According to Hayman Advisors the Eurozone is in front of colapse
From Hayman Advisors, a company that managed to win 500 million dollars, pledging to collapse in the secondary mortgage market in the U.S., announced that the European Monetary Union is about to collapse, said Bloomberg. According to Hovard Richard, managing director for global markets of Hayman based in Dallas, said that in Germany will probably finance the restoration of its economy than to help countries such as Austria, Italy and Spain, if their banks are not in difficulty as a result of bad debts. Thus Hayman joins other investors who see opportunity serious monetary union whose total gross product is estimated at over 12 trillion dollars, being unable to pass through the crisis.
Last week by Societe Generale analysts also claimed that managers weaken German economy, which is the largest in Europe will refuse to save the other member countries of the euro as this have an impact and the upcoming elections in the country. At the same time, European banks lending to Eastern Europe have exceeded 1.3 trillion dollars in the third quarter of last year, which is about 9 percent of EU GDP, according to data published by the ING Group of February 18. Irish banks' debts are 11 times greater than the GDP of the country, Dutch - 7 times, and the Belgian 4 times greater.
Labels: Business News, Financial News
Decrease in US indexes
Two hours after the beginning of the session of the New York Stock Exchange, the broad index of U.S. companies, Standard & Poor's 500 fell by 1.54 percent to 741.12 points. The index of top U.S. companies, Dow Jones Industrial Average falling by 1.11 per cent, to 7 102.67 points. Technological NASDAQ Composite Index dropped with 0.65 percent to 1 382.41 points.
U.S. stock indexes fence part of its initial fall after surprisingly strong rise in industrial Chicago PMI index for February. DJIA session began with a drop of 150 points and S & P500 reached a new 12 bed level of 735 points, below the previous bottom of 741.02 points registered in 21st Novermber 2008. The basis of the decline in stock market of Wall Street and a new decline in financial shares, as the financial sector was down by nearly 6 percent as shares of Citigroup cheapen with 31.30 percent to 1.69 dollars after the U.S. government increased its share in bank to 36 percent, as uncertainty about the main U.S. banks rose.
In Europe, major stock indexes finished the day with the decreases, which further depper after weak data on U.S. GDP (growth revisions to -6.2% from -3.8% previous estimate of Q4 of 2008.) At the end of the session the German index of "blue chips" DAX 30 fell to 3 828.42 points or 2.91 per cent compared to yesterday. UK leading indicator of FTSE 100 companies fell by 2.58 percent to 3 814.59 points. On Friday, France's leading companies index CAC 40 decreased by 2.14 percent to 2 686.18 points. Since the beginning of today's European trading shares in Europe are on sale to large losses of 7.5 billion pounds to account division of British bank HBOS and Lloyds news that it has reached an agreement to insure the assets from the UK Government (shares of Lloyds are down by 21.60 percent, leading to decline and other bank shares).
Labels: Financial News
Citigroup reached agreement with the government
Today the U.S. government agreed to rescue Citigroup, which would reduce the share of current shareholders of the bank by 74 percent as a result of which the shares of financial institutions are thrown down by 37 percent. By the Finance Ministry said it would change the preference shares for 25 billion dollars in common, such as private shareholders will have to agree to the same conditions. Changing share of the U.S. government in the New York-based company will reach 36 percents.
Today the bank, which last year reduced its dividend for the fourth quarter by 1 cent per share, said it ultimately will not pay a dividend for the period. Also, the company reported additional losses related to the impairment of assets that the deficit for 2008 reached 27.7 billion dollars or 48 percent more than reported a month ago. Today, shares of the Bank are under increased pressure as if converted to any preference shares into ordinary Citi, it will leave current shareholders with a share of 26 percent. Moreover swap of shares, the bank has agreed to change the board of directors to be more "new and independent" according to Finance Ministry.
Labels: Business News
Norwegian Financier get the control over Iceland Central Bank
Iceland appoint Norwegian financier Harald Svein Oygard temporary head of the central bank during the reconstruction of the country after the collapse of the banking system and her currency. He has 11 years experience in the Central Bank, Ministry of Finance and the Parliament of Norway.
Thursday provisional government of Iceland has adopted a bill to reform the central bank, which allows David Odson be removed from the post of governor. Odson highly criticized because that is not made more efforts to prevent the bankruptcy of banks in the country and has hardened opposition to the requests from the government to submit his resignation. Iceland received loans of 10 billion dollars by the International Monetary Fund and other creditors in order to restore its banking system and confidence in the currency.
Separate Icelandic government announced that one of the options to stabilize the financial system, which is considering is to swap foreign assets held by pension funds and other large local financial companies against the Icelandic government bonds owned by foreign investors. According to government foreign investors hold debt instruments in local currency for about 3.6 billion dollars, or about 25 percent of gross domestic product of the country. These funds have been frozen in Iceland after the crash of the financial system in the country last year when authorities stopped in Reykjavik, capital flows to protect the currency from further depreciation.
Labels: Financial News, Politic News
2009 will be weak year for the IT sector
Continuous decline of the global economy, including the prospect of negative GDP growth in many major countries had prompted IDC to revise its forecast for IT spending worldwide in 2009. In the Black Book of IDC now estimates for IT spending worldwide have increased by only 0.5 percent a year in 2009 versus a previous forecast increase of 2.6 percent. If current trends in the movement of exchange rates continue, this will lead to a significant decline in revenues of U.S. based IT providers.
The greatest impact of the crisis will be felt on the hardware market, where the overall cost will decrease by 3.6 percent this year, led by sharply reducing the cost of servers, PCs and printers. In contrast, the worldwide cost of software and IT services is expected to rise by 3.4 percent in 2009, with previous expectations for growth by 4.6% and 3.7%. The total volume of IT expenditure in 2009 will be 1.44 trillion dollars. For the United States, IDC has forecast annual growth of 0.1 percent of total IT spending over the November forecast for an increase of 0.9 percent. In the fourth quarter data from a number of key markets, and clearly shows that companies very quickly narrowed its costs, "said John Gantz, chief director of research at IDC. According to him, investing in software and services are supported in pursuit of productivity and efficiency gains, while hardware costs are reduced in an attempt to make the most of existing assets. IT spending in Western Europe is expected to increase by 0.1 percent in 2009, as in France and Italy there is a likelihood of decline. IT spending in China is expected to increase by 6.5 percent under a previous forecast of 9.1 percent and India with 5.7 percent when 10 percent expected previously. In Japan the cost will decrease by 1.8 percent in 2009, with previous expectations of 1.0 percent growth. IT spending in Brazil will increase by 6 percent in 2009, with previous expectations of 9% growth. In Central and Eastern Europe, IT spending will decrease by 7.5 percent in 2009 due to worsening economic conditions and instability of the business climate.
Labels: Business News
5.112 millions of US citizens are getting unemployment benefits
During the week to February 21 in the U.S. have made a total of 667 000 applications for unemployment benefits, according to today's report from the U.S. Department of Labor. This is an increase of 32 000 of the requests to the previous reporting period, the number of applications was 631 000 according to revised data in today's report. Consensus expectations of the market were the number of claims to decline to 625 000, initially reported 627 to 000. The total number of Americans receiving unemployment benefits, increased by 114 000 and reached a record 5.112 million last week. Data for the last four weeks showed a decline in the number of Americans who have submitted the first applications for unemployment benefits up to 625 000 to 627 000 in the previous week.
The level of Americans with insurance against unemployment, to receive benefits increased to 3.8 percent, the highest from 1983 onwards, against 3.7 percent the previous week. The average number of requests for benefits over the past four weeks was 639 000. Data show that U.S. companies continue to reduce costs and reduce its staff, a process that erosion consumption and growth of the country's economy, as probably this month unemployment rate will rise to 7.9 percent.
Labels: Business News, Politic News
Selling of new homes in USA with lowest level
Sales of new U.S. homes fell a record in January, under the pressure of increasing uncertainty and the large number of homes with outstanding mortgages on the market.
Sales fell 10 percent to 309 000 annually, the lowest level since he started to lead the investigation of this indicator in 1963, according to the report of the Ministry of Commerce, published today. The average price of homes fell by 13.5 percent, which is its biggest decline in almost 4 decades. Consensus expectations were for the market decline in sales to 324 000 last month compared to the originally reported 331 000 sales in December, revised to 344 000 in today's report. New homes are those built in the last 12 months in the U.S. and are available for the first time on the market, and sales to form about 10 percent of the total volume of transactions, but showed a trend of demand and the willingness of Americans to invest their money.
The average price of new homes fell in January to 201 000, which is its lowest level since December 2003, with annual sales declined by 48 percent.
Labels: Financial News
Alessandro Profumo is not affraid from financial crisis
CEO of UniCredit Group - Alessandro Profumo said he is not worried about Eastern Europe, although the crisis in the region. "Eastern Europe is not our concern," he told reporters in the business conference this weekend. "We have a clear idea of the situation in the region, but we believe that there is considerable exaggeration," he added. UniCredit Bank is the largest lender in Central and Eastern Europe in recent days shares of the bank 12 years to destroy the bottom part because of investor concerns about exposure of the banking group in the region and developing economies.
Labels: Business News
Joe Biden will be responsible for "resque plan"
The American president Barack Obama announced that Vice President Joe Biden will monitor the effective use of funds from the package to stimulate the economy, said "New York Post". According to him, control of such a high level stresses the importance of the rescue plan. On Biden to be regular meetings with senators, congressmen, mayors and governor to monitor how funds are spent down. Communication was made at a meeting of the Association of governor in Washington. It is recalled, the White House, Congress and Senate have agreed a financial package amounting to 787 billion dollars. Obama called him to the recent adoption and entry into force, should not lead to a crash. A number of Governor-republicans expressed its willingness to waive the financial contribution provided for their states. The reason for this is related to difficulties in implementing its long-term.
Labels: Financial News, Politic News
London Stock Exchange (LSE) announced today that it will appoint its CEO Xavier Role, reported Reuters. He is a former director of the division of bankrupt Lehman Brothers in France. Role will join the board of directors of the exchange of 16 March and will take the post of CEO on May 20. He has made significant connections with the London Stock Exchange during the 9-year career at Lehman. U.S. investment bank was among the largest customers of the London exchange to September, as soon as a bankruptcy.
Labels: Business News, Financial News
France is going in recesion
Also the second-largest economy in the euro account rolling after it was reported yesterday that gross domestic product of France was reduced to 1.2 percent in the fourth quarter of 2008 versus the previous three months. This is the weakest quarter for the French economy in the last quarter of 1974, when decreased from 1.6 percents. Thus the French economy is about to enter its first recession in 16 years since the first quarter of 2009 as business confidence, industrial production in the country will probably shrink in the coming months.
In the early months of the French Central Bank estimated that gross domestic product of the second largest in the euro area economy will shrink by 0.6 percent during the three months to March, as the bank previously estimated decrease of 1.1 percent in the last quarter of last year. In the third quarter of last year the French economy marked growth of 0.1 percent, which although minimal prevent disclosure of a technical recession in the country, were then projected to decline by 0.9 percent. After being among the few European countries where economic activity marked growth for the third quarter, France acceded to most of the economies in Europe, reacted with a negative growth because of adverse effects from the financial crisis, commented the Minister of Economy Christine Lagard. For the whole year data are expected to show GDP growth of 0.7 percent versus 2.1 percent in 2007. Estimates of the economic ministry for this year are for a decline in the economy of at least 1 percent. GDP data to be reported today, but by the institution published its report earlier because of leakage of information.
However, today in France reported a decline in non-agricultural sector employment over the last three months of last year by 0.6 percent and delay the growth of earnings for the period to 0.3 per cent to 0.7 per cent during the previous quarter.
Labels: Financial News
