Euro stable after French Vote 'Non'

123jump.com Staff
30 Nov, -0001
New York City

French voters rejected proposed EU constitution formed to keep it expanding from current 470 million people strong. The high unemployment rate of 10% convinced several of 70% eligible voters to vote for 'Non'. Discount carriers merger between U.S. Air and America West attracted $150 million to the already raised $1 billion in financing in the last three weeks. The restructuring of airlines industry is rapidly occurring which may lead to new price competition in the air travel.

Wellington Management, Boston based fund management company, joined a list of companies to invest in proposed merged airlines U.S. Air and America West. $150 million cash will be added to the already committed $1 billion in funds from investors, aircraft providers, and suppliers. The momentum to refinance and consolidate airline industry is gathering around discount carriers threatening price competition to the traditional three large airlines.

In late evening trading European stocks are mildly higher and Paris recovered after early fall of 0.3%, Germany up 0.78%, Spain up 0.54%, the Netherlands up 0.38%, and Norway up 0.5%.

Euro trades below $1.25 level, not seen in more than two years, on the heels of French rejection of EU constitution.

In the weekend referendum in France, voters rejected EU constitution. More than 70% eligible voted in this Sunday’s vote and rejected and 55% of voters rejected the constitution on the fears too rapid expansion of EU. All 25 members of the union must approve the 300-page constitution.

The French vote will have an impact to the expansion rate of 470 million people strong EU. Voters across France, the Netherlands and UK are worried of high unemployment rate. The Netherlands votes on referendum approved by nine of the twenty five members on June 1st. UK and Czech Republic vote on the referendum next year.

HK 1Q GDP grew at 6% rate from a year earlier after expanding at 7.1% rate in 4Q. Exports rose at 8.9% compared to 12.6% a year ago.

Thailand Prime Minister is scheduled to visit India to discuss free-trade agreement between two countries. The 2004 trade grew 34% from 2003 to relatively small $2 billion.

Asian markets closed mostly higher led by 0.95% increase in Hong Kong. Tokyo closed up 0.66% on 2.2% increase in seasonally adjusted April industrial output from March. Shares in HK were supported by buying in property and textile companies. Hynix Semiconductor was up 2.3% in Seoul and BHP Billiton was up 2.4% in Sydney trading.

China on Monday rescinds the proposed tariffs on certain textile exports in the wake of quota imposed by EU and the U.S.