Thanksgiving Sales, Europe Hopes Lift U.S., Global Indexes

Arthi Gupta
28 Nov, 2011
New York City

The U.S. indexes traded higher on better-than-estimated retails sales on Black Friday. The Iraq government signed a $17 billion dollar gas deal with Basrah Gas. Bombardier won Indian rail contract worth $214 million.

[R]9:50 AM New York – The U.S. indexes traded higher on better-than-estimated retails sales on Black Friday. The Iraq government signed a $17 billion dollar gas deal with Basrah Gas. Bombardier won Indian rail contract worth $214 million.[/R]

U.S. and global indexes gained after U.S. retailers racked up a record $52.4 billion in sales over Thanksgiving weekend, up 16.4% from a year earlier, data from an industry trade group showed.

A record 226 million visited stores and Web sites over the Black Friday weekend, up from 212 million in 2010, according to early estimates by the National Retail Federation.

Friday after Thanksgiving holiday, historically the busiest day in 60-day holiday sale period, sales increased 6.6% over the same day last year. according to research firm ShopperTrak. This represents $11.40 billion in retail purchases and the biggest dollar amount ever spent during the day. Retail foot-traffic rose 5.1% on Friday from a year ago.

European markets soared more than 3% on the hopes that Northern European nations may band together and issue bonds that will provide additional funds to struggling nations of the euro zone.

The rumors were denied by the German government sources and Chancellor Angela Merkel reiterated her opposition for the euro bonds.

However, the debt crisis continues to fester and Belgium was the latest victim of the credit rating downgrade. Last week sovereign debt ratings of Portugal and Hungary were lowered.

Euro-area finance ministers are to meet in Brussels tomorrow to discuss measures to contain the debt crisis.

Italy''s Prime Minister Mario Monti is expected to unveil plans for accelerated reform at the meeting. Monti is set to propose more austerity measures this week to balance the country’s budget by 2013.

O.E.C.D Lowers Global Growth Outlook

The Organization for Economic Cooperation and Development lowered its global growth outlook. The Paris based research organization said global growth will ease to 3.4% in 2012 from 3.8% in the current year.

In May, the O.E.C.D. projected 4.2% growth this year and 4.6% for 2012.

The Paris based research group estimated U.S. GDP to rise 2% in 2012 and 2.5% in 2013, after an expected 1.7% growth this year.

The Paris based research group also warned that the problems that started in Greece almost two years ago are likely to spread to larger and more diversified economies that would “massively escalate economic disruption.”

Iraq Inks Deal With Shell, Mitsubishi

The Iraq government signed a 25-year multi-billion dollar gas deal with Basrah Gas Co. for developing the southern gas fields in Iraq. Basrah Gas is a newly created joint venture company owned 51% by an Iraqi state company South Gas Co., 44% by Royal Dutch Shell Plc and 5% by Japan''s Mitsubishi Corp.

The $17 billion gas deal was signed in Baghdad on Sunday by Iraqi Oil Minister Abdul Karim Luaibi and Vosser as well as other ministry and company officials of the joint-venture company.

Ternium to Acquire Participation in Usiminas Control Group

Ternium SA, the Latin American steel firm along with its Argentine subsidiary Siderar, and Confab Industrial S.A., a subsidiary of Luxembourg-based steel pipes maker Tenaris S.A. agreed to acquire 139.7 million ordinary shares of Usinas Siderúrgicas de Minas Gerais S.A., the Brazilian steel maker for 36 reais or about $19 per share.

The $2.2 billion deal will help the companies with increased access to the Brazilian steel market.

Bombardier Secures Rail Contract

Bombardier Inc., the Canadian rail transportation equipment and aircraft maker said its rail unit won a contract worth $214 million for propulsion and control equipment for commuter trains in India.