Since most European banks have moved long-awaited stress tests, they now face even more serious challenge in the coming months, namely – the collection of long-term resource for billions of dollars with which to finance lending. Card is placed on the fragile economic recovery across Europe. Unlike the U.S. the majority of European companies rely on bank financing. If banks fail to attract investors to the bond markets, they will be able to grant long term loans, which businesses to fund their investments. According to the European Central Bank (ECB) bank loans accounted for 70% of debt financing to companies in the euro area, while 80% of loans to U.S. companies raised through capital markets, reported Wall Street Journal. European governments are hoping stress tests that only 7 of 91 banks failed to pass, to reduce concerns about the health of the banking sector in Europe, encouraging investors to buy bonds of credit institutions. So far, banks face problems raising funds from markets, and instead resorted to mass services of the ECB to fund their daily operations. “The real test is whether banks will be financed at a reasonable price from the capital markets to perform their usual function in the economy,” said Gary Jenkins, head of analysis of fixed income instruments at Evolution Securities.
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Two days after the collapse of the Dow Jones Index by more than 1000 points during trading on Thursday, the government did not state the reasons. U.S. Leading Index Dow Jones Industrial Average reported 998 points or 9% drop in early trade on Thursday. Subsequently, the panic was overcome and the decline was limited to 3.2%. In Friday’s session Dow lost another 1.3 percent of its value. Growing concern about the Greek debt crisis, complemented by the growth of the Japanese yen may have led to massive sales of U.S. shares of automated trading programs. Initial theories pointed human error when entering a market order, transmits Reuters. U.S. President Barack Obama has said that regulators investigate sudden collapse of the U.S. market, which he called “unusual market activity. More than 50 people working on establishing the causes and prevent similar crashes in the future, but is still not clear whether the cause is within or outside the stock market it has shared government source close to the investigation. According to the news organization Politico regulators investigate whether the catalyst for the collapse was not a series of large transactions with futures on the S & P index on the stock exchange in Chicago. Whatever the reason, the biggest ever points drop in Dow Jones index during one session angered investors and politicians who are already rose up against Wall Street for its role in the global recession.
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The European Commissioner for Economic and Monetary Affairs Commissioner Olli Rehn rejected claims that the economic crisis in Greece will overtake Spanish as “speculation”. At a news conference in Brussels, where he presented a spring economic forecasts for the EU, Rehn said that Spain does not need such financial assistance and will be offered. “There is no need to offer such assistance. Are unlimited speculation in yesterday’s news about a possible aid from the IMF in relation to Spain. I think we need to” wings “of these false rumors, to avoid unnecessary speculation nurture already reached almost euphoric levels in some circles.” Markets yesterday reported a record drop after rumors that Spain will request financial assistance from the EU or the IMF. We recall that yesterday the IMF Director General Dominique Strauss-Kahn said the fiscal crisis risk in Greece to reach the other weaker European economies. But he stressed that the immediate danger is not referring to that state of Portugal and Spain. In an interview with French newspaper “parasite” Strauss-Kahn said that should prevent such “contaminated” by developing a plan for Greece pursues precisely this purpose.
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The British oil company BP took responsibility for the crisis in the oil patch in the Gulf of Mexico and will pay all expenses necessary to clean the oil spill, world agencies reported. The company management expects that the liquidation of stain will take two to three months. According to U.S. experts cleaning may cost about $ 3 billion. U.S. President Barack Obama has promised that the government will do everything in its power to address oil spills in the Gulf of Mexico. Obama visited Louisiana to inspect the activities address the spill and warned of the danger of an unprecedented ecological disaster. He blamed the disaster began on April 20, oil company BP, which owns the sunken oil platforms, and said that she will have to pay. However, U.S. federal law limits the liability of the company in case of an oil spill to $ 75 million addition, giant British undertook to “cover all legal claims for compensation for damages and losses incurred. As examples indicating loss of property of people and trade losses. Among the first victims of oil stain, which is approaching the coast of Louisiana and Alabama were local fishermen.
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The European Central Bank expressed its concern that there might be a new wave of financial crisis. Тоэзи time the focus will stand the fiscal problems of states and the servicing of their debts. For this alert member of the executive board of the bank’s Juergen Stark said on WallStreet Jornal. He said that the U.S. and Japan, which already came out of technical recession may be facing difficulties that are associated with public finance. According to Stark has not paid enough attention to the lack of balance between trade deficits and surpluses in key regions such as North America and Asia. Most probably we have already entered the next phase of the crisis – that the debts are guaranteed by governments, which was preceded by financial and economic one. Many EU countries do not benefit from this heal their finances during the strong economic growth in recent decades. Ultimately we see what happened with Greece and Spain, Portugal and Ireland, which reduced their budget deficits.
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The German banks make money at the expense of Greece, gave Prime Minister Theodoros Pangalos accused. He explained that this occurs when his country is waiting from Berlin and the EU assistance to remedy its financial system. “What can be seen from the German position is that banks in Germany have speculated with the bonds to its counterparts in the euro area, as allowed to play with the fate of unhappy people in my country, while on their back in Germany, make money,” said Pangalos. With almost 43 billion euro loan banks are Germany’s biggest creditor of Greece. Berlin last week to oppose the idea of providing new financial assistance to Athens and said that the Greek government only has to cope with the crisis. Greek deputy is one of the most fierce opponents of Germany. His name was implicated in a month ago, the media war between the German magazine Focus, and two Greek newspapers. Pangalos then Germany criticized the attitude of the Greek financial crisis, stressing that Athens never received adequate reparations for World War II. And came to an official note from the the German Foreign Ministry, which said that discussions about the past do not help to solve today’s problems. Now Pangalos prosecution argued with Germany’s export expansion. “Although the countries of Southern Europe suffer from the fall of the euro, German exports because of rising profits, which made massive Germany”, said Deputy Prime Minister of our southern neighbor.
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George Soros emphasized investment in gold in the last quarter of 2009 show provided the regulatory authorities of U.S. data on the positions of the fund billionaire Soros Fund Management. During the period the share of the Fund SPDR Gold Trust has doubled and so he is now the fourth largest investor in the investment company. SPDR Gold Trust e exchange largest traded fund (ETF) trading in gold in the world. As a result of the investment share of Soros Fund Management in the SPDR Gold Trust had a score of 663 million dollars, according to figures cited by Business Week. In the fourth quarter of last year, the Soros Fund has actively invested in oil company Hess, U.S. telecom giant AT & T, as well as the car-maker Ford. The investment in Ford has been increased by nearly 50 per cent as at 31 December of the Soros fund owned 10.9 million shares of the company. For comparison, at the end of September was the position of 7,3 million shares. Capital of AT & T does have acquired 500 thousand new shares and thus the share of Soros Fund Management has reached 4,7 million shares.
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Every fourth British family spent more than 10 percent of its budget for electricity and gas. Many in the country are facing a dilemma: food or heating. London seems powerless to deal with so-called “energy poverty”. Problem this is dedicated to the analysis of radio Deutsche Welle. Labor had promised that by 2016 there will be a British family, which falls into insolvency because their bills for electricity and gas. Situation of pensioners, the sick, children and families with low incomes would even be improved substantially this year. “Useless” – critics say, but Energy Minister David Kidney defend his position: “In the beginning we could save 4 million households from fuel poverty. But the explosion of prices in the past 6 years our plans fail, the minister is justified.
When you become a luxury heating
The government intends to strengthen the role of supervisory authority to control prices. Private energy suppliers will be forced to tariff transparency. Provided that they should be required of any reductions in wholesale extend to end users of energy.
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The sentiment in the oil market last night were determined mainly by the news that came from Asia. They led to a strengthening of sales and pessimism about the black gold. Major concern was the news that the economic growth of South Korea has slowed down during the last quarter of last year. This is due to problems with exports shrinking demand and reducing government spending. This derail investors and led to a decline of oil prices retreat from 1,3 per cent on yesterday’s closing price on the stock exchange in New York to 74.32 dollars per barrel. It was also deleted all achieved during Monday trade grew by around 1 per cent to 75.26 dollars per barrel. Contribute to negative attitudes and the retreat of the leading stock indexes in Asia. Despite yesterday’s finale of green marketing in the U.S., which brought about the increased minimum measures of U.S. stock market again today, the red color predominates in the Asian region. As a result, the indexes marked the seventh consecutive decline, which had not happened for the past two years, transmit Bloomberg.
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The British shares closed the last trading session of the year with slight increases. The main FTSE 100 index rose during the shorter trading today to 0.28 percent level of 5413 points. This level is 22.1 percent higher than the beginning of the year and represents the best AMENDMENT year for the past 12 years. However, the indicator is a decrease of 21.9 percent for the decade. Climate for the past ten years in the German DAX was decreased by 14%. Germany’s market was closed on December 31. For the last year the main German index rose by 24%. Over 20% annual growth record and the French CAC 40. Presentation on European markets this year was affected by slow and gradual recovery of world economy and to stabilize the financial sector. Before world markets still remain many unknowns and concerns about future development, although at the end of the year, investors are generally more optimistic set. Specifically on trade on Thursday was taken few positive economic data announced, among which a distinction that the British housing market. Data from the Nationwide mortgage company average housing prices in the country grew by 0.4 percent in December compared to November, while the increase for 2009 is estimated at 5.9 percent.
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