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Archive for December, 2011

Posted by Isabelle Gill On Dec - 30 - 2011 0 Comment

Brazil has overtaken the UK as the worlds sixth largest economy, an economic research group has said.

The Centre for Economics and Business Research said its latest World Economic League Table showed Asian countries moving up and European countries falling back.

The CEBR also predicted that the UK economy would overtake France by 2016.

It also said the eurozone economy would shrink 0.6% in 2012 if the euro problem is solved, or 2% if it is not.

CEBR chief executive Douglas McWilliams told BBC Radio 4s Today programme that Brazil overtaking the UK was part of a growing trend.

I think its part of the big economic change, where not only are we seeing a shift from the west to the east, but were also seeing that countries that produce vital commodities food and energy and things like that are doing very well and theyre gradually climbing up the economic league table, he said.

  • GDP: $2.52tn ; CEBR estimate for 2011
  • Main exports: manufactured goods, iron ore, coffee, oranges and other agricultural produce
  • Exports in 2010 totalled $201.9bn*
  • Imports in 2010 of $181.6bn*
  • Its main export partners are China, the US and Argentina*
  • Government forecasts growth of 3.5% in 2011, compared with 7.5% in 2010

*Source: Brazilian Ministry of Development, Industry and Export

A report based on International Monetary Fund data published earlier this year also said the Brazilian economy would overtake the UK in 2011.

Brazil has a population of about 200 million, more than three times the population of the UK.

Brazils economy grew by 7.5% last year, but the government has cut its growth forecast for 2011 to 3.5% after the economy ground to a halt in the third quarter, with analysts blaming the countrys high interest rates and the worsening situation in the eurozone.

And although Brazil currently sells more to China than it imports, Brazilian manufacturers have complained that their industries are being affected by cheap mass-produced goods from the Asian giant.

The CEBR also said that Russia moved up one spot in its league table to ninth in 2011, and predicted that it would rise to fourth spot by 2020.

It predicted that India, the worlds 10th biggest economy in 2011, would become the fifth largest by 2020.

And it said European countries would drop down the table, with Germany falling from fourth in 2011 to seventh in 2020, the UK from seventh to eighth, and France from fifth to ninth.

Rank 2011 2020

1 US US 2 China China 3 Japan Japan 4 Germany Russia 5 France India 6 Brazil Brazil 7 UK Germany 8 Italy UK 9 Russia France 10 India Italy

Posted by Olivia Carrodus On Dec - 29 - 2011 0 Comment

Risk appetite has stabilized today and the overall mood appears constructive as December’s round of PMI surveys has been encouraging overall. In particular, the manufacturing components released yesterday pointed to a much stronger than expected performance at the end of last year. Switzerland posted the most impressive upside surprise, with December’s reading hitting 50.7 compared to forecasts of 45.4 (44.8 the month prior). Echoing the better than expected results out of Europe, the US ISM manufacturing survey hit 53.9 – outpacing estimates looking for 53.5, and much better than November’s reading of 52.7. This mo Full post…

Tags: Pmi, Pmi Releases
Posted by Olivia Carrodus On Dec - 16 - 2011 0 Comment

Fundamental Headlines

European Session Summary

The U.S. Dollar’s remarkable run the past few days seems to have taken a breather on Wednesday. As the worst performing currency ahead of the North American trading session, this appears to be little more than a corrective move after gaining over 2 percent collectively across the board from Friday through Tuesday. Like the recent trend that has developed, the ‘dead’ trading period in between the Asian and European sessions produced another turn around in the majors.

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Posted by Zac Wright On Dec - 14 - 2011 0 Comment

There are a few things you should do with a new credit card, even if it’s not your first credit card. For one, you’ll have to activate it before you can use it. You should also read over the pricing list so you’re aware of the interest rate and fees, especially the amount and timing of any promotional rates you have.

Before you use any card – new or old – you should plan your purchase, set a spending limit, and know how you’re going to pay back your charges. Read More: 10 Things to Do With a New Credit Card.

Posted by Olivia Carrodus On Dec - 11 - 2011 0 Comment

Dollar Can’t Fall into Year-End Peace with Crisis Fires Smoldering

Whether we look at the Dow Jones FXCM Dollar Index or the EURUSD, the greenback ended this past week virtually unchanged. On a larger scale, this performance isn’t necessarily discouraging as the currency is riding off the bullish performance it managed to forge through November – and against a much more buoyant S&P 500. We ca

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Posted by Zac Wright On Dec - 9 - 2011 0 Comment

The Great Recession that began in 2008 altered an array of fundamental market assumptions, bank valuations included. Prior to the recession’s onslaught, acquisition premiums were the norm. Between 2002 and 2007, the average price-to-book ratio for acquisitions of domestic commercial banks ranged between 2.26-to-2.56 times book value. During roughly the same period, there were more than 1,300 bank acquisitions. For investors in the community banking industry, the game plan was straightforward: invest in a de novo or other small bank, grow it while achieving a modest return on equity, and then collect the buyout premium from a strategic or financial purchaser. V Full post…

Tags: Bank
Posted by Isabelle Gill On Dec - 5 - 2011 0 Comment

The European leaders agreed to a fiscal compact but failed to secure changes to the EU treaty over the strenuous objections of UK at the EU summit today causing disappointed investors to sell the EUR/USD in Asian and early European trade, but the pair found support at the 1.3300 level and stabilized ahead of the North American open.

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Posted by Olivia Carrodus On Dec - 2 - 2011 0 Comment

***Economic data***
– (CA) Canada Nov Net Change in Employment: -18.6K v 20.0Ke; Unemployment Rate: 7.4% v 7.3%e
– (US) Nov Change in Nonfarm Payrolls: +120K v +125Ke; Change in Private Payrolls: +140K v +150Ke
– (US) Nov Unemployment Rate: 8.6% v 9.0%e
– (US) Nov Avg Hourly Earning M/M: -0.1% v 0.2%e; Avg Weekly Hours: 34.3 v 34.3e
– (MX) Mexico Central Bank leaves Overnight Rate unchanged at 4.50%

– This morning’s November jobs report is front and center this morning, with the data helping to hold up the equity gains seen all week. Full post…