The maize prices today reached a maximum 14-month global commodity exchanges, Itar-Tass. Today at 13 hours (local time) the price of corn on the Chicago Stock Exchange rose by 2% compared to late last week to 4.45 dollars per bushel (27.3 kg). The main reason are the latest projections by industry experts that provide lower crop of corn than expected in the U.S. (which is the largest producer and exporter of maize in the world) and other countries. The latest data in the regions of the U.S. Midwest growing the most corn, lately there is a shortage of moisture in the soil. Unfavorable conditions for ripening of the main forage crop can be seen in many areas of Argentina and Australia. As a result of that, experts from the World Grains Council does not exclude the possibility of maize crop in the world to be lower than estimated just a month earlier. Last week the World Grains Council revised downwards its forecast for the yield of wheat in the world. Meanwhile, demand side of corn in world markets continues to be significant, mainly due to major floods in China, where huge areas were destroyed with the main forage crop.
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The British banking group Lloyds Banking Group announced that it is withdrawn from the market in Ireland. As a reason for this state financial institution “concluded that the country is minimal growth opportunities,” said Wall Street Journal. The decision of Lloyds, 41% of capital owned by the British government, comes after the closure of the entire network of bank branches to Ireland. It took place in June when 44 branches across the country closed doors. Before the financial crisis, Lloyds has managed to achieve significant gains from the real estate boom in lending, but now the situation in the country is quite different. Because of the crisis leading banks in Ireland are facing huge losses, but three of the largest financial institutions were nationalized. Nationalization because investors fear that the country will need to pour more of taxpayers’ money in the banking sector, which in turn negatively impact on confidence in the stability of Ireland. In recent months, speculation about a collapse of the financial system periodically recruited force, which is reflected in strong growth in the risk premium of Ireland.
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In June, foreigners were among the top sellers of financial instruments in the U.S.. This resulted in a net outflow of investment, regular data show the U.S. finance ministry. Investors abroad sold a net financial instruments for 6.7 billion dollars in June. Related net sales were observed for the first time five months ago. For comparison, in May net foreign imported 17.1 billion dollars of American financial market. Positive news for U.S. monthly data is that increased purchases of long-term instruments. In June of this segment were targeted net 44.4 billion dollars, well over 35.3 billion dollars, made a month earlier. The debt relief program sponsored by the Government support small investors, to cope with the burden of their bank obligations. The banks help to consumers with free credit card consolidation, which in turn relieves the payment of obligations, saves money and reduces bad loans. Market is formed and new wave of credit card debt settlement companies, which are an alternative to bankruptcy but in a much more mild. So large companies deal with the burden of paying their loans, bringing together in larger conurbation and benefit from economies of scale, easier distribution and a wider range of customers. All these changes contribute to the development of the U.S. economy in a recessionary after awakening.
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The bankers who spent last year lobbying against reforms in the sector can be attributed to well-deserved break. For others it will not be easy. In the upcoming month of August will be three years since the first problems appeared with the British bank Northern Rock, which after weeks triggered a liquidity crisis. A year later, does it require large U.S. banks to be bailed out by government. The time is ripe to ask what has changed since then to make the global financial system more secure in reporting greater risks and less dependent on government support. The sad answer is that changes are not enough. Last week the bank regulators have imposed new standards on capital adequacy and liquidity – those who had to identify harmonization and firmness in global financial regulations, against the backdrop of attempts by banks to avoid monitoring. Instead, the Bank for International Settlements (BIS) announced exchange earlier proposals and give the banks eight years to meet the requirements. BIS should succumb to pressure from France and Germany do not be too tight to their banks. Discouraging compromise followed European stress tests that only 7 of 91 banks have not passed because the criteria they were too low.
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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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The Eurozone growth is below 2% by the end of 2012 due to the efforts of many countries in the region to resolve problems with their debts. This forecast in a statement today, the International Monetary Fund (IMF), said Wall Street Journal. IMF stresses that there are three main areas that need attention in order to achieve a sustainable economic recovery: dealing with weakness in the banking sector, the implementation of ambitious plans for fiscal consolidation and continuation of fundamental structural reforms of social insurance and the labor market. After the 16 eurozone countries sharply increased their overall fiscal deficit in 2009 to counter the global recession, the IMF predicted that the euro will have a “neutral fiscal policy in 2010 and reduce its deficit over the next two years. A strict fiscal discipline will limit growth, indicated by the IMF, but at the same time it is needed to stabilize debt levels in the region. Fears of bankruptcy arising from the Greek financial crisis since the beginning of the year and motivate other highly indebted countries in the eurozone to reduce costs. “We expect that measures will be sufficient to address the debt crisis,” said a statement by the IMF. “However, in weak investor confidence and fiscal restructuring will limit potential growth.
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The Bank of Japan (YATSB) adjusted downward its forecast for growth of the Japanese economy in 2011, after the Debt Crisis in Europe worsened outlook for the global economy. Monetary institution, and leave the base rate in the country of its record low level of 0.1 percent for the 20th consecutive month after today’s meeting in line with market expectations. Its management expects gross domestic product (GDP) to increase by 1.9 percent next fiscal year which begins on April 1, 2011 This is less than forecast in April growth of 2 percent, says Bloomberg. For this fiscal year provides YATSB GDP growth of 2.6 percent from the previous forecast of 1.8 percent. With regard to deflation, it is expected to amount to 0.4 percent for the year. The rapid economic development of Asian countries is among the most important factors for improving forecasts of the Japanese economy this year. With the depletion of the effects of fiscal incentives for governments, however, next year is expected lower economic growth. Japan’s economy grew more than expected 5% of the aligned on an annual basis in the first quarter. Compared with the last three months of 2009 it increased by 1.2 per cent. Limited bank credit deflation and persist in the country, however, led YATSB to draw another 3 trillion. yen in the banking system. In December 2009 it spent 10 trillion. yen as short-term loans to banks, the amount was doubled to 20 trillion. yen in March. The home loan comparison is giving good sign for economy recovery, but still under the expectings from the government.
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The U.S. economy has made in the right direction but not fast enough. It said the president of the country Barack Obama after the publication of data on the labor market in June, which contributed to fears that the recovery is delayed, AFP reported. The Data of the Ministry of Labor indicated that last month the U.S. economy lost jobs for the first time since December. But Obama tried to be positive. “Our economy has created nearly 600 thousand jobs in the private sector this year,” he said. “We are headed in the right direction, but we have not made fast enough for most Americans. We have not made fast enough for me, “he said. The president promised to do everything in their jobs.
The US economy is recovering from the financial crisis and the expecting for the future economy growing is positive. It was mentioned twice from Obama, that USA will follow economy growing in each case and each price. The US government invested large value of money for developing of the key companies for the economy.
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The new car sales in the U.S. slowed in June, according to data producers and analysts of the sector. This increases fears that the market recovery may be delayed after months of slow but encouraging growth, forward New York Times. Sales of most manufacturers are higher than in June last year which was very bad for the sector, but are below the levels in March, April and May. Total new car sales fell by 10.8 percent in June compared to May and annual account growth of 14.4 percent. Compared to May sales fell 14 percent for Toyota, with 13 percent for GM, with 12 percent of Chrysler and 11% for Ford. Typically, sales in June decreased by about 3 per cent in May. The Annual sales of Chrysler rose by 35% of Ford – by 13% and GM – 11%. Toyota’s sales rose by 7 per cent. “People feel a little better than at the same time last year, but their financial situation really has not changed much. Until it starts to look better, they will not feel appropriate, entering showrooms, “said analyst Jessica Caldwell sector.
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Venezuela announced on Friday that U.S. Helmerich & Payne Inc. (H & P) is the only one of 33 oil companies operating in the country which has refused to renegotiate prices. Of the 32 companies with which the terms were renegotiated 18 are foreign and 14 – local businesses. “Although the meetings with representatives and heads of Helmerich for nearly a year because of their strong position was not possible to reach an agreement,” said a statement from state oil company Petroleos de Venezuela (PDVSA). Socialist government of President Hugo Chavez announced last week its plans for the nationalization of unused oil platforms Helmerich 11th and start extracting oil. These platforms are out of service more than a year. Helmerich stopped them because Venezuela’s PDVSA owed 43 billion dollars of work done. Since based in Tulsa, Oklahoma company said it wanted to pay them before they put them back. Helmerich also expected to resolve disputes with foreign PDVSA, some of which are related to the January devaluation of local currency – Bolivar. The foreign ministry of the United States be involved in the dispute on Friday urging the Government of Venezuela to compensate the U.S. oil companies if they decide to nationalize part of their facilities. Simply urged them to compensate the owners of oil wells if they undertake such a step, “said Marc Tounar, spokesman for the ministry. PDVSA said that “does not accept the statement made by the spokespersons of the American Empire, which once again is trying to complicate relations with our partners.”
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