Business Beyond The Burbs

October 18, 2013 13:01

Dateline

Fitch downgrades Rosneft, says $270bn oil venture with China a drag

Fitch Ratings has downgraded the state-owned oil company’s long-term rating one notch to ‘BBB-’ from ‘BBB’ over an advance payment it received from China National Petroleum Corporation, which the agency considers a ‘debt burden’.

China grows at 7.8%: Fastest of 2013, but further success questioned

China's economic growth rebounded in Q3 to 7.8 percent from a two-decade low of 7.5 percent in Q2, helped by government stimulus measures. Analysts warn growth in the world’s second largest economy may not last, as global demand remains weak.

Buying time: US budget deal postpones financial doomsday

President Obama and Congress have signed off on extending the debt ceiling through to February. The new legislation only temporarily solves the US budget dispute, begging the question if America will ever limit its borrowing. 49

UK and China agree multibillion nuclear cooperation

British Chancellor George Osborne says the UK will let Chinese investors into its nuclear market, offering the potential to grab a 100 percent stake. The first 14-billion-pound deal to construct a plant in the UK may be announced as early as next week. 7

Business snaps

Carl's Jr. fast-food chain expands in Russia’s St. Petersburg

 

Carl's Jr., an American fast-food chain, will open 11 new restaurants in St. Petersburg, Russia, by the end of 2014, Kommersant daily reports. Thus, the total number of restaurants in the second-largest Russian city will reach 35. Yarkaya Zvezda (Bright Star), which owns the Carl's Jr. franchise in Russia, plans to open up to 60 restaurants in Moscow. The firm’s expected turnover in 2013 is $45 million.

Google’s shares soar as Q3 net profit rise 36% 

Shares of search engine giant Google have risen 8 percent after the company reported a 36 percent increase in net profit. The bottom line in 3Q jumped to $2.97 billion, with revenues also beating expectations and hitting $14.89 billion, the company reported under US GAAP. "Google had another strong quarter ... and great product progress,” Google CEO Larry Page said in a statement. Paid clicks increased 26 percent year-on-year during the three months to September 30, while the average price that marketers pay Google when consumers click on their ads decreased 8 percent.

S&P 500 hits record high, cheered by talks of $85bn bond buying extension 

The S&P 500 has closed at a record high as investor confidence grew following the announcement the US will cling on to its monthly $85 billion bond-buying program to soothe the damage from the 16-day government shutdown, Reuters reports. The S&P 500's intraday record of 1732.92 broke the all-time high set on September 19. Over 80 percent of stocks traded on the New York Stock Exchange rose, with technology being the only S&P sector showing a loss with IBM leading the decline.

Fed could defer cutting QE3 until at least December 

The Federal Reserve will likely defer any decision to trim its massive bond buys until at least December, Reuters reported, citing top Fed officials. “We need more information… how we are going to weather the most recent government shutdown,” Chicago Fed President Charles Evans said, adding that “a couple of meetings” could be needed. The Fed next meets October 29-30 and December 17-18. Analysts suggest the Fed may have to wait until early next year before it seessufficient strength in the economy to begin scaling back its bond-buying stimulus.

GM to start selling sedans powered by gasoline or natural gas in summer 2014 

General Motors will begin selling a mid-sized sedan next summer that can be powered by either gasoline or compressed natural gas, Reuters reported. The 2015 Chevrolet Impala, GM's first car powered by natural gas, will feature a powertrain that switches from compressed natural gas to gasoline seamlessly, Dan Akerson said at an energy summit in Washington. The car will have one fuel tank for compressed natural gas and a second one for gasoline. The total driving range is up to 500 miles (805km). General Motors Co.'s global sales rose 4.6 percent in the first nine months of this year.

Lenovo looks to buy BlackBerry, deal to face scrutiny 

The world’s biggest PC maker Lenovo is considering bidding for Canadian smart phone maker BlackBerry, the Wall Street Journal says. Lenovo signed a confidential agreement to examine the financial standing ofstruggling Blackberry. However, the Chinese company may face regulatory obstacles if it bids for all of the company, Reuters says. The Committee on Foreign Investment in the US (CFIUS) would likely review any combination of the Chinese-owned computer company and the Canadians because of BlackBerry’s significant US activities, according to two Washington lawyers who specialize in CFIUS cases.

JPMorgan fined $100mn for 'London whale' trading losses 

US regulators have fined JPMorgan Chase $100 million for “reckless conduct” in the“London whale” trading debacle. The US Commodity Futures Trading Commission said that JPMorgan had admitted charges of manipulating trading of credit default swaps, AFP reported. The banking giant has reportedly agreed to pay the fine in the case, which caused the bank $6.2 billion in losses.

Thumbs down: Chinese rating agency downgrades US

Despite a temporary budget compromise in Washington, China's Dagong agency has downgraded the United States. Dagong maintains a negative outlook on the sovereign credit, as revenue and GDP fail to keep up with the country’s massive debts. 26

'Manufactured' crisis cost US $24bn -S&P

Standard & Poor's says the shutdown in total cost the US economy $24 billion, or $1.5 billion per day, the rating agency said Wednesday. The agency also estimated the shutdown will pare fourth quarter GDP by 0.6 percent. 18

Game changer: Swiss banks ditch secrecy

Switzerland, the world’s largest offshore wealth center, worth an estimated $2.2 trillion in assets, has signed an agreement to share financial information with nearly 60 other countries, which could completely change the country’s financial landscape.12

London to become Chinese offshore banking center

Britain has relaxed stringent rules for Chinese banks willing to set up in London. Beijing in turn opened up its markets to British-based investors, marking the latest move to establish the yuan as one of the world’s key currencies. 15

Plan B: Central banks getting ready for financial Armageddon

If the US debt-ceiling debate goes past the eleventh hour, and the default of the world’s largest economy becomes a reality, leading central banks around the world are gearing up to minimize losses and keep the world economy functioning. 84

Ireland first eurozone state to exit bailout in Dec - PM

Prime Minister Enda Kenny announced Ireland will wrap up its three-year bailout plan by December 15. The PM admitted "fragile times" were still ahead for Ireland as the country readies to cut off its “financial lifeline.” 8

Source: RT.com