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

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news