Drop of the indexes in USA
During the last exchange session for the previous week, the basic index Dow Jones dropped with 0.9% to the value of 11 346.51 points, which was the lowest level of the index from August 2006. The wide American index S&P 500 decreased with 0.4% to finish the session with value of 1278.38 points.
The Friday's loses forced the weekly decrease of Dow Jones with 4.2% and S&P 500 with 3.0%. Both indexes are signting too weak monthly action for June. The decrease of Dow Jones from the top level of October is now nearly 20%, a border which is taken from the investors for going in recession. Main reasons about decrease and connected with the expectings for new loses from lost activities due to the credit crisis, high petrol prices and predictions for delay of American economy. One of the worst sectors is financial. The index, which is calculating its presentation S&P 500 dropped to 5 year bottom due to predictions for new wave of lost activities in result of credit crisis.
Labels: Financial News
Citigroup continue to lose activities
The bank, which realized the highest loses from the colapse in the American Mortgage market may lose the activities for more than 8.9 billions US Dollars for the sexond quarter of the year, announced ther analyzers from Goldman Sachs Group.
Goldman also decreased the rating of the largest american bank, announcing that the worse actions from the financial crysis in the industrial sector is high bigger that the expectings.
"Turning of the business trend in the lower direction was expected for the second half of 2008, but happened much before", told from Geldman.
From the financial company predicted many future problems in front of Citigroup, because of the risks from future loses of company activities, bigger securing of the users and possible need from more capitals.
From Citigroup gone to UBS and Merrill Lynch in expectings for loses in the second quarter of the year. From the based in New York bank, had lost activities for 42.9 billions US Dollars because of the credit crysis, and the previous week the director of Citigroup Vicram Pandit announced, that the company is predicting the shortening of 13,000 working places this year and more loses due to bad credits.
Labels: Financial News
Libya may decrease production of crude oil
The crude oil strted to getting more expensive, after the two days of lower prices. The curent price is over 135 US Dollars per barel, due to the weak dollar, crashes on financial markets, which made investors to pay attention to the black gold. The additional force in the higher price of petrol was the information, that Libya will decrease the production. The director of the National petrol company of Libya announced, that the country may decrease the export, because the market is flooded by petrol.
The crude oil with delivery in August got more expesive with 3.11 US Dollars or 2.31%. This increased the price to the level of 137.66 US Dollars and continue to go up.
The director of the National Petrol company Shuckry Ganem announced, that the country may take the decision for decreasing the export, but declined to be more accurate about the date of decreasing the production and the rate of decreasing. Other reason, which he signed for possible decrease of the production and penalties of USA over the Iran's Nuclear Program.
Labels: Financial News
Drop of the European markets
After slow increase this morning, due to petrol companies and banks, the European stock exchanges realized some drop, after the increase of the index of productional prices in Germany of 6.0% on yearly base, while the previous month the increase was just 5.2%. This is thre largest jump for the previous 2 years and the result is because of the increase of the prices of enery most of all.
In Switzerland the inflation preassure also is getting harder, and today the report for the index of the productional and import prices showed increase with 3.9% on yearly base. Other factor, which will hit the prices in Europe is the predictions, that the growing of the economy of France this year will be only 1.6%, which will be the slowest development for the last 5 years.
The decrease of the price of Gold and Copper because of the problems on the Chinese market reflected negatively to the shares of the minning companies and hurt hardly the market on the Island, in the same time the crude oil started to bring back the possitions after yeasterday's drop, provocated by increase of the prices of fuel in China.
Labels: Financial News
Lehman Brothers dismissed two directors
Two of the top-rated employees of the American Bank Lehman Brothers were sacked from their work. The prime financial director and the manager director should leave their offices.
Lehman Brothers was seriously hurt by the crash of American Mortgage Market and Global Credit Crysis. For the first quarter od this year the company lost 2.8 billions US DOllars and wrote plans for taking of 6 billions US DOllars additional capital.
That is the first lose from 14 years history of the company and signed a strong contrast with the result of the previous year, when in the same period Lehman took more than 1.3 billions profits.
According to the executive director of Lehman Brothers, Richard Fuld, the result is too poor. During this year Lehman should find 4 billions US Dollars, external funds for improving the accounting ballances, valued in red due to poor ectivities and losts linked to the mortgage market.
Labels: Business News
US Dollar more expnsive
The US Dollar, is getting richer with highest step from two years due to speculations, that the financial ministers of G8 will signalize during the meeting at the end of the week in Japan, that they support the higher Dollar, wrote Bloomberg.
The positive for the Dollar was also the information, that inflation in USA probably will get stronger, which increased the expectings, that soon the Federal Reserve will increase the interests in USA.
The Dollar was traded to levels of 1.5444 USD per 1 EUR, this morning in London, from 1.5439 USD per 1 EUR in New York last night. This week the Dollar get richer with 2.2%, the most serious increase of the currency last years.
The US Dollar was exchanged at 107.76 toward the Japan Yena. The weekly increase toward the Japan currency is 2.7%, the highest increase from 2004.
Labels: Financial News
Large private investments in developing countries for 2007
The income of private investings for developing countries increased quickly for the last 5 years, sighted report of the World Bank. More than 1 trillion US Dollars are the private investings in developing countries for 2007, in comparison with 174 billions US Dollars, just 5 years ago.
It is now too high increase of the foreign investings in the markets of shares and in bank crediting.
But the World bank, warned that in result of the credit crisis, these financial streams started for decrease, because of the increasing of the interest levels as reflection of the risks.
The report of the World Bank analyzed the money stream, passing in all the countries from the leading Financial Centers. This group from developing countries is too varied. Some countries are with better economies, just like Brazil and China, are getting larger part of the private investments, but other poorer countries in Africa and getting almost nothing.
But just for statistic comes the information, that even the fastest developing countries, like China, the middle income of person is 10% from the one in good developed countries.
Labels: Financial News
Russian Central Bank increased the interest level
The central bank of Russia increased the interest by refinancing with quarted percent point, to the level of 10.75%. The decision of Bank Rossii is comming in force from Tuesday, announced "Vedomosti". Together with this, the bank also increased the interest for operations of the bank with credit organizations. Overnight interest now is 10.75% on yearly base, but on one day repo is 6.75%.
This is the third increase for refinancing in Russia this year. On 4th February and 29th April, the Central Bank already increased the interest with quarter percent point.
From July new and higher requirements for reserves of the banks are comming into force. The previous week the vice president of the Central Bank, Konstantin Koristenko told, that it is possible to come into the yearly prediction of inflation to 10.5%, in spite of the first five months users prices had increased with 7.7%.
Labels: Financial News
150$ per barel petrol in the summer
Through the summer season, the prices of petrol probably will reach 150 US Dollars per barel. The prediction was made by the director of the global studyings of the trade goods in the investing company Goldman Sachs, which is quated by Reuters. The main reason for growing of the price is that tightening of the deliveries is acting more serious that decreasing of the requesting.
I may tell, that the possibility this to happen, most probably increased much... in some moment during the summer", told the chief Jefrey Kury during the conference for Oil and Gas in Kuala Lumpur, the capital of Malaysia. He talked about the price of more than 150$ per barel.
Goldman Sachs are the most active investing bank about energy markets, one of the first, which told about 3 number prices for barel of petroleum, whole 2 years ago. That looked very unbelievable and the company got many mockeries from the fans of "Endless Petrol".
The petrol can jump to 200$ per barel just in the next 2 years, was the prediction of Jefrey Kury previous month. Then Goldman Sachs made the prediction, that the second half of 2008, the price will be nearly 141$ per barel due to not enough deliveries.
Labels: Financial News
The index of ISM with 1 point jump
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The institute for management of sellings (ISM) increased the index of expectings of managers in relation of orders to 49.6 for May, in comparison with 48.6 in April. The border between increase and decrease of the economy is 50 points. The index for orders in the sphere of industry signed growing, and surprised the economists, when they expected a little bit worse results.
According to Bloomberg, the main reason for this is increased request of American production on the foreign markets, which allows of the companies to continue to work in spite of bad business and delay of the inner market.
Increase of the index shows, that American economy maybe will avoid the crysis in spite of the hard decrease in the prices of real estates and jump of the fuel prices.
The economists expected some falling of the index to 48.5 points in comparison with 48.6 points in April. The main reason for this was the drop of the building companies' orders in April with 0.4%.
According to the index of ISM, new orders increased to 49.7 from 46.5, while the index of the size of production had increased to 51.2 from 49.1. The sign for deliveries fall to 53.7 from 54 points for the previous month.
Labels: Financial News
Isn't high price of the petrol useful?
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I think, that the people, should be enough developed in the 21st century, not to have any wars about petrol. This is a serious question, which is very popular last days, and was asked by the media Marketwatch, and they fill, that nevermind what we want, the end of the perol age is very close.
Not only Americans, but also all other people around the world should accept as a possitive factor too high prices of the crude oil and produced from it fuels. We lived in a world of cheap energy too long, which interrupted us to develope and produce more effective ways to satisfying the energy needs. This is th main reson now to feel so large difficulties, when the end looks so unavoidable.
The record prices of the automobile fuels in USA and Europe, as the predictions of the pertrol price of 200 US Dollars per barel, will be the basic catalizer of politics and social changes in the western societies. The industry developed contries will not avoid the economy delay, but it will be followed by hard growing. For example, we can give the USA economy, which felt three times increase in the prices of the fuel for 6 years, without falling in recession. Already started beasty uses of petrol from China and India will lead to double of the current price in the next 2 years, which finally will give the necessary kick for finding a new direction of the world economy outside the sphere of petrol and fosil fuels.
It should be good if we count the changes, which could be done at the moment, in which the world stop to use digged fuels and direct its development to alternative energy sources.
We should stop the diesel engine. Today's cars may have all electrical widgets, but diesel engines are working in the same way, they had worked at the beginning of the previous century. We all are in captivity of old technology, due to the country lobby of the large petrol companies in USA and EU. Isn't it strange, how the people was able to decrease the dimensions of the large computer terminals to small pocket ones, but developing of the diesel engine was too hard for them, and still there is no alternative energy source.
Labels: Comments
