Financial and Business News

Positive start for U.S. markets

noreply@blogger.com (Zoritza Petrova) — Wed, 19 Nov 2008 06:53:00 +0000

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.

2 million barels of petrol hijacked

noreply@blogger.com (Zoritza Petrova) — Wed, 19 Nov 2008 06:41:00 +0000

The crew of captivity by Somali pirates supertanker "Sirius Star", owned by Saudi Arabia, is not threatened by anything - said on the Website of its operator company Vela International.
25 people were on board the tanker - RIA Novosti reported. According to a representative of the maritime forces of the United States, the board has the citizens of Britain, Croatia, Poland, Saudi Arabia and the Philippines.
To save people were operating groups working on safe release of people and the tanker. Representatives of command of the 5th fleet VMS U.S. located in the Gulf on Monday announced the capture of a Saudi ship of pirates of 450 sea miles east of the Kenyan city of Mombasa. Court was still imprisoned on Sunday, specifying the company - operator. According to local authorities for maritime assistance, pirates got the tanker in its main base on the coast of Somalia - the port Eyl.
Tanker was carrying 2 million barrels per oil, or nearly a quarter of Oil of Saudi Arabia for the day. The value of the cargo is estimated at over 100 million dollars. Tanker was bound for the U.S. on route circumfluous Africa and avoid the Suez Canal.

Asian Markets are going up

noreply@blogger.com (Zoritza Petrova) — Fri, 14 Nov 2008 09:12:00 +0000

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.

Advices of Trichet for financial crisis

noreply@blogger.com (Zoritza Petrova) — Fri, 14 Nov 2008 08:19:00 +0000

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.

In days of crisis Insurance is the only working sector

noreply@blogger.com (Zoritza Petrova) — Fri, 07 Nov 2008 05:53:00 +0000

In the days of financial crisis the business sector is in front of big problem, and exactly - who will buy the production. For a while the situation in many countries was pretty good - low unemployment, high profits and the economy was growing and growing, but such good point of view for all citizens, gave them a lot of strongness and they started to think very wrong. Such kind of people were getting higher loans, with higher interests, left their work and started searching for better one. This inflated the well known mortgage baloon, which created a big fear from bankrupcy of many companies, and quickly crashed a lot of corporations. This quickly placed the whole economy in front of recesion and financial crisis. And this cind of people, which are actually not so little created this crisis to many of the banks. And reflection of the crisis is the increase of interest levels, which moved many companies to bankrupcy and many workers lost their work. Many of the them, which were good secured received their Workers Compensation Insurance, which actually was new service for the growing insurance sector. Analyzers predicted a lot of unemployments to the end of the year, which made a lot of people to start their insuarace quotes in higher rates. This gave a new wave to insurance sector, and in Florida Workers Compensation Insurance is reaching almost the highest visile rates. This is not bad for insuarance companies if they had a stable place for investing their money. Unfortunately the have nothing, only simple money, which can lose their weight for not more than a day.

Decrease of building expenses in USA

noreply@blogger.com (Zoritza Petrova) — Tue, 04 Nov 2008 07:39:00 +0000

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.

European Comission started procedure against Ireland

noreply@blogger.com (Zoritza Petrova) — Tue, 04 Nov 2008 07:08:00 +0000

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. "

1,800 banks in USA are applying for financial aid

noreply@blogger.com (Zoritza Petrova) — Tue, 04 Nov 2008 07:02:00 +0000

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.

Bush is trying to change the ecological regulations

noreply@blogger.com (Zoritza Petrova) — Tue, 04 Nov 2008 06:59:00 +0000

Before the final denouement of a candidate - in the U.S. presidential race, Bush administration seeks as soon as possible to bring as many policy changes in the environment, says Reuters.
About decisions by removing the wolf from the list of protected species permits detection of power near the natural parks, loosen regulation of waste from factories and farms, to facilitate the mining companies that gain in the high mountains. What defenders of nature in SSHTA want most, mandatory program to reduce emissions of greenhouse gases is not called. "Regulations at midnight. Even some business organizations have joined aco-activities and insist on a moratorium on decisions from the Bush administration taken at the last minute. It is the initiative of the interior ministry - but the state Agency for Nature.

US Dollar under preassure

noreply@blogger.com (Zoritza Petrova) — Tue, 04 Nov 2008 06:42:00 +0000

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..

$254 billion injection from Swiss National Bank to funding markets

noreply@blogger.com (Zoritza Petrova) — Mon, 03 Nov 2008 11:19:00 +0000

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 here

Commerzbank will require support from the government

noreply@blogger.com (Zoritza Petrova) — Mon, 03 Nov 2008 08:03:00 +0000

The second largest German bank is interested to recruit fresh capital Rescue Fund, the government says "Handelsblat" Decision will be taken at a meeting of the board of the bank. Will be discussed possibility of 480 billion euros. If the bank decides that capital injection, the government will receive a direct impact on the trade policy of the vault. Spokesman of Commerzbank stressed that the bank would put the package of measures the government. The Bank is interested in all the instruments of the Fund as the option of recapitalization, said experts from the bank. The background remains the ongoing crisis and absorption of Dresdner Bank. In the third quarter to accumulate a lot of commitments to bankrupted partnership for Lehman Brothers and loans to Iceland, argue domestic sources. This is one more reason to monitor the bank's capital base. In Wednesday the bank will announce its results for the quarter.
Commercial banks in Germany discuss universal use of the fund guarantees.
The plan will help Germany to overcome "serious problems" in its economy, avoid excessive distortion of the competitive environment, clarifying the Commission. Regional bank BayernLB this week was the first to state that he will benefit from the fund and bank WestLB and HSH Nordbank announced that likely will follow the example "Komertsbank) buy" Drezdner Bank for 9.8 billion euros from "Allianz", creating a leading competitor in Germany, "Deutsche Bank. The acquisition will become twice - this year 60 percent of the shares and the rest - next year. The majority of the cost will be paid to Allianz 'shares by insurance company will continue to hold a share of nearly 30 percent in the new "Komertsbank." Komertsbank announced it plans to reduce its costs by around 2 billion euros, 9 obscured thousand jobs after the acquisition.

Czech Republic will delay the Lisbon agreement

noreply@blogger.com (Zoritza Petrova) — Mon, 03 Nov 2008 07:51:00 +0000

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.

Spain is going to recession too

noreply@blogger.com (Zoritza Petrova) — Mon, 03 Nov 2008 07:35:00 +0000

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.

American Maerkets are going up

noreply@blogger.com (Zoritza Petrova) — Mon, 03 Nov 2008 06:48:00 +0000

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.

Financial Crisis and cars

noreply@blogger.com (Zoritza Petrova) — Fri, 31 Oct 2008 18:07:00 +0000

The Car Loans were going up and up, while the start of financial crisis. Suddenly, in one minute the money become unstable and properties (movable or not) jumped with their prices. The crisis reflecred also to many goods, just like petrol. Prices of oil, respectively and those of fuel in the United States decreased recently, but the price of petrol is still about 1 dollar a gallon higher, compared with the same period last year, and that of the most expensive type of fuel exceeds 4 bucks for a gallon. This is one of the factors that turn luxury cars in one of the most expensive to hold. Indeed, the car finance of driving can be very high if you add the cost of depreciation tax, registration fees, car insurance, maintenance and repair for five years. In some cases, costs exceed twice the price that the vehicle owner has paid for it. The luxury sedan S65 AMG to Mercedes-Benz occupies first place in the Forbes ranking of the most expensive cars to drive. Cost the car amount of 194 000 dollars, but the five-year cost of holding it reached 252 209 dollars. The car moves premium gasoline and the cost is quite high. The owner will have to spend 27 286 dollars for fuel in five years given that traveling around 15 000 miles a year. However, depreciation is the biggest problem since constitute 48.6 percent of the total cost of ownership of the vehicle. To determine the 10-they-expensive cars for driving, Forbes used data from the company Vincentric, landing statistics for the cost of ownership of a car. Then they split the market in 10 class cars to determine the patterns of 2008, whose ownership was the most expensive. One look at the top of the ranking may make you reflections on the purchase of Mercedes, since four of the five most expensive car for driving from the German manufacturer. Secondly, after the S65 AMG, ranks sports model Mercedes-Benz SL65 with a total cost of ownership amounting to 231 827 dollars for five years, under the number three ranking in enters the cabrio Mercedes-Benz SL600 with total costs amounting to 181 317 dollars, as soon as it comes SUV model Mercedes-Benz G55 with total costs amounting to 159 801. Top five is based on Lexus LS600 Hybrid. Although this model of the Lexus e with hybrid engine, its fuel cost remains too high. The price of the car is 104 900 dollars, but fuel costs constitute 24 percent (17 111 dollars) of the total cost of ownership of the car, reaching 143 355 dollars for five years. In the second half of the top rank Audi RS4, Dodge Charger (Large Sedan), Subaru Impresa (Small Car), Volkswagen Passat (Family Sedan) and Volkswagen R32 (Hatchback) Life can be full of surprises, but spraying of double money what you pay for a car within five years need not be one of them.

Secured Loans & the liquidity crisis

noreply@blogger.com (Zoritza Petrova) — Wed, 29 Oct 2008 17:15:00 +0000

When the Bank of England cut its base rate by 0.5%, it was another step in a process that should help would-be borrowers looking for mortgages, secured loans and other kinds of credit.
Since the credit crunch began, the availability of secured loans (and credit of all kinds) has been relatively limited. Secured loans have also become, in general, more expensive.
It’s because loan providers have been worried about their own finances, and the finances of other loan providers. Normally, lenders use the debts they own (the money people have borrowed from them) to borrow more money (from other lenders), so they can lend it out (as more secured loans, mortgages, personal loans, or whatever they specialise in).
It actually works a bit like a secured loan – they’re securing the loan against the debt they own, so the loan provider lending them the money knows they can afford to pay it back. So it’s similar to the way a homeowner can take out a secured loan by securing it against the equity in their property.
The credit crunch disrupted all that, disrupting the secured loans market. Why? Many lenders realised they weren’t sure how much of the debt they owned would actually turn back into money. In many cases, they’d bought ‘packaged debts’, so it was very hard to know what kind of risk each ‘pound’ of debt carried – a £1 debt that’s very unlikely to be repaid isn’t really worth a pound!
This made loan providers worry about their own finances. It also made them reluctant to lend to other loan providers who wanted to borrow from them (by using their own debts as collateral). This led to the ‘liquidity crisis’ – a lack of ‘liquid’ cash (cash that’s available to be spent or lent, rather than tied up in property or other more ‘solid’ assets). Secured loans became, in general, harder to find and more expensive.
The Bank of England’s base rate cut should help reduce the cost of lending and make secured loans more available, but it’s not the full story. The Bank’s Special Liquidity Scheme, for example, allows banks to ‘swap temporarily their high quality mortgage-backed and other securities for UK Treasury Bills’. In other words, it lets them temporarily swap their debts – as long as they’re high-quality debts – for Treasury Bills, an excellent source of funding, which they can use to provide secured loans, mortgages, etc.
Then there’s the Government push to restore confidence in the banking systems and ‘kick-start’ all kinds of lending, not just secured loans. As The Times reported, the Bank ‘will pump at least £200 billion into the money markets under its existing Special Liquidity Scheme’ and the Government ‘is also making a further £250 billion available for banks over the next three years to guarantee medium-term debt to help restore confidence and get banks lending to each other again’.
Together, the various initiatives should give loan providers the confidence and the money they need, so they can get back to providing secured loans and other forms of credit to individuals and businesses.
This article was written by Loans specialist Think Money.

When the markets are going down, buy Champagne

noreply@blogger.com (Zoritza Petrova) — Fri, 03 Oct 2008 11:16:00 +0000

When the market is demolish and investors no certainty for investment in shares and the prices of industrial raw materials fall under the pressure of slowing global economy and reducing consumption. At a time when the shock of the crisis banking system desperately seeking resources to ensure its liquidity, where one can put their money. As with any crisis and for that investors find salvation in the market of luxury and unusual goods that are available to fewer people and less susceptible to speculation and volatility.
Gold and oil futures are no longer exit, Andy Pik, 49 years his father in Atlanta recently invested money in liquid assets - 400 bottles of champagne for 120 000 dollars, reported Wall Street Journal. According to him, this is a deal that beat forecasts as security for the monthly financial statements of Merrill Lynch and the worst that can happen is just to have to have investment. He plans to wait several years and then sell vintage champagne in 1996 with good profits. More and more investors towards the market of products related to the fashion industry as a wave of alapaka received from animals such as llama living in the region around Peru. In pure form is used very rarely because it is quite expensive, and vicuna, called Vigo, which is very strong and excellent insulation qualities. This soft and fine wool is the most expensive natural fiber in the world.
Investors shift assets from uncertain to actual products with a high price, which will remain expensive no matter what happens to capital markets and how cost liter gasoline. Typical of this type until recently securing assets such as property is no longer considered safe after the average price of new housing decreased by 6.2 percent in August on an annual basis to 221 U.S. dollars 900, which is the lowest level since September 2004.
In July reduction in prices is greatest in Las Vegas with 30 percent and in Phoenix by 29 percent as compared to the same month in 2006 the value of U.S. homes fell an average of 19.5 percent. According to the National Register of alapakite in Lincoln, registrations of new animals grew by 7 percent to 140 297 this year. The price of one of those inhabiting Andes in South America, animals with long hair very fine hair, may reach 10 000 dollars and will probably grow in coming years. Financial firms report, to increase the number of people who invest their money in unusual assets, avoiding the standard used by industrial raw materials futures, stocks, bonds and mutual funds.
But the market offers a wide variety of options. Silver Age Comic Book Pricing Index, an indicator to assess the movement of prices of 32 of the traded comic magazines from 60 years increased by 14.2 percent over 18 months to July, while the Standard & Poor's 500 lost 11 of percent of its value for the same period.

French Economy is going in recession

noreply@blogger.com (Zoritza Petrova) — Fri, 03 Oct 2008 10:39:00 +0000

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.

All eyes on USA

noreply@blogger.com (Zoritza Petrova) — Fri, 03 Oct 2008 10:10:00 +0000

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.

Second large merging of German Banks

noreply@blogger.com (Zoritza Petrova) — Thu, 11 Sep 2008 07:48:00 +0000

German credit system is in the fever of merger and conversion, writes "Handelsblat". Deutsche Bank confirmed for the first time the news led to talks with Deutsche Post to share participation in the Postbank. Negotiations are at an advanced stage. It is clear that this is an appropriate strategic step, but the question is whether it will lead to consensus on the price, said the director of Deutsche Bank Josef Akerman a forum of "Handelblat" in Frankfurt.
Today evening meet the management board of Deutsche Post, which must decide. Clear about what options remain for share participation will choose the director of "Deutsche Post" Frank Appeal. "Deutsche Post" hold 50 plus 1 share in "Postbank". Akerman reject the offer led by its institution to take over completely "Postbank". Major restructuring processes are something on which we do not need and do not strive, said Akerman. "Handelsblat" learned from financial circles that "Deutsche Bank intends to hold 30 percent of the capital of Postbank. Akerman rejected proposals to shareholders of Postbank to 100% - selling. Postbank is one of the few opportunities for sales, which remained vacant. "It fit very well to Deutsche Bank because Akerman wants to develop better not only investment banking but also private banking, experts say." Postbank has 850 subsidiaries and 14 million customers. A little time earlier "Deutsche Bank joined the ride for filiara of Citibank in Germany, but ultimately the French bank Credit Mutuel buy. So far Doche Bank made a small banking transactions in the retail purchase of Norisbank and affiliates der Berliner Bank. The Government will support the introduction of Deutsche Bank in the Postbank. This will be an important step in further consolidating the German banking sector, said Finance Minister Per Shtaynbruk.

Germany, Britain and Spain will not miss recession

noreply@blogger.com (Zoritza Petrova) — Thu, 11 Sep 2008 07:37:00 +0000

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.

Medvedev is looking for friendship with OPEC

noreply@blogger.com (Zoritza Petrova) — Thu, 11 Sep 2008 07:28:00 +0000

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%.

US Dollar getting power versus the EUR

noreply@blogger.com (Zoritza Petrova) — Tue, 09 Sep 2008 11:38:00 +0000

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.

Delay of trade surplus in Germany

noreply@blogger.com (Zoritza Petrova) — Tue, 09 Sep 2008 10:16:00 +0000

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.