 1.6 percent gain the previous month.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news