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.
Wednesday, September 15, 2010
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.
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.
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.
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.
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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