Google throw new market glove
California-based Internet company has long ahead Yahoo Search and Microsoft in online searches Google to challenge their competitors. Some time users most powerful search engine, even in experimental form, can use two very useful services - Google Similar Images and Google News Time Line. They facilitate access to information and illustrative data, which, prior to use two innovative products reach more slowly and the structure of the information base would present organization. With the first product Google Similar Images (like images) can be found on a criterion that image that you need. Google News Time Line will facilitate those who seek information on a particular topic. They will receive lists of articles, photos and videos, which are arranged by date and the results will be able to narrow to specific news sources, journals or blogs.
"Traditional search by keyword at the moment and the foreseeable future will remain the most used and popular on the internet because it is a very effective mechanism by which someone asks a question and receive relevant answers. They are most directly responsible put question, explains the effect of new products RJ Pitman, product manager of the California technology company. In his new methods to meet the increased "appetite" for a more adequate and refined search in real time. "We are far from daring to do predictions on how the presented systems will change the Internet search, but we are confident that Google Similar Images and Google News Time Line have the potential to do so, specify Pitman. The words of the product manager of Google gives a clear signal despite constantly growing market share of the company in the world will continue to throw gloves market competitors, and relies on innovative products to offer more and varied opportunities to our users. Reasons for such a strategy gives the statistics. online searches carried out by U.S. Internet users in March, amounted to 9.523 billion, or about 3555 per second, the calculations show the research company Nielsen. Compared to the same month of last year the number of applications completed in the fields of search engines, grew by 16.7 percent on an annual basis . No surprise first in market share is Google, whose search engine is in made 6.114 billion queries, or 64 percent of the total volume of inquiries.
Second is the search engine ranking in Yahoo Search. In manufacturing program have 1.505 billion queries that take leadership positions in the company. Yahoo Search currently has market share in Internet search in the USA by 15.8% with 18.5% in March 2008. Third place remains for the various gates of Microsoft. Nielsen data shows that the demand by the platform software giant has risen only 0.3 percent to 982.661 million units, a company's market share declined by over 2 percentage points to 10.3 percent.
How both services work Similar Images lets write a keyword into the search box to be brought out like the familiar search far different images associated with that word. If the word is "church" after the first click on the button "search" will appear sanctuaries of different civilizations and religions - May, Hindu, Ancient Greek, Roman Catholic, Orthodox and others., All done graphically. When selecting one of these temples system automatically eliminates all other associations and is directed only to the ancient Greek sanctuaries, which appear in the upper right corner as an election. The system is useful when looking for more photos of people in different way - for example a known actor or actress. Search only in name initially suggested images from films, from awards ceremonies, etc. paparazzi pictures. Choosing one of these options in the upper right corner appear photos related solely to her. At this stage, as the system is still at an early stage of development, there is weak or almost no maintenance of the database of images that can be found by keyword Cyrillic.
In the words of radical Malpani, who heads the engineering team at Google, the purpose of new product Similar Images is to cover all the publicly available images on the web in the coming months and years. Another innovation Google News Timeline represents the optimization of existing and news now in search of news.google.com. The goal is to more easily find materials that are arranged chronologically to the date of demand. For some materials there is evidence based with hundreds of years ago. The system was developed by Andy Herzfeld, who was one of the leading figures in the creation of the Macintosh platform to Apple. "When a user searches on the results of football matches or the war in Iraq as he receives a text, photo, video and audio-information, arranged in front of his eyes day by day" fix Herzfeld during the presentation of new products. Search can be limited and to a magazine, journal or blog.
Along with two new products the company update my site Google Laps, where consumers already can see on what thousands of software engineers working on search engine. "The goal is development to get in early to the general public, which if desired can write comments and recommendations to enable the final version of the program to be working with high and mistakes can be reduced to a minimum, specify Pitman. In the words its supply of a complete and working product is particularly important in this economic situation.
It is recalled that in the autumn of last year the company presented its services to Google Audio Indexing. It allows to write a certain word or sentence statement of a politician or public figure can be found throughout the speech and video, if it is in YouTube. According to Andy Herzfeld feedback from users has been positive, but most of them insist that help in the search function to spread to other persons outside the political life.
New Investments At the end of March, California company gave another sign that it intends to invest in future technologies and innovative solutions. She announced the creation of an investment fund with capital of $ 100 million new plant will say Google Ventures and will be 100 percent owned by Google, but will work completely independently. Newly formed company will seek a wide variety of companies to invest in them - the Internet and other services, incl. in the field of health. Announced last week the company's reports show that Google's net profit in the first quarter of this year grew by 8 percent annually to $ 1.42 billion general revenue has increased by 6.2 percent to $ 5.51 billion versus $ 5.2 billion during the same period of 2008
Google Facts$ 1.42 billion net profit is Google's first quarter of 2009
250mln. Bulgarian impressions monthly account domain to Google.
6.114 billion requests, or 64 percent of the total requests are passed through the search engine Google.
Labels: Financial News
Great Britan's economy with largest drop
The UK economy got more narrow in the first quarter more strongly than expected, showed preliminary data of the National Statistical Office in London. Gross domestic product declined by 1.9 percent compared to last quarter of 2008, which was reported a decline in gross domestic product by 1.6 percent. Contraction of the British economy, significantly higher than market expectations for a fall of 1.5 percent. According to today's report from the collapse of UK GDP on an annual basis during the first three months of 2009 reached 4.1 percent after a revised decline in today's report by 2.0 percent in the last quarter of 2008. Economic downturn, reported a third consecutive quarter is the biggest on a quarterly basis from the third quarter of 1979. And on an annual basis is the strongest of 1980. Decrease in production is a comprehensive industrial production decreased by 5.5% compared with 4.5 percent decline for the last three months of 2008, a decline in the services sector was 1.2 percent after a 0.8 percent decrease for the previous reporting period. Industrial production fell by 6.2 percent during the first three months of the year, this is the largest of its decline in 1948.
Labels: Business News, Financial News
Investing in USA is Good Opportunity
According to James Shaft for the first time in a long time, the market for homes in the U.S. provides a reasonable opportunity to purchase five-year perspective of the property. Long housing market is dead, and nobody knows how much more will the U.S. recession.
However, historically low interest rates on long-term mortgage loans with a fixed percentage (less than 5 percent for 30-years mortgage) and the prospect of strengthening inflationary pressures within a year or two, both resulting from the current policy of the Federal Reserve and government made the possession of property with long-term financing of the purchase much more attractive than just three or six months. At the same time is hardly reasonable to declare that the bottom in the housing market in the United States has reached, as prices will likely fall further once ever become cheaper with 20% in the U.S. as a whole. Expected futures showed a drop of about 4 percent of the Case-Shiller index of housing prices in the 20 largest urban areas in the U.S. in May this year and in May 2010 and the recovery of current levels in 2012. A market must be seen through the filter of such indicators as unemployment, which will certainly grow from here and economic recovery will likely be very slow. Surely unemployment is generally an indicator of subsequent response within 6 months, but at the same time and has considerable pressure on domestic consumption and the market in the U.S.
No way conversion cycle in the housing market leading to the exit of the country's economy from this recession. As a very important fact: The Federal Reserve will do whatever is necessary and very likely in the effective action to stop deflation. In fact, there is reasonably high risk of inflation to be omitted from the control of the Fed or the buyers of government bonds to pass, given the growing appetite for risk on stock markets. This increase in inflationary pressures will be very useful for those who downloaded long loan to buy homes.
Labels: Comments, Financial News
Central Bank of England felt delay in economy
According to the minutes of the MPC Bank of England, the Bank's members voted 9 to 0 vote to maintain interest in 0.50% and 75 billions pounds buying long-term UK government bonds. BOE said that there is high uncertainty about the size of this program for the purchase of British debt securities. Bank notes that the original reports on the impact of this program are encouraging. BOE sees "early warnings" for improvement of the corporate debt market. Seen and known signals to improve access to credit. According to BOE, the sharp rise in unemployment in UK could hit on consumer spending. The Bank continues to believe that the risks to weigh down the economy in a downward direction. Inflation will probably fall below the target of the BOE in the second half of 2009. (less than inflation so by 2 percent ceiling on / on). According to Bank studies show that the contraction (economic downturn) may be lighter/poorer in Q2 of 2009 and that the pace of economic collapse may be weakened.
Labels: Financial News
Asian Markets finished the session poor
Today most of the indexes of the Asian markets fell under pressure from concerns about increased revenue for companies such as the Tokyo market was supported by Yesterday strong growth in the U.S. stock indexes, such as pressure were shares of financial companies after Standard & Poor Takefuji yesterday put its competitors and Promise, Acom, and Sanyo Shinpan Finance list of companies under review with negative outlook because of concerns that the costs of refinancing obligations will increase as their credit ratings may drop because of declining profits them. According to many analysts during this week will be a downward adjustment in world markets after the rally from the previous 5 weeks. Regional index for Asia and Oceania MSCI Asia Pacific in Tokyo fell by 0.4 percent to 87.98 points, about five shares for every four cheapen that appreciation. Today the main market indicator Japanese Nikkei-225 Stock Average, rose to 0.18 percent, to 8 727.30 points, after the Japanese currency fell to ¥ 98.77 against the dollar. In Hong Kong index of top companies Hang Seng is lower by 2.67 per cent to 14 878.45 points. The main stock index in China CSI 300 fell by 3.71 percent to 2 576.28 points. Australia S & P / ASX 200 is lower by 0.25 percent to 3 668.20 points, while New Zealand NZX 50 FF GROSS decreased by 0.07 percent to 2 662.94 points. In South Korea, the KOSPI stock indicator has increased by 1.44 percent to 1 356.02 points. In Indonesia Jakarta Stock Price went today to 0.84 percent, to 1 615.23 points, Straits Times in Singapore decreased by 2.32 percent to 1 843.41 points, in India Bombay Sensitive decreased by 0.74 per cent to 10 817.54 points.
Labels: Business News, Financial News
Obama wants to stop creditors of Chrysler
Obama said the U.S. president that the lenders of the automotive company Chrysler are unacceptable because they would lead to unjustified yield bonds. The biggest lenders to Chrysler offered to take shares in the restructured company car when a Fiat Spain combine for 35 percent of their investment in 7 mlrd USD Chrysler. Late last night rating agency Moodys (Investors Service on Moodys) lower debt rating of Chrysler LLC to C, the lowest level of debt rating before falling to a company in insolvency. Moodys also lowered its estimate for the recovery of the company in case of falling into insolvency by 20% from current 50%. Last Moodys lowered the debt rating to Chrysler are 03.12.08g. Chrysler car company has only a few days (until the end of the month) to reach agreement with trade unions and the American road with its creditors in order to unite with Fiat. Only in this case, Chrysler will get a new life of financial aid the U.S. government. Otherwise the company will need to enter the bankruptcy procedure.
Labels: Financial News, Politic News
Report of US financial losts for 2008
2008 was the last U.S. citizens brought losses of 11 trln. dollars, the data show the Ministry of Finance in the U.S. The amount represents about 18 percent of the overall situation of households in the country. First year of recession showed that total losses of U.S. families are most golemite of World War II. The housing crisis and the failure to be paid mortgage loans, along with declining stock market are the main reason for the reduction of the total equity of households. Reduction of the total equity of households happened primarily because of housing crisis and the collapse of prices of real estate, but also as a result of declining stock market. Despite these data, recently published in Forbes ranking shows that 45 percent of the richest people on Earth live exactly in the USA. They are owners of more than 40 percent by the billionaire, but measured 2.4 trln. dollars.
Labels: Business News, Financial News
Japan will give 5 billions USD for ecological projects
Japanese government will allocate 5 billion dollars to developing countries for various environmental projects delivered according to the Reuters Nikkei busines daily. Among the initiatives that will promote Tokyo are building Voltage electrical installations, water treatment plants and others. Leave will be administered by the Japan Bank for International Cooperation, which will be awarded in the next two years a number of private investors in the country.
The aim of the Japanese government is to assist developing economies in the construction of various projects, including improving public transport in major cities, thereby reducing carbon dioxide emissions. The Agency points out that many have turned to American and European financial institutions to implement such projects, but the treasury has rejected them after the start of the crisis.
Labels: Financial News
Bernanke: USA economy still did not reached the bottom
Ben Bernanke sees little reason to believe that the trend of economic weakening has reached bottom. In its report to the Senate Budget Committee today, chairman of the Fed said that the package of fiscal incentives should increase demand and contribute to job creation. But at the same time warned that the huge budget deficit should be rapidly limited as soon as you restart economic growth.
According to him, as despite the monetary and fiscal measures, there is still "considerable pressure" on financial markets and the signals for reversing the negative trend is too small. Bernanke reported worsening situation in the labor market and a decline in business investment in recent weeks, however he thinks that already undertaken by the government and the challenges to be taken will lead to a return to strong economic growth
Labels: Financial News, Politic News
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
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
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
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
The oil markets are more optimistic with Obama
Today, oil markets are consolidated, as the one hand on the price of black gold continues to exert pressure global recession and falling demand, on the other there is hope that plans to support the banking system and to stimulate the U.S. economy will resume soon economic growth globally and especially the demand for oil in the country, which is the biggest user of raw materials in the world. Yesterday the price of oil futures with delivery in March rose by 6.6 percent, supported by growth of capital markets after the new U.S. president announced a program to assist the banking sector, which can be funded by the financial package to stimulate the economy.
But now oil prices are under pressure in anticipation of data on the reserves of U.S. companies with oil and petroleum products, which are expected to register growth for last week. Today, at the beginning of the session of the European markets contracts for the supply of oil in March WTI variety cheapen during electronic trading in New York to 0.07 percent, to 43.52 dollars per barrel At the same time, in a variety of London Brent futures fell by 0.11 percent to 44.97 dollars per barrel. The price of oil fell by 2.4 percent from the end of December so far and 52 percent on an annual basis. Yesterday in New York index of top U.S. companies, Dow Jones ended the session with a rise of 279.01 points or 3.5 of the WTO to 8 228.1 points, while the broad U.S. stock indicator Standard & Poor's 500 rose by 4.4 of the WTO, to 840.24 points. On the other hand, the economies of Japan, China and South Korea are showing greater signs of slowing, as was reported today that the Chinese GDP growth for the fourth quarter of 2008 decreased to 6.8 percent. And I was in Japan reported decrease in exports by 35 percent in December, while growth in the economy of South Korea's funny to 5.6 percent in the last quarter.
Labels: Financial News, Politic News
Prices of Real Estates in London are falling
Housing prices in London fell more than in any other region of the UK this year and will probably continue to fall in 2009, as economists expect a deepening of recession in the UK, reported today by Hometrack. Housing prices have fallen by 10.1 per cent in the capital of the United Kingdom, to an average reduction of prices by 8.7 percent nationwide this year. Only in December house price in London fell by 1 percent, to fall by 0.9 percent in the UK as a whole. House price in England and Wales have fallen to an average 159 900 pounds, according to the market research company Hometrack.
Housing on the island already cheapen 15 consecutive months, having decreased by 9.3 percent since the beginning of the crisis in August 2007. According to the survey average time of properties sold in December was 12 weeks compared to 8.3 weeks year earlier and six weeks in April 2007. The average final selling price has reached 88.6 percent of the initial bid, against 93.5 percent in December 2007. Housing prices in Britain are trouble in the past 10 years, reaching their highest levels in the middle of last year. At present, banks have limited lending trying to increase its capital base and to restore its fiscal balance in the face of recession depth and growth of unemployment in the country. Government led by Prime Minister of Britain Gordon Brown will announce new measures for the recovery of credit in the next month after the sharp reduction in the basic interest of the Central Bank of England does not lead to a thawing of credit resources.
Labels: Financial News
Credit fever on developing markets
Record amounts of government securities which they intend to issue the industrialized countries next year to finance its shares to deal with recession loom, threaten to reduce access to the governments of the new economies to the credit market - says "Financial Times". According to analysts, new markets may be out of the issue of securities for 3 trillions U.S. dollars, which is three times more than in 2008. Only the U.S. is expected to issue debt of 2 trillions dollars in 2009.
Head of the Unit for Research on developing markets for RBC Capital Markets says: in simple words will be fighting for limited funds among more emitent. At the same time, governments and corporations from developing markets should pay the debt amounting to 6.865 trillions U.S. dollars next year, according ING Wholesale Banking. In including bonds, loans, interest payments and trade payments. According to the strategic leader for developing markets for ING, the risk of refinancing will be among the biggest problems in 2009 for new emerging markets.
"Do not look likely government bankruptcies, but many companies will see the debt restructuring or bankruptcy", commented analyzers. Governments and companies with the highest score will still attract buyers, but most issuers will have to provide far higher returns to investors. Payments on foreign debt next year to Brazil, Russia, India and China are as follows billion to 205 U.S. dollars, 605 U.S. dollars billion, 257 billions U.S. dollars and 2437 billions U.S. dollars, but the countries of Brick able to rely on big foreign exchange reserves to pay accounts. For example Argentina has a foreign debt of 64 U.S. dollars billion due in 2009, Turkey and 36 U.S. dollars billion
Labels: Comments, Financial News
The worst economy year for Russia is comming
Next year will be the worst for the world economy since the Second World War, and Russia - worst for the past nine years. This dark prediction was made on Saturday by the Finance Minister of the Russian Federation Alexei Kudrin, quoted by "Nezavisimaya gazeta". According to the minister for the first time in recent years the Russian budget will end with a deficit that could top 2.5 trillion rubles (U.S. dollar today reached 29 rubles to $ 1). This deficit can be covered using spare background.
According to experts, Kudrin has not fallen into unfounded pessimism. The economic downturn in 2009 may exceed the depth of the fall of the Russian economy in 1992 after the disintegration of the Soviet Union, when GDP of the Russian Federation has decreased by more than 14 percent. Kudrin said on television channel Vesti 24: in 2009 and finance throughout the country will have to solve problems of unprecedented complexity. Inflation remained high level of over 13 percent. "Pass through a crisis period," notes Kudrin. Towards the middle of next year inflation expected to be manageable, but only if the price of oil becomes $ 50 barrel. If inflation is $ 30, then inflation could reach 15 percent, a rate of the ruble will slightly change.
Labels: Financial News, Politic News
Surprising rise in consumer spending in France
French consumer spending of households grew by 0.3 percent in November, the largest increase in purchases of electronics and other equipment for the home, according to preliminary data of the national statistics office INSEE, published today. The market consensus expectations were for a drop in consumer spending of 0.1 percent of the French in November. The November data were revised to a fall of 0.5 percent instead initially reported drop of 0.4 percent.
Compared with November 2007, household spending on goods increased by 1.0 percent, according to INSEE. Consumption of manufactured goods in factories, represents one quarter of total household spending on goods and services. In retail sales excluding automobiles, spare parts and medical products, costs rose by 0.6 percent in November to decline by 0.5 percent in October. Consumer spending on durable goods - transport equipment housing - rose by 0.6 percent in November after a fall of 0.6 percent in October despite a continuing decline in purchases of cars during last month fell by 2.1 percent after a fall of 1.5 percent in October.
Labels: Financial News
Free trade is the best economic stimulation
Global economic crisis will lead to a sharp increase in the unemployed of working age globally with 25 million in 2010, predicted today the Organization for Economic Cooperation and Development. "We expect cuts in the range of 9 to 10 million in the member countries of OECD ... and 20 to 25 million worldwide, from now until 2010, said in French radio BFM Director General of the Organization Angel Guriya.
Earlier the International Labor Organization predicts that the number of unemployed people globally will grow by 20 million and will reach record 210 million at the end of 2009.
In the Paris-based Organization for Economic Cooperation and Development members 30 countries, including the leading industrial economies in the world. According Guriya European countries must devote more resources to stimulate their economies and the European Central Bank should lower interest rates in view of declining inflation. EU must go further than plans for fiscal incentives already announced, equivalent to about 1.4 percent of its GDP, while all other major countries do the same "said the Guriya. According to him, the economies of the OECD are in recession and reported a fall in the first two quarters of next year, and many of them throughout 2009.
Labels: Financial News
China granted 19 billions USD loans to Taiwan
Mainland China promised to grant loans amounting 130 billion yuana ($ 19 billion) to investors in Taiwan over the next three years. The proposal was made by the head of the office for relations with Taiwan government of China during a meeting with Taiwanese politicians in Shanghai, reported Reuters. The official news agency Sinhua indicates that mainland China and Taiwan will pass "hand in hand" in the current economic difficulties.
If the crisis gets worse and Taiwan exam economic or financial difficulties, China is ready to immediately give aid, said a senior Chinese politician is. These words were greeted with applause from Taiwanese. Currently in Shanghai is held the fourth cultural and economic forum between mainland China and the island, which is the only territory of the Republic of China after the Chinese civil war from 1946 - 1949, ended with the victory of the communists.
Labels: Financial News
Monetary annoyances for Rusia
In the period January - November private foreign capital in Russia has shortened by about 80 U.S. dollars billion, announced the first deputy chairman of the Central Bank of Russia Alexey Ulyukaev mentioned Interfax. For all 2008 to $ 100 billion foreign private capital can leave the country. For the first three quarters Russia was "neutral stance" on supply or the expiration of private capital. The second quarter was a very good first and third were relatively not bad.
Starting from September and October, however, the end of capital is enabling and possibly total for the year will amount to $ 100 billion, is the central banker said. Today, the Russian statistics service said that Russians' incomes declined for the first time since 1999 nominal incomes have increased by 22 percent, but real disposable income of Russians in November was 6.2 percent lower than in November 2007. The reason for the reduction of real income is weakening the Russian currency: after the Central Bank of Russia accelerated devaluation of the ruble, it lost much of its value as compared to EURO-USD only basket during this week's reduction was 6.7 percent.
Falling oil prices and the ghost of recession downward pressure ruble, says agency Bloomberg. The fall that we see now is the same force as in September 1999. As in recent months, Bank Rossia trying to keep the rate of the ruble by buying dollars on the open market, the Russian foreign exchange reserves fell by 27 percent from their levels in early August.
Labels: Financial News
Drops in productional activity of US companies
Manufacturing activity in the Philadelphia region of Notes in December fall under the pressure of deepening recession in the U.S., but the reduction is less than expected. The main economic index, the Federal Reserve Bank of Philadelphia rose during this month to minus 32.9 points in November after the value of the indicator was minus 39.3 points.
In 2007 the average index of manufacturing activity was 5.1 percentage points. Consolidated market expectations were for the index to drop to minus 40 points. Fed index of manufacturing activity in Philadelphia presents the outcome of the inquiry producers in the fifth largest city in the U.S. attitude towards the current economic information, such as values below 0 indicator slowing pace of economic development.
According to the study supporting new orders index in Philadelphia fell to minus 25.2 points after 31.4 points in November. Auxiliary index for the transport of goods decreased to minus 28.7 points in December, this being its lowest level since February 2001 onwards to minus 18.8 points in November. The index of prices paid fell to minus 33.2 points in November after they were registered 30.7 points. The index of producer prices received in Philadelphia in October decreased to minus 33.2 points to minus 30.7 points in November, while the employment index decreased to minus 28.7 points, its lowest level since September 1982 to minus 25.2 points in November. The Indicator of economic expectations of business in Philadelphia for the next six months has increased to pessimism, as its value fell to minus 14.5 points in December to minus 10.4 points in November.
Overall, despite the slight rise in its value indicator remained negative, most of auxiliary indexes signing decreases as the decline in economic expectations shows that likely contraction in economic activity will continue in coming months.
Labels: Business News, Financial News, Politic News
Leading US indexes are falling
The index of U.S. leading indicators fell in November for the fifth month of the last seven months, reflected the deteriorating outlook, which led the Fed to lower interest rates and principal to take the purchase of securities to refinance U.S. companies and stimulate lending. The index of leading indicators are calculated from the Conference Board and aims to determine the direction in which the U.S. economy over the next three to six months.
The value of the index fell by 0.4 percent in November, after decreasing by 0.9 percent in the previous month, reported by the New York-based organization today. This indicator is the average value of the following indicators: production contracts, the amount of requests received unemployment benefits, monetary indicators mass M, the size of the average workweek, building permits, the prices of basic shares' orders for goods for long-term use, the index of consumer confidence. It is believed that he characterized the development of the economy over the past 6 months. Also there is empirical rule that if the value of this indicator has a negative effect for 3 months in succession, it is an indicator of slowing economic development.
Six of forming 10 leading indicator index fell by the biggest reduction is in building permits, stock prices and applications for unemployment benefits.
Labels: Financial News
US Dollar with sudder decrease
The U.S. dollar sharply got cheaper against other major currencies after the Federal committee open market yesterday, in mid-session on U.S. markets, decided to lower the basic rate of the U.S. central bank by 75 basis points to 0.25 percent as a U.S. money make way most low among the currencies of leading industrial countries. Today at the beginning of the session of the European markets with U.S. money cheapen 0.40 percent to 1.4062 dollars to euros.
The dollar remains under pressure from the EUR as news that could negatively impact on the single currency data for inflation in the euro, which is expected to register a decline, showing a deepening recession in the currency union, negative for the dollar probably do will be current account data and applications for mortgage loans in the U.S. The main stock indexes in New York rose sharply upward, as Dow Jones Industrial Average increased by 4.20 per cent to 8 924.14 points, Standard and Poor's 500 by 5.14 percent to 913.18 points and the NASDAQ by 5.41 percent to 1 589.89 points. And since the beginning of the session the U.S. markets, U.S. currency was under pressure from each negative economic data showing a deepening recession in the U.S. after the Fed decision to leave the dollar sharply down. U.S. currency fell to 11-week bottom against the euro and to 13-year bottom against the yen. The cheapen dollar fell to 88.24 yen, the lowest level since August 1995 and against the single currency fell to 1.4192 dollars for euros, its lowest level since 30th September over to British money falls to 1.5611 dollars for the pound.
Profitability of 2, 5, 10 and 30-year U.S. government bonds yesterday reached its lowest levels in history. The index of currency trading in New York, which assesses the movement of U.S. money against 6 major currencies, fell by 0.9 percent to 79.946 points. U.S. markets fell by 13 percent from two and half its annual peak of 1.2330 dollars against the euro to reach October 28.
At the same time the price interbank loans in dollars also decreased by yesterday in London Liborat in dollars decreased by 0.02 percent to 1.85 percent, the lowest level since September 2004 onwards because of speculation that the infusion of dollars of market will continue.
Labels: Financial News
US DOllar continue to decrease its price
In the early weeks of the new trend of the last days and preserve th US dollar get cheaper against the single European currency, and this morning fell to eight-week bottom. On Friday in New York the dollar was worth 1.3369 U.S. dollars today in Tokyo to trade at levels 1.3468 U.S. dollars, for a moment and touched 1.3472 U.S. dollars. The US Dollar against the yen to 90.93 yen to divest from 91.21. On Friday quotes showed 88.53 yen, which is the worst rate of the dollar against the Japanese currency from August 1995. Japanese traders to predict agency Bloomberg that today the rate of the dollar may again fall to 90 yen.
British pound versus the dollar fell to 1.5028 U.S. dollars from 1.4944 U.S. dollars because of expectations for interest rate cuts by the Federal Reserve. Euro rose to 122.47 yen. Cheapen the dollar is now being attributed to speculation that support for car companies will remain in the hands of the government less to protect the financial system, explains Bloomberg.
Nearly 13 years of bottom of the dollar against the yen came even as President George Bush announced that may use funds allocated for the banks to prevent bankruptcy in General Motors and Chrysler.
General manager of FX Nomura Trust claims: no obstacles to the further reduction of the dollar against the yen. Diversion of funds to car companies simply means less funds for banks. Bush told reporters that it is not yet ready to announce its decision on car companies. Last week a bill to help with 14 U.S. dollars billion not passed through the Senate. For four months the dollar regained 24 percent of its value against the euro, but major players of the currency market as Citigroup, Goldman Sachs, BNP Paribas and Bank of America expects in 2009 the US dollar to become cheaper. Factor for this negative attitude is flooding the world "by U.S. politicians and macro-economists with extraordinary 8.5 U.S. dollars trillion put through 23 different plan intended to support the financial system. The big increase the supply of money seems to brake the investors - in a very important moment for the government when it came to the massive sale of debt. However, investors see how the budget and trade deficits grew, and along with this process deliverage in themselves be delayed.
Labels: Financial News
Large profits from pertol in poor year
In the worst year for the oil market in history, investors can realize huge profits, just as stored oil, according to Bloomberg. Buyers of levels of 40.81 U.S. dollars on 5th December may sell futures contracts for delivery next December at a price of 54.65 U.S. dollars for a barrel or 34 percent net income.
And after paying for the storage of raw materials and the necessary fees will profit reached 11 percent according to Andy Lipol, president of consulting company Lipow Oil Associates. Profit from such speculation is the largest in 12 monthly futures from 1998 onwards, when the market is overloaded and the price of crude oil fell with 10 US dollars.
Today at the beginning of the session of the European markets for supply contracts of U.S. light crude oil in January to get 5.19 percent, to 42.93 dollars for a barrel after Friday cheapen by 2.86 dollars to 40.81 dollars for a barrel. The appreciation of oil due to the speculation that the next regular meeting of the oil exporting countries of 17th December in Oran, Algeria, the cartel will decide on a new reduction of quotas for mining and supplies on Saturday after the president of the organization Shakib Kelly said to the Associated Press, that a "serious" reduction in quotas.
At the same time, new president of the U.S. Barak Obama announced this weekend in a huge plan of measures to stimulate the economy, which is expected to be created 2.5 million jobs in America. This return of investor optimism M stock and commodity markets and support the appreciation of oil futures. Last week the price of oil fell by 25 percent, which is the largest weekly drop of the first Gulf War in 1991.
Labels: Financial News
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
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
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
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
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
French Economy is going in recession
The gross domestic product of France is expected to decrease by 0.1 percent in the third and fourth quarters, and account growth up to 0.9 percent throughout 2008, according to preliminary data removed on Friday by the National Institute of the INSEE. It means that the second-largest economy in the eurozone is entering a technical recession for the first time in over 15 years during the third quarter.
In June, the last report, the National Statistics Institute announced that it expects growth of 1.6 percent this year after 2.1 percent in 2007 and 2.4 percent in 2006. Its new forecast corresponds roughly to revised data from the government, which expects 1 percent growth in 2008. Although the government has forecast quarterly, INSEE provides a delay of 0.1 percent in the third to fourth quarters, together with massive job losses. According to Insee forecasts economic growth of France will delay than the euro for the third consecutive year, significant risks to the French economy into account the credit crisis and volatile oil prices.
Global credit crisis threatens to slow further growth of the global economy and Insee expects consumer spending to fuel growth in recent years to remain sluggish in the second half of the year. After a contraction of 0.3 percent of GDP in April-June, France will mark three consecutive quarters of negative growth, but Eric Dubois, head of the Bureau for Economic Research at INSEE, refused to talk about recession and stressed that the reduction was "modest" and expected that GDP growth will be positive for the year.
Labels: Financial News
All eyes on USA
After the plan to rescue the financial sector last night passed through the U.S. Senate, as expected, all eyes are confined to the forthcoming vote in the House of Representatives, the lower chamber of the U.S. Congress. It is expected to vote Friday by the representatives will likely adopt a bill for improvements spending of 700 U.S. dollars billion, which surprisingly rejected on Monday. Besides the amount of 700 U.S. dollars billion, which will be paid by the government to buy mortgage securities by U.S. financial institutions, the Senate added some changes to rescue plan. There are various tax reductions, temporarily increase the guarantee from the state fund FDIC deposits of banks (from 100,000 U.S. dollars to 250,000 U.S. dollars) power to amend the method of entry of assets under market value. Can be made that the proposed tax relief will not be like some more conservative Democrats. But the bill has good chances to go and the next vote, on Monday he reached only 12 votes.
Representatives in Congress probably have turned attention to the fact that surrender their first lead until almost historical collapse of stock exchange indices in the U.S. on Monday. Upcoming elections next month may present a problem for the approval of the bill, which is perceived by the population as support for the greedy players on Wall Street. But few party organizers would like to be blamed for the collapse of the stock market. Many leaders in Congress have expressed optimism that the bill will be adopted.
Labels: Financial News
Germany, Britain and Spain will not miss recession
On Wednesday the European Commission predicted that Germany, Britain and Spain will go into recession this year. Have crushed the last hopes that Europe will avoid the severe economic crisis, writes newspaper "Financial Times". Few will better cope France and Italy. European Commission expects the economy of the entire European Unity to increase its Gross Domestic product by 1.4% this year, and 15 members of the Euro currency by 1.3%. The latest forecast made in April, indicating respectively 2% and 1.7%. The strong negative revision is to confirm that the EU's executive body began to consider their calculations fall in consumer confidence and difficult business conditions.
The Commissioner for economic and monetary policy of the European Commission, describes the economic environment of the old continent as "difficult and precarious". The doubling of the financial crisis and the price of oil for the last year and the significant adjustment of property market in some countries given their negative contribution .
The forecast for German economy is in decline - 0.2% in the third quarter and a technical recession (two consecutive quarters of negative growth), after minus 0.5% growth of GDP in the second quarter. Of Britain and Spain are expected negative growth in GDP in the third and fourth quarter.
But France and Italy, both countries with negative growth of GDP in the second quarter is expected to go to zero in Q3.
President of the European Central Bank Jean-Claude Trichet told some encouraging words. He told a European Parliament that the current episode of weak economic growth is expected to be followed by a gradual recovery and development. ECB chief acknowledged that not considered to decreases in interest rates in the euro, as it should be against the rise of labour costs in euro.
Labels: Financial News
Medvedev is looking for friendship with OPEC
On Wednesday in Wien the Organisation of the parties - the oil-exporting wreath two surprises: the reduction of quotas for extraction of raw materials with half a million barrels a day, and deepening of relations with the biggest producer of oil outside the cartel, Russia. Russia attend the meetings as an observer OPEC than 10 years. This time, however, Russians sent many high representative of the Deputy Prime Minister Igor Sechin. Analysts associated with this visit tensions between Russia and the West after the conflict in Georgia, said Reuters.
In the past there had been cases in which Russia has agreed to reduce oil production in line with OPEC in order to support prices. Russian energy ministry indicate that Russia wants to keep a regular dialogue with OPEK and invite representatives of the countries of OPEC a meeting in Moscow in October.
In separate news today the Russian president Dmitri Medvedev once again accused the U.S. of being provocated the crisis in financial markets. "We can not change the situation on financial markets, let's just be Americans repair with their mortgage system. Although if it say more simply, they certainly predicted all", RIA quoted him. According to the Russian president, despite the crisis in the United States and Western Europe, the Russian stock market will be able to cope with all their problems and to return to levels since the beginning of the year. Medvedev's application comes at a time when Russian indices are at least two years, and for the past two days RTAs fell by over 12%.
Labels: Financial News
US Dollar getting power versus the EUR
On Monday the dollar marked a new seriously slumping, reaching its highest levels against the euro since October last year here. Support the U.S. currency as proved that the U.S. government decided to assume control over the mortgage giants Fannie and Freddie, and news from the European markets that are experiencing seems ever more serious problems because of the crisis in the financial sector and delayed global economy.
Yesterday marked increase in the single currency early in the day, but then went sharply down under the pressure of news from the euro and the intervention of central banks in Korea and Russia to support their currencies as they aim to increase purchases of dollars from international markets and are spending its reserves in euros.
At the same time, it appears that the U.S. economy has reached bottom and is now slowly begin to recover. Investors have adopted the government's moves against the two mortgage giants is a strong positive signal to overcome the problems of Mortgage Market in the United States. In the EUR yesterday also reported a reduction in the index of investor confidence SENTX. Yesterday the European currency got cheaper to 1.4053 dollars, which is its lowest level in 11 months here, having finished the day at levels of 1.4128 dollars. The US Dollar index calculating the presentation of U.S. money to the currencies of the six major trading partners of the United States increased to one-year peak of 79,844 points.
Labels: Financial News
Delay of trade surplus in Germany
Today, the Bureau of National Statistical Office in Wiesbaden published data on the trade balance of the largest European economy in July. German exports fell by more than economists expected, as this is likely due to the slowing of the economy in the world and record oil prices reached in July. Seasonal weighted exports fell by 1.7 percent over June, as forecasts were for the decrease by 1.1 percent. On an annual basis, exports account growth by 7 percent. Exports of the biggest European economy in July was valued at 87.1 billion euros. Export is the victim most of the slowing economies of the biggest commercial partners of Germany.
In the second quarter GDP of the euro zone fell by 0.2 percent and is likely to be recorded and fall in the third quarter of the year. And even though oil prices have fallen by almost 29 percent of the record levels reached in July, they remain 40 percent higher than the levels only contact year. In July, German imports grow by 7.4 percent from the previous month, reaching 73.2 billion euros, taking its increase on an annual basis was 16 percent.
The trade balance in the country that represents the difference between exports and imports remains active, but the surplus decreased to 13.9 billion euros. By comparison, exports in June was more than imports with 19.7 billion euros. The trade balance also affect the Gross Domestic Product of the country, as growth in exports means jobs and growth in production, and vice versa.
Seasonal weighted value of the trade balance also reduced in July, compared to the previous month, reaching 11.8 billion euros. The balance on current account in Germany, which represents the ratio between the amount of the payments coming from abroad and the amount of payments which go abroad, also decreased to 11.8 billion euros in July as in June was 18.5 billion euros.
Labels: Financial News
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
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
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
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
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
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
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
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
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
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
Drop of the indexes in USA
During the last exchange session for the previous week, the basic index Dow Jones dropped with 0.9% to the value of 11 346.51 points, which was the lowest level of the index from August 2006. The wide American index S&P 500 decreased with 0.4% to finish the session with value of 1278.38 points.
The Friday's loses forced the weekly decrease of Dow Jones with 4.2% and S&P 500 with 3.0%. Both indexes are signting too weak monthly action for June. The decrease of Dow Jones from the top level of October is now nearly 20%, a border which is taken from the investors for going in recession. Main reasons about decrease and connected with the expectings for new loses from lost activities due to the credit crisis, high petrol prices and predictions for delay of American economy. One of the worst sectors is financial. The index, which is calculating its presentation S&P 500 dropped to 5 year bottom due to predictions for new wave of lost activities in result of credit crisis.
Labels: Financial News
Citigroup continue to lose activities
The bank, which realized the highest loses from the colapse in the American Mortgage market may lose the activities for more than 8.9 billions US Dollars for the sexond quarter of the year, announced ther analyzers from Goldman Sachs Group.
Goldman also decreased the rating of the largest american bank, announcing that the worse actions from the financial crysis in the industrial sector is high bigger that the expectings.
"Turning of the business trend in the lower direction was expected for the second half of 2008, but happened much before", told from Geldman.
From the financial company predicted many future problems in front of Citigroup, because of the risks from future loses of company activities, bigger securing of the users and possible need from more capitals.
From Citigroup gone to UBS and Merrill Lynch in expectings for loses in the second quarter of the year. From the based in New York bank, had lost activities for 42.9 billions US Dollars because of the credit crysis, and the previous week the director of Citigroup Vicram Pandit announced, that the company is predicting the shortening of 13,000 working places this year and more loses due to bad credits.
Labels: Financial News
Libya may decrease production of crude oil
The crude oil strted to getting more expensive, after the two days of lower prices. The curent price is over 135 US Dollars per barel, due to the weak dollar, crashes on financial markets, which made investors to pay attention to the black gold. The additional force in the higher price of petrol was the information, that Libya will decrease the production. The director of the National petrol company of Libya announced, that the country may decrease the export, because the market is flooded by petrol.
The crude oil with delivery in August got more expesive with 3.11 US Dollars or 2.31%. This increased the price to the level of 137.66 US Dollars and continue to go up.
The director of the National Petrol company Shuckry Ganem announced, that the country may take the decision for decreasing the export, but declined to be more accurate about the date of decreasing the production and the rate of decreasing. Other reason, which he signed for possible decrease of the production and penalties of USA over the Iran's Nuclear Program.
Labels: Financial News
Drop of the European markets
After slow increase this morning, due to petrol companies and banks, the European stock exchanges realized some drop, after the increase of the index of productional prices in Germany of 6.0% on yearly base, while the previous month the increase was just 5.2%. This is thre largest jump for the previous 2 years and the result is because of the increase of the prices of enery most of all.
In Switzerland the inflation preassure also is getting harder, and today the report for the index of the productional and import prices showed increase with 3.9% on yearly base. Other factor, which will hit the prices in Europe is the predictions, that the growing of the economy of France this year will be only 1.6%, which will be the slowest development for the last 5 years.
The decrease of the price of Gold and Copper because of the problems on the Chinese market reflected negatively to the shares of the minning companies and hurt hardly the market on the Island, in the same time the crude oil started to bring back the possitions after yeasterday's drop, provocated by increase of the prices of fuel in China.
Labels: Financial News
US Dollar more expnsive
The US Dollar, is getting richer with highest step from two years due to speculations, that the financial ministers of G8 will signalize during the meeting at the end of the week in Japan, that they support the higher Dollar, wrote Bloomberg.
The positive for the Dollar was also the information, that inflation in USA probably will get stronger, which increased the expectings, that soon the Federal Reserve will increase the interests in USA.
The Dollar was traded to levels of 1.5444 USD per 1 EUR, this morning in London, from 1.5439 USD per 1 EUR in New York last night. This week the Dollar get richer with 2.2%, the most serious increase of the currency last years.
The US Dollar was exchanged at 107.76 toward the Japan Yena. The weekly increase toward the Japan currency is 2.7%, the highest increase from 2004.
Labels: Financial News
Large private investments in developing countries for 2007
The income of private investings for developing countries increased quickly for the last 5 years, sighted report of the World Bank. More than 1 trillion US Dollars are the private investings in developing countries for 2007, in comparison with 174 billions US Dollars, just 5 years ago.
It is now too high increase of the foreign investings in the markets of shares and in bank crediting.
But the World bank, warned that in result of the credit crisis, these financial streams started for decrease, because of the increasing of the interest levels as reflection of the risks.
The report of the World Bank analyzed the money stream, passing in all the countries from the leading Financial Centers. This group from developing countries is too varied. Some countries are with better economies, just like Brazil and China, are getting larger part of the private investments, but other poorer countries in Africa and getting almost nothing.
But just for statistic comes the information, that even the fastest developing countries, like China, the middle income of person is 10% from the one in good developed countries.
Labels: Financial News
Russian Central Bank increased the interest level
The central bank of Russia increased the interest by refinancing with quarted percent point, to the level of 10.75%. The decision of Bank Rossii is comming in force from Tuesday, announced "Vedomosti". Together with this, the bank also increased the interest for operations of the bank with credit organizations. Overnight interest now is 10.75% on yearly base, but on one day repo is 6.75%.
This is the third increase for refinancing in Russia this year. On 4th February and 29th April, the Central Bank already increased the interest with quarter percent point.
From July new and higher requirements for reserves of the banks are comming into force. The previous week the vice president of the Central Bank, Konstantin Koristenko told, that it is possible to come into the yearly prediction of inflation to 10.5%, in spite of the first five months users prices had increased with 7.7%.
Labels: Financial News
150$ per barel petrol in the summer
Through the summer season, the prices of petrol probably will reach 150 US Dollars per barel. The prediction was made by the director of the global studyings of the trade goods in the investing company Goldman Sachs, which is quated by Reuters. The main reason for growing of the price is that tightening of the deliveries is acting more serious that decreasing of the requesting.
I may tell, that the possibility this to happen, most probably increased much... in some moment during the summer", told the chief Jefrey Kury during the conference for Oil and Gas in Kuala Lumpur, the capital of Malaysia. He talked about the price of more than 150$ per barel.
Goldman Sachs are the most active investing bank about energy markets, one of the first, which told about 3 number prices for barel of petroleum, whole 2 years ago. That looked very unbelievable and the company got many mockeries from the fans of "Endless Petrol".
The petrol can jump to 200$ per barel just in the next 2 years, was the prediction of Jefrey Kury previous month. Then Goldman Sachs made the prediction, that the second half of 2008, the price will be nearly 141$ per barel due to not enough deliveries.
Labels: Financial News
The index of ISM with 1 point jump
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The institute for management of sellings (ISM) increased the index of expectings of managers in relation of orders to 49.6 for May, in comparison with 48.6 in April. The border between increase and decrease of the economy is 50 points. The index for orders in the sphere of industry signed growing, and surprised the economists, when they expected a little bit worse results.
According to Bloomberg, the main reason for this is increased request of American production on the foreign markets, which allows of the companies to continue to work in spite of bad business and delay of the inner market.
Increase of the index shows, that American economy maybe will avoid the crysis in spite of the hard decrease in the prices of real estates and jump of the fuel prices.
The economists expected some falling of the index to 48.5 points in comparison with 48.6 points in April. The main reason for this was the drop of the building companies' orders in April with 0.4%.
According to the index of ISM, new orders increased to 49.7 from 46.5, while the index of the size of production had increased to 51.2 from 49.1. The sign for deliveries fall to 53.7 from 54 points for the previous month.
Labels: Financial News
Demand of expensive goods in USA decreased in April
Demand of expensive goods in USA decreased in April, due to lower requests in Aviation, but the index of capital expenses is signing increase and in this way shows, thata there is stablilazing of the business sector in the economy. This is important for the whole financial structure of USA, because the recesion can be avoided, accrding to many analyzers. The demand of long term goods decreased with 0.5% for April to the level of 214.42 billions US Dollars in data from the Government of employment. The long term goods had a final date more than 3 years. The long term good, had decreased with 0.3% on monthly base for March, which is lower revision in comparison with the previous increase with 0.1%. The expectings of the market were for higher decrease, and the economists predicted it to be nearly 2%.
The basic index of capital expenses, orders of basic goods for production outside the defence, in April had increased with 4.2% after the decrease with 1.0% in March. The devliveries in April for basic goods except those for aviation, increased with 0.5% after the decrease of 0.8% in March. These deliveries are used for calculation Gross Domestic Product and also are basic index for economy ectivity in USA.
Labels: Financial News
Lower prices of the petrol
The price of the petrol is going down to one week bottom today, and in this way continue cutting a too long possitions from speculative brockers. Thsi tendention started yeasterday, and sighted the decrease of the petrol price. The pretty hurt user support of Americans was in the basic of started petrol correction, when the price of a gallon fuel in USA reached the top 4$. This is a tradition in the end of May the fuel prices of increase due to the holliday season and active driving.
"Too expensive fuels now can be felt by normal Americans", commented British analyzer in frontt of Bloomberg. "User's seaching is not only in USA, but also in Germany and France and reached a record bottoms, which should be supported additional cheapening of the petrol, continued the analyzer.
The price of barel crude oil from the type "American Light" at the moment is about the levels of 126.40 US Dollars or nearly 2.5 US Dollars cheaper than the levels of yeasterday. In Tuesday the cruide oil lost more than 3$ from its price, after the record of 22nd May - 135.09 US Dollars per barel.
Labels: Financial News
Russia with 21% investments in USA
Just 3 month ago, the second man in the Central Russian Bank, Alexay Ulukaev convinced the society, that in securities are invested only some percents from Gold-Currency reserves of the country. But in fact the part is pretty bigger, wrote "Vedomosti". In the project of yearly financial report of Russian Central Bank for 2007, was writte, that for the 1st January, 2008 in obligations of Fannie Mae, Freddie Mac and Federal Home Load Banks were invested 2.48 trillion rubles, which is nearly 100.8 billions of USD.
To 9th May, this year, Gold-Currency reserves of the Russia are 536.8 billions USD, and according to the fact, that at the begining of the year, they were 476.4 billions USD, "some" percents in the words of Alexey Ulukaev are 21%.
Really, the owned from Russians activities have no cannetion with subprime mortgages, because Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) are supported from the American Government.
Labels: Financial News
Users' prices in USA with small decrease
The users prices in USA had decreased with less than expectings and in this way keep the predictions, that slower economy growing is leading to decrease of inflation in spite of increasing prices of energy and food products. The data will decrease the embarrassments, showed in last days from FED in the last days due to the inflation. The index of users' prices had increased with 0.2% on monthly base in data from Ministry of Employment. The basic inflation, which is not including the prices of foods and energy products had decreased with 0.1%, and the expectings for the market were for 0.2% increase of the couple types of inflation.
The users' prices had increased with 3.9% on yearly base, which is a little bit down according to datas for the previous month. The basic inflation signed slow increase of 2.3% in comparison with April 2007 and on quarter base the inflation had grown with 1.2% on yearly base. The yearly growing of inflation is a little bit over the one wanted from Federal Reserve with neraly 1.5% to 2.0%.
Labels: Financial News
Decrease of Eurozone economy
The industrial production in the Eurozone has a higher delay than expected in March. That happens most probably because of the high productional level of energy products, which was not able to compensate weaker production of other sectors.
The fabric production had decreased with 0.2% on monthly base and the yearly base the increase is 2.0%. Just in comparison with February, when the increase on monthly base was 0.3% and on yearly base the growing of the sector was revised 3.1% on yearly base. The expectings for March, were for decreasing, just a little less than the real data.
The data is signing, that may be the industrial sector in the Eurozone became to feel the influence of delay in the world economy and the force of EUR. In spite of everything, this will not change the current possition of European central Bank, which is keeping the basic interest level of 4.0% for next months due to the high inflation in the region.
On monthly base the data is showing increase of energy production with 2.7% in March, after the increase of 1.4% for the previous month. On that base production of basic goods for industry, users and short term goods was decreased. All the data is from the official statistic agency of the Eurozone - Eurostat.
Labels: Financial News
Alan Greenspan: "The American Economy will feel just ight recession"
The economy data of USA are giving a clear signal for entering into recesion. That is not so dangerous, because the now situation is just controled, and according to famoust American economist Alan Greenspan, the recesion of American economy will be light. Alan Greenspan commented the American economy in front of Asian Investors today.
"Greenspan told, that everything is sighting to light and avarage American recesion, for the economy, and the greatest problem is the mortgage and real estate sector, where the crysis is largest", commented one of the participants in the video conferation.
Just a month ago, the previous chief of Federal Reserve, told that he expect "Extremely hard recession". And then he commented, that the situation will get better, when the market of real estates is stable. According to Alan Greenspan the problems of financial sector will continue to the beginning of 2009, but the price of real estates will get stables months before this.
The American economy at the moment is in delay, and some analyzers claim, that it is now in recesion in spite of oficial data of 0.6%, growing of Gross Domestic Product for the first quarter. The Federal Reserve decresed the interest level with 3.25 percent points for less than half an year, and at the moment the interest level is on 2.0%.
The prices in world rate continue to grow, due to extremely high value of the petrol and foodstuffs, as for getting more expensive Chinese production.
Labels: Financial News
Russia against reforming of ICF
Russia voted against the plan for reforms in the International Currency Fund, announced the director of international financial structure Dominic Stros-Kahn, quoted by the world news agencies.
The changes are predicting decrease of the weight of the vote of Russia with 0.35% to level of 2.49%. Against the plan of ICF voted also Saudi Arabia and Iran, and Egypt and Argentina were abstention, told Dominic Stros-Kahn.
From reforming of ICF the largest profit will be for China, South Korea, India and Brazil.
Labels: Financial News
USD in new bottom
Dollar fell toward the basic currencies to new top bottoms. That happened after the Federal Reserve of USA took first decrease of some of the main interest indexes in the country during the weekend from 1979. This brought to expectings, that the comitee will take a hard decrease of the interest level of the interest with 1% to the level of 2% on the conference tomorrow.
On special meeting in the weekend the leaders of FED, had decided that the the skont interest level, from which the largest banks - prime dealers can get direct loans from the institution, to be decreased with 0.25 percentage points to the level of 3.25%. This is the first similar action, made in the weekend from nearly 30 years.
Fo the negative situation hard influence acted also the news, that American bank JP Morgan made an offer for buying of the Bear Sterns, which was in the center of the mortgage crisis. The price of buying had been 2 USD per share, which is 10 times less than the price that the shares had in closing of the stock exchange in Friday. In this way the price of Bear Stearns fell to 236,2 millions USD. The purpose for buying of the bank is to decrease the hard suspicion in the credit institutions and not to be allowed future increase of the mortgage crisis.
Labels: Financial News
Eurozone on the first place
The American Economy lost the first place in the largest world economy in Friday, after the USD fell under the new top level of 1.5688 USD per 1 EUR. The Eurozone became a leader, when the cheap American currency made the Gross Domestic Product of USA chepaer than the one of Eurozone. Analyzers counted the value of the Gross Domestic Product of USA and Europe in EUR, after the loss of USD, because of the news for the bankrupcy of Bear Stearns Bank.
"The result of today's study is a serial prove for the power of the 15 European economies, which are forming the Eurozone", commented analyzer from Goldman Sachs.
The nominal Gross Domestic Product of USA for 2007 was 13 843 800 millions USD, and the Eurozone's one was 8 847 889 millions EUR. The economy of the European countries went in front of the USA one after the value of the USD of 1.5646 USD per 1 EUR.
Labels: Financial News
Federal Reserve with more aggressive politic
From the Federal Reserve announced today, that for extinguishing of the new emotions of capital markets, they are ready to get wider their program form crediting to financial institutions with more than 200 billions USD.
FED decided to use all from its financial services, as giving to money to short 28-days loans to “money dealers”. FED agreed the new swap line of European Central Bank and Swiss National Bank.
Today’s decision of FED is the last step of Bernanke to help quickly repairing of financial market and lower liquidity due to the heavy credit crisis started nearly half an year ago. Till that moment, the Central Bank of USA tried to stabilize the market with aggressive cutting of interest level, which at the moment is 3%. This strategy did not gave the result that Bernanke expected and today the world Central Banks decided to take new, more aggressive politic. The focus of today’s common decision is to stimulate the markets as much as possible. The investors did not wanted to invest in financial activities, because of the low liquidity.
Labels: Financial News
Ernest Antoine Sellier about European currency
Just days before the meeting of European economy leaders and day after the decision of European Central Bank to keep the high interest levels, the negotiations for need of keeping of the EUR value are interferating. The president of European Business Association (BusinessEurope) - Ernest Anton Selier announed yeasterday, that EUR "will not survive in long term if missing of any political support, in which we should understand Eurogroup" - wrote EU Observer.
The Eurogroup means the financial ministers of 15 members of Eurozone, who usualy meet every month. Earlier this month, the Eurogroup expressed some "inconvenience" about the very expensive EUR, but refused to comment the monetary politic of European Central Bank.
Labels: Financial News
Markets with different moods
For serial time the world capital markets are showing not clear direction, hardly changes in the moods and chaotically investment actions. The affraids for the powerr of the world economy and the growing expectings for soon American recesion, are not allowing to the market to get out from the magin circle in which it is. The news about larger percetage of expired mortgages in USA, and harming additionally the markets and remebered that the cerid crisis is still not passed.
The Australian credit institution - National Australia Bank, decreased to its lowest level from 3 years, while the Japanese - Mitsui Financial Group, went to the other extreme and finished to higest growing. The companies Sony and Nintendo were hurt mo\stly from the negative news comming from USA, because the American market is most important for them. The largest mining company BHP Billiton lost from its shares' price, because of suddenly cheapen of the metals.
"With all uncertainty comming from USA, the ghost of credit srisis is comming back to the market", commented Japanese analyzer in front of Bloomberg. "I'm affraid that the Asian's markets for the first time will repeat the doings from January", continued he.
The shares of financial companies are reflecting mostly into the reginal indexes. Most hardly this felt MSCI, which decreased with 2.8%, to 139.93 points.
Labels: Financial News
