American markets continue to grow
The U.S. markets started the session with the increase after today published details of the value of the U.S. Gross Domestic Product for the second quarter recorded a significant revision to the original. The country's economy grew by 3.3% in 2nd quarter, to initially declared value of 1.9%. Under the impact of news on the stock exchange session in New York the dollar rise against the euro by 0.16%, compared to yesterday, reaching 1.4702 USD / EUR.
The price of oil went down again, taking two hours after the start of the session the contracts with delivery in October for U.S. crude oil were getting cheaper with 0.38 percent, to 117.70 U.S. dollars for a barrel. Optimism of U.S. investors due to a simple maxim, a stronger growth of the economy means higher profits.
The wide index of U.S. companies Standard & Poor's 500 increased by 0.86% to 1 292.74 points. The index of top U.S. companies DOW JONES INDUSTRIAL increased to 11 658.92 points or 1.36% more than yesterday. The IT index rose NASDAQ COMPOSITE, two hours after the start of the session, with 0.83% to 2 402.24 points.
Freddie Mac continues its good performance from yesterday and got more expensive with 11,576%, to $ 7.23 for share. Federal National Mortgage Association, also raised to $ 7.28 for a share or a 12.35% increase from yesterday. The biggest U.S. company in the Mortgage sector continues its appreciation yesterday, after its Executive Director Daniel Mud replace its three leading deputies, in an attempt to return broken confidence of investors in the company, whose shares lost nearly 90% of its value since the beginning of credit crisis.
Labels: Financial News
Bulgaria and Romanish are increasing pensions
The Romanian government increased pensions by more than 20 percent in November, announced the publication Balkansite. Analysts argue that this is related to parliamentary elections. The decision follows the plan of central government in Eastern European contry from last year's double increase in pensions between 2008 and 2009 year, which brought a lot of criticisms of many rating agencies.
Pensions have a significant impact on inflation. The decision of the cabinet is a way to attract the interest of the electorate, says economic analyst Radi Soviani. The average pension in Romania is around 100 euros. The Bulgarian government is also preparing to increase the money for older people. More than 60 percent of older people in Bulgaria will receive higher pensions after their recalculation from 1 October this year. This is clear from today's changes in the Social Security Code during the meeting of the National Council for cooperation involving Social Minister Emilia Maslarova. From 1st July in Bulgarian minimum pension insurance experience and age is U.S. $ 113.49, adopted the National Assembly. Since the beginning of January to June 30, 2008 the minimum pension for the experience was U.S. $ 102.85.
Labels: Financial News
Australia with plans for global change in energy policy
Australian scientists have calculated that only one percent of unused geothermal energy in the country can produce clean electricity that will meet the needs for the next 26 thousand years, Reuters reported. Australian government announced that it will put 50 million Australian dollars in a project to develop technology for geothermal energy.
Geothermal energy, sometimes called "hot rocks", there is huge potential in Australia - both in terms of combating climate change, and for national energy security, indicates the Minister of the resources of the South continent - Martin Fergusan. Currently 77% of electricity in Australia is produced from coal, but aims for 20% renewable energy by 2020 remain. While Australia is not the largest global pollutant and contributes to 1.5% of global emissions of greenhouse gases per capita, it is number one with five times more emissions from China.
To create electricity from geothermal energy is inserting water under the earth where water is hetting hotter, and a heat energy is used to generate electricity. Governmental organization Geoscience Australia already created a maps of geothermal energy in the country, using data from mining and energy companies, collected over the decades. On Wednesday a representative of Geoscience for Reuters said that only one percent of reserves equal to 26,000 years energy supplies.
In order to produce electricity, "hot rocks" must have a temperature of 150 degrees Celsius. Such is the temperature at depths of 1 to 5 km., Degrees in earth near the center increased. Estimates of the Association for geothermal energy in Australia show that by 2020 the country will be able to cover 40% (2200 mW) from the requirement of energy from renewable energy sources through the use of hot stones. To do this, however, needed investment from 12 billion Australian Dollars. However prices for electricity production from the ground will be significantly lower after the release of the first plant for commercial purposes.
Labels: Business News
The merge between Commerzbank and Dresdner Bank may be stopped
Strengthen signals are received that in August will be decided for unification between Commerzbank and Dresdner Bank, wrote "Handelsblat. The deal between the two financial institutions is not impossible but would be difficult to implement, say internal sources. However, there is a large speculation in this direction.
Two months both banks carefully checked each other trade reports. Commerzbank, Drezdner Bank and the concern parent Allianz is the refusal of official statements. Inside sources claim that the merger will be completed after 31 August.
Dresdner Bank intends by the end of the month to split from the company's consumer business and to be entered in the commercial register. In recent months, shares of Allianz lost 30 percent of its value, which led to losses for Drezdner Bank. Allianz expectations after the purchase of Drezdner Bank for 24 billion euros in 2001 have crash. Apart from Commerzbank, Drezdner Bank is interested in the Chinese and Russian Development Bank and Sberbank.
Commerzbank and Drezdner Bank faces a problem of valuation of the shares to the financial crisis. At the same time they can not extend the time for negotiations.
Labels: Business News
Higher trade deficit in the European Union
According to information published today by the European statistical office Eurostat, the first estimates the trade balance of the euro with the rest of the world for the month of June 2008 show 100 million deficit. In June 2007 the euro is enjoyed 7.5 billion trade surplus. However, in May this year the deficit was 3.9 billion euros. In June, exports rose by 1.4% and imports by 2.9% from the previous month. Initial estimates for the trade balance of the entire European Union of 27 members shows a deficit of 20.1 billion euros in June, as a year earlier the minus was 9.1 billion for the increase of foreign trade deficit in the EU as we know, serious and Bulgaria contributes, with a negative balance of 3.9 billion euros for the period. Imports of EU on a monthly basis in June 2008 has increased by 2.7% and exports by 0.5%.
Most significant is the shortage of the European Union's energy sector - 148.6 billion for the period January - May 2008, compared with slightly over 100 billion euros for the same period of 2007. Foreign trade surplus has in trade with machinery and vehicles (+59.9 billion compared with +44.0 billion).
Labels: Financial News
Incomes for Russia from Oil and Gas 3 times less to 2023
Income of federal budget in Russia from oil and gas sector will decrease nearly triple in 2023 on the Finance Minister has stated on Russian Federation Alexei Kudrin, quoted by RIA Novosti. The Ministry of Finance predicts that the incomes of the budget system of oil and gas will be get lower from 8.8% of Gross Domestic Product (in 2007) to 3.1% in 2023 years. In Kudrin's words this will happen because of mass decommissioning of old deposits.
In the Ministry of Finance estimates of the fall in oil income in the budget will be determined not by the decline in prices of raw materials, but to reduce the share of oil and gas sector in the structure of Gross Domestic Product. This trend will not change, even if prices are maintained within 120 to 150 dollars for a barrel. Overall income of the federal budget will reduce from 23.6% from GDP in 2007 to 12.9% in 2023. The decrease in revenue from oil and gas sectors will also be due to the increase in the minimum estimated non-tax yield of oil - in 2009 from 9 to 15 dollars for a barrel. Furthermore, in some regions of Russia extraction of oil will be happy to "tax holiday". The absolute record in oil buisiness of Russia was in February this year. For the first half of 2008 the yield of oil and gas fell by 0.3% over the same indicator of the previous year.
Labels: Financial News
Leman Bothers is selling properties for 40 billions USD
Investment Bank Leman Bothers started negotiations for sale of its portfolio of property and papers relating to the property market at a cost of up to 40 billion dollars, informed Journal Financial Times. The financial company wants to improve its balance sheet. According to experts requested price is likely different with views of potential buyers.
This was the reason that tis year the bank has proposed to take up to 5 billion dollars loss if the properties continue to get cheaper. If the sale of properties not give any effect, "Leman" may release department for commercial properties and to place on the exchange as a separate company. The pace hardly will recruit many new capital, but will increase confidence in the health of balance. In November last year the bank evaluate its portfolio of properties by 52 billion dollars.
Labels: Business News
German economy with first drop from 4 years
In the second quarter of 2008 the economy of Germany droped for the first time in four years. The Gross Domestic Product of the country is 0.5% lower as compared with the first quarter of the year, announced the national statistical office, quoted by Shpigel Online. This decrease corresponds to the expectations of macroeconomists, who provided a lower score mainly because of economic decrease in the construction sector.
During the first three months of the year GDP main indicator of the value created inside the country's production has rose by 1.3%. According to an annual weighted data in the second quarter of 2008 the economy of West Germany increased with 1.7%. The problems of the German economy are too expensive EUR, growth in inflation and fall in demand globally. After the 2.5% economic growth in 2007, German statisticians expect this year to GDP increased by 1.7% and in 2008 - by 1.2%. Probably when 11 hours of Luxembourg EU statistical office Eurostat announced data on economic growth in the euro zone, to understand the first decrease in GDP in Europe since EUR was put into circulation.
Euro falls against dollar significantly yesterday and is razmenyashe around $ 1.4843 - and still for the last 12 months euros increased by 10% its value against the U.S. dollar.
Labels: Financial News
China Increased the tax over large engine cars
Yesterday China announced that in order to overcome the pollution and reduce fuel consumption will increase taxes on large personal cars - and will reduce them to small cars, reported Reuters. China is the second in the world oil consumer after the United States. However, commentators argue that the new tax will have only limited effect. Chinese authorities do not want to crash with taxes the delaying road market in the country. Consumer tax on motor vehicle with more than 4 liters will be doubled and now is 40%, indicating the Ministry of Finance. For cars with an engine 3 to 4 liters tax will be increased by 25% from 15%.
The tax on small cars with engine 1 liter and less will fall from the current 3% to 1%. Taxes remain unchanged for cars between 1 and 2.5 litres, which constitute nearly 90% of the vehicle fleet in China. Less than 1% of cars in China are with engines over 3 liters. Buyers are government functionaries, for which the higher costs have a reverse effect and actually will make them to consume more.
Labels: Financial News
US Markets started with decrease
U.S. markets started the day with the downturn because the terrible reports profits of Deere & Co and Macy's, and the pessimism of investors caused by the estimate of Merrill Lynch, that the expansion of the collapse of the Mortgage market will continue even longer.
Deere, the largest producer of tractors in the world, reported a drop in profits during the third (April-June) financial quarter due to higher prices of raw materials. Since the company registered a reduction of net income to $ 1.32 per share. Securities company are getting cheaper with 6.43%, to $ 64.89, at the opening level of $ 62,430.
Macy's, the second largest chain of stores in the U.S., got cheaper for the second consecutive day after its sales fell because of the growth of unemployment and the decrease in consumption caused mainly by high fuel prices. Shares of the company fell by 2.86%, to $ 19.69, at the opening level of $ 19.77.
Labels: Financial News
Eurepean Union with great crop
In this agriculture year Europe enjoys an excellent harvest and the EU forecast that the northern hemisphere in the prices of food products will be lower - after months filled with riots of poor food. The published forecasts, which are a positive signal for cheaper food, although to play and other factors - has been appointed spokesman of the European Commission.
It is expected that U.S. agricultural production also rose in August. The United States is the largest exporter of wheat. Australia, where the harvest was affected by the great drought, experiencing rain in recent weeks. In the European Union total harvest (including potatoes, sugar beet and sunflower) will reach 301 million tons. This is 16% more than the proceeds in 2007 and nine percent above the average production for the past five years.
For best results have helped to rising prices, which represent a large incentive for farmers - and the elimination of European regulation should be left aside areas. It should be thanked and climate. In Paris peak in the price of wheat was reached in February with a price 248 euros per tonne. On Tuesday November Aysha wheat supply 26% less - 183.75 euros per tonne. Countries that rely on the international market for its supplies, such as Pakistan and Tunisia, rushed to buy the necessary quantities at their current low prices.
Labels: Financial News
Drop is Business and Users confidence in Japan
Today in Japan were published data for the index CGPI (Corporate Goods Price Index), which measures the level of inflation from the previous month when the contract of goods by corporations. In July the index grew with 2.0% in the forecasts of analysts to maintain the rate of increase of 0.8 percent registered in June. On an annual basis, inflation of contracts to corporations accelerate to 7.1 percent.
Another report today showed the accelerate of the decrease in value of production at factories, mines and services in Japan in July. Industrial output react quickly to increases and decreases in the business cycle and is a leading indicator of employment in this sector, average income and personal income. Industrial production in the country has decreased during the last month by 2.2%, to decrease from 2.0 percent recorded in June. Crisis, the Japanese economy grow and reflect and index of consumer confidence in the country.
In July the index which measured possitive expectings to a consumers has reached a level of 31.4 points, which is its lowest level for the past 26 years. By the index of consumer confidence is forecast trends in employment and the general state of the economy because it is strong indicator of future changes in consumer spending. In June the value of the index of consumer confidence was 32.6 points, as forecasts of analysts were to fall to 32.0 points in July.
Labels: Financial News
The World Bank with confidence for the Economy of Georgia
The World Bank expressed in the communique its confidence in the economy of Georgia in this "extremely critical moments for the country, which is in armed conflict with Russia".
"In these extremely critical moments for Georgia, the World Bank would like to express its confidence in the powerful economic sustain the country," said the international financial institution in the communique drawn up by its office in Tbilisi. It speaks for large stocks of currency, prudent monetary and budgetary policy and broad reforms in the financial sector, strengthen the banking sector.
Labels: Financial News
Delay of France inflation
Retail prices decreased with 0.2% in July in France, as their appreciation on an annual basis was 3.6 percent as of June, according to final data published by the National Statistical Office (INSEE). These figures led Luc Shantel, Secretary of State Consumer Affairs and spokesman of the government to declare that "the tip of inflation is behind us". However, the growth of consumer prices in France by 3.6 percent, remains the largest of July 1991 onwards.
In June it was reported inflation of consumer prices by 0.4 percent on monthly base. Harmonised index of consumer prices, which was established with the aim of uniformity measuring changes in the prices of consumer goods and services in all countries of the euro shows further slowdown in inflation in France in July, by 0.3 percent. On an annual basis, the harmonised index of consumer prices into account the drop in inflation in July to 4.0 percent, against 4.1 percent in June. The factors that give rise to the reduction of inflationary pressure, however, are primarily for a typical summer decrease in prices of clothing and footwear. Also serious factor is lower prices of fresh products and household equipment, which reduced demand during the season. This decrease was limited by the increase in prices of services, transport and communications growth and inflation of food except for fresh products. In addition, energy prices and health services in France increased slightly, while prices of rent, overhead costs and health services have remained stable.
Labels: Financial News
Russian Gas is not reaching Armenia
Press office of the Energy Ministry of Armenia reports that deliveries of Russian gas through the territory of Georgia fell by 30%, reported Gazetta.ru. Unsuficiant gas in Armenia offset the expense of reserve stocks. Meanwhile in Armenia from Georgia have evacuated 750 Russian citizens communicated is the Chief of the management of information on Armenia.
The President of Georgia Mikhail Saakashvili today signed a document for a ceasefire, prepared by foreign ministers of France and Finland. The contents of the document is not specified. The Ministers will carry this document in Moscow, where he will meet with representatives of the authorities and will seek signatures of Dmitriy Medvedev. Of the General Staff of Russia's application Saakashvili called fraud, for Crogi public opinion. Media in the region report that 1200 Armenians, paused breaks in the Georgian Black Sea resorts Batumi and Kobuleti, evacuated by aircraft in Armenia.
Labels: Financial News
China will be the the largest producer in the world
In the next year China is expected to anticipate the U.S. as the largest worldwide manufacturer of consumer goods - four years earlier than expected, reported Financial Times. This comes as a result of rapid weaker economy of the USA.
Finded big change is in the study of American consulting company Global Insight particular FT. According to their estimates, in 2009 China will establish 17% of the value added in the global industry (11 783 billions US Dollars), while the U.S. share will be 16%. Last year the United States still had sensitive advantage in this index: 20% of world production in China was 13.2%.
According to the president of the National Manufacturers Association in the U.S., these projections reflect the true trend. China is inevitably to anticipate the amount for themselves.
However, this is welcome to the U.S. because on the one hand create political stability in the largest population country in the world, on the other increases the possibility of the U.S. to export and invest in the fastest growing economy.
Until last year, economists at Global Insight forecast that the U.S. will maintain its leadership position until 2013 that reduced only in the U.S. industry during this and next year is expected to be more significant than the original estimates.
Labels: Financial News
More expensive US shares with cheaper crude oil
On the last for this week's stock shares in the U.S. session noted sensitive growth, as the index of most companies for the licvidity DJIA marked increase of 302 points or 2.7% to 11734. Significantly increased and the index S & P 500 (2.4%) and the Nasdaq Composite (2.5%). According to Bloomberg agency that should be attributed to lower prices of raw materials, which should mean higher profits for companies in industry, transport and trade.
Dollar appreciated against most significant euros from almost eight years. This reflects negatively on the prices of raw materials, fixed in dollars. The price of a barrel of crude oil yesterday in New York fell by almost $ 4 to $ 115.20, decrease the fourth week of five. The weighted average price of petrol in the United States, which reached a record on 17 July to 4.114 U.S. dollars for galon, yesterday fell to 3.836 U.S. dollars, the lowest of 21 May, the data show the U.S. automobile association. The prices of metals and cereals also fell after the strengthening of the dollar took the attractiveness of commercial goods as a means to prevent inflation. "the breaking of raw material prices and changes in the users investing trust" - indicating investor from New Jersey. Among the most profitable shares were those of McDonald's Corp., Which yesterday cost most since the company started to be traded on the exchange prior to 43 years. Sales in July were exceeded expectations. Other companies that perform better than expectations, are Cisco Systems and Procter & Gamble.
Labels: Financial News
Kerosene with lower prices in Russia after intervention of Vladimir Putin
The production prices of Russian enterprises for aviation fuel decrised on average by 1.8% in the last week, reported in the newspaper "Vzglyad". This is the first cheaper kerosene in Russia one year here, and from August 2007 until now airplane fuel in the country got more expensive with 89%. Irrespective of fluctuations in the price of oil in recent months, the cost of kerosene was going up. Although during the last week oil prices on world markets are lower, experts are confident that without the personal intervention of Prime Minister Vladimir Putin reduction in the prices of kerosene would not be possible.
The movement of the price actually is not determined by the market because of the monopol situation of raffineries. Major companies with a vertical structure made all the activities of extraction of oil to the supply of kerosene in bulk and therefore dictate prices. In the recently held meeting with the leadership of the Federal Antimonopol Service (FAS) Putin has set the matter to take appropriate measures regarding the price of kerosene, otherwise it will "take appropriate personnel decisions. As a result, FAS is immediately commenced an investigation against the main producers of aviation fuel in Russia - Lukoil, Gazprom oil, TNK-VR Holding, Rosneft and Surgutneftegaz, in connection with the abuse of top position in the market.
Labels: Business News
Midori, the new generation operating system from Microsoft
From Microsoft started developing a new kind of operating system, called Midori. This software product differs significantly from Windows and probably will not provide compatibility with operating systems from previous generations. Although the information to develop a new operating system has a lot of time, but in Software Development Times first published more details once they have gained access to internal documents of Microsoft. Since the software giant comment that the new operating system is currently in the incubation period of development, which means that phase of the research project has already crossed. With the increasing popularity of network services and technology for virtualisation, sooner or later operating systems Windows from the series will lose its actuality.
Official information about Midori is still not there, but the report of Microsoft confirmed the existence of the project. Midori for the time being can know that Internet-based operating system, which excludes the relationship between applications and hardware required for their work. According to unofficial information from the company, Midori is the next step in the evolution of Microsoft Research's Singularity OS, which involves the creation of network software-isolated processes that decrease dependence of individual applications from one another, thus saving time and protsesorno increase productivity. According Analyst Brian Meydan, the new approach is very promising for the development of innovative OS. The purpose of the new software is to take place the operating system (OS) Windows, when it is pulled from the market. The focus of the new OS will be on browsing the Internet, since Microsoft will try to meet the competing products, leaving the market.
Labels: Business News
FAS is investigating Cartel agreement in Russia
Federal Antimonopol Service (FAS) of Russia prevent several large insurance companies to share the risks for the forthcoming Olympic games in Sochi in June 2014reported newspaper "Komersant". FAS began proceedings on suspicion of limiting competition in the market and cartel agreement against seven insurance companies, united in Sochinski insurance pool. If found guilty they may got a total of 7.2 billion rubles.
In the words of Chief of the management control of financial markets in FAS, in a letter from 24 June to a representative government, the seven insurers write to the creation of a special pool of insurers, with the aim of establishing "business liaison" with the state company "Olimpstroy" which offered to hold a public competition for selecting underwriters of the Olympic sites, which are included only seven companies.
Sochinskiyat insurance pool was established in May. It will enter companies: SOGAZ, "AlyfaStrahovanie", "Gefest", "Ingosstrah", "RESO-Garantiya", "Rosgosstrah", "Soglasie". The total amount of their own capital amounted to 49 billion rubles.
Labels: Business News
US Economy is in the right way
The America's economy is often felt forecasts of their own defeat. So it became this way again. The official data published on 31 July, up that the U.S. economy grew by 1.9 percent annually weighted in the second quarter. This is worthy of respect and growth even in the best times achieved regardless of the obstacles created by seriously damaged banking system, the big spike in oil prices and the continued decrease in property. This makes it impressive. The revision of the previous quarters receive part of the brilliance in the news. Government statisticians calculated now that the economy got narrow in the last three months of last year: on an annual basis the change in GDP was revised from 0.6% to minus 0.2%. But growth has increased slightly to 0.9% in the first quarter, so at least this reading seems America has gone away from the recession - two consecutive quarters of negative growth.
One of the reasons for which the economy has gone well, is weaker dollar, which encourages exports and collapses exports. U.S. companies have continued to work through sales abroad, as consumer spending domestically seem slightly depressed. For the two years since the property sector serious disruption began, the decrease in housing construction takes about one percentage point of growth of GDP. This brake more or less is compensated by the growth of net trade. In the second quarter net excess of imports over exports contributed the most to the increase in GDP.
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