Welcome to our website

Welcome in Your Blogger For Economy , Currency , Stocks and Bonds.

Saturday, December 11, 2010

Euro-Zone as Stokes minds flashpoint Bond Market Debt

A proposal to sell the combined debt of the euro-region has become a flashpoint between the new European leaders running out of options to stabilize the bond market. With a European Union summit next week in Brussels, officials in Italy, Luxembourg, Belgium and Greece, said the proposal should be explored, leading to resistance from Germany, France and Austria. Economists and analysts at Goldman Sachs Group Inc., Morgan Stanley and HSBC Holdings Plc said it would end the debt crisis of the euro-region. The plan would create a European Agency for the debt to sell bonds to finance up to 50 percent of EU member loans, up to 100 percent for countries unable to attract investors. Opponents say the proposal would raise interest rates for the stronger nations. The weighted average cost of borrowing...

Medicine in Ireland too hard for the others

Last year during a taxi ride in Dublin, I asked my driver how things were going in Ireland. He said that life was not so bad because, although growth had slowed, things were much better than they were before Ireland joined the euro. That resonated with me on Monday, when the Irish government unveiled its austerity package of 6 million euros (8 billion) of cuts in social benefits, pensions and capital projects. Ireland is still going to tax Internet gambling. But Ireland, who accepted a ransom of 85 billion euros last month, is better able to resist compression of the euro area peripheral countries like Portugal, Greece, Spain and even Italy. Ireland is a good deal richer than these countries, and has been an increase in revenue over the membership of the euro. Even after the cuts the chances...

Socrates Says Portugal Does Not Need Aid

Portugal does not need the help of the International Monetary Fund and no country has put pressure on Portugal to ask for help, Portuguese Prime MinisterJose Socrates said in an interview with the Daily News. "There is no reason for the IMF to enter Portugal, because Portugal does not need that," said Socrates, according to Portuguese daily newspaper. "The government does not need that, you know exactly what to do and do not need someone to come and tell us what to do," Socrates said in the interview. "Our problem is just a budget problem we have to correct, like other countries," Socrates told Diario de Noticias. "He who does not understand that what we are experiencing is a systemic issue, which refers to the euro, has understood nothing of this crisis," he said, the newspaper said. "If...

China can’t raise interest rates because of the risk of attracting inflows of cash

China can not raise interest rates bring the risk of cash flows that fuels inflation, said Wu Xiaoling, a former central bank deputy governor. "The global environment of low interest rates prevent China's central bank to raise interest rates," Wu said in a speech at a conference of hedge funds in today's Shanghai. Emerging markets face capital inflows and "excessive money supply is a major reason for inflation in China," he said. Business economists, including Australia and New Zealand Banking Group Ltd. and UBS AG. have, in contrast to Wu's opinion, said that China is likely to raise rates this weekend. China's Central Bank yesterday increased requirements of lenders reserve for the sixth time this year as part of efforts to curb inflation that rose to 28 months in November. In October...

Saudi Oil Minister Al-Naimi says $ 70 - $ 80 a barrel is a "good" oil price

Saudi Oil Minister Ali al-Naimi, told reporters that $ 70 to $ 80 a barrel is a good price for oil. He spoke before the ministers of the Organization of Petroleum Exporting Countries began a closed-door meeting in Quito, Ecuador, to decide on policy and OPEC production quotas. He made the following comments. The price of oil: "Prices rise, prices fall." "How many times do I have to say. $ 70 to $ 80 is a good price." He refused to comment on the current price is near $ 88 a barrel in New York. On supply and demand: "The fundamentals are good. The market is in equilibrium at this time." On why OPEC should leave output unchanged: "Why do you want to disrupt the market. It is in the balance, everyone is happy, producers and consumers, why all these questions that will cause a disturbance...

ECB's Noyer says default is more expensive than debt repayment

European Central Bank governing council member Christian Noyer said countries pay a higher price for unpaid debt to pay for it, reinforce the ECB's view that euro nations should be ruled out financial restructuring . "People forget to look at what happens when a country defaults, it's something I've been studying for several decades," Noyer said in a speech in Paris. "Financial markets do you pay for the defect with higher interest rates. I do pay for the present value of losses, plus a big bonus with the uncertainty associated with that. You pay much more for non-compliance, if not in breach their obligations. " The debate on whether countries...

Areva plans to issue new shares to holders of certificates of investment

Areva SA, the largest supplier of nuclear reactors, plans to issue new shares to holders of certificates of investment as part of a capital increase. Each holder of 12 investment certificates will be offered a new preferred stock, Areva, said in an emailed statement today. The measure adds to a plan approved by the supervisory board today to raise € 900 million ($ 1.2 million) by selling shares to the French state and a sovereign wealth fund Kuwait. Kuwait to buy € 600 000 000 worth of stock, while France, which currently owns 91 percent of the company, received an additional 300 million euros, the company said. The Kuwaiti fund will have...

Spanish and Portuguese bonds fell below the benchmark German dams

Spanish and Portuguese bonds fell below the benchmark German dams, as divisions EU lawmakers set up a potential for the area eroded the confidence that may end the crisis in the region of the debt. Spanish bonds fell five days last week after officials from Italy, Luxembourg, Belgium and Greece, said the common bond proposal should be explored, leading to resistance from Germany, France and Austria. German two-year notes slid as U.S. Treasury bonds fell amid speculation economic growth may hold up next year, and investors bid less debt than the maximum offered in the sale of 2,012 German titles. "The total diversity of comments about 'E-bonds" really highlighted how far sometimes high-profile guys think, "said David Schnautz, fixed income strategist at Commerzbank AG in London." The sell-off...

Chi-X could help NYSE, Nasdaq, bats, direct rim competes with LSE

The bidding war for Chi-X Europe Ltd. shows the growing importance of a comprehensive European strategy for the U.S. exchange operators. Chi-X Europe, the trading platform in August said he was approached about a takeover has already received offers from the four largest U.S. companies stock, two people with direct knowledge of the matter said yesterday. NYSE Euronext, Nasdaq OMX Group Inc., bats and Global Markets Direct Edge Holdings LLC have submitted bids to the London-based Chi-X Europe before a deadline next week, according to the people, who declined to be identified because the private deals. As competition has intensified in the U.S., where up to 50 different places to compete for customers stock brokerage, U.S. companies are looking across the Atlantic Ocean, where only bats Chi-X...

China's inflation accelerated at its fastest pace in 28 months in November

China's inflation accelerated at its fastest pace in 28 months in November, building the case for Prime Minister Wen Jiabao, to raise interest rates again. Consumer prices rose more than expected 5.1 percent over the previous year, a statistical report showed today in Beijing. the producer price inflation was 6.1 percent, up from one of 28 economists surveyed by us had expected. The strength of prices gains and capital flows in the fastest-growing economy may require the central bank to add to October increase in benchmark rates, the first since 2007. Officials yesterday raised the reserve requirements of banks for the third time in five weeks to drain money from the financial system. "Beijing can and will focus on fighting inflation with all my heart," said Qu Hongbin, an economist at...

Building American borrowers Race countdown clock before year-end

From California to New York, issuers are rushing to take advantage of Build America grant by accelerating sales of bonds values before the program ends. States and municipalities were set up to sell more than $ 3 billion of securities next week. In Chicago, San Francisco, Los Angeles and New York state, said that issuers who are running in the market before the program expires on December 31 in the absence of an extension. "We were trying to beat the clock, so the fast track to leverage funding," said Charles Perl, assistant financial director of the San Francisco Public Utilities Commission yesterday. The district rose 350 million U.S. dollars provided for Building America's debt sale next week, months ahead of its previous schedule, said yesterday in an interview. The U.S. government...

European shares advanced for a second week

European shares advanced for a second week as investors speculated that corporate profits and improving macro-economic data to overcome the crisis in the region of sovereign debt. Prudential Plc led gains as UBS AG recommended the largest insurer in Britain. Bank of Ireland Plc jumped 22 percent that lawmakers backed the Irish government's budget. Burberry Group Plc rose amid takeover speculation. ASML Holding NV rose 7.2 percent after the company raised its outlook for bookings in the fourth quarter. The benchmark Stoxx Europe 600 Index gained 1.9 percent this week, extending a 1.6 percent advance last week. It is the first week of five days from June to the European benchmark. The index has risen 8.8 percent this year, corporate profits rose, the Federal Reserve announced a program of...

Asian stock markets fluctuated this week

Asian stock markets fluctuated this week as benchmarks Japanese and Australian rose after reports showed economic growth better than expected or employment, while China-related companies fell to policy makers relate to raise interest rates to curb inflation. Mitsubishi UFJ Financial Group Inc., Japan's biggest bank, traded, rose 4.2 percent. Westpac Banking Corp., the second largest bank in Australia by market value, rose 2.9 percent. Industrial & Commercial Bank of China Ltd., the world's largest bank by market value, fell 2.5 percent in Hong Kong and the Agricultural Bank of China Ltd., the country's third largest lender, fell 5, 1 percent. "Markets tend to go hot and cold water on expectations that the Chinese authorities to take further steps in its tightening campaign," said Nader...

The Taiwan dollar and Philippine peso led gains in Asian currencies this week

The Taiwan dollar and Philippine peso led gains in Asian currencies this week as China's exports exceeded economists' estimates, augurs well for regional economic recovery and trade. The yuan has completed its best week in a month after China's trade surplus increased to $ 22.9 billion in November as exports and imports rose to records. Malaysia's ringgit rose for the second consecutive week, its longest winning streak in two months, after reports showed overseas shipments and manufacturing grew faster than analysts had forecast. "China's export Surprise mean strong demand for products made elsewhere in Asia," said Julie Yu, a currency trader...

The dollar rose the most since September against the euro

The dollar rose the most since September against the euro following an agreement to extend and expand tax cuts fueled speculation the U.S. economy will accelerate, driving the stock and bond yields higher and increasing demand for assets denominated in U.S. currency. The U.S. currency strengthened against most of its counterparts this week as reports showed that applications for unemployment benefits declined, exports increased a sense of two-year high and consumer prices rose. The euro fell against the dollar after Ireland's credit rating was downgraded and the region's political leaders differ on how to stem the debt crisis. The Federal...

Saudi Oil Minister said there is no need to increase oil production at a meeting tomorrow of the Organization of Petroleum Exporting Countries

Saudi Oil Minister Ali al-Naimi, said there is no need to increase oil production at a meeting tomorrow of the Organization of Petroleum Exporting Countries. OPEC, which supplies about 40 percent of the world's oil, has not changed the fees since late 2008, when he announced the largest reduction in the history of production as global demand fell. Crude oil rose 3.3 percent last month in the New York Mercantile Exchange topped $ 90 a barrel on Dec. 7 for the first time in over two years. "You really worry too much about the prices," said al-Naimi told reporters on arrival in Quito, Ecuador, for the producer group meeting. "They go up, down. What is new?" Oil may reach $ 100 a barrel next year as demand from Europe and the U.S. collects, Goldman Sachs Group Inc., the analyst Jeffrey Currie...

U.S. Trade Gap Strait more than estimated as exports hit in two years

The U.S. trade deficit shrank more than expected in October that a weaker dollar and growing economies boosted exports abroad to a maximum of two years. The gap narrowed 13 percent to 38.7 billion U.S. dollars, less than the lowest estimate of 78 economists surveyed by us and the smallest since January, Commerce Department figures showed today in Washington. Exports were the strongest since August 2008 as Mexico and China bought record amounts of U.S. products. 3M Co. and General Dynamics Corp. are among the companies likely to benefit from growing demand in markets such as China, Brazil and South Korea, which this year are among the top 10 purchasers of goods manufactured in the U.S.. Imports were flat in October as U.S. demand Crude oil fell for a result that can be temporary, as the U.S....

Consumer spirits lift as the economic recovery accelerates

Confidence among U.S. consumers increased in December to a maximum of six months, coinciding with the strongest holiday sales showing that the economy is gaining speed. The index of Thomson Reuters / University of Michigan preliminary consumer sentiment rose to 74.2 from 71.6 in late November. A Commerce Department report showed the U.S. trade deficit shrank more than expected in October of 38.7 billion U.S. dollars in the economies in export-led growth abroad to a maximum of two years. Retailers such as Neiman Marcus Group Inc., have benefited during the year's biggest purchases, Americans grew more optimistic about the job market. Treasuries fell after the trade report said the U.S. economy is getting a boost from a jump in exports resulting from increasing demand in markets such as China,...

Constancio Urges European Fund for the recovery of "flexibility" as ECB pressure Leaders

European Central Bank Vice President Vitor Constancio said European governments should be prepared to increase the size and flexibility of its rescue fund like the ECB urges leaders to do more to fight the fiscal crisis. Asked whether the fund could be used to purchase government bonds, Constancio said in an interview that "more flexibility in the euro zone resources would be helpful." Constancio, who spoke on Television late yesterday, refused to speculate whether the rest of the ECB Governing Council would support this measure. ECB officials are pressuring governments to intensify their response to market turmoil that forced last month to Ireland to seek a ransom. While the ECB has bought government bonds to help stabilize markets, the policy has been criticized by Germany's Axel Weber,...

U.S. should take steps to improve its long-term competitiveness

U.S. should take steps to improve its long-term competitiveness and reduce its budget deficit over the medium term after using a "large amount" of encouragement to spur economic growth next year, Mohamed El-Erian, chief executive of Pacific Investment Management Co. he said. "The U.S. is using the fiscal and monetary policy to try to reach the escape velocity for the economy," said El-Erian said in a telephone interview yesterday from his office in Newport Beach, California. "We do not know if that will still not be enough just to change the trajectory of the economy for a year, but to put on a medium-term sustainable path." Pimco, which manages the world's biggest bond fund, raised its forecast for growth next year in response to stimulation, he said. Now sees the economy growing 3 percent...

France, Italy Industrial Output Falls, Euro Emphasizing Economic Divide

the French and Italian industrial production unexpectedly fell in October, underscoring the growing economic gap between Germany and the rest of Europe as the crisis of sovereign debt jeopardizes the recovery. French output of factories, mines and utilities fell 0.8 percent after gaining 0.1 percent in September, the Paris-based statistics office INSEE said today. Italian production fell 0.1 percent after falling 2.1 percent in September, based in Rome, Istat said. Economists expect an increase of 0.3 percent in France and 0.7 per cent increase in Italy. The recovery of the euro-region is led by Germany, where unemployment is the lowest in almost two decades, while others struggle to catch up. The debt crisis, which pushed the cost gap between Italian and German loans to the wider life of...

Stiglitz says QE2 Fed Creates 'significant' risks

The plan of the U.S. Federal Reserve to promote purchases of bonds presents "considerable" risk by increasing capital flows to emerging markets, Nobel Prize-winning economist Joseph Stiglitz said today in Santiago. "All this liquidity is going to create is not going to re-grow the American economy is going to Asia and other emerging markets, where it is not wanted," said Stiglitz. "Most countries around the world have begun to react. They put on capital controls, interventions in the exchange rate, taxes on these capital flows -. A variety of interventions" The Fed will buy an additional $ 600 billion of Treasuries through June in a program...

Moody's, Fitch and S & P Are Protected Speech, Judge Rules California

Ratings by Moody's Investors Inc., Standard & Poor's and Fitch Ratings Ltd. are protected speech, a California judge said in a provisional ruling in a lawsuit of $ 1 billion for the Public Employees Retirement System California against companies . Judge Richard Kramer in state court in San Francisco, said today that scores of companies in the three structured investment vehicles that lost pension money is a form of speech on a topic of public interest is protected a California law designed to defend the cases meant to cool the debate. The law aims to protect the good guys trying to exercise freedom of speech of his adversaries who try to stifle the voice by submitting claims without merit, "said Kramer. "There is a public interest in the country's economy and the types of investment...

Options Bullish ETF Japan in calendar 2010 U.S. high The only trade Bet

Trading in options on the rise in Japanese stocks rose to the top of this year's U.S. trade after a single bet that companies in the third largest economy in the world will advance in the next 12 months. One operation than 50,000 calls in January 2012 $ 11 to buy the iShares MSCI Japan Index Fund helped to increase the volume of contracts rising to 10 times the average of four weeks and 15 times the number offered for sale after 4 pm in New York. The exchange-traded fund fell 0.3 percent to $ 10.58, near its seven-month high of $ 10.69 reached on December 6. Japan's economy grew faster than the government initially estimated in the third quarter due to an increase greater than that reported in capital spending. Gross domestic product grew at an annualized rate of 4.5 percent, faster than...

Crude oil fell after China took steps to counter inflation

Crude oil fell after China took steps to counter inflation, which could slow economic growth and fuel demand in the largest energy consuming country in the world. Prices fell 0.7 percent after the Bank of China requires lenders to increase financial reserves by 50 basis points from December 20. Oil rose earlier as China said in November crude oil imports jumped 26 percent and the International Energy Agency raised its forecast for 2011 oil demand for the third month. "Increasing reserve requirements is probably the first shot in the bow," said Phil Flynn, an analyst with Chicago-based merchant and investment adviser PFGBest. "The market is worried that the Chinese will follow this movement with an increase in interest rates during the weekend." Crude oil for January delivery fell 58 cents...

Colombia's government has no immediate plans to increase sales of local or international debt

Colombia's government has no immediate plans to increase sales of local or international debt to finance reconstruction after floods left thousands homeless and destroyed roads, German Director of Public Credit, said Arce. The initial cost for humanitarian assistance may be 1 billion pesos ($ 525,000,000), Arce said in an interview in his Bogota office. The government will decide in the coming months if the additional sales of debt is needed after assessing the damage to infrastructure and determine the costs, he said. "We are not considering selling more debt for the first two stages, which are humanitarian and rehabilitation" of roads, bridges and other infrastructure, Arce, 38, said. The government is considering raising taxes to finance part of the rehabilitation phase, while a loan...

Pages 381234 »