Date: Monday 21 Jun 2010
China's decision to allow its currency more flexibility to move against the US dollar has lifted exporters across Europe.The People’s Bank of China said it would end the currency peg started during the global financial crisis to help protect exporters. The yuan would be allowed to make a 'modest appreciation.'
It’s hoped the decision will boost reinvigorate the Chinese economy. Far East markets have already responded, with Japan up almost 2.5% and Hong Kong 3%.
Across the markets, the Dax in Frankfurt closed 76 points higher at 6,293, with the Cac in Paris up 49 points to 3,736. The Swiss market added 73 points to 6,520.
Exporters were in demand, with Daimler and BMW among the top performers in Frankfurt, while luxury goods firms LVMH and PPR in demand in Paris.
Ten days into the World Cup and Adidas, the firm responsible for the tournament’s controversial ‘Jabulani’ ball, is already predicting record sales of at least €1.5bn from its football business this year.
That kind of figure is up 15% on 2008 and 25% better than the €1.2bn reported during the last World Cup year in 2006. The German sports equipment giant says sales of football products were already up 26% as it sold over 6.5 million replica jerseys, twice as many as the 3m that flew off the shelves four years ago.
BP was down again after stating the Gulf of Mexico oil spill has cost it about $2bn including $105m of claims. It also confirmed that its 25% partner in the Macondo well Anadarko Petroleum is refusing to accept responsibility for oil spill removal costs and damages.A report in today’s Telegraph says BP plans to shore up its battered finances against the escalating clean-up costs of the Gulf of Mexico oil spill by raising around $50bn (£33bn) and pursuing Anadarko, its main partner, through the courts.
Dutch chemicals group Akzo Nobel rallied after Corn Products International said that it will buy National Starch from Akzo Nobel for $1.3bn.
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