Business News. Actions, Banks, Investments, Stock exchange

Japan's Nikkei tops 13,000 for first time since 2008

abis — Sun, 19 May 2013 10:57:19 +0400

Monetary easing policies, such as those followed by the central bank, lead to a weaker currency which makes Japanese goods more competitive and boosts foreign profits for exporters. Shares in Canon rose 4.2%, Nintendo gained 2.7%, Honda Motor added 2.2% and Toyota Motor was up 3.4%. On Thursday, the Bank of Japan embarked on what some are calling a new era of monetary easing.

Dow Jones and S&P climb to new highs

abis — Sun, 19 May 2013 10:57:19 +0400

The Dow rose 89 points, to close at 14,662, after an earlier intraday high of about 14,684. And the broader Standard & Poor's 500 closed at a record high of 1,570, suggesting investors are regaining confidence in the US economy.

Banks rush to redraft pay deals

abis — Sun, 19 May 2013 10:57:19 +0400

The most pressing problem relates to chief executives and other board-level executives, whose pay deals must be put to shareholder votes.
While banks and their investors say it is too early to predict how pay deals will be restructured, most remuneration experts believe there will be significant salary inflation to offset the caps. Annual bonuses and long-term incentive plans are also likely to be amalgamated.

Norway oil wealth fund made big gains in 2012

abis — Sun, 19 May 2013 10:57:19 +0400

The sovereign wealth fund is now 40% bigger than the value of the entire Norwegian economy. If it was invested inside the nation, this would cause distortions like massive inflation.

But in 2012, surging stocks pushed the value of the fund. Last week, the US Dow Jones average closed at a record high, furthering gains last year despite the sluggish US economy.

Investors click out of Apple into Google

abis — Sun, 19 May 2013 10:57:19 +0400

The investor rethink about the prospects of the two tech companies has led to a striking readjustment in valuation, with Google climbing from barely a third of Apple's worth six months ago to more than two-thirds yesterday, or $267bn. At Monday's close, Apple's market capitalisation stood below $400bn for the first time in more than a year.

China keeps growth target at 7.5%

abis — Sun, 19 May 2013 10:57:19 +0400

This is cause for concern not only domestically, where analysts say a fast pace of growth is needed to create jobs, but also for the rest of the world which relies partly on China to drive the global economy. But China, in turn, is dependent on key markets such as the US and Europe buying its goods. Weakness in those economies has led to a drop in demand. "We deem it necessary and appropriate to set this year's target for economic growth at about 7.5%, a goal that we will have to work hard to attain," said Mr Wen. China regularly exceeds the growth target set by Beijing for the year.

Sony Announces PlayStation 4

abis — Sun, 19 May 2013 10:57:19 +0400

The Japanese electronics giant said its PlayStation 4, announced at an invitation-only event in New York on Wednesday, is designed to take advantage of new technologies for customers to play games and responds to the burgeoning popularity of smartphones and tablets in gaming.

ECB told to double its manpower

abis — Sun, 19 May 2013 10:57:19 +0400

The consultancy report, commissioned by Mario Draghi and the ECB executive board and submitted last month, recommends a rapid build-up so Frankfurt has the resources and clout to fulfil properly its supervision role and protect its reputation. EU leaders have set their sights on banking union as a way of tackling one of the structural flaws that helped to spark the eurozone crisis. The need to restore market confidence in the single currency gained renewed urgency on Monday when a months-long rally came to an abrupt halt. Investors pulled back amid a political storm in Madrid and as Silvio Berlusconi staged an electoral fightback.

Osborne backs break-up of banks that fail to reform

abis — Sun, 19 May 2013 10:57:19 +0400

Mr Osborne also said the banking system was not working for its customers, particularly small businesses and individuals. He pointed to the fact that large banking transactions could be done instantly, whereas small businesses could wait days for money to pass through the system. Mr Osborne had previously warned against "unpicking the consensus" over structural reform of the sector. But the chancellor appears now to have accepted a major recommendation of last year's Parliamentary Commission on Banking Standards which called for a reserve power to "electrify the ring-fence" if banks did not implement reforms.

Stocks: Will Dow stay above 14,000?

abis — Sun, 19 May 2013 10:57:19 +0400

U.S. manufacturing will be in focus, with factory orders, productivity, unit labor costs, ISM services and wholesale inventories on tap. Overall, economists surveyed by Briefing.com are expecting disappointing numbers. The sector has stalled over the last year, vacillating between barely expanding and contracting. That's because demand has pulled back in recent months on slow economic growth overseas and worries over the federal budget mess in Washington.