European Union with plan for beating the crisis
The European Commission announced economic recovery plan worth 200 billion euros, which hopes it will be able to retain millions of jobs. The idea is to stimulate spending and increase consumer confidence by injection of funds for more purchases in the region.
The Commission President Jose Manuel Barroso said the plan was "timely and targeted. European Commission expects member states to contribute 170 billion euros and the European Union will give 30 billion euros.
Barroso said it was important that EU Member States to work together in a period of extreme crisis. "This is the best way to restore confidence and counter fears of a long and deep recession," he added. The President of the European Commission said that most of the incentives to come into force in 2009, while some measures will continue in 2010.
The proposed plan will have to be approved at the next summit of EU in December. The plan provides for reduction of VAT rates across the Union, speculation, which appeared after the British government announced a step in the draft budget for next year. The 27 members must decide whether to sign the plan before it is operational.
"Measures should be identical in all countries, but they must be coordinated," said Barroso.
Previously, German Chancellor Merkel expressed concern over the incursion in the race for billions for opening packages of incentives. "We must follow a moderate approach made to order for the situation in Germany," she said before the Bundestag, the lower chamber of parliament.
Labels: Business News, Financial News
Sudden growth of US Dollar
The US dollar got more expensive against European currencies after reports on consumer spending, durable goods orders and sales of new homes in the U.S. bordered highly negative picture of the current state of the country's economy and limited appetite for risk, provoked by the recovery of economic team of newly elected President Barak Obama and the new government plan to support mortgage lending.
Deepening recession in the U.S. will prompt investors to abandon the highly currencies and to repatriate funds to offset the increased cost of risk.
Two hours after the start of the session the U.S. markets with U.S. currency got more expensive with 1.62 percent to 1.2854 dollars for euros after yesterday is thrown down to 1.3080 dollars for euros, its lowest level since 5th November. The growth of US dollar by 21 percent against the single currency by the end of July onwards, after investors to set it as a traditional refuge of the crisis, a freezing of credit markets and collapse of the shares have forced U.S. companies to repatriate funds.
Over the past five days, however, U.S. money become cheaper by 3.8 percent against the euro. Today, with a view that the threshold of 1.2840 dollars for euros was crossed can be expected to test at 1.2800 dollars for euros, which if it will pass signals to reverse trend from last week. British pound lose places and got cheaper with 1.62 percent after today, the national statistical office in London reported consumption decreased by 0.2 percent in the third quarter of the year, which is the biggest decrease since 1995. Sterling has lost 23 percent of its value against the dollar this year.
Yesterday Governors of the British Central Bank Mervin King said that the reduction in the price of pounds is positive for the country's economy because it helps rebalance and exports.
The index of the New York Exchange, which recognizes the movement of the dollar against the euro, yen, pounds, Canadian dollar, Swiss franc and Swedish krona, rose to 1.056 percent, to 85.90 points. The Japanese currency poevtinyava by 0.16 percent to 95.3800 yen to the dollar after growed during the day to 94.84 yen for the dollar.
Labels: Financial News
US markets started with low decrease
U.S. markets started the day with a decline under the pressure of negative economic data. Today reported that sales of new U.S. homes declined in October by 5.3 percent versus the previous month to the lowest level since 1991, the deepening of the crisis on the real estate market continues.
Another report showed that consumer spending in October in the U.S. fell the most serious of rolling over in 2001. A data of the Ministry of Commerce on orders of durable goods companies use the U.S. registered a strong decline in the indicator. But after initial drop intensified interest in the shares of IT companies which, despite the recession and a worsening prospects are underestimated in view of their financial results led to the increase. Investors are set to securities of General Motors, because of speculation that the company already takes action to obtain approval for federal support of legislators who gave her time until 2nd December to present a restructuring plan.
General Motors got reacher with 30.34 percent three hours after the start of the session, to 4.64 dollars for the shares. Citigroup, which the federal government pledged support on Monday rose by 10.85 percent to 6.74 dollars for the shares. The largest maker of personal computers worldwide Hewlett-Packard also get higher prices for share.
Three hours after the start of the session broadest index of U.S. companies Standard & Poor's 500 has increased by 0.67 percent to 863.14 points. The index of top U.S. companies Dow Jones Industrial Average, rose by 0.50% to 8 522.16 points. Technological NASDAQ Composite Index increased by 2.30 percent to 1 498.47 points.
Labels: Financial News
Customer spendings in 7 years bottom
In October consumer spending in the U.S. fell the most serious of rolling over in 2001 - suggest new data published by the Ministry of Commerce in Washington today. The decrease in purchases of households with 1 percent in October, after 0.3 percent decline in September was a signal that the economy entered a deep recession, commented Blumberg agency.
In another report from the same ministry indicate that in October declined and business investment. Analysts are already talking about the biggest decline in consumption of 30 years. Negative trend in sales is likely to be maintained after property prices continue to fall and unemployment rose.
Collapsing demand is why economists at the Federal Reserve, the Finance Ministry and the team elected president Barak Obama to prepare plans for mitigating the impact of the credit crisis on households. The data show that last week received 529 thousand applications for receiving unemployment insurance, which is a decrease of 543,000 applications weeks earlier, but the levels are close to historical high values of 1992.
The forecasts of economists was that consumer spending will actually shrink by 1 percent. All in today's information is that wages have increased by 0.3% in October, after 0.1 percent growth in September. Simultaneously, inflation fell by 0.6 percent on a monthly basis, on an annual basis was 3.2 percent.
Labels: Financial News
Positive start for U.S. markets
U.S. markets rise in early session, led by IT companies after leading manufacturer of personal computers worldwide Hewlett-Packard announced better than expected financial results for the fourth quarter of the fiscal year. The company will publish a full report on November 24th announced a preliminary net profit for the three months to October 31 from 84 cents, or 1.03 dollars per share if excluding depreciation expenses and restructuring. Consensus expectations were for earnings of $ 1 per share. Revenue for the fourth quarter grew by 19 percent to 33.6 billion dollars. Taking into account the effects of movements in exchange rates of revenue growth was 16 percent.
For HP expects fiscal 2009 earnings by an amount between 127.5 and 130.0 billion dollars and profit of between 3.38 to 3.53 dollars per share. Today securities company to get 12.47 percent to 33.00 dollars in opening level of 33.56 dollars.
Positive impact on the market and news emerged that the Executive Director of Yahoo! Jerry Yang has resigned, which increased speculation of renewed negotiations for a merger with Mirosoft.
Labels: Business News, Financial News
2 million barels of petrol hijacked
The crew of captivity by Somali pirates supertanker "Sirius Star", owned by Saudi Arabia, is not threatened by anything - said on the Website of its operator company Vela International.
25 people were on board the tanker - RIA Novosti reported. According to a representative of the maritime forces of the United States, the board has the citizens of Britain, Croatia, Poland, Saudi Arabia and the Philippines.
To save people were operating groups working on safe release of people and the tanker. Representatives of command of the 5th fleet VMS U.S. located in the Gulf on Monday announced the capture of a Saudi ship of pirates of 450 sea miles east of the Kenyan city of Mombasa. Court was still imprisoned on Sunday, specifying the company - operator. According to local authorities for maritime assistance, pirates got the tanker in its main base on the coast of Somalia - the port Eyl.
Tanker was carrying 2 million barrels per oil, or nearly a quarter of Oil of Saudi Arabia for the day. The value of the cargo is estimated at over 100 million dollars. Tanker was bound for the U.S. on route circumfluous Africa and avoid the Suez Canal.
Labels: Business News
Asian Markets are going up
Asian markets rise, reducing its weekly drop, supported by growth in oil prices and metals at the beginning of the session, which led to the appreciation of the shares of companies neftodobivniya and mining sector. Supporting the growth of exchanges in Asia yesterday and turned sharply rising indexes in New York, which last two hours of trading Dow Jones Industrial Average rose by nearly 9 percent as the session ended with a 6.67 percent increase to 8 281.14 points.
Leading to rises in U.S. indices by over 6 per cent yesterday were companies in the energy sector, which received strong support from the appreciation of oil futures by 3.5 percent in that period for trading of contracts with delivery in December expired yesterday and many companies fill their stocks by the end of the year.
Today, hours after the start of the session of the European markets of the U.S. fyucharsite light crude oil supply in January to become cheaper with 1.41 percent, to 57.42 dollars for a barrel. Yesterday broadest index of U.S. companies Standard & Poor's 500 has increased by 6.92 percent to 911.29 points. Technological NASDAQ Composite Index grew by 6.50% to 1 596.70 points. Today BHP Billiton poskapna by 5.6 percent in Sydney once during the session the stock exchange in New York oil price is refunded from 21 meat from his bottom barrel to 54.67 dollars reached earlier yesterday, while nickel and zinc increased.
Inpex rose by 9.2 percent in Tokyo after winning the rights to develop oil fields in Indonesia and after the previous day shares of energy companies in Asia cheapen sulno to other sectors. United Microelectronics rose to 6.91 percent, exceeding the daily limit of 5 percent set by the exchange in Taipei because of speculation that the second-largest maker of chips in the world can get Chartered Semiconductor Manufacturing.
MSCI Asia Pacific grew by 0.8 percent to 82.93 points after three day drop by 8.8 percent.
Labels: Financial News
Advices of Trichet for financial crisis
More than a year of financial market disturbances kept the world on tenterhooks, after a long period of stability in 2007 became a turning point that financial markets will long remember - says the president of the European Central Bank Jean - Claude Trichet in an article for Financial Times. Central banks, supervisory authorities and governments around the world responded to the risk - and continue to meet in order to recover as soon as possible stability and conditions pleasant growth. The root of the crisis was widespread underestimation of risk - believes Trichet. Financial operators nedootseniha amount of risk they were taken.
In 2006 and early 2007 some politicians - among them, and Trichet - have already begun to say that market participants should prepare for a serious correction. Until middle of 2007 in the banking world kings model "created and distributed - Trichet says. This means that there are divisions between those who hold credit risk and those who supervise and manage.
Investors assume that those who created (financial products) along with it will carry out the necessary risk management. But there is no guarantee of that. They received the faith of the ability of rating agencies to assess risk instruments that were new to them.
Labels: Financial News
In days of crisis Insurance is the only working sector
In the days of financial crisis the business sector is in front of big problem, and exactly - who will buy the production. For a while the situation in many countries was pretty good - low unemployment, high profits and the economy was growing and growing, but such good point of view for all citizens, gave them a lot of strongness and they started to think very wrong. Such kind of people were getting higher loans, with higher interests, left their work and started searching for better one. This inflated the well known mortgage baloon, which created a big fear from bankrupcy of many companies, and quickly crashed a lot of corporations. This quickly placed the whole economy in front of recesion and financial crisis. And this cind of people, which are actually not so little created this crisis to many of the banks. And reflection of the crisis is the increase of interest levels, which moved many companies to bankrupcy and many workers lost their work. Many of the them, which were good secured received their
Workers Compensation Insurance, which actually was new service for the growing insurance sector. Analyzers predicted a lot of unemployments to the end of the year, which made a lot of people to start their insuarace quotes in higher rates. This gave a new wave to insurance sector, and in
Florida Workers Compensation Insurance is reaching almost the highest visile rates. This is not bad for insuarance companies if they had a stable place for investing their money. Unfortunately the have nothing, only simple money, which can lose their weight for not more than a day.
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Decrease of building expenses in USA
According to today export data in the U.S. construction spending decreased in September, but that decline was less than expected to decline by 0.8 percent.
Total expenditure decreased by 0.3 percent to 1.060 trillion dollars, the data for August were revised upward by stagnation in the direction to increase by 0.3 percent. Housing expenditure decreased by 1.3 percent to 344.4 billion dollars in August after having increased by 1.9 percent. Annual decline in the cost of housing reached 27.1 percent in September as a result of the difficult lending led to a decline in purchases. Costs for non-residential construction decreased by 0.1 percent in September, harder credit conditions have an effect on commercial construction. Expenditure in private construction increased by 0.1 percent, while the public fall by 1.3 percent in September.
Labels: Financial News
European Comission started procedure against Ireland
European Commission launches excessive deficit procedure against the Irish government, which has authorized its budget deficit to grow out of control, according to The Irish Times. Today commissioner for economic and monetary policies Joaquin Almunya has started proceedings against Ireland for the budget deficit, which is expected to reach 5.5 percent this year and 6.5 percent in 2009.
Under the Stability and Growth Pact of the European Union requires member countries to maintain the ratio deficit / GDP ratio under 3 percent and the debt / GDP - below 60 percent.
Under the pact government can be fined if it fails to bring its deficit below 3 percent over three or four years, although this is considered rather a theoretical possibility. In practice it has never applied. Now that the excessive deficit procedure was initiated by the Commission expected the government to a series of measures that may apply to set deficit under control. In an interview in The Irish Times last Friday Mr Almunya said that the deficit of 5.5 percent is excessive and is not even close to the relative value of 3 percent, to not use the clause for exceptional circumstances. "The Stability and Growth Pact is not for fines. It is not intended to find fault Member States and seek wines, according Almunya, "In some cases, peer pressure is needed to use the European dimension and multilateral surveillance to cause governments to adopt adequate measures ... It also supports Government to implement policies that sometimes are not very popular. "
Labels: Financial News
1,800 banks in USA are applying for financial aid
Banking sector in the U.S. opened a new lucrative business - applying for government support in terms of financial crisis. According to survey of Wall Street Journal, 1800 banks in the United States are considering to benefit from state aid. Banks just recently utterly booked to be held this opportunity. There were concerns that receiving aid from the state is a sign of weak capital positions. But the mood of the market have changed: now for the worst may pass those banks that have not benefited from the state rescue package.
Nearly 1800 public listed banks in the U.S. will apply for financial support from the government. However, this is not the final figure: if the conditions for granting state money be favorable, even thousands of private banks may decide on the top step. The first step of the U.S. government was to draw 125 billion dollars in the nine major banks. More such funds to other banks are provided as part of the stabilization plan of 700 U.S. dollars billion On that top Finance Ministry has opened to help not only banks but also of non-bank financial institutions such as insurance companies. Some financial experts worry that the money would be insufficient.
Labels: Financial News
Bush is trying to change the ecological regulations
Before the final denouement of a candidate - in the U.S. presidential race, Bush administration seeks as soon as possible to bring as many policy changes in the environment, says Reuters.
About decisions by removing the wolf from the list of protected species permits detection of power near the natural parks, loosen regulation of waste from factories and farms, to facilitate the mining companies that gain in the high mountains. What defenders of nature in SSHTA want most, mandatory program to reduce emissions of greenhouse gases is not called. "Regulations at midnight. Even some business organizations have joined aco-activities and insist on a moratorium on decisions from the Bush administration taken at the last minute. It is the initiative of the interior ministry - but the state Agency for Nature.
Labels: Business News
US Dollar under preassure
Today the euro got more expensive against the yen and dollar, after growth of Asian and European markets encouraged investors to increase purchases of highly profitable assets. The Euro currency increased its price by 1.10 percent to 1.2865 dollars, with 1.76 percent to 127.5500 yen and by 0.10 percent to 0.7930 pounds at the end of the morning session of the European markets.
The US Dollar decreased its price for the first time in three days against the euro because of speculation that slowing growth in the U.S. economy will increase pressure on the Fed for further reduction in interest rates. Speculation that during this week will be reduced interest rates in the euro, UK and Australia also support the European currency because it is expected that by stabilizing capital markets repatriation of dollars and yen will decline. The appreciation of European currencies will likely be limited by data out today on industrial activity and construction costs in the U.S..
Labels: Financial News
$254 billion injection from Swiss National Bank to funding markets
Responding to the news that LIBOR fell on Wednesday following the European Central Bank (ECB) and the Swiss National Bank’s $254 billion (£145.7 billion) injection into the wholesale funding markets, financial solutions company
Think Money Loans (http://www.thinkmoney.com/) commented that this could mark the start of a recovery in the mortgages and loans market, so long as the conditions remain in place for lenders to continue to do business.
Despite last week’s half-point base rate drop, which was aimed in part at encouraging lenders to offer lower interest rates on their mortgages and other credit products, three-month sterling LIBOR – the rate most banks base their mortgage rates on – has been slow to respond.
Read the rest of the article hereLabels: Financial News
Commerzbank will require support from the government
The second largest German bank is interested to recruit fresh capital Rescue Fund, the government says "Handelsblat" Decision will be taken at a meeting of the board of the bank. Will be discussed possibility of 480 billion euros. If the bank decides that capital injection, the government will receive a direct impact on the trade policy of the vault. Spokesman of Commerzbank stressed that the bank would put the package of measures the government. The Bank is interested in all the instruments of the Fund as the option of recapitalization, said experts from the bank. The background remains the ongoing crisis and absorption of Dresdner Bank. In the third quarter to accumulate a lot of commitments to bankrupted partnership for Lehman Brothers and loans to Iceland, argue domestic sources. This is one more reason to monitor the bank's capital base. In Wednesday the bank will announce its results for the quarter.
Commercial banks in Germany discuss universal use of the fund guarantees.
The plan will help Germany to overcome "serious problems" in its economy, avoid excessive distortion of the competitive environment, clarifying the Commission. Regional bank BayernLB this week was the first to state that he will benefit from the fund and bank WestLB and HSH Nordbank announced that likely will follow the example "Komertsbank) buy" Drezdner Bank for 9.8 billion euros from "Allianz", creating a leading competitor in Germany, "Deutsche Bank. The acquisition will become twice - this year 60 percent of the shares and the rest - next year. The majority of the cost will be paid to Allianz 'shares by insurance company will continue to hold a share of nearly 30 percent in the new "Komertsbank." Komertsbank announced it plans to reduce its costs by around 2 billion euros, 9 obscured thousand jobs after the acquisition.
Labels: Business News
Czech Republic will delay the Lisbon agreement
The Constitutional Court of the Czech Republic postponed from 10 to 25 November to hear the case whether the Lisbon treaty is in accordance with the constitution of the country, delivered the European agencies. Postponement is at the Vatslav Czech President Klaus, who is famous for its eurio-scepticism.
Such delays do not happen often, but the meeting was so important that the president asked him to attend and we uvazhihme request, a court spokesperson said Mihal Spachil. Havel was unable to attend the 10 th November due to urgent commitments in Ireland and Saudi Arabia.
The Czech Parliament is awaiting the decision of the Constitutional Court to initiate the procedure of ratification of the Treaty of Lisbon, the agencies noted.
Labels: Financial News
Spain is going to recession too
In the third quarter of Spain's economy has giot narrower for the first time since 1993 till today, leading to fears that the country has entered into recession, which will be confirmed in negative growth in Gross Domestic Product during the last quarter of the year. The Spanish economy got narrower by 0.2 percent compared with growth of 0.1 percent in the previous quarter, according to data published today by the Central Bank, Bloomberg reported.
Annual economic growth was 0.9 percent, the Spanish Institute of Statistics will publish the first official revisions of expectations for growth of GDP for 2008 and 2009 on Nov. 13. Today the main Spanish Ibex 35 stock index fell by 13 of it last week because of fears that the global financial crisis will affect economic growth in Latin America that are the subject of a major investment of Spanish companies. Ibex this year has fallen by 42 percent this year, while manufacturing activity in the country decreased for the 10th consecutive month in September. Global economic slowdown eroded foreign investment and economic activity in the country and resulted in millions of unsold properties and a decline in employment in the sector. Because that unemployment in Spain has increased to 11.3 percent, the highest in the EU. The European Commission expects Spain to enter into recession this year, along with Germany and Britain, according to estimates published on September 10.
Labels: Financial News
American Maerkets are going up
U.S. markets rise, reducing most sudden monthly decline for the past 21 years after international loans continue to become cheaper and profits of companies like Express Scripts and Wynn Resorts exceeded market expectations, according to Bloomberg.
Morgan Stanley and JPMorgan Chase increased by 9.45 percent to 17.61 U.S. dollars and 5.69 percent to 39.76 U.S. dollars. Today Libora quarterly loans in dollars fell by 16.6 basis points to 3.03 percent as the British bank association.
The largest pharmaceutical firm (Pharmacy benefits manager (PBM) or company whose task is to mediate between pharmacies, patients and insurance companies who make a fraction of the cost of prescribed medicines to insured persons), Medco Health Solutions, with 5.64 of poskapva WTO to 38.80 dollars after the third-largest PBM in the U.S. company, Express Scripts increased its earnings forecast for 2008.
Company revenue for the reporting period increased by 18 percent to 769.2 U.S. dollars million, exceeding market expectations. Three hours after the start of trading the broad index of U.S. companies Standard & Poor's 500 marks an increase of 0.45 percent, to 958.35 points. The index of top U.S. companies Dow Jones Industrial Average, rose by 0.41 percent to 9 218.52 points.
Technological NASDAQ Composite Index increased by 0.44% to 1 705.91 points.
Labels: Financial News
