See Search Box
lower down this column for searches of Finfacts news pages. Where there may be
the odd special character missing from an older page, it's a problem that
developed when Interactive Tools upgraded to a new content management system.
Welcome
Finfacts is Ireland's leading business information site and
you are in its business news section.
We
provide access to live business television and business
related videos from: Bloomberg TV; The Wall Street Journal;
CNBC and the Financial Times. Click image:
Markets News Afternoon: Irish Services Producer Prices down 4.1% in 2009; EU trade deficit up; Initial weekly jobless benefit claims fall 5,000 in US
By Finfacts Team
Mar 18, 2010 - 4:13:31 PM
Irish Services Producer Prices down 4.1% in the year to Quarter 4 2009: The experimental Services Producer Price Index (SPPI) measures changes in the average prices charged by domestic service producers to other businesses for a selected range of services. These individual price indices are aggregated together to create a “service industry” index that is limited in coverage, according to the CSO..
The CSO says the indices are still under development and may be subject to methodological improvement. Figures should therefore be treated as provisional and subject to revision. These indices are being published to engage users in the ongoing development of the SPPI
methodology.
Services prices in Quarter 4 2009, as measured by the experimental SPPI, were on average 4.1% lower in the year when compared with the same period last year. The most notable changes in the year were: Architecture, Engineering and Technical Testing (-9.7%), Computer Programming and Consultancy (-8.5%), Advertising, Media Representation and Market Research (-7.2%), Freight and Removal by Road (-5.2%) and Air Transport (+6.3%). Services Prices increased by 0.4% in the quarter. This compares to a decrease of
2.3% recorded in Q3 2009.
The most significant quarterly price decreases were in Freight and Removal by Road (-2.2%), Postal and Courier (-1.4%) and Sea and Coastal Transport (-1.4%). There was an increase of 4.8% in Air Transport.
The main factors contributing to the largest quarterly changes, as identified by respondents were as follows:
Freight and Removal by Road – Increased competition and rate reductions negotiated by customers led to decreases in prices charged.
Postal and Courier – Rate reductions negotiated by customers led to decreases in prices charged.
Discussing what this week's US economic data says about the road to recovery, with Stuart Hoffman, of PNC Financial Services Group, and David Fleisher, of Firstrust Financial Resources:
Eurozone and EU27 Trade: The first estimate for the Eurozone (EA16) trade balance with the rest of the world in January 2010 gave a €8.9bn deficit, compared with -€12.1bn in January 2009. The December 2009 balance was +€4.1bn, compared with -€1.7bn in December 2008.
The first estimate for the January 2010 extra-EU27 trade balance was a €22.5bn deficit, compared with -€28.0bn in January 2009. In December 2009 the balance was -€2.5bn, compared with -€11.2bn in December 2008.
These data were released today by Eurostat, the statistics office of the European Union.
EU27 2009 detailed results - -The EU27 deficit decreased significantly for energy (-€233.8bn in 2009 compared with -€375.1bn in 2008) and for raw materials (-€19.1bn compared with -€43.5 bn). The surplus fell for machinery and vehicles (+€112.4bn compared with +€153.5bn), but rose for chemicals (+€81.6bn compared with +€74.5bn).
EU27 trade flows with all of its major partners fell in 2009, except for exports to China (+4% in 2009 compared with 2008). The largest decreases were recorded for exports to Russia (-37%), Turkey (-19%), the US and Brazil (both -18%), and for imports from Russia (-35%), Brazil (-29%), Norway (-28%), Japan (-26%) and Turkey (-22%). The smallest falls were observed for trade with Switzerland, for both exports (-10%) and imports (-8%).
The EU27 trade surplus fell with the US (+€44.5bn in 2009 compared with +€63.2bn in 2008) and Switzerland (+€14.8bn compared with +€17.7bn). The EU27 trade deficit decreased with China (-€133.1bn compared with -€169.5bn), Russia (-€49.7bn compared with -€72.8bn), Norway (-€31.1bn compared with -€52.1bn) and Japan (-€19.8bn compared with -€32.9 bn).
On the total trade of member states the largest surplus was observed in Germany (+€135.8bn in 2009), followed by the Netherlands (+€37.9bn), Ireland (+€37.4bn) and Belgium (+€12.8bn). The United Kingdom (-€92.6bn) registered the largest deficit, followed by France (-€54.5 bn), Spain (-€49.5 bn), Greece (-€28.5bn) and Portugal (-€19.0bn).
The Eurozone (EA16) includes Belgium, Germany, Ireland, Greece, Spain, France, Italy, Cyprus, Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland.
The EU27 includes Belgium (BE), Bulgaria (BG), the Czech Republic (CZ), Denmark (DK), Germany (DE), Estonia (EE), Ireland (IE), Greece (EL), Spain (ES), France (FR), Italy (IT), Cyprus (CY), Latvia (LV), Lithuania (LT), Luxembourg (LU), Hungary (HU), Malta (MT), the Netherlands (NL), Austria (AT), Poland (PL), Portugal (PT), Romania (RO), Slovenia (SI), Slovakia (SK), Finland (FI), Sweden (SE) and the United Kingdom (UK).
CNBC's Hampton Pearson reports that lobbying against a standalone consumer protection agency has increased as Dodd's FinReg bill gets closer to a vote:
Swiss tax secrecy: The Swiss parliament's upper house has approved agreements with the US and four other countries to share data on potential tax evaders, in a move that puts the renowned tax haven closer to international standards.
Under the deals Switzerland has agreed banking data sharing arrangements with France, the UK, the US, Denmark and Mexico in cases of tax fraud and tax evasion, in accordance with OECD standards, except when those requests are based on stolen data.
Switzerland, the world's biggest offshore banking centre, agreed last year to relax its bank secrecy and for the first time caved in to pressure to share certain bank client data with other jurisdictions, once bilateral tax treaties are ratified.
On Thursday, the Dow is up 26 points or 0.24% to 10,759.
The S&P 500 dropped 0.08% and the Nasdaq Composite added 0.09%.
The US Leading Economic Index (LEI) increased 0.1% in February, following a 0.3% gain in January, and a 1.2% rise in December. Today's report issued by the New York-based private sector organisation, the Conference Board, indicates a slow recovery.
The non-partisan Congressional Budget Office has determined that the latest version of the health care overhaul will cost $940 billion over a decade. House leaders plan to unveil the final package later today.
Rep. Steny Hoyer said the health-care package will also reduce the federal deficit by more than $100 billion over its first 10 years -- and more than $1 trillion in the second decade.
The seasonally-adjusted consumer price index was unchanged in February, the Labor Department said Thursday, after increasing an unrevised 0.2% in January.
The Labor Department also reported that initial claims for jobless benefits fell by 5,000 to 457,000 in the week ended Mar. 13th. The previous week's level was left unrevised at 462,000.
The four-week moving average dipped by 4,250 to 471,250 from the previous week's unrevised average of 475,500. The number of continuing claims -- where workers get more than one week's benefit - -in the week ended Mar. 6th, rose by 12,000 to 4,579,000 from the preceding week's revised level of 4,567,000.
The economic recovery is still present in the UK even though the public deficit problems remain, Ruth Lea from Arbuthnot Banking Group told CNBC Thursday. Alpesh Patel from Praefinium Group and Jeremy Stretch from Rabobank International joined the discussion:
In Europe, the Dow Jones Stoxx 600 has risen 0.03% Thursday.
In Dublin, the ISEQ has dipped 0.57%.
CRH is off 0.97%; Elan has dropped 1.29%; AIB has declined 397%; BoI has fallen 2.70%.
Ryanair is up 2.62% and Aer Lingus has added 1.62%.
Greek Prime Minister George Papandreou has given a one-week deadline for the European Union to agree a support program for his country which Germany is reluctant to commit to.
Papandreou said he may ask the International Monetary Fund for help to overcome Greece’s debt crisis unless leaders agree to a lending facility at a summit on March 25-26th.
On the New York Mercantile Exchange, oil for April 2010 delivery is trading at $82.13 down 80 cents from Wednesday's close. In London, Brent crude for April delivery is trading at $81.31 a barrel.
Currencies
The euro is trading at $1.3605 and at £0.8928.
For live currency updates, check the right-hand column of the Finfacts home page. The dollar traded at a record low $1.6038 per euro on July 15, 2008.
"A month ago, no one was even thinking that Greece could go to the IMF, or much less the EU, for help in resolving their deficit issues. But look at what the prime minister has done. He has taken austerity measures; he's trying to reduce the deficit levels; he's trying to get the country's people in line with his program," Robert Pavlik from Banyan Partners said Thursday.
