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
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
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
5.112 millions of US citizens are getting unemployment benefits
During the week to February 21 in the U.S. have made a total of 667 000 applications for unemployment benefits, according to today's report from the U.S. Department of Labor. This is an increase of 32 000 of the requests to the previous reporting period, the number of applications was 631 000 according to revised data in today's report. Consensus expectations of the market were the number of claims to decline to 625 000, initially reported 627 to 000. The total number of Americans receiving unemployment benefits, increased by 114 000 and reached a record 5.112 million last week. Data for the last four weeks showed a decline in the number of Americans who have submitted the first applications for unemployment benefits up to 625 000 to 627 000 in the previous week.
The level of Americans with insurance against unemployment, to receive benefits increased to 3.8 percent, the highest from 1983 onwards, against 3.7 percent the previous week. The average number of requests for benefits over the past four weeks was 639 000. Data show that U.S. companies continue to reduce costs and reduce its staff, a process that erosion consumption and growth of the country's economy, as probably this month unemployment rate will rise to 7.9 percent.
Labels: Business News, Politic News
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
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
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
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
Unemployment Benefits had been decreased last week
Applications for unemployment benefits in the U.S. fell last week after the top of its rise to 575 000 in the first seven days of December. The number of Americans who receive unemployment benefits decreased by 21 000, to the level of 554 000 during the week to December 13 after the previous reporting period reached their highest level for the past 26 years, showing that the labor market in the U.S. continues to weaken and the country is in recession deepens.
As the market consensus expectations were for a decrease in applications to 558 000. Average last four weeks the number of applications for unemployment benefits is 543 750, which is 26 years of peak average of the indicator.
In November the average was 507 000, as today's data indicate that the situation in the labor market in the U.S. continues to deteriorate despite the reduction in applications for unemployment benefits. The country's economy lost 1.9 million jobs during the first 11 months of this year, the number of short positions in November reached 533 000, which is the largest drop in employment by 1974. U.S. unemployment last month reached over 6.7 percent, this being the highest level of 15 years.
Labels: Business News, Politic News
Bulgaria with special privileges about ecological requirement
With a large majority in Parliament voted in favor of a package of measures for climate and energy. It was adopted a compromise version of the governments of the EU with a total of 6 individual proposals, which gives a group of new member states, including Bulgaria, special privileges. 27-EU States made a commitment until 2020 to reduce the overall level of greenhouse gas emissions in the EU by 20 percent compared with 1990, it is free way to a global program to unprecedented billions in combating dangerous global warming - Press Center reported to the institution in Strasbourg. Until 2020 the share of ecological energy sources such as sun and wind should be increased on average 20 percent of consumption. Currently this share in the EU is 6.4 percent.
Heart of the European program for climate protection is trade in pollution rights. In principle, the industry should pay for these rights: in 2013 20 percent of the certificates must be sold at auction in 2020 - 70 percent and in 2025 - already 100 percent. Eastern Europe receives support in upgrading its outdated and especially environmentally harmful power.
Labels: Politic News
