The ADP survey about US unemployment
ADP survey for the net change in jobs in the private sector in the U.S. in July showed employment rising by 9 thousand people in expectations for 55 thousand people sacked as the previous survey showed 79 thousand sacked. The range of forecasts was reduced to between 110 thousand and 40 thousands, when the ADP revised the information for June to 77 thousand redundant to the previous 79 thousand people. This study is before the government data on the state of housing markets on Friday which is expected to show 75 thousand redundant as this will be 7 - my serial month of reductions in the world's largest economy.
Labels: Financial News
Decrease of unemplyed persons in Germany
Slight decrease in the number of unemployed in Germany for July. The number of unemplyed persons is with 20 thousand lower not lead to the level of unemployment for the second serial month, as it proved too little. The total unemployment of rude base in Germany in July was 3.210 million units, while expectations were for rising to 3.20 million units. In June it was 3.16 million units.
The level of unemployment in Germany for July rise to 7.8 percent of the average base (7.7 percent of rude basis) to 7.5 percent in June. Changing of unemployed averaged base in Germany for July coincided with expectations for a reduction by 20 thousands as in May was reduced by 38 thousand units. According to Bundes Bank of unemployed in Germany averaged base is lower at 3.250 million in July to 3.270 million in June.
Labels: Business News
Arcelor Mital with great profit
The shares of Arcelor Mittal, the largest producer of steel in the world, take note seriously slumping today after the company's profits for the second quarter were over the prior expectations. Furthermore, the Executive Director of the company Lakshmi Mital predicts continued growth in the third quarter.
For the first six months of the year the steel producing giant has net income amounted to 8.2 billion dollars, or an increase of 31% on annual basis. As a profit in the second quarter reached $ 5.84 billion, or $ 4.19, to $ 2.72 billion, or $ 1.97 per share, year earlier, reported today by the Luxembourg based company.
Sales increased by 39% on an annual basis, to $ 37.8 billion, since the company expected profits in the third quarter, before tax to reach $ 8.5 billion.
For the first six months of the year the increase in sales amounted to 31%, to $ 67.6 billion, as production increased to 59 million tonnes to 55.7 million tons for the same period in 2007. According to Lakshmi Mital company continues to seek opportunities to further increase its own raw materials, as the prices of the Iron ore rising on world markets. Until 2014 on the company wants to produce itself to 80% of Iron ore, which used to 45% now, as that provided for investment in production and yield of Arcelor Mittal are about $ 7 billion.
Labels: Business News
Lufthansa in protest
Day second of the strike in the biggest German company a plane Lufthansa:
The labour-union Ver.di and claimed on Tuesday. Not only employees in Frankfurt and Hamburg are not working - now stopped and the staff at both airports, Tegel and Berlin Shyonefeld and in Stuttgart and Nuremberg, reported "Shpigel.
On Monday the striker actions of employees of "Lufthansa" not led to changes of schedule, but on Tuesday morning and was first postponed flights - as in the inner lines, and for European flights. 70 Total aircraft company is expected to not fly off today.
In Hamburg were suspended seven fields to Munich and Frankfurt. In Berlin also has suspended flights, late flights are to Brussels, Dusseldorf, Cologne and others. Reported to be postponed flights in Hanover and Bremen, in Dusseldorf, Munich and other cities. A total of at least 18 flights of Lufthanza are deferred. In this connection, the company points out that it is ready for negotiations with the strikers. Agreement with Ver.di lies on the table "and" signature is possible at any moment. Trade unions on Monday explained that the success of actions entered the staff for maintenance of machinery, without which such longer period flights are impossible. "A little exaggerated, but one light in the aircraft may cause the crash of the machine".
Labels: Business News
Crude oil prices fell again
The crude oil was traded close to 12 weeks minimum because of speculation that the consumption of gasoline in Asia and the U.S. will decrease because of higher fuel prices. Contracts of lightest U.S. crude oil with delivery in September traded today before the start of European session for about 121.83 U.S. dollars per barrel, or 0.36 percent discount from yesterday.
Support forecasts for a decline in consumption of gasoline became the reduction of subsidies in some Asian countries, leading to a rise in prices to final customers, noted representatives of Singapore Petroleum, the only company refining oil in Singapore. In a report published yesterday by MasterCard - to regular weekly reduction in consumption of gasoline in the United States.
Reduction of subsidies was taken by governments in India, Indonesia, Vietnam and Malaysia, leading to serious slumping of diesel and petrol in these countries over the past two months.
Yesterday during a session of the NYMEX price of oil futures with delivery in September fell to 120.42 U.S. dollars for a barrel.
Today the Ministry of Energy of the United States will publish a report on daily stocks with fuel and oil to U.S. companies, expected to be reported decline in stocks of gasoline for consecutive week.
Labels: Financial News
Financial sector pressed the US markets
U.S. markets started the day with the reduction, led by financial companies after by announce of the IMF that the end of the credit crisis is still far.
Citigroup and Bank of America leaded the companies in the banking sector in the fall in prices of the shares, and Verizon Communications, the second largest telephone operator in the United States began the session with a four-month decline to a minimum, after taking into account greater than expected reduction in the fixed-line subscriptions in the country.
Also the Tyson Foods, which is the second largest producer of chicken reported a fall in market capitalisation after it reported a reduction in profits by 92% in the first half of the year because of high prices of maize.
Nearly half the companies listed in Standard & Poor's 500 recorded in its forecasts for the third quarter expectations for a drop in profits, which reflects the price of their shares.
Fall in the market was limited by Kraft Foods, once the second largest producer of food in the world announced earnings for the second quarter, higher than expected by market analysts.
Labels: Financial News
The demand of long term goods higher in June
The demand for long term goods unexpectedly go up in June, which in turn is an indicator for better development of the industrial sector. Orders for durable goods are up by 0.8% in June to the middle for the season 215.43 U.S. dollars billion as reported by the Ministry of Labour, as the market expected decrease by 0.5% in June. Durable goods that are produced to last more than three years go up by 0.1% in May as previous data was that they were unchanged. Displayed data proved better than market expectations.
But since the beginning of the year, orders for durable goods have increased only three times, which indicates that the delay of economy influences of industry. Until now the demand for expensive goods were weak as it was supporting exports.
Contracts to produce goods mainly for production, which are a major indicator of business spending and do not include those for aviation and defense go up by 1.4% monthly base and 3.8 percent on yearly base.
The deliveries in June for industrial goods excluding those for aviation is lower by 0.7% after the May rose by 0.2%. Supplies are reported, as used in calculating the GDP of the country.
The demand for durable goods in the transport sector decreased by 2.6% in May after having increased by 1.9 percent. The trade aircraft orders rose by 25.1% and military aviation, they are lower by 8.6%.
Orders for motor vehicles and parts go up by 1.8% in June this appears to be looking for more cars to spend more efficiently the fuel themselves. On an annual basis the orders of cars is lower by 15.2%.
Orders for goods with long-term use without their transport rise with 2.0% in June as orders of machines go up by 2.3%, 5.1 for primary metals and 5.0% for electrical equipment and by 1.7% to fabrichnimetali.
Demand without the transport in May decreased 0.5%.
Labels: Business News
IMM speculative possitions for the week untill 22.07.08
The IMM speculative positions for the week until on 22.07.08 showed a sharp reduction in net short positions in US Dolalrs, based on information from the Commodity Futures Trading Commission.
The USA net short positions against other six major currencies (EUR, GBP, CHF, JPY, CAD, AUD) signed fall in half to $ 9.66 billion for the week until on 22.07.08 to net short positions for $ 20.01 billion during the previous week to laying 15.07.08
For the last week at 22.07.08 on there was a strong decrease in net long positions in the Euro to only 4 071 contract (for every 125 000 euros) to net long positions amounting to 23 049 contract during the previous week, which IS UR / USD board to a new record peak at 1.6038 dollars, but not managed to keep permanently higher levels. In view of the series rather weak economic data from the Eurozone (risk of recession) is not excluded to have experience and to open net short possitions in EUR, but only breakthrough of the EUR / USD below 1.5660/1.5585 may lead to more serious net short positions in EUR.
The net long position in YEN for the last week on 22.07.08 were wound up dramatically to 10 524 contract (each about 12 500 000 yen) to net long positions in the yen amounted to 50 105 contract the previous week.
There fall in net long speculative possitions in GBP per week until on 22.07.08 and they amounted to 3 322 contract (each about 62 000 pounds) compared to net long positions amounting to 6 423 contract for the previous week to laying 15.07.08
Labels: Financial News
German business confidence is falling
German business confidence falling for 4 - th consecutive months as it is the sharp decrease from its September 2005
The IFO index of business expectations in Germany (for the next 6 months) in July falling to 90.0 points in expectations for a decrease to 93.2 point in June as he was at a level of 94.7 points. This is the lowest level since November 2002.
The IFO business climate index in Germany in July falling to 97.5 points in expectations for a decrease to 100.0 points in June as it was at a level of 101.3 points. This is his 3 years bottom and at a low level of September 2005 here.
The IFO business index of current conditions in Germany for July dropped to 105.7 points from 108.3 for June and on expectations for a modest decline to 106.0 points.
Aberger of German IFO institute said it sees no danger of recession in Germany, but the economy is reduced significantly and expects consumer spending in the country this year to remain weak. The European Central Bank should keep its main interest rate unchanged. Nerb of the IFO institute said that the economic recovery of Germany finished (with a view to weaker index for July). Said that oil prices continue to get more weight over the German economy and that price declines in recent days may have a positive impact on the IFO index in the future.
Nerb said that the Euro (expensive euro) also affect the IFO index.
Nerb recommended that the ECB interest to stocks unchanged in the current 4.25%.
Labels: Financial News
Light crude oil of Nymex price is going down
The price of light crude oil of Nymex continues with its decrease as a solid hit bottom yesterday to seven a week in bed for $ 123.90 per barel after data for strong rise in weekly stocks of gasoline in the U.S. and another decrease in consumption of petrol, although a noted oil stocks downturn.
In support of this continued strong drops in oil prices remain concerns about a slowdown in global consumption of petroleum and petroleum products to the economic slowdown in the U.S. and other major consumers of oil and the fact that Hurricane Dolly is not affected the important oil infrastructure in Mexico Bay. Only 5% of the oil companies working in the Gulf temporarily closed their plants.
Now price of loght crude oil is traded around $ 124.40/50 per barel after yeasterday's new fall with about $ 4, as oil is now down more than $ 23 for a barrel from its peak of $147.27 for a barrel on 11.07.08, which represents the strongest decrease in oil prices in history for such a short period (expressed in dollars) and represented 15% - ten drop - the largest since the beginning of 2007 here.
Labels: Business News
3 different direction for the interest rate of Bank of England
One politician from the Bank of England has voted to increase the basic rate of the last meeting of the bank as another member of the Council has voted to decrease as both are claimed as a reason economic growth and inflation are increasing.
Minutes from the last meeting showed that Timothy Bizli wanted immediate increase of 25 basis points of the basic interest rate, and David Blenchflauer voted for lowering interest. This led to the first triple division into three parts in May 2006 here the decision was difficult for all 9 members with a view of growing inflation and delay of the economic growth in May.
Market analysts expected a vote of 8 to 1 to preserve the basic rate. After became clear minutes sterling has increased after it became clear that there is little support for the decline in the basic interest rate.
Council members appeared set to a greater degree of increase in the basic interest rate in order to preserve price stability, but is concerned about the economic cost of such a decision.
Most of the market expected interest rate to remain unchanged until the end of the year before its eventual decline because decreasing economic growth. Bank of England, however, is affraid from growing inflation, which has almost doubled over the desired level of the Bank.
Support a finding of a possible rise in interest is the recent economic data for the country, which witnessed a serious slowdown and the threat of higher inflation over the medium term.
According to politicians, despite data on the growth of the economy in the second quarter, which will become clear on Friday and will most likely have slightly improved the overall economy continues to slow, according to research analysts of Bank of England.
Labels: Financial News
High jump of Russian fuel prices
The fuel increase its price with 18.7% in Russia since the beginning of the year, and the diesel oil - with 27.7%.
The prices of petrol jumped with 0.7% for one week of a diesel - by 1%, writes "Gazeta ru".
Only since the beginning of the month the fuel grew by 2.2% and diesel - by 2.9%. Increase in average fuel prices registered 50% in the center of the Russian Federation. The price per litre of petrol in Russia is 1.2 dollars, while in the U.S. - 1.4 dollars.
Experts recommend not to compare the prices of fuel in Russia and the U.S., because pricing in different countries varies. Besides the price of fuel, grow and prices of other goods.
Russian authorities have not changed its official forecast for inflation for the year in 2008 amounting to 10.5%. Assessment specialists, however, it will exceed 14%.
Labels: Financial News
Good news about US Dollar
The price of the dollar near two-week up against the euro after the rise of the shares of financial companies increased expectings that the Fed will increase from interest rates by the end of the year.
Noted U.S. currency rise against the Japanese yen and while was traded close to one up after Congress approved the plan of Finance Minister Henry Polsan to stabilize the condition of mortgage giants Fannie Mae and Freddie Mac.
Pressure on the single European currency are giving even more negative data coming from the economies in the euro.
Yesterday the dollar reached $ 1.5670 against the euro, which was the strong performance of its 9 - July.
U.S. currency reached yesterday at 107.99 yen, which was the highest level of 26 June.
Labels: Financial News
Investment of 325 million USD of Elena Baturina in Morocco
The company Inteco founded by Elena Baturina, which is the richest woman in Russia and wife of the Mayor of Moscow - Yuri Luzhkov, will invest in the creation of a resort complex in Morocco, writes Journal Comersant.
Inteco, through its subsidiary company Kudla Group will invest $325 million and will build resort complex on the surface of 2 million square meters. On an area of 48 hectares will be built hotels, sports centres, entertainment Houses, golf course and many more interestin tourist attractions.
The company will implement three projects in Morocco. From Inteco explained that Kudla has five projects in the north African country, the overall area of 1500 hectares.
Inteco was founded in 1991 by Elena and Victor Baturini. Since 1996 its sole owner is Elena Baturina. In Kudla Group has participation and businessman, dependent to a Moroccan government.
Experts note that the choice of Morocco as a place to invest in luxury resort projects is not random. The country has shown positive growth and high nedvizhimostite indicators yield on lease.
Labels: Business News
Romania and Bulgaria with bad report from Brussels
Romanians got much criticism for insufficient efforts in combating corruption, but rescued the money from European funds. Less then a month when representatives of the Romanian government, strongly argued that the country will clicked on gas absorption of EU funds. Until in 2013 Romania has access to 32 billion euros, which may absorbed through quality projects.The country has managed to convince Brussels it nevertheless started "witch-hunt among corrupt politicians.
Bloomberg Agency "clarified that the Romanian Prosecutor's Office had accused 10 current and former ministers in corruption, including the ex-premier Adrian Nastase and the Minister of Labour. The report indicates however that was not marked "real progress" in none of the ten key case are involved former statesmen.
At the same time, however, Brussels decline that decisions related to corruption at high levels in Romania are too politicised and is necessary to demonstrate that there are penalties for such acts. The European Commission has requested Romania to be uncompromising with corruption cases. The Romanians still can not escape from its Balkan mentality and the resemblances with Bulgaria are many. As to Bulgaria and Romania got many critics from Brussels for a lack of political consensus for judicial reform and fight against corruption in high-level power.
Labels: Financial News
Cruide oil under 130 USD per barel
The crude oil with delivery in August got cheaper with more than 4 USD per barel, which was the third decrease this week. This time the basic features of lower prices were 2, futures of the Natural Gas got cheaper, because of the indications that global economy delay will decrease the requesting of the petrol and George Soros made his serial media speculation. There si also one more reason ffor decreasing of the cruide oil price, and this is the fact, that the term for signing agreements for delivery of crude oil is finishing today and the investors are directed to September futurers.
The August options at price of 130 USD per barel were the most traded options of NYMEX today. The futurers of the Natural Gas got cheaper with more than 7%, after the report of the Ministry of Energy about the stores of American companies, which increased with 4.71% in the last week. Now the stores are about 65.496 millions cubic meters, which is more than expectings. In the same time the data from last weeks showed delay in European, British, American and Chinese economies.
Yesterday in Forbes was published analyse, in which the billionaire investor George Soros had realized his short petrol possitions at price about 137 USD per barel and had abought a long possitions on the market in gold. According to Soros the price of the crude oil will continue to decrease and the gold will continue seriously to increase.
Labels: Financial News
Delay of the economy hit the export of Greece
The global delay of the economy and the strong EUR, both hit the export of Greece in the first 5 months of the year, wrote the Greece newspaper "Ekatemarini". The media quoted the words of the Greece financial miniter Georgios Alogoskoufis, according to who, is expected the data for May to showmore positive tendention. The growing of the export of the South European country was the best prove for Greece economy expansion for the last years. This also confirmed Greece as a coutry, which can make profits from trading with the neighbour countries.
The incomes from exports of the country hbad increased to 9.6% from Gross Domestic Product in 2007. In 2004 the same data was 8.4% from the Gross Domestic Product. After the period of strong development of export last years, the export dropped with 4.6% in the first 5 months of 2008 in comparison with the last year. The calculations are showing, that in May there is growing of 21%, but dificulties are visible, told the Greece financial minister. The government revised the expectings for growing of economy this year from 4% to 3.6%. The government sources are claiming, that most probably will there is new revision of the parameters in the Autumn.
Georgios Alogoskoufis put the all faults the employees of the harbours Salonika and Pireaus, which were in strike.
Labels: Financial News
About yesterday's report of Ben Bernanke
Yesterday the president of American Central Bank, Ben Bernanke gave his report in front of the Senate. His statement did not gave the expected positive effect over the investors. Ben Bernanke acknowledged, that Federal Reserve there is no clear ideal about direction of the interest percentage in USA. Together with this the FED chief showed some risks connected both with the high inflation adn economy growing. According to analysers the basic priority of the institution at the moment is supporting of the financial markets and rehabilitation of their normal work. This means that inflational preasure is going on back stage.
In the statement Bernanke also told, that the dangers of economy delay and increase of inflation had grown, which is very dangerous for the whole American economy. The most serious affraids of the president of FED are the problems, in which felt the largest mortgage creditors in USA - Freddie Mac and Fannie Mae.
"decisive directions of the monetary politic are in need from careful valueing of the comming information, related with the views of the economy growing, so as high inflation", told Bernanke and showed high prices of the resurces, narrowing of access to crediting and deeper crysis in the real estates sector as basic affraids for the economy.
Yesterday's announce of Bernanke os the first comment about the questions realted with monetary politic, after on 25th June, FED took decision to keep the basic interest percentage to 2%.
Labels: Comments
The price of Crude oil went down
After the announcement of the director of FED, the price of American light crude oil went down. It reached 136.85 USD per barel with delivery in August. Probably this is due to hedge funds, which licvidated the long term oil possitions, because the limit for signing contract for cruide oil with deliveries in August finished tomorrow and the investors are directed to september futures.
But in spite of that fact the announcment of Bernanke gave its hand to decrease ot oil price. The chief of Federal Reserve sighted that the high price of the black gold is reacting unstable over the American economy and to the course of US Dollar. The logn term effect of this will be in decreasing of petrol requesting. Earlier yesterday the crude oil was signing its serial increase due to the weak dollar and the affraids of investors for future of bank sector. The US Dollar today reached the lowest value toward Euro from $1.6038. This forced the affraids of the investors of growing of inflation in USA.
The crude Brent oil with delivery in Eugust got cheaper with 7.64 US Dollars, which is nearly 5.3%, to 136.28 US Dollars per barel on the futures trade on London Stock Exchange.
Labels: Financial News
Breaking of Fannie Mae and Freddie Mac balloon
The two American mortgage agencies Fannie Mae and Freddie Mac looked stable. But on the 10th July, publication in New York Times, told that two companies may be taken under Government rule. And this was followed by panic and selling of shares on half price. On the next day, from the government and spokesmen of Fannie Mae and Freddie Mac announced that they are not in crysis situation and have pretty good practises for fighting with the crysis. For the brake of the shares the main guilty have newpapers and speculations from them. The minister of finances Henry Polson hurried to announce, that government rule of the companies probably will not be done.
In all cases the situation around two giants, created years ago with decision of USA Congress, is still keeping unsure.They has left mortgages for nearly 5 trilions USD, or nearly half of the American mortgage market is in their hands. From the middle of 2007 to the end of March 2008 the loses of Fannie and Freddie is about 12 billions USD. From the begining of the year to 10th July the shares of Freddie Mac felt with more than 75%, and those of Fannie Mae with 64%. During the trade in Friday, 11th July, the shares of Fannie Mae got cheaper with 45% to 8.53 USD, and those of Freddie Mac with 27% to 4,74 USD, reaching 17 years bottom.
Labels: Business News
Unstable moving of American indexes
More from American shares started the session with decrease due to the serial drop of the support to bank system of the country. This happened after the bankrupcy of the Californian bank IndyMac and troubles of the two largest mortgage creditors in the country Fannie Mae and Freddie Mac. Many of the investors were disapointed by the decision of the financial minitry in relation with the two companies. This reacted to requesting of longt term securities and shares of Fannie Mae and Freddie Mac.
In the same time Goldman Sachs Group and CreditSights announced today, that regional banks may cut the dividends, to keep the capital and the guarantee licvidity. In spite of all crysis the shares of Apple went up. This happeneted after the company announced that only for the premier weekend of iPhone were sold more than 1 million numbers. In the begining of the trade of every 6 shares, which went cheaper, 5 went more expensive. The wide American index Standard & Poor's 500 started with growing, but an hour after the begining of the trade in New York was moving nearly 1,238.60, which is 0.07% decrease from Friday.
Labels: Financial News
John Major: "Maybe Great Britain is in recession"
The ex-prime miniter of Great Britain - John Major mixed his liking to the prime minister Gordon Brown with the affraids from comming recession in Great Britain. The main reason about this was the present inflation in the country between 8% and 10%, nearly 2 times more than official data. All information was announced by the british newspaper Guargian, where was published an interview with John Major about Biritish economy and the crysis in the world countries.
According to one of the mosk known definitions, the recession comes, when the real economy development is negative for a period longer the 2 quarters of the year. During his rule the previous prime miniter get interest levels of 14% and inflation of 9.5% from Margaret Thatcher in 1990. Then the support of users in the British economy felt to the lowest level and in London there were revolts, which leaded to retirement of the premier minister Margaret Thatcher and just after that the place was taken by John Major. The basic reason for todays distrust of the citizens in the government is hidden in the continuous drop of the price of real estates in the country, signed Bloomberg Agency.
Labels: Financial News
Decrease of the Asian indexes
More shares traded on the Asians markets realized drop, sending the basic index MSCI Asia Pacific for the region to the lowest level for the last four weeks, announced from Bloomberg. At the end of the session, part of the markets reached increase, but in spite of MSCI Asia Pacific realized fourth serial monthly drop.
The trade finished with decrease of 1.464% of the index to 132.57 points, ot 3.2% under the level from the previous Friday. In this way for the last four weeks the decrease can be counted to 12%.
The main reason for the drop in all markets were the new top levels of petrol and the negative expectings of the consequences, which may lead to high inflation for economy growing of the separate countries. This was a result of the increase of the basic interest levels in many banks of Asia.
In Japan the index Nikkei 225 signed the decrease now on 12 serial sessions, which is the the longest decrease for the last 54 years. On today's session the index finished with decrease from 0.21% to 13,237.89 points, which registered the fourth serial weekly decrease.
Labels: Financial News
