Noyer calls for new EU hub
The City of London should no longer be the euro’s main financial center so the eurozone can “control” most financial business in the region, France’s central bank governor said in an interview published yesterday. Banque de France Governor Christian Noyer said there was “no rationale” for allowing the UK to be the “offshore” financial hub of the eurozone. “Most of the euro business should be done inside the euro area. It’s linked to the capacity of the central bank to provide liquidity and ensure oversight of its own currency,” Noyer told the Financial Times while touring Asia to promote Paris as a trading center for Chinese yuan.
BP to expand in Indonesia
The Indonesian subsidiary of British oil giant BP yesterday said a US$12.1 billion deal to expand its liquid natural gas operations in the country had been given final approval. The deal, announced last month during Indonesian President Susilo Bambang Yudhoyono’s state visit to London, will allow BP to develop a third liquefied natural gas liquefaction train at its Tangguh project in Indonesia’s West Papua Province, a statement from BP Indonesia said. BP is one of Indonesia’s largest foreign investors and holds a 37.16 percent stake in the Tangguh plant, which began operations in mid-2009.
Data suggest fiscal rebound
Companies increased capital spending more than economists predicted in the three months to September, indicating a contraction in the world’s third-largest economy may be short-lived. Capital spending excluding software rose 2.4 percent in the period from a year earlier, after rising 6.6 percent in the previous quarter, the Ministry of Finance said yesterday. Economists surveyed by Bloomberg had forecast a 1 percent gain. Companies in the transport equipment, food and chemicals industries contributed to the advance in capital expenditure in the quarter, the ministry said after the data were released.
Manufacturing in slump
Manufacturers reported stagnant output over the past quarter, the weakest reading since late 2009 when the country was recovering from its deepest recession in more than 50 years, a survey by the sector’s lobby, EEF, showed yesterday. Boding ill for the coming months, orders hardly grew, with the relevant balance of responses falling to the lowest level since early 2010. Demand at home remained weak, while a protracted debt crisis in the eurozone led to the first fall in export orders since the end of 2009, EEF said. EEF forecast that manufacturing output would contract by 1.2 percent this year and grow by 0.7 percent next year. EEF polled 391 companies between Nov. 2 and Nov. 23.
Mining firms lead profit fall
Business profits dropped in the three months through September, the fourth consecutive quarterly decline, as earnings weakened at mining companies. Gross operating profits fell 2.9 percent from the second quarter, when they declined a revised 0.3 percent, the Bureau of Statistics said yesterday. The result compares with the median forecast of a 3 percent drop in a Bloomberg survey of 20 economists. Inventories swelled 1.1 percent, compared with analysts’ prediction of a 0.4 percent gain. Reserve Bank of Australia will likely lower the nation’s benchmark interest rate to 3 percent today, most economists surveyed by Bloomberg News have predicted.