A lot is riding on the European Union summit scheduled later this week. Standard & Poor’s warned it may carry out an unprecedented mass downgrade on the credit ratings of the euro zone countries if the EU leaders fail to reach an agreement.
S&P placed the ratings of 15 euro zone countries on credit watch negative-including those of the toprated Germany and France.
While European leaders are expected to unveil the crisis plan on Friday, service industries in the US expanded in November at the slowest pace since January 2010.The Institute for Supply Management’s non-manufacturing index unexpectedly fell to 52 last month from 52.9 in October.
The weak economic data, though, did not come as a surprise to the equity markets in the US Overnight stock markets in the U.S. closed firm.
Optimistic investors bought shares after French President Nicolas Sarkozy said Germany and France had come to an agreement on tighter fiscal controls for the euro zone. S&P 500 at 1,257 rose 1.03% on buying in buying in banking stocks.
Asia markets, on the other hand, fell in the opening deals as investors feared deficits will worsen in the European Union countries. Japan’s Nikkei at 8,651 is down 0.51%.
Back home, according to The Economic Times report, government has ruled out immediate price increase for the natural gas produced from the Reliance Industries’ KG D6 block. The company has reportedly asked for a 50% hike in natural gas price.
To reduce debt, Sobha Developers is looking sell part of its 2,550 acresland bank, reports Business Standard. The company has a land bank of Rs 1,362 crore.
Real estate major DLF has acquired the additional 26% stake in its joint venture with Hilton Hotels. Post the acquisition, the company is expected to offload the property, reports Business Standard.
Pranidhi Holdings and Pramod Jain,who have announced their bid for Golden Tobacco, have reportedly written to SEBI, seeking its permission to withdraw the open offer, reports The Economic Times.
Finally, existence of a certain gene variant may force some people to sleep more than others. According to a study, conducted on more than 10,000 people across Europe, found those with the gene ABCC9 need around 30 minutes more sleep per night than those without the gene. Read the BBC report.