Euro Economy » 2012 » September

Asian stocks still shaky as Nikkei slides 3 percent

By Ian Chua SYDNEY (Reuters) - Japan's Nikkei index slid 3.0 percent in early trade on Monday, following on from a 3.5 percent slide last week in breath-taking volatility that no doubt left many investors shaken. "Last week's shock will probably last throughout this week," said Kenichi Hirano, a strategist at Tachibana Securities. "But the Japanese market's fundamentals in the mid-to-long term have not changed, so there still is upside in the longer term. ...

Bank of Japan's April 26 meeting saw rift over ambitious price goal

By Leika Kihara TOKYO (Reuters) - The minutes of the Bank of Japan's April 26 meeting showed a rift developing within the board over its ambitious stimulus plan, as a few policymakers opposed targeting 2 percent inflation in two years and called for more flexibility in guiding monetary policy. The board also engaged in considerable debate over the bond market volatility after the BOJ's monetary easing on April 4, a sign the members were uneasy about the rise in borrowing costs that could undermine the central bank's ultra-loose policy. ...

Economic reality finally cracks market fervor

By Andy Bruce LONDON (Reuters) - As evidence mounts that a mid-year slowdown is taking place in the world economy, the next few days will offer a clearer glimpse of how that will impinge on policymaking and buoyant financial markets. Global stocks stumbled last Thursday in one of the few times the grey economic reality cut through this year's reverie in financial markets. And that could mark the start of a trend, after Federal Reserve Chairman Ben Bernanke last week hinted the U.S. central bank could soon scale back its monthly bond purchases that have flooded stock markets with new cash. ...

Europe investigates Apple's iPhone tactics: FT

(Reuters) - The European Commission is investigating whether Apple Inc is using anti-competitive iPhone sales tactics and technical restrictions to squeeze out rival smartphone makers from the European market, according to documents seen by the Financial Times. According to a questionnaire sent last week to several European mobile network operators, the Commission is focusing on distribution terms that might favour Apple by ensuring no rival can secure a better sales deal, said the newspaper. Apple said its contracts comply with EU laws, said the FT. ...

China Jan-April industrial profits up 11.4 percent on year

BEIJING (Reuters) - China's industrial firms made total profits of 1.61 trillion yuan ($262.6 billion)in the first four months of 2013, up 11.4 percent from the same period a year ago, the National Bureau of Statistics said on Monday. In April, profits were 436.7 billion yuan, up 9.3 percent from the same month last year, NBS said in a statement on its website, www.stats.gov.cn (Reporting By Xiaoyi Shao and Kevin Yao; editing by Jonathan Standing)

Ford's profits will accelerate as Europe improves: Barron's

NEW YORK (Reuters) - Shares of Ford Motor Co have surged nearly 40 percent over the past year, but the company isn't yet firing on all cylinders, said Barron's in its May 27 edition. Last quarter, Ford's pretax profit in North America reached the highest level in a decade, but losses in Europe widened. The good news is that demand in Europe appears close to bottoming out, and may have done so already, Barron's said. As the continent becomes less of a drag, the stock could climb another 50 percent over the next two years, Barron's said. Ford shares finished at $14. ...

Hertz stock could rise 70 percent in two years: Barron's

(Reuters) - Car rental company Hertz Global Holdings Inc is poised for a long run of earnings and revenue growth and the stock could be worth 70 percent more in two years, the Barron's financial news weekly said in its May 27 edition. The car rental industry, tied closely to airline traffic and hotel bookings, is seeing strong volumes, helped by a recovery in business travel in the United States. Hertz, which primarily serves corporate customers, is also benefiting from the acquisition of Dollar Thrifty, a big player in the leisure and lower-priced rental market. Hertz, No. ...

RBS board has held CEO successor talks: report

LONDON (Reuters) - Directors of Royal Bank of Scotland have held recent talks on identifying a replacement for its chief executive Stephen Hester, Sky News said on Sunday citing sources. Sky News said Philip Hampton, Chairman of the state-backed lender, called a meeting of the bank's non-executive directors earlier this month to inform them he was drawing up a list of potential replacements for Hester, including Standard Chartered finance director Richard Meddings. RBS declined to comment when contacted by Reuters. ...

Merkel, Li call for end to EU-China solar trade row

By Erik Kirschbaum BERLIN (Reuters) - German Chancellor Angela Merkel and Chinese Premier Li Keqiang on Sunday called for an end to a trade row between Europe and China over solar panels and wireless equipment, telling a joint news conference they were both for free trade. The European Union accuses China of pricing its solar panels and mobile telecom devices too cheaply and "dumping" them in Europe to corner the market. It plans to impose duties on Chinese panel makers. China denies the allegations. ...

How the Fed could ruin your summer holiday

By Luciana Lopez NEW YORK (Reuters) - Have your summer vacation all booked? Hoping to ignore your phone for a while, feeling safe in your investments and secure in the knowledge that the world's financial authorities aren't planning any surprises just yet? Think again. U.S. Federal Reserve Chairman Ben Bernanke made it clear in congressional testimony this week that the central bank could very well entertain a change in policy sooner than many had predicted. That would mean providing less stimulus to the economy by cutting back on its bond buying program. ...