Mar
17
Yesterday, the Euro, registered significant gains against the majority of currencies. The European Stock market registered gains similar to the sight in Wall s$street. Also, Jean Claude Trichet, impelled the confidence, since he affirmed that he will do against the crisis as he must.
Trichet affirmed that rate glides to reduce overnight lending to 0,5%. In the short term it will imply an increase of the demand by Euros. And on the basis of this announcement major will be waited volatileness in the market, mainly with the Euro and its counterparts.
The Euro gained 40 yesterday pips against the pound, and closed in 0.9284. Also, pips against the yen gained about 300 and closed in 126.24. This had partly to the improvement of the stock market in Japan, and to the GIP that occurred to know there, which showed that the Japanese economy was contracted 3,2% during the fourth trimester of the 2008, the highest number from 1974. Whereas against the dollar, the Euro, pips gained 100 and reached the 1.2924.
For today it is expected Wholesale Price Index (WPI) German to 7:00 GMT, and the Retail Salts to 10:00 GMT. If the projections are fulfilled, the Euro esteem that will continue taking terrain.
Mar
17
Again the markets in the world fell and hard, closing not only the week but also the month of February in red. Dow Jones already accumulates six months of losses, in the last month fell almost 12% and 4.1% in the week. The rest of the markets was in line with the happened thing in Wall s$street. The Nikkei index of Tokyo managed to reclaim land in the week, being one of the few positives, although for the month also it closes in negative land.
What is happening? The recession is accentuated, the financial system does not give samples to improve and is indications of a new deepening of the crisis; we add to that the companies present/display disastrous results, trim dividends, there are no recovery signals and the fall in the activity esteem that will continue (and until it could increase his rate). They are too many reasons to think about positive. All this took to that Wall s$street closes this week in minimum levels from 1.997.
They are continued announcing plans, salvatajes and questions of the sort, but they do not manage to generate optimism. Why? On the one hand, it is not possible to be determined as they will be applied less and if they will be successful. As well, if somebody needs aid is because it is not well; they are “salvatajes”, “plans to reactivate”, “to avoid the depression”, putting on the table bad of the situation and the gravity. Perhaps here we find the reasons for which an action of Citigroup today has the same value that decades back: then, investors greet the aid and the endorsement, but they cannot award to the bank, since, that the losses are endorsed does not imply that they are not going to exist.
Round of the financial crisis is spoken of the second. In first the financial crisis exploded and soon this struck to the real sector; now perhaps the effect is the other way around and the blow felt by the real sector feels on the financial sector. The announcement of American Express to pay 300 dollars to certain clients, so that they give back the card to him (practically so that they stop being clients, previous cancellation of debts) can serve previously like argument for what has been said, although just with time we will be able to have more clarity envelope than it is what it is happening.
The director of the IMF also spoke of possible a second wheel of explosions in the financial market. Certain events give sustenance to their declarations. The crisis of many countries of East Europe, can strike hard not only to the economy of the zone but also to the financial sector of Western Europe, by their exhibition. Another nonsmaller data, was the record of retirement of deposits that occurred in January in the United Kingdom. A generalized and deep banking bullfight can generate new damages to the system.
Barack Obama announced that it glides to reduce the deficit to half for the 2.013; in the same week that projected, that the next budget considered to have the greater fiscal deficit from the decade of the 40. There were other events related to the debt of the United States. Horseradish tree Bernake, said that the plan to buy treasury bonds of long term, at the moment was not going to carry out itself. The yields for the different sections, continue pointing towards majors corrections. Although, a worsening in the crisis, could put to this doubtful refuge, of return in the main menu of the investors; although they do not have good fundamentals for the future.
The fall of Wall s$street towards the minimums in several years, was not accompanied of great movements in the FOREX, as it happened in the past. This time the dollar did not realise new bearish routes against the Euro, over the October levels; although it was the currency of better performance in the week. The main news of the market, was the fall of the yen against one extends basket of currencies, removing to him the status from safe refuge to the currency.
After surpassing the thousand dollars, the gold fell strongly (more than 50 dollars); although it maintains his tendency and its status of refuge positive. Petroleum on the contrary registered one raises important, reached maximum prices from January. It follows the negative tendency effective, it raises although it of the crude one had the particularitity to be accompanied of forts fallen in stock-market. The cuts in the production will be feeling.
Mar
17
AIG receives other 30 trillions of dollars, whereas the government of the United States has participation in Citigroup, etc. the News since these let know to the investors that the world-wide economy still presents/displays much risk, the weak stage has not happened and apparently it will take some time before seeing the prices bounce. All these events bring with himself fear and management of risk between the investors; having consequently: the appreciation of the dollar. In the opening of the market of the Sunday 1 of March parity EUR/USD abrió with gap to the south of our graphs, we see if east movement extends and finally it overcomes the 1.25 barrier.
Tuesday we have the president of the EDF, Horseradish tree Bernanke, that probably in its appearance speaks on the strong movements of the market in the last days, where it is not taken from good forms the aid to AIG. Thursday will be important, since the Gross Internal Product of Euro-Zone will announce, as well as the decision of interest rate of the Bank of England and the Central bank of Europe; with the expectation of which both are trimmed 50 registration points. It remembers that the mixed ones have bought currencies of the central banks that trim their rate. We see if this continues or if the dollar obtains an additional aid to fortify itself. Finally, Friday we will have the not-agricultural Index of use and unemployment in the United States; these news have worked to predict the movements in the economy very well, probably read refusals, thus we would finish the week with a EUR/USD going to the north of the graphs.
We see the parity once again going towards the later part of the graph, having problems to return to the north. Also, we observed that it has not been able to break the barrier of 1,2500, the rank is used excessive respect and this only can mean a thing, a rupture for any side, manténgase kind and takes advantage from the movement.
To sell in levels near 1.2700.
Taking of gain 1:1.2650
Taking of gain 2:1.2550
Mar
16
Copenhagen, 3 nov (EFECOM). – The Norwegian Government informed today into the concession of an extraordinary credit to 4-5 years of 500 million Euros (625 million dollars) to the Icelandic authorities to do against the financial crisis that crosses east Nordic country.
The credit granted by the Norges Bank (National Bank) to its homologous Sedlabanki Icelander is conditional to that the direction of the IMF approves the plan of stabilization decided with Iceland, that includes a loan of 2,100 million dollars, and that other countries make “contributions similar”, according to an official notice.
The authorities Norwegians have extended in addition to 2009 the date to return of another credit of the same value granted the past May and that it won at the end of year.
This credit was approved jointly by the central banks of Sweden, Norway and Denmark, that were committed to contribute to 500 million Euros each, by means of an agreement of type “swap” (financial exchange) to change Icelandic crowns by Euros.
The countries of the Nordic Council – that they integrate besides Iceland and Norway, Denmark, Sweden and Finland approved days ago in Helsinki to create a commission to study additional measures of support to Iceland.
The minister of Outer Subjects Norwegian, Jonas Gahr Store, declared to one Finnish radio his “deception” by the lack of concrete commitment of the Nordic countries in the aid to Iceland, although soon he clarified his words and he said to be misinterpreted.
The Norwegian Government today stressed his official notice the “importance” of which the economic support to Iceland happens “in collaboration with the other Nordic countries”.
The Icelandic authorities have considered in 4.000 million dollars, the loan of the separate IMF, the amount that need to re-float their economy, very damaged by the crisis.
Iceland has also requested aid to the European Central bank and the Federal Reserve of the United States, besides negotiating with countries like Japan and Russia possible loans.
Mar
16
The first manufacturer of automobiles of the United States, General Motors, announced that she will need to increase his loan up to 30 millardos dollars with the purpose of to avoid the bankruptcy: 16,6 millardos more of those than had anticipated initially, informed the digital edition into The New York Times.
The company, presided over by Richard Wagoner, received in past December 13.4 millardos of dollars like part of the bottoms approved by the White House to rescue the sector of the automobile, assured, in addition, that it has predicted to trim 47,000 jobs anywhere in the world before east year – of a total of 244,000 people finalizes who work for the company.
Almost half of these new dismissals, informs the New York newspaper, will take place in the United States the viability plan that presented/displayed the Department of the Treasure also anticipates that for 2012 General Motors it will reduce his plants of production in that country to a total of 33, 5 less than the established thing by the company in past December.
More dismissals. Chrysler, the third manufacturer of automobiles of the country, that at the end of December received 4 millardos of dollars, had asked for at first other 3 millardos to confront the crisis that crosses, but finally assured that it will need 5 millardos more before the strong fall the sales, 9 millardos altogether.
The company/signature, directed by Tom LaSorda, announced other 3,000 dismissals like part of its plan of presented/displayed viability and that will stop making 3 models of vehicles. It assured that the United Auto Workers union accepted some concessions and that advances with the bond possesors and the concessionaires have taken place.
Now one hopes that the new committee of experts, announced by president Barack Obama replacing the czar of the automobile proposed by the previous government, reviews the details of both plans of reconstruction before approving the resources that they ask for, for which had paid attention like date the 31 of March.
A reorganizadora bankruptcy with the support of the Government still could be a viable option to save to General Motors and Chrysler said analysts, although the automotive ones indicated that they preferred to follow in the route.
Both automotive ones analyzed a potential declaration of bankruptcy in their plans of reconstruction, but they emphasized that they hoped to avoid that scene.
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