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

 


While you were sleeping: Euro-zone GDP stalls

While you were sleeping: Euro-zone GDP stalls

Aug 15 (BusinessDesk) - Equities on both sides of the Atlantic advanced amid expectations that central banks will remain more accommodating than previously expected to help spur the pace of recovery and counter the impact of international conflict.

In late afternoon trading in New York, the Dow Jones Industrial Average rose 0.31 percent, the Standard & Poor’s 500 Index increased 0.29 percent, while the Nasdaq Composite Index added 0.24 percent.

Gains in shares of Pfizer and Boeing, up 1.9 percent and 1.8 percent respectively, led the increase in the Dow.

Shares of Cisco bucked the trend, down 2.5 percent, for the biggest percentage decliner in the Dow. The company reported its latest quarterly results after the market close on Wednesday, disappointing investors and showing that CEO John Chambers is struggling to revamp the business.

Cisco also said on Wednesday that it would cut about 6,000 jobs, adding on Thursday that that would cost about US$700 million.

Wal-Mart on Thursday downgraded its full-year profit forecast, citing “incremental investments in e-commerce and higher US health-care costs than previously anticipated.” Shares of Wal-Mart last traded 0.4 percent higher at US$74.33.

“As it relates to our challenges in the quarter, we wanted to see stronger comps in Walmart US and Sam’s Club, but both reported flat comp sales,” Doug McMillon, CEO of Wal-Mart Stores, said in a statement. “Stronger sales in the US businesses would’ve also helped our profit performance.”

Meanwhile the latest US jobs data were better than anticipated. A Labor Department report showed that the number of Americans filing for state unemployment benefits rose 21,000 to a seasonally adjusted 311,000 for the week ended August 9.

"Today's report continues to signal a solid labour market that is experiencing a very low pace of layoffs," Omair Sharif, senior economist at RBS in Stamford, Connecticut, told Reuters.

In Europe, the Stoxx 600 ended the session with a 0.3 percent advance from the previous close, as did France’s CAC 40 and Germany’s DAX. The UK’s FTSE 100 Index rose 0.4 percent.

Expectations for additional monetary stimulus from the European Central Bank grew after the latest data on euro-zone gross domestic product showed the region’s growth stalled in the three months through June, after growing 0.2 percent in the first quarter.

The economy in Germany, the euro-zone’s engine economy, shrank more than expected in the second quarter, contracting 0.2 percent. GDP also contracted in France and Italy.

“There’s a lot of concern about whether the European Central Bank is going to do more on the easing side to get the economy going,” Thomas di Galoma, head of fixed-income rates at ED&F Man Capital Markets in New York, told Bloomberg News. “The economics in Europe have been lagging.

In a speech in Crimea, President Vladimir Putin struck a more conciliatory tone than he has recently in saying Russia was keen to remain open for business. Still, there were reports that a convoy of “humanitarian” trucks was edging closer to eastern Ukraine where pro-Moscow rebels were retreating amid advancing Ukrainian troops.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news