French President warns currency
instability threatens world growth
• French President Nicolas Sarkozy warned that currency instability
threatened world growth and called for coordinated action to
reform the world financial system.
• He also denounced speculators as causing volatile prices in
commodity markets, cheating producer countries of revenues.
• His comments came as Group of 20 finance leaders struck a deal on
Saturday(17/10/10) to refrain from competitive currency
devaluations although they failed to agree firmer language that
might have shored up the U.S. dollar.
India's IMF rank up 3 notches as G-20
nations agree on reforms
• India will improve its rank by three notches to the 8th position in
IMF, as the group of 20 nations (G-20) on Saturday decided to
increase the quota of emerging markets in the multi-lateral lending
agency by over six per cent.
• With this, India's rank in International Monetary Fund (IMF) will
improve to the 8th position from the current 11th in terms of quota
• Similarly, China will see an improvement in its ranking to the third
position from the present sixth.
China Q2 growth slowest in a year
• China said its economy expanded at the slowest pace in 12 months during the
September quarter as a World Bank report tipped it to slow down further in 2011,
raising the possibility of India becoming the fastest-growing economic powerhouse
• The world’s second-largest economy grew 9.6% in the three months to September,
just two days after the World Bank pared its growth forecast for the year ending
December 2011 to 8.5%.
• This is a tad below the bank’s growth projection of 8.6% for India during the same
period. For the fiscal year 2011-12, the multilateral lender has forecast an 8.7%
growth for India.
Nokia to cut 1,800 jobs after strong
• Nokia reported stronger-than-expected profits for the
third quarter, boosted by strong demand for its cheap
smart phones, and it would cut up to 1,800 jobs.
• Nokia's third-quarter underlying earnings per share
dropped to 0.14 euros from 0.18 euros a year ago, but
beat all forecasts which ranged between 0.08 to 0.12
euro in a Reuters poll of 36 analysts.
Fiat reports profits surge, raises
• Italian auto group Fiat, emerging from the economic crisis with
ambitions to become a top global brand, reported a surge in profits
for the third quarter and ramped up full-year targets.
• Fiat, which picked up a key stake in US giant General Motors during
the economic crisis, said that in the third quarter net profit jumped
to 190 million euros (264.1 million dollars) from 25 million euros at
the same time last year.
• Sales rose by 11.9 percent to 13.479 billion euros.
IMF says Asia to lead world recovery
but warns on hot money
• Asia is leading the global recovery but must beware of inflation and
"excessively easy" domestic finance fuelled by foreign capital inflows, the
International Monetary Fund said.
• The Fund's latest economic outlook for the Asia-Pacific region said growth
would moderate in 2011 in the advanced economies while remaining
"particularly strong" in China, India and Indonesia.
• The IMF called on Asia to boost investment in infrastructure to encourage
private sector investment and underpin domestic demand, which would
be key to the region's long-term growth.
eBay net earnings climb with success
• Online auction powerhouse eBay reported that its recent quarter net
earnings surged due to the success of its Internet payments service PayPal.
• Revenue for the quarter that ended September rose just a percent to 2.25
billion dollars while net profit climbed 23 percent to 432 million dollars
when compared to the same period a year earlier.
• PayPal added more than a million new accounts monthly, ending the
quarter with 90 million active accounts, according to eBay.
• EBay stock rose 7.13 percent to 27.49 dollars in after-hours trading that
followed release of the earnings figures.