Kosovo continue to be a obstacle for Serbia
The conflict in Kosovo is breaking the development of Serbian economy, and is growing quickly, announced "Detsche Welle". The most visible sign for this is growing reservedness of foreign investors.
A large uncertainty is not taking a good reflecting ove the economy development of Serbia. The investors are going back, and politics are postponing the decisions for reforms. The government is talking from weeks to the forgein investors, not to stay aside from Serbia, but nationalistic and anti-European direction of the government are not taking so good.
WHile for the previous year the market growing was of 7.5%, for this year the Wien's institute is predicting 5%.
Labels: Comments
Russia against reforming of ICF
Russia voted against the plan for reforms in the International Currency Fund, announced the director of international financial structure Dominic Stros-Kahn, quoted by the world news agencies.
The changes are predicting decrease of the weight of the vote of Russia with 0.35% to level of 2.49%. Against the plan of ICF voted also Saudi Arabia and Iran, and Egypt and Argentina were abstention, told Dominic Stros-Kahn.
From reforming of ICF the largest profit will be for China, South Korea, India and Brazil.
Labels: Financial News
Greenpeace rated the electronical companies
Greenpeace published today, the rating of producers of Hi-Fi for the view point of nature. In this rating the companies Samsung and Toshiba were rated on the first places and the worst company was Nintendo.
Toshiba rated before the previous leaders Samsung and Sony Ericsson, because of its program for remake of the old products and trashes. Nokia lost its positions, because the service centeres in India and Russia are still not taking phones for remaking. The too low rating of Nintendo is because its managers refuse to give any information about ecological programs and ideas of the company.
Labels: Business News
Visa with record IPO in USA
The company operator of credit cards Visa, made nearly 17 billions USD in Tuesday in the largest primary public offering in American history. The investors bought all offered shares, in searching of good possibility to invest their free funds in the conditions of world credit crisis.
Visa sold 406 000 000 shares with a price of 44 USD per share and collected 17.9 billions USD before the start of the exchange session today. The company will take a exchange code “V”, with with will be listed on the New York Stock Exchange. The price of shares was better than expected in the range of 38 to 42 USD per share, and this showed hos strong was the request of the investors.
Visa is expecting net incomes after paying of taxes of emission of 17.3 billions USD. Today;s IPO is the top in the history of American capital markets, and till that moment the largest funds was of AT&T Wireless in 2000 for 10.6 billions USD. In spite of that, the public offering of Visa, did not won the competition with Chinese bank ICBC, which realized 21.9 billions USD in October 2006.
Labels: Business News
USD in new bottom
Dollar fell toward the basic currencies to new top bottoms. That happened after the Federal Reserve of USA took first decrease of some of the main interest indexes in the country during the weekend from 1979. This brought to expectings, that the comitee will take a hard decrease of the interest level of the interest with 1% to the level of 2% on the conference tomorrow.
On special meeting in the weekend the leaders of FED, had decided that the the skont interest level, from which the largest banks - prime dealers can get direct loans from the institution, to be decreased with 0.25 percentage points to the level of 3.25%. This is the first similar action, made in the weekend from nearly 30 years.
Fo the negative situation hard influence acted also the news, that American bank JP Morgan made an offer for buying of the Bear Sterns, which was in the center of the mortgage crisis. The price of buying had been 2 USD per share, which is 10 times less than the price that the shares had in closing of the stock exchange in Friday. In this way the price of Bear Stearns fell to 236,2 millions USD. The purpose for buying of the bank is to decrease the hard suspicion in the credit institutions and not to be allowed future increase of the mortgage crisis.
Labels: Financial News
Eurozone on the first place
The American Economy lost the first place in the largest world economy in Friday, after the USD fell under the new top level of 1.5688 USD per 1 EUR. The Eurozone became a leader, when the cheap American currency made the Gross Domestic Product of USA chepaer than the one of Eurozone. Analyzers counted the value of the Gross Domestic Product of USA and Europe in EUR, after the loss of USD, because of the news for the bankrupcy of Bear Stearns Bank.
"The result of today's study is a serial prove for the power of the 15 European economies, which are forming the Eurozone", commented analyzer from Goldman Sachs.
The nominal Gross Domestic Product of USA for 2007 was 13 843 800 millions USD, and the Eurozone's one was 8 847 889 millions EUR. The economy of the European countries went in front of the USA one after the value of the USD of 1.5646 USD per 1 EUR.
Labels: Financial News
Federal Reserve with more aggressive politic
From the Federal Reserve announced today, that for extinguishing of the new emotions of capital markets, they are ready to get wider their program form crediting to financial institutions with more than 200 billions USD.
FED decided to use all from its financial services, as giving to money to short 28-days loans to “money dealers”. FED agreed the new swap line of European Central Bank and Swiss National Bank.
Today’s decision of FED is the last step of Bernanke to help quickly repairing of financial market and lower liquidity due to the heavy credit crisis started nearly half an year ago. Till that moment, the Central Bank of USA tried to stabilize the market with aggressive cutting of interest level, which at the moment is 3%. This strategy did not gave the result that Bernanke expected and today the world Central Banks decided to take new, more aggressive politic. The focus of today’s common decision is to stimulate the markets as much as possible. The investors did not wanted to invest in financial activities, because of the low liquidity.
Labels: Financial News
Business of Real Estates become dangerous
Buying of real estates was the easiest and profitablity invest. You don't need a hard knowledges about finances, business or economy, to realize a big profit. You just needed a little cash and wish to invest in quickly getting more expensive quare meters living area. After years of raising prices and high persentage, more of European countries started to feel the first signals for overturn of the trend. Ireland for example, for 2007 is signing a hard decreasing oif the prices with more than 7%.
COuntries from Eastern Europe, like Poland aand Bulgaria, are still getting good with high persentage of returning, but there the market is dependent from foregn invests. In conditions of world economy delay, foreigners may become a little bit more reserved to invest their money in second home, and with this the raising of the price will delay.
Labels: Business News
Ernest Antoine Sellier about European currency
Just days before the meeting of European economy leaders and day after the decision of European Central Bank to keep the high interest levels, the negotiations for need of keeping of the EUR value are interferating. The president of European Business Association (BusinessEurope) - Ernest Anton Selier announed yeasterday, that EUR "will not survive in long term if missing of any political support, in which we should understand Eurogroup" - wrote EU Observer.
The Eurogroup means the financial ministers of 15 members of Eurozone, who usualy meet every month. Earlier this month, the Eurogroup expressed some "inconvenience" about the very expensive EUR, but refused to comment the monetary politic of European Central Bank.
Labels: Financial News
Markets with different moods
For serial time the world capital markets are showing not clear direction, hardly changes in the moods and chaotically investment actions. The affraids for the powerr of the world economy and the growing expectings for soon American recesion, are not allowing to the market to get out from the magin circle in which it is. The news about larger percetage of expired mortgages in USA, and harming additionally the markets and remebered that the cerid crisis is still not passed.
The Australian credit institution - National Australia Bank, decreased to its lowest level from 3 years, while the Japanese - Mitsui Financial Group, went to the other extreme and finished to higest growing. The companies Sony and Nintendo were hurt mo\stly from the negative news comming from USA, because the American market is most important for them. The largest mining company BHP Billiton lost from its shares' price, because of suddenly cheapen of the metals.
"With all uncertainty comming from USA, the ghost of credit srisis is comming back to the market", commented Japanese analyzer in front of Bloomberg. "I'm affraid that the Asian's markets for the first time will repeat the doings from January", continued he.
The shares of financial companies are reflecting mostly into the reginal indexes. Most hardly this felt MSCI, which decreased with 2.8%, to 139.93 points.
Labels: Financial News
