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Markets News Afternoon: Irish manufacturing prices fell in June on weaker US dollar; ECB says bank lending to Eurozone's private sector picked up slightly in June
By Finfacts Team
Jul 27, 2010 - 5:21:49 PM
Irish manufacturing prices fell by 0.4% in June 2010 because of
the weaker US dollar versus the euro - - changes in the dollar rate are
crucial because Irish manufacturing is dominated by US-owned firms.
The Central Statistics office said the rise in June compares to
an increase of 0.3% recorded for June 2009. As a result, the annual
percentage change showed an increase of 1.2% to June 2010, compared with an
annual increase of 2.0% to May 2010. In the month, the price index for
export sales decreased by 0.2% while the index for home sales decreased by 1.2%.
In the year there was an increase in the price index for export sales of 1.2%
(this can be influenced by currency fluctuations) and an increase of 1.0% in
respect of the price index for home sales.
In the month the most significant changes were increases in Wood
and wood products (+3.3%), Meat & meat products (+0.8%) and Computer, electronic
and optical products (+0.7%) while there were decreases in Basic pharmaceutical
products and pharmaceutical preparations (-1.1%) and Machinery and Equipment
n.e.c. (-0.2%).
Contributing to the annual change were increases in Computer,
electronic and optical products (+12.5%), Dairy Products (+10.4%), and Other
food products including bread and confectionary (+6.7%), while there were
decreases in Basic pharmaceutical products and pharmaceutical preparations
(-9.8%), Beverages (-4.1%) and Fabricated metal products, except machinery and
equipment (-3.1%).
The yearly price index for Mining and quarrying decreased by
29.5% while there was a monthly decrease of 0.5%.
A further analysis of Wholesale price changes by sector of use
shows that:
Building and Construction
All material prices increased by 3.2% in the year since June 2009. The most
notable yearly changes were increases in Reinforcing Metal (+17.9%), Copper
pipes and fittings (16.1%) and Fabricated metal (+9.3%) while there were
decreases in Protection and communication equipment (-6.7%), Glass (-5.8%)
and Ready mixed mortar and concrete (-3.5%). Building and Construction All
material prices decreased by 0.2% in the month.
Year on year, the price
of Capital Goods increased by 0.9%, while the monthly price index decreased
by 0.1%.
The price of Energy
products increased by 5.4% in the year since June 2009, while Petroleum
fuels increased by 17.6%. In June 2010, the monthly price index for Energy
products decreased by 0.2%, while Petroleum fuels decreased by 0.4%.
Insight on the latest consumer
confidence data, with CNBC's Rick Santelli and Ken Goldstein, The Conference
Board and Dan Veru, Palisade Capital Mgmt.:
ECB:The European Central Bank says bank lending to the Eurozone's private
sector picked up slightly in June.
The annual rate of change of M3 - - a broad measure of credit
and money in the Eurozone banking system - - increased to 0.2% in June 2010,
from -0.1% in May 2010. The three month average of the annual rates of change of M3 over the period
April 2010 - June 2010 stood at 0.0%, after -0.1% in the period March 2010 - May 2010.
The annual rate of growth of credit extended to general
government decreased to 8.1% in June, from 9.4% in May, while the annual growth
of credit extended to the private sector stood at 0.0% in June, after 0.1% in
the previous month. Among the components of the latter, the annual rate of
change of loans to the private sector stood at 0.3% in June, after 0.2% in the
previous month (adjusted for loan sales and securitisation2
the annual growth rate of loans to the
private sector stood at 0.2%, unchanged from the previous month). The annual
rate of change of loans to nonfinancial corporations increased to -1.9% in June,
from -2.1% in May. The annual growth rate of loans to households increased to
2.8% in June, from 2.6% in the previous month. The annual rate of growth of
lending for house purchase increased to 3.4% in June, from 3.1% in the previous
month. The annual rate of change of consumer credit decreased to -1.6% in June,
from -0.3% in May, while the annual growth rate of other lending to households
increased to 3.4% in June, from 2.9% in the previous month. Finally, the annual
rate of growth of loans to non-monetary financial intermediaries (except
insurance corporations and pension funds) decreased to -0.4% in June, from 0.5%
in the previous month.
"Tony Hayward
has done a great job for the company... He has driven the company's performance
and developed the company in many, many ways," BP Chairman Carl-Henric
Svanberg told CNBC Tuesday when discussing the BP CEO's departure.
US
In New York
Tuesday, the Dow Jones rose 4 points or 0.04% to 10,529.
The S&P 500
rose 0.17% and the Nasdaq added 0.40%.
Data through May 2010, released today by Standard & Poor’s for
its S&P/Case-Shiller Home Price Indices, the leading measure of US home prices,
show that the annual growth rates in 15 of the 20 MSAs (Metropolitan Statistical
Area) and the 10- and 20-City Composites improved in May compared to those
reported for April 2010. The 10-City Composite is up 5.4% and the 20-City
Composite is up 4.6% from where they were in May 2009. While 19 MSAs and both
Composites reported positive monthly changes in May over April, only 12 of the
MSAs and the two Composites saw better month-over-month growth rates in May than
those reported in April. Detroit prices are back to 1994 levels.
The US Conference Board
Consumer Confidence Index which had declined sharply
in June, fell again in July. The Index now stands at 50.4
(1985=100), down from 54.3 in June. The Present Situation Index
decreased to 26.1 from 26.8. The Expectations Index declined to 66.6
from 72.7 last month.
Why short hours
are helping Germany's economy bounce back, with Howard Rosen, Peterson Institute
for International Economics and Richard Rahn, Cato Institute:
The
pan-European Dow Jones 600 gained 0.28% Tuesday.
SAP AG, the world’s biggest maker of business-management
software, headquartered in Germany said second-quarter
profit rose 15% with net income rising to €491m or 41 cents
a share, from €426m, or 36 cents, a year-earlier -- less
than analysts’ estimate of €525m. Earnings were hit by a
currency loss and severance paid to two former executives.
The ISEQ has
dipped 0.35%.
CRH which
accounts for about 30% of the market cap, is up 0.12%. Elan has dipped 0.58;
AIB has added 2.11% and BoI advanced 7.59%.
On the
New York Mercantile
Exchange, oil for August delivery is trading at $77.42, down $1.56 from
Monday's close. In London,
Brent crude for
August delivery is trading at $76.05 a barrel.
Currencies
The euro is
trading at $1.2982 and at £0.8353.
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.
