PragueConnect.cz - Economy

PragueConnect.cz is providing resources for English speaking Business Professionals living in, visiting, or interested in Prague and Czech Republic. Browse our latest Economy articles, if you have interesting content to share with our users, please feel free to contact us anytime to discuss with us possible publication on PragueConnect.cz!

Mithril Asset management - Weekly Bulletin presented by Square Mile Financial Services


Weekly Finance Bulletin 15th October 2012

Market Roundup:


There was a retraction for most global markets last week.

Worries on earnings and growth hit Asia, with Japan and Singapore 3% and 2% respectively as China advanced on easing hopes. Brazil's central bank cut the country's benchmark interest rate to 7.25% midweek, and indicated it was at the end of its rate-easing cycle. Rates have been progressively cut from 12.5% in August 2011.

In the West, Spain once again caused markets to churn uncomfortably. Ratings agency S&P slapped a 2 notch downgrade on Madrid to BBB- with a negative outlook making it prime for junk status. Ironically, Spanish 10yr debt currently hovers just above 5.5% from over 7.5% in July.

Stateside, there was surprise as the number of U.S. workers who filed new applications for unemployment benefits dropped by 30,000, last week to 339,000, the lowest level in more than 4 years. This complimented last week’s jobs numbers as 114,000 new jobs were created and the unemployment rate fell below 8% for the first time during the Obama administration.

As earnings season kicked off, JP Morgan started things on a good note. Earnings for the giant US bank advanced 34% to $5.71 bln, or $1.40 a share, from $4.26 bln, or $1.02, in the year-earlier quarter. Revenue reached $25.15 bln, up 6% from $23.76 bln.

Matters for the EU ended on a PR high as bafflingly the entire bloc won the Nobel Peace Prize. With such social tension on the streets of Madrid and Athens the timing of a ‘Peace’ prize is nothing short of a mockery.



Full report please download here

Download section