Finance News Update, what you need to know
WORLD FINANCE UPDATE:
The Australian dollar has fallen back below 88 US cents after the US Federal Reserve announced further tapering of its monthly bond purchases.
At 0630 AEDT on Thursday, the Australian dollar was trading at 87.48 US cents, down from 88.02 cents on Wednesday.
And the Australian share market looks set to open sharply lower following falls on international markets after the Federal Reserve said it would further taper its stimulus measures.
At 0645 AEDT on Thursday, the March share price index futures contract was down 53 points at 5,121.
WASHINGTON – The Federal Reserve says it will cut its monthly bond purchases by an additional $US10.0 billion ($A11.4 billion) to $US65 billion because of a strengthening US economy.
ANKARA – Crisis action by the Turkish central bank doubling its key interest rate gave only brief relief to the lira, which fell back as emerging markets faced a US monetary policy decision.
PRETORIA – South Africa’s Reserve Bank has made a surprise decision to raise interest rates, amid fears of rising inflation and sustained pressure on emerging market currencies.
FRANKFURT – Canadian engineering giant Bombardier says its leading a consortium that has secured a 3.0-billion-euro ($A4.7 billion) contract to supply trains and maintenance services to Queensland.
NEW YORK – US aerospace giant Boeing has reported a big jump in quarterly earnings, but signalled a leaner 2014 profit outlook after last year’s boom.
LONDON – Manchester City lost more than $A97 million in a year, exceeding the amount allowed under UEFA’s Financial Fair Play rules.
FRANKFURT – Deutsche Bank, Germany’s largest lender, says it will propose paying an unchanged dividend for 2013 as it faces a raft of different challenges this year.
ZURICH – Swiss pharmaceuticals giant Novartis has announced that its net profit fell 1.0 per cent in 2013 to $US9.2 billion ($A10.5 billion), blaming the impact of unfavourable exchange rates.
NEW YORK – Venerable art auctioneer Sotheby’s has bowed to pressure from activist shareholders, announcing a $US300 million ($A342.88 million) special dividend, a restructuring of operations and possible property sales.
MILAN – Italian car giant Fiat has announced a change in name to Fiat Chrysler Automobiles after completing the purchase of the US’ Chrysler, and will now list its shares in New York and Milan.