Firms falter in plans to issue shares

Listed companies on the two national stock exchanges have completed only 48 per cent of additional share issues targeted for this year, although 81 per cent of planned stock splits have been carried out, according to a report from Saigon Securities Inc (SSI).

As of August 31, companies had issued over a billion shares, or 81 per cent of a 1.28 billion to be issued this year through stock splits, which include offering bonus shares to existing shareholders and paying dividends in the form of shares.

"If existing shareholders refuse to buy additional shares, they face a risk of dilution as share prices will be adjusted downward in proportion to the value of the issue," SSI director of analysis Hoang Viet Phuong wrote in a statement.

Listed companies (Not including banks) have also targeted to raise nearly VND19.4 trillion (US$993.7 million) this year through the issue of additional shares.They have so far raised over VND9.3 trillion ($476.9 million) on the two national stock exchanges, or 48 per cent of the goal.

Firms have also succeeded in issuing VND1.93 trillion ($99 million) worth of convertible bonds, or 25 per cent of the targeted VND7.7 trillion ($395.5 million) for the year.

These figures do not include planned initial public offerings (IPOs) on the over-the-counter market. PetroVietnam Gas, for instance, expects to raise $150 million in its IPO next month.

Seven listed commercial banks, meanwhile, have projected to raise VND17 trillion ($871.8 million) in the sale of additional shares and VND1.5 trillion ($76.9 million) in the sale of convertible bonds.

The total capital which companies hope to raise this year accounts for just 4.4 per cent of total market capitalisation on the two stock exchanges and was expected to be absorbed in part by indirect foreign investment inflows which have already totalled $1.8 billion in the first half this year.

Phuong, however, doubted whether remaining targets could be met before the end of the year under the current circumstances on the market. Stockholders were also voicing increased concerns over how effectively companies would utilise amounts raised and the impact of aggressive share issues on corporate growth and the national economy overall, he said.

CII: Resolution of the extraordinary shareholders’ meeting

Ho Chi Minh City Infrastructure Investment Joint Stock Company announced the resolution of the Extraordinary Shareholders’ Meeting:

* Article 1: The Meeting approved to cancel a share issuance to increase charter capital to VND1,003 billion. The Meeting also unanimously agreed to increase CII’s charter capital from VND753 billion to VND900 billion, instead of VND1,003 billion.

* Article 2: CII will privately issue convertible bonds (Or convertible loan) to Ho Chi Minh City Finance and Investment State-owned Company (HFIC) with a term of 5 years. Total issue value will be VND71,079,000,000. Bond interest is not more than 13%/year (In VND).

Authorizing the Board of Directors to implement legal procedures, negotiate and sign an investment contract with HFIC, in which: There are unchanged basic contents: (1) Price of converted stock is not lower than VND43,500/share; (2) Interest of convert bonds is not more than VND13%/year (In VND).

* Article 3: CII will privately issue convertible bonds (Or convertible loans) to foreign partner(S) with a term of 5 years. Total issue value is from US$20 million to US$25 million. Bond interest is not more than 4%/year (In US$ exchange rate).

Authorizing the Board of Directors to implement legal procedures, negotiate and sign investment contracts with foreign partner(S), in which: There are unchanged basic contents: (1) Price of converted stock is not lower than VND43,500/share; (2) Interest of convert bonds is not more than VND4%/year (In US$ exchange rate).

* Article 4: This resolution takes effect from August 18, 2010.

ITA: Difference of figures in the financial statement Q2 and H1/2010

Tan Tao Investment Industry Corporation (HoSE: ITA) has explained difference of figures in the financial statement of Q2/2010 and the first 6 months 2010 as follows:

* After-tax profit in the financial statement of Q2/2010: VND155.623 billion

* After-tax profit in the examined financial statement of the first 6 months 2010: VND460.356 billion.

Reason:

In the first 6 months 2010, ITACO recorded dividend from its subsidiaries as the Tan Tao Office & Plant Service and Trading Co., Ltd. (100% capital of ITACO) worth VND70 billion and the Tan Duc Investment JSC (94% capital of ITACO) worth VND250 billion. Because these were the internal earnings, they were deducted in the integrated financial statement. Thus, the amount was recorded in the item “undistributed profit” in the financial statement of ITACO. However, when the Ernst & Young audited the statement, it transferred the amount to the item “financial income” in the report of the business result of ITACO. This made difference of after-tax profit in the financial statement done by ITACO and Ernst & Young.

World stock more good news

Market optimistic about China's industrial output, forecast economic growth in Europe and beyond all forecasts new regulations for the banking sector.
The positive report on the economic recovery momentum worlds and psychological improvement in the U.S. market in recent times has eased concerns about a recession compound. Start a new week on Wall Street in the vibrant atmosphere, when the S & P early on ranges exceeding 200 days on average for the first time since August. Purchasing power pushed the index up nearly the highest end of the day.
Closed session is successful, the Dow Jones Industrial Index increased 81.36 points, corresponding to 0.8%, to 10544.13 points. Thermometer pen out Standard & Poor 500 1.1%, core at 1121.9 points. S & P towards 1130 resistance point threshold is set back in May. Meanwhile, the Nasdaq Composite index sublimation technology 1.9%, to close at 2285.71 points.
On the shore across the Atlantic, European stocks peak conquered four months due to the departure for the band bank stocks. Index thermometer 18 DJ Stoxx 600 area increased 0.7% to 266.45 points. This session, all electronic spreadsheet markets closed in green color. English and French stock pens turn out 1.2% and 1.1%. Thermometer record the German DAX 30 added 0.8%.
Committee of European Banking Supervision (BCBS) represents 27 member central banks, decisions doubles capital requirements for banks in the block. With the aim to prevent a financial crisis can happen in the future, this rule for banks 8 year period to implement the capital increase. Specifically, BCBS requires lenders to meet the charter capital corresponding to 7% of total assets on the books.
Asian equities turned in the strongest four weeks. Market transactions in a state of high excitement after a series of positive economic data from the U.S. and China continued to be announced. 23 Index MSCI regional thermometer jump 1.4% to 123.55 points - its highest since 4 / 5. Statistics from the bottom level is set 25 / 8, this index has recovered by 6.6%.
In Tokyo, the Nikkei 225 barometer reconquest 9300 point mark, recording a 0.9% and core at 9321.82 points. The same increase was 0.9%, South Korea stock peak 27 months. Blue cover on the board. Markets in Taiwan and India respectively, plus 2.6% and 2.2%. Markets from Hong Kong, Singapore and Australia to break the pen in between 1.9% to 1.2%. Thermometer China's Shanghai Composite up 0.9%.
Changes in the same way with the financial markets, world oil prices soared to four-week peak. On the NYMEX trading floor goods, the price of black gold delivery in October further term of 74 cents (1%), exceeded 77 dollars and technical, to the core at 77.19 dollars a barrel.
Fluctuations in gold prices also increased slightly in the harbor. Specifically, the term gold price on the board in December Comex slightly inched 0.6 dollars, up 1247.1 dollars an ounce.
On the New York foreign exchange market, the euro price increases with the amplitude of the strongest in 10 weeks against the dollar. Investors information cheerfully before the Committee supervising European banks extend up capital for banks, as well as public health Eurozone financial sector is still in control. Rate swap between

Resources purchased securities decline

Reduce the 2nd consecutive session took 450 of the VN-Index milestone, but power demand in the stock price fell sharply from an average week, although today is the first continuous order matching last longer than usual 30 minutes.
Not a reversal signal, the index floor HCMC relief after 15 minutes of the opening phase (2.41 points) and strong accretion during continuous order matching. By the time closing, the VN-Index close below the 450 mark three points, the Left key session 447.27 points.
Extended time round 2 in order to increase market liquidity, helping investors more trading opportunities with continuous order matching method. However, in the early days of hand to apply the new timetable, only about 80% average last week. Specifically, Ho Chi Minh City recorded 46.3 million of securities transfer, equivalent to 1116 billion.
Middlemen who buy only in moderation and not quite so impatient majority of the proposed price is low, while the seller is not a massive discharge of goods, caused the liquidity setbacks today. Balance sale price floor appears only in a few stocks, mainly the previous code has increased dramatically, now exposed in the pressure discharge.
Most sessions were not reduced, but some stocks are also large capitalization value was 0.1 to 1.2 points and lost than to stand price range (CAN, BVH, MSN, CTG, Vig, HAG, EIB) .
Total stock rose last session took place, exceeding 40 in the final code, including the blue-chip FPT, DPM, HPG, PVD to mild 0.1 to 0.7 points. But the ceiling fell as shares of small and medium stocks: HTV, LAF, RDP, TDC, VFG.
ITC, REE, SSI, VHG volume market leader, offers over a million shares. ITC, REE, SSI also blocks foreign middlemen in from several dozen to a hundred thousand shares, alongside dozens of other blue-chip stocks by foreign investors buying up this morning.
HNX-Index ended the week at 128.22 points, are subtracted 2.93 points (2.23%). Total trading volume of 37.5 million overall market securities, each application 895.9 billion, down 30% from the previous session.
Stock market trading public company trading volume reached 0.16 million shares, valued at 2.1 billion, as of 11h15. UPCoM Index decreased 0.36 points, down 47.1 points.

Dow Jones crossed the milestone 10,400 points

Last week the number of unemployed people first fell sharply over the forecast. Besides, the trade deficit has narrowed significantly by the value of exports soared to its highest level in two years.

Two economic reports optimistic that the market is getting in on the number of applicants receiving unemployment benefits for the first time and trade deficits are reduced. According to U.S. Department of Labor, the number of people applying for unemployment benefits the week ending on 4 / 9 27,000 decrease, down to 451,000 people. Besides, the trade deficit in July dropped by 42.8 billion U.S. dollars, how far 47.3 billion forecast by economists and significantly reduced levels were adjusted in June is 49.8 billion
U.S. stocks closed session rally Friday in seven days with a modest increase in sales due to rising pressure on the last day. Dow Jones Industrial items added 28.23 points, corresponding to 0.3%, to 10415.24 points. Thermometer Standard & Poor's 500 0.5% turn, inspired to conquer the technical threshold of 1100 points, key points at 1104.18. Tech Nasdaq Composite Index increased 0.3%, to close at 2236.2 points.
European securities firm consolidation peak four months. Index thermometer 18 DJ Stoxx 600 area received flourishes Wednesday session in five days, recording a 1.1%, 265.09 points milestone conquered. Statistics from the bottom of the lowest level this year is set in late May, this index has recovered by 14% in value.
Blue cover on all areas of electronic tables. English and French Securities 1.2% flourishes. German DAX 30 index entries out of 0.9%. Yesterday, Bank of England (BOE) decided to keep the base rate at record low of 0.5% and historical scale acquisition program papers lost $ 200 billion liquidity Table (308 billion dollars).
Asian equities recovered after two sessions blue negative. 23 Index MSCI thermometer thriving area 0.9%, climbed 121.49 points threshold. Investors optimistic with the number of information workers are employed in Australia in August was unexpectedly higher initial and last forecasts the unemployment rate down 5.1% from 5.3% in July .
In Tokyo, the Nikkei 225 barometer re-established landmark 9000 points after recording a 0.8%, core at 9098.39 points. The Australian and Indian markets turn up 1% and 0.7%. Securities Hong Kong, Singapore and South Korea together accumulated between 0.3% to 0.4%.
Take the left direction with changes in general, the Chinese stock market fell deeply in two weeks. Stocks of financial institutions, companies under pressure metal strong sell-off. Home prices continued to rise last month that raised market speculation about the possibility the government will promote measures to prevent real estate speculation. Shanghai Composite Index fell 1.4%, at 2656.35.
On commodity markets, world oil prices to decrease the third consecutive day amid concern the supply and demand growth slowed. Synthesis Report of the U.S. energy agency (ED) showed that gas production, oil reserves of the economy the world's largest to date ending on 3 / 9 has the highest level since 1990 , corresponding to 1.14 billion barrels. On the NYMEX trading floor goods, the price of black gold-term delivery in October down 42 cents (0.6%), down 74.25 dollars a barrel.
Prices slid the most powerful in three weeks before the rising wave of profit taking. Specifically, on the Comex board electronics, metals prices delivered in December term labor dollars slope 6.6 (0.5%), to 1250.9 dollars an ounce. Thus, peak levels were established in the chain growth is 1259.3 dollars past Monday 7 / 9.
On the New York foreign exchange market, the dollar continued to decline. Rate swap between the blue and silver dollars euro is 1.2708. While, the corresponding ratio between the dollar and Japanese yen 83.87 yen.

Reigning his official Japanese yen

Increase the momentum to curb the yen continued today (15 / 9), the Government of Japan has decided to intervene in currency markets for the first time in six years, by buying dollars.
According to the Associated Press, the Minister of Finance and Yoshihiko Noda has officially confirmed this information. Mr. Noda said, this is the first time since March 2004, this country intervene in currency markets.

 
Mr. Noda said, the Government of Japan will closely monitor developments on currency markets. But he said not scale down prices for dollars to buy yen, but estimated by observers, Japan will sell 200 to 300 billion yen.

 
Analysts also forecast amount sold Yen perhaps even larger and the Government of Japan will continue to sell for yen when the exchange rate Yen / USD drawn down to 85 Yen / USD.

 
Before that, today 14 / 9, the Minister said Yoshihiko Noda, the government is closely monitoring the fluctuations on the currency market and can intervene to stop the momentum of price increases abnormal if the yen necessary.

 
Mr. Noda said, rapid price increase and lengthening of the yen could affect negatively the stability of economy and finance.

 
Some analysts have suggested that Meanwhile, Prime Minister Naoto Kan less inclined to intervene in currency markets, the yen despite abnormal price increases are causing heavy losses for Japanese exporters Copyright.

 
Mr. Kan also support consumer advocate tax increases to restore the financial health of the Japanese public debt in the context of this country are the highest in the developed economies.

 
Japanese market immediately responded positively after the information intervention currency. The yen is down 1.3% against other currencies. Against the dollar, the yen stood at 84.42 yen / USD, down 1.7% from a record low 82.88 Yen / USD in session 14 / 9.

 
From the beginning of this year, the yen has appreciated 15% against the currency basket of other developed countries. The strong increase of the yen has made Japanese government to consider issues intervene the currency market, to reduce the burden on exporters in the country.

 
However, many experts believe that unilateral moves market intervention by the Government of Japan will not have much effect, due to lack of support from the G8 member countries.

China can only grow 6.5%

Monday 17 / 3, the World Bank (WB) lowered growth forecast of China in 2009, and Beijing recommendations should not be so pressured to achieve high GDP growth at any cost.
In reporting the latest quarterly update released today 17 / 3, WB revised forecast economic growth of China's 7.5% according to figures from last month down 6.5% 11/2008.

 
Although rated a series of measures to stimulate purchasing power in the stimulus package worth 585 billion dollars, the World Bank said that China has long focused too much on investment instead of creating more jobs and improved volume growth.

 
World Bank recommends China should reduce pressure on the GDP numbers, increased measures to make a strong economic growth and social environment more friendly. World Bank hopes, in 2009 growth of 6.5%, 4.9% will come from capital investment from government and domestic purchasing power. "The GDP is now somewhat reduced nor is disaster for the Chinese economy as well as social stability, especially when going down this process may be limited by system social security system, educational stability, "the WB report writing.

 
Predictions and recommendations of the World Bank launched in time the Chinese government is determined to achieve set targets 8% GDP this year. New Friday last week, Chinese Prime Minister Wen Jiabao said the government was ready to launch measures to stimulate the economy if necessary.

 
China's GDP reached only 2.5% in the third and fourth quarter last year. Most economists forecast growth in China of about 5 to 8% for the year. The World Bank said that China will take 16 to 17 million jobs outside the agricultural sector in 2009.

 
Global crisis lasted longer this year and possibly next year, mainly due to declining exports and weak investment funds. No country can escape the effects of this storm. However, WB optimistic about the basic economic factors in China are still strong enough to continue after 2009.

Warren Buffett to speak again ...

The old man of astute stock investor Warren Buffett to speak again just nine days after publishing a letter to shareholders every year, but this time, spokeswoman Buffet dark overcast.


In an interview on U.S. television on Monday week, Buffett said that the U.S. economy dived, but it will bounce back, although the recovery this time may cause inflation to be bad worse than what happened the 70s of last century.


78-year-old investor, said that the U.S. economy has nearly collapsed in September last year when credit markets are clogged, Lehman Brothers Holdings Inc. bankrupt and the insurance company American International Group Inc. to invoked for first aid. "At that time, the whole world almost completely stalling," he recalls.
The interview was done 9 days after Buffett sent letters to the shareholders of the insurance company and Berkshire Hathaway Inc. investment that an economy of this world are in a state of confusion and will continue place until 2009.
"America will face an 'economic Pearl Harbor', a scenario almost the worst drop in business activity and rising unemployment rate," Buffett said.
He called on lawmakers from both Republican and Democrat go flat aside partisan differences, come together under the leadership of President Barack Obama to restore confidence in the system banks, heal the economy and the realization of their efforts more effectively.
"People are confused and scared. Unable to people worried about the banking system, while in reality, many people are feeling it, "Buffett said.
According to Buffett, the American people, including himself, did not predict the severity of the drop in home prices, which led to the implications of the securitization of debt instruments and that their values side attached to the house prices continue to rise, or at least will not decline.
Economic recovery accompanied by rising inflation
Berkshire stock has fallen by about half since September 2008. Growth in a number of subsidiary companies such as automobile insurance company offset the weakness of the other member companies, including retail chain jewelry that Buffett has called "cleared up" .
Position Chairman and CEO said that Berkshire will participate less in the insurance market after the disaster has invested nearly 1 / 3 of cash available to the high profitability of securities issued by General Electric Co., Goldman Sachs Group Inc. and other companies.
Still have the optimism of the long term, Buffett said that the economy "can not turn your head in an overnight" and after 5 years "engine will operate smoothly."
He added: "We really have a major economic engine that most humans have ever created," but an economic recovery can pull inflation by then, demand will increase .
"In economics, there is no free lunch. But we're trying to have a lunch in the sense that we will pay later. "
Banks should "go back to banking"
Buffett calls on banks to "return to the banking activities" and a large number of banks will "escape from the flood crisis," even when not getting abreast of the shareholders.
That "a bank going bankrupt, the public should be allowed bankrupt" but Buffett also noted, "the indifference to the faith" in the banking sector is often a "stupid".
He said Wells Fargo & Co. and U.S. Bancorp, the holding company that Berkshire shares will perform better than ever after three years, while Finance Group banks are Citigroup Inc. Shedding that Berkshire shares do not have any, will continue to trend downward.
Finally, Buffett continues to affirm his pro school of long term investment and still reserve the comments made back in October last year that it was time to buy stocks in the United States, although he also expressed, prices could undo time spokesman later months.

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America launched $ 5 billion industry research auto accessories

The administration of U.S. President Barack Obama on 19 / 3 has set up a fund worth $ 5 billion to help companies provide parts for the automotive industry of this country out of danger of collapse.
Under the plan, the money will be used to bail out the debts that creditors automobile manufacturers suppliers, especially suppliers to the two giants General Motors (GM) and Chrysler. In statement to support this plan, the Finance Ministry said the U.S., the parts supplier will be paying their debts that automobile manufacturers, whether "something happened to that car company."

 
We support industry has about 1,500 American auto company, using 500,000 workers in this country. In recent weeks, the situation of this industry has become ever more urgent. Officials in charge of automotive rescue of the White House has consistently been the car companies, consulting firms and major parts companies about the shortage of credit could make around 500 suppliers applying for bankruptcy protection within two months.

 
A survey by global consultancy firm AT Kearney predicts, half of its subsidiary in the U.S. auto industry in 2009 will be bankrupt if the Government does not support them.

 
The most worried is the sudden disruption of so many vendors, such as the breakup of American firms axle, Lear and Visteon, manufacturers can make cars GM and Chrysler, Ford and even, fall into financial difficulties are more serious. Because of this disruption will lead to disruption of its production cars, while also forcing many car assembly plants in the U.S. is foreign customers of these suppliers to dismiss workers .

 
Since mid last year to now, the situation of the automobile ancillary industry more difficult at every American. Because sales of U.S. car market declining, car manufacturers have shut down many production lines, reduce the consumption of spare parts, and difficult to pay suppliers.

 
The American auto ancillary companies usually calculate their profits based on annual revenue of the country's car market, around 13-15 million units. However, the U.S. car market within the first years on sales amounted to just under 10 million vehicles, making already-thin profit of a carrier as being more abrasive.

 
In 2008, sales of American car market declined 18%. Worse, in two months of the year, sales continue to fall further 39% over the same period last year.

 
Observers have long said that the parallel crisis of the automobile manufacturers is the crisis of industry support.

 
Meanwhile, GM and Chrysler - two carmakers account for 2 / 3 American auto industry - is still flooded out of danger. The two companies have received 17.4 billion dollars from government aid and are applying for more lending another $ 21.6 billion.

 
However, on 31 / 3 This is the deadline for GM and Chrysler with the White House to prove that they are implementing reform plans and data plans that effectively enough to help them avoid the risk of bankruptcy. It also considered the conditions for the U.S. government is considering this vehicle for firms to borrow more money or not.

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Money is running toward the U.S.

Between day and night at the world alarmed by the spread and deepen the financial crisis, America - the national "homeland" of the current crisis - have witnessed a period of good for the money they - the U.S. dollar.

 
Paradoxically dollar exchange rate increased compared with the other major currencies while the U.S. economy faced a series of challenges that can explain why?

 

 
"Zero sum game"

 
The fact that U.S. investors are drawing capital into the country to buy U.S. treasury bonds, asset classes that they are super safe. China also continues to promote the purchase of debt of an economy in the world. The U.S. Treasury bond order is an important source of financial help the government Barack Obama has thousands of billion dollars to rescue banks and stimulate the economy.

 
In the context of the global economy offers feature is the lack of capital and trust, with investments and operations around the stalled loan, the money flows moving toward making America more crisis elsewhere in the world more seriously.

 
Capital movement is not unlike what a "zero sum game" (zero-sum game, then the other person is lost). One USD is the central bank and foreign investors to buy U.S. treasury bonds means that funding for other countries, including Eastern European countries are struggling to find money sources to pay debts, down 1 USD. That was 1 USD that African countries are thirsty aid and foreign investment were beyond reach.

 
"Virtually all poor countries are facing serious problems," said Eswar Prasad, a former official of the International Monetary Fund (IMF), also a senior fellow at the Institute Brookings Institution in Washington, USA, said. "This is the third wave of financial crises. The poor countries are strongly affected by this crisis. Private capital flows into emerging markets is diminishing, "he said.

 
According to the Institute of International Finance (IIF), the amount of private capital investment in emerging economies have fallen from $ 928 billion in 2007 to $ 165 billion in 2008.

 
Of course, not all the flows of capital losses have both come to the United States. Global investors tend to hold capital dagger and fled from risky investments in the fastest possible rate. In the U.S., the investment flows of foreign investors are also slowed significantly.

 
However, due to investors leaving the U.S. for doing business in external markets and the withdrawal of water, while other central banks around the world, especially China, is pushing to buy bonds U.S. Treasury, the U.S. should still absorb a significant amount of capital withdrawn from other markets run. And this fact makes the market more than the U.S. capital khan.

 
History repeating

 
This is shown most clearly in Eastern Europe. The businesses in this area has a lot of debt in foreign currency to invest in major projects such as office buildings, factories ... The value of the currencies of this region are strongly sloping labor, this debt while not enlarged, leading to serious losses in the banking sector, forcing the government to take action to rescue next to the support of the IMF.

 
Other economists have found many similarities between the financial crisis in Eastern Europe with what happened in Asia during the last crisis in 1990. After a strong increase in foreign debt operations, reversal and departure of foreign capital flows has made the region's currencies, especially the currencies of Thailand and Indonesia, free fall, triggered a wave of defaults began, pushing unemployment and poverty soared.

 
"What took place in Eastern Europe is very similar to what happened in Asia in the late 1990", economist Brad Setser of the Council of American Foreign Relations in New York reviewers.

 
However, in a certain aspect, the present crisis is more serious part. In the 1990s, the rest of the world economy, in addition to the water crisis, growth is very strong. Then, just when the hazard reduction, Asian countries immediately return to positive growth through the export to major markets like the U.S., Europe, Japan and China.

 
In fact, the strong devaluation of the currencies in which the crisis was brought back to a source of positive support growth, for helping the goods of other countries Thailand, Malaysia, Indonesia and Korea have low rates than on the world market.

 
This time is different, just poor countries faced with the devaluation of the currency, just to cope with economic recession and falling demand for goods takes place on a global scale.

 
"The rebate money can not compensate for the slipping slope floating world economic growth," Mr. Setser said. This expert stressed that exports of these economies leading exporters such as Japan, Korea, Taiwan and Brazil have declined in recent months. "What country is hurt by this crisis," he said.

 
Observers fear, there will be time to add more countries fall into similar difficulties. Brookings Institution expert Brasad countries listed in dangerous areas, including Vietnam, Philippines, Malaysia, Indonesia, Pakistan and Ecuador.

 
During the Asian financial crisis 1997-1998, many countries especially in the storm affected most by the value of the currency is tied to dollars. Once the central bank runs the country's foreign exchange reserves in dollars, the currency of these countries will be greatly reduced, making the debts of foreign capital has become a huge debt to the "extraordinary" .

 
Currently, many countries have allowed their currencies to adjust according to market rates, rather than tied to a fixed money somehow. However, according to Kenneth Rogoff, former IMF chief economist and now a professor at Harvard University, USA, by economic activity slows and banks stuck between the big losses, damages the devaluation of the currency may be far beyond the financial rescue of the government. According to this expert, so, many European countries has now been pushed to the brink of insolvency.

 
News in America?

 
Just two years ago, many analysts expressed the view that the IMF - the institution founded over six decades ago to rescue the country from financial events - no reason to exist. Currently, the IMF is trying to mobilize more resources for the 350 billion budget of the agency, to help developing countries solve the crisis. According to Setser, IMF need about 1,000 billion dollars to bring this country out of the "financial storm" sweeping.

 
The main fear is while the world weighed heavily, and the U.S. dollar are the beneficiaries. Statistics from the U.S. Federal Reserve (Fed) showed that within 1 years, the dollar was going up 13% compared to the major currencies of the world, in which both factors into account inflation development. Particularly in 2008, the amount of U.S. Treasury bonds that investors worldwide hold 456 billion dollars has increased.

 
"This is a very large effects from the perspective that the U.S. government will never default," says economist William Cline of the Peterson Institute for International Economics, based in Washington commented.

 
Which is the main currency in global economic activity, the dollar is continuing to re-affirm his position as reserve currency of the world. Just last year, some analysts said, when the U.S. economy goes down, the central bank would be afraid to use the dollar in reserve. But this theory has been proven completely opposite.

 
At the moment everything happens normally, the price of dollars will make up the U.S. concern over the export activities of this country is hampered. But for policy makers in the U.S., what they care about now is to attract buyers of U.S. debt to raise money for the economic rescue plan. In this process, the dollar is going up it'll be worth the price.

 
"The fact that America can still loan with low interest rates will help America escape these adjustments also much more serious," Mr. Rogoff said.

Detecting the first stocks in the world

A Dutch student newspaper stocks have found the oldest in the world was released in 1606 by sea trade company Dutch East India.
According to Reuters, these stocks are in the archives of the city neglected Enkhuzen, is stored in the city of Hoorn in the North West region of the Netherlands.


Sheet stock was issued to Mr Pieter Harmensz, a citizen of the city Enkhuzen, the students time to do some of his assistants for mayor there. Harmensz after his death in 1638, his wife and daughters have inherited this stock.


Reuters said the Dutch East India is the largest trading company of the Netherlands in the 17-18 centuries, is also the first company in the world to issue shares. Date on the sheet stock is said to be the world's oldest is dated 9/9/1606. Meanwhile, he has played Harmensz payments contributed 150 guilder (currency of the Netherlands at that time) to receive stocks last.


The Dutch study showed that the Dutch East India has been experiencing some financial difficulties and initial shareholders of the company is not paying dividends. But coming in 1610, due to increasing pressure from shareholders, the Dutch East India has finally paid dividends in cash and spices.


An interesting feature of the journal world's oldest stock is a series of notes, shows that the dividend payment terms until 1650. Coming up, paper stock will be on display at the Museum of the Netherlands Westfries.

China: Inflation fastest in 2 years

Consumer price inflation in China in August has increased the fastest pace in nearly two years because of heavy floods and unusually hot weather has destroyed crops, soaring food prices .
National Statistics Office of China (NBS) said the consumer price index rose 3.5% nationwide last month, compared with 3.3% in July, marking the 10th month increase joint next.

 
This is the highest level since June 10/2008 - peak period of the global financial crisis as consumer prices up 4% - higher than the annual target of 3% of the government. In August, food prices, key components of the consumer price index, rose 7.5% over the same period last year.

 
The official data published by NBS showed China continued to grow strongly in August and growth of the second-largest economy this world has not slowed as many feared before.

 
Sheng Laiyun, NBS spokesman, was to alleviate concerns about inflation as to believe that a number of factors "to fire" for inflation but also the factors hindering more. He said the target to keep inflation at 3% of the government is able to achieve.

 
Policy makers have adopted a series of measures this year to deal with escalating property prices and bank loan hot, before concerns about the bubble in housing prices will derail burst oriented economies.

 
China's central bank said new loans increased slightly in August to 545.2 billion yuan (80.5 billion dollars), compared with 532.8 billion yuan in July.

 
However, analysts also think that this is not enough force policy makers to raise interest rates soon. They drive up food prices that recently only temporarily, so that inflation will decrease late.

 
Pen Peng economist of Beijing-based Citigroup said: "Inflation is a moderate 3.5% should not lead to increased growth rate in the current period."

5 challenge to Nokia's new CEO

Last weekend, maker of mobile phones Nokia the world's biggest statement said Stephen Elop, a former head of Microsoft, to chair Executive Director (CEO) after 21 / 9, instead of the current CEO Olli-Pekka Kallasvuo.

 
Reuters has listed five challenges not easily resolved, but Elop coming over from his predecessor.

 
1. Plate poor smartphone

 
Long dependence on Nokia Symbian OS in smart phones made by firms in Finland this group "scapegoat" after rival Apple launched the iPhone in 2007. The strength of Nokia on the market segment smart phone has deteriorating, despite the production volume is guaranteed a profit for the company.

 
Although Nokia is still the leading rival mobile market globally, thanks to the widespread presence in countries such as China, India and Indonesia, but its weak points in smartphone has Apple helping to put into its mobile phone production has the highest profit rate.

 
Nokia's in the slow competition with Apple in touchscreen technology, plus its "Mother" when to utilize a large number of developer applications on mobile phones, making consumers less salty but with the Nokia phone attached label. Meanwhile, both Apple and Google - the author of the open source operating system Android for mobile phones - are already very high for all application development.

 
Back in April, Nokia's CEO Kallasvuo that disappointed investors, said the launch of the latest software Symbian - Nokia's key weapon in the fight to Apple - will be delayed to late 2010 and the increase level will be moved to in 2011.

 
Since the N95 was launched in 2006 to today, Nokia launched almost a luxury phone that really impress. It is worth saying is, this delay happens right at Nokia's rivals the best in design and technology to promote products such as Apple started a foot in the smartphone market.

 
2. Decline in U.S. market

 
In late 1990, when Motorola Nokia overcome to become the maker of mobile phones the world's largest, an important factor in creating this success was the dominance of Nokia in the U.S. market both in terms of profitability and attractiveness to consumers.

 
But until now, that appeal has gone. Nokia now accounts for less than 10% market share in the U.S., far behind rivals by heavyweights like Apple, Samsung and LG. Nokia is a lack of vitality in the technology market right at the world's leading power companies that need the most.

 
Nokia CEO taking office in 2006, Mr. Kallasvuo was "hitting" promised to focus on solving problems in the U.S., he would spend each week in January for this problem. But since then, the situation has not changed anything.

 
A major barrier for Nokia in the U.S. market is the dominance of the big networks like AT & T and Verizon combined with the "arrogant" while not subject to its design and sell the device through the network.

 
3. Leadership "old" Nokia

 
Elop's appointment is considered a milestone of Nokia, for a long time, it does not bring new faces to replace the old characters, mostly Finns - who have the capital to Nokia business from a timber and paper business of empire mobile phone.

 
Board chairman is Mr Jorma Ollila of Nokia and CEO Kallasvuo has worked together since the 1980s, when Nokia started to increase investment in the field of mobile and progressive elimination of the business segment as screen computers, TVs, tires, cables ...

 
The appointment of Mr. Elop on the chair and CEO of Nokia to increase the presence of foreigners in its leadership. Vice Chairman of the Board of Nokia currently is Marjorie Scardino, an American. Two other foreign members of the Board Nokia is Alberto Torres, a Venezuelan, American and Mary McDowell.

 
4. Unsuccessful attempt in the service segment

 
One of the first initiatives of CEO Kallasvuo is to promote Internet business segment profitable, to compensate for the decline of the profit rate in the field of hardware can say has failed in many ways.

 
Key tool in the service segment of Nokia Ovi services page can not attract the number of users as in large stores of Apple App Store applications. Page to share pictures and video, "Share on Ovi," Nokia's open in 2008 had to cease operations in 2009. Service N-Gage games will also be dissolved this year. Last month, the Nokia said, another service that will Ovi Files "hat to go" on 1 / 10 to here.

 
In 2007, Nokia spending 8.1 billion dollars to buy maker of digital maps Navted, marking the most expensive step in the service sector, but to date, still do not get results from the purchase this again. In January this year, Nokia announced it will provide free driving directions on your phone company's effort to increase sales and selling prices of the phone.

 
5. Participation in costly telecommunication equipment market

 
Nokia has said that participation in the telecommunications market, the company's first director of Nokia Networks and Nokia Siemens Networks through joint ventures, its help in the design of the phone. This may be true, but the cost of Nokia's presence on the field is not small.

 
Nokia Siemens Networks has been struggling for many years by the declining influence of the network investment and fierce competition from rivals such as Huawei and ZTE of China.

Highlight China's "support" over 10,500 point Dow Jones

The optimistic about China's economy with trading activities merged enterprise to raise U.S. stock its highest level in five weeks in the first session of the week. The main index rose for 4 consecutive sessions and regain growth in 2010.
Fasteners session on Monday, the Dow Jones industrial index increased 81.36 points, 0.78% respectively, to 10,544.13 points. S & P 500 index increased 12.35 points, corresponding to 1.11%, to 1121.90 points. Nasdaq index up 43.23 points, 1.93% respectively, to 2285.71 points.

 
As reported on 11 / 9, August industrial output growth of China 13.9%, 13.4% higher than in the previous month. The same day, the Central Bank of China announced the credit balance in August increased to 545.2 billion yuan, from 532.8 billion yuan in July.

 
The market also received support from the information that the European Commission, regional economic common European currency, growth could reach 1.7% this year, double the rate of 0.9 % predicted earlier.

 
The main index rose early trading, momentum is maintained throughout the session. Group bank stocks the largest increase, after the operator agreed on global standards Basel 3, regulation of banks increased nearly 3 times a level of capital and allow them to have eight years to complete objectives.

 
Another factor affecting the market also harbor is the HP acquisition of security company ArcSight Inc. for $ 1.5 billion. ArcSight Shares increased $ 25.1 / cp to $ 43.91 / cp, HP shares rose by 0.2% to $ 38.26 / cp.

 
Microsoft shares up 5.3% and recorded the largest increase since June 10/2009. Technolosy Micro shares up 8.3%, after research firm Gartner forecasts spending in the semiconductor sector will double in 2010.

 
Session yesterday also saw the rise of the group's stock of goods, raw materials, technology and industry following the investors' optimism about the global economy. In it, notably the stock up 3.1% Alcoa, Cisco shares rise 3.1%, GE shares rose 1.7%.

 
Da rally brought the S & P 500 through 200 day moving average for the first time since early August. Last week, the index finished the week up 2 points. There are investors expect S & P 500 crossed the milestone of 1.130. If successful, the S & P 500 can further.

 
Trading volume on the third floor New York, American and Nasdaq reached 6.9 billion shares, lower than the 9.65 billion daily average stock return in 2009. On the floor of New York, stocks rose for every three they had a stock fell. On Nasdaq, shares rose for every four they had a stock fell.

 
Area stocks up in Europe as well as core strength session. Britain's FTSE 100 index increased 63.89 points, corresponding to 1.16%, to 5565.53 points. Germany's DAX Index increased 46.91 points, corresponding to 0.75%, to 6261.68 points. France's CAC 40 Index plus 41.33 points, corresponding to 1.11%, to 3767.15 points.

 
Meanwhile, Asian markets finished the session on Monday with the largest increase in four months. Nikkei 225 up 0.89% in Japan. Hang Seng Index up 1.89% of Hong Kong. South Korea's Kospi up 0.9%. Shanghai Composite Index increased 0.94% in China.

Dow goes down suddenly

Although retail sales in August increased the second consecutive month, but the session key, key indicators on the American stock market turmoil and the increasing decline. Dow Jones and S & P 500 slipped slightly, the Nasdaq continued to pen out.
Fasteners session on 14 / 9, the Dow Jones Industrial Index slid 17.64 points, 0.17% respectively, down to 10,526.49 points. The S & P 500 fell 0.8 points, respectively 0.07%, to 1121.10 points. While the Nasdaq index up 4.06 points, 0.18% respectively, to 2289.77 points.

 
The market rose in most of the time the transaction by the good news about retail sales and business inventories. As the U.S. Department of Commerce, retail sales in August rose 0.4%, after increasing 0.3% in July. Retail sales, excluding automobiles, up 0.6%, double the forecast of experts.

 
The optimism of investors to quickly reduce the price of gold continues to rise and some unfavorable information from the international market, as investor confidence decreased substantially in Germany in September, industrial production zones common currency in Europe slowed in July, the yen soared again the highest level in 15 years against the dollar.

 
Shares of Bank of America down 1.9%, stocks pulled the index banks, financial institutions in the S & P down 50 deep against the other 24 sectors. Tech stocks up strength. Cisco shares rise 0.9%, HP shares up 2.6%. Mining company shares rose 4% New Mont after gold prices set a new record.

 
However, according to analysts, the Dow Jones and S & P 500 was up 8 / 9 session recently, so the market stop a session to blow off steam is normal, no need to worry. This is the second session down 2 points this month on the two indices. Prior to that, Monday 7 / 9, Wall Street has declined due to worries about the European banking system.

 
Although slightly lower in session 14 / 9, but S & P 500 remains above the average of 200 trading days is 1.115 points, after crossing the threshold into this earlier this week. Currently, analysts see 1130 point threshold resistance is important for this index. If overcome, the S & P 500 will advance further.

 
Trading volume on the 3rd floor New York, American and Nasdaq have been more profound, reaching 7.2 billion shares, but still lower than the average daily trading 9.65 billion shares last year. Shares fell more points on the floor increases the rate 1,2:1 New York, while the Nasdaq, the shares fell to five stocks rose for a fourth.

 
European Regional stocks continue to maintain upward momentum in session 14 / 9. Britain's FTSE 100 index up slightly 1.88, respectively 0.03%, to 5567.41 points. Germany's DAX Index increased 13.73 points, corresponding to 0.22%, to 6275.41 points. France's CAC 40 index increased 7.25 points, corresponding to 0.19%, to 3774.40 points.

 
Same way with U.S. securities, other Asian markets also have major fluctuations in the trading session, the yen soared again the highest level in 15 years against the dollar, after the victory of Prime Minister of Japan Naoto Kan Ichiro Ozawa rival in the race to chair Democratic Party chairman.

 
End of session, the Nikkei 225 down 0.24% from Japan, South Korea's Kospi down 0.2%, Singapore's Straits Times Index down 0.59%. In reverse, Shanghai Composite Index increased slightly by 0.01% China, only Hong Kong's Hang Seng up 0.17%, Taiwan's Taiex index increased 0.51%.