Business News » Political News

Obama signed the law for financial reform in USA

viliyana89 — Wed, 21 Jul 2010 13:59:00 +0000

The U.S. President Barack Obama signed the bill today for the biggest U.S. financial reform of the years since the Great Depression, which put an end to the year-long debate about how to change regulation of the banking sector. According to the Obama reform will encourage innovation in the financial industry, rather than prevent them, as many fear. During the signing in Washington today, he said that the changes will ensure a level playing field and fair competition among industry representatives. The law is named after its main author – Senators Christopher Dodd and Barney Frank. It gives the government the opportunity to divide into smaller banks that threaten the stability of the financial system and impose restrictions on trade in derivatives. It is also envisaged the creation of an Agency for the Protection of Consumer Rights, which will be part of the Federal Reserve. It will monitor all financial products – from mortgage to credit cards. Under the new Bush rules will provide the strongest financial protection for consumers in U.S. history.
He promised that he would put an end to aid programs in the financial sector with taxpayer money.

Helicopters are best selling military goods during crisis

viliyana89 — Sun, 18 Jul 2010 16:33:36 +0000

While military budgets are shrinking the world, the largest customer of the military industry Pentagon redirect resources from expensive high-tech equipment to helicopters. “The market is very good for producers of military helicopters, says Phil Danrof, executive director of special production of Boeing Co. “I expect this to continue over the next five years,” he added. Analysts forecast between 2009 and 2018 the global market for helicopters to double as producers are expected to supply 15 000 helicopters worth 174.4 billion dollars, of which 6,157 military worth 130 billion dollars, says in the study of Teal Group. Sales of helicopters are fantastic and this is the only market worldwide over the past four years, reported robust double-digit growth, “said Richard Abolafia of Teal. Expectations of analysts are sales of military helicopters to increase until 2015, when it will be maintained at a constant level. Besides the helicopters are essential vehicle of the western armies, they have considerable interest in developing countries, which hedges the industry from a possible reduction of the budgets of Western governments. Helicopters are a key component for the wars in Afghanistan and Iraq. For 2009, the Pentagon increase annual demand for new helicopters to 54 of 44 for light helicopters, 66 to 81 for Blackhawk and 37 CH-28 for 47.
In fact, demand among U.S. military helicopters is so great that in recent years purchased several dozen transport helicopters produced in Russia for operations in Afghanistan and Iraq.

Chicago-based Boeing is expected to remain a leader in global market share of 24.7 percent in 2018 from 23.5 percent now, according to the Teal Group. Orders the Pentagon to the transport company are Chinook, Apache and hybrid V-22 Osprey.

Competition in the face of United Technologies Corp. with Sikorsky and Bell Helicopter of Textron Inc. also enjoy good orders.

Sikorsky manufactures cheaper version of the popular Black Hawk helicopter in Poland, designed for emerging markets.

Bank of Japan expects lower growth in 2011

viliyana89 — Thu, 15 Jul 2010 19:54:40 +0000

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.
The Japanese Yen more expensive by 0.3% against the dollar today, at 10:20 pm local time pair USD / JPy quoted at 88.12 yen from about one dollar.

Obama: We are going into right direction, but slowly

viliyana89 — Sun, 04 Jul 2010 22:10:54 +0000

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.
The US business started feeling this positive signs for economy recovery last months, but this is only the beginning of the hard recovery process.

Venezuela proved its plans for nationalization of crude oil industry

viliyana89 — Sun, 27 Jun 2010 10:08:10 +0000

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.”
PDVSA also announced it reached an agreement for oil services in the U.S. energy giant Schlumberger. In recent years the government of Chavez has nationalized many companies and other parts of the oil industry in an attempt to identify the “oil independence”.

USA approved the reform for financial regulations

viliyana89 — Fri, 25 Jun 2010 11:08:39 +0000

The U.S. lawmakers prepared historic “renovation” of financial regulation on the eve of a meeting of leaders of G-20, which will be discussed financial reforms, officials said. Discussions continued over 21 hours. In recent times the debate was reached agreement on the most controversial elements of the project, which restrict derivatives transactions by banks. However, banks will be able to retain most of its activities related to trade swaps and will be dealt with small investments in hedge funds and in equity for such investments. The reform must be finally approved by both chambers of Congress before President Obama to sign, making it that way in law. This gives Wall Street one last chance to step up its army of lobbyists in Congress. Reform is expected to be approved quickly and Obama to sign up July 4th. Despite the agreed concessions, the bill was actually more severe than its original version in the course of his year-long discussion. It will significantly change the U.S. financial sector. It creates a new regulator for consumer protection and the already existing financial regulators be given the right to refer a distressed financial companies before their problems have caused harm to the economy.
The Board of various regulatory agencies to monitor systemic risks to stability.

Venezuela nationalized US Crude Oil Company

viliyana89 — Wed, 23 Jun 2010 12:03:04 +0000

Venezuela will nationalize the oil platforms owned by U.S. company Helmerich and Payne, said. President Hugo Chavez has become the country’s energy sector nationalization of a substantial part of his “revolution”. Acquire state assets in telecommunications, power distribution, production of steel and banking industries. 11 platforms do not work for months because of a dispute concerning outstanding payments amounting to 49 million dollars from the state company PDVSA. Oil Minister Rafael Ramirez of Venezuela said on Wednesday that the platforms are nationalize to be returned to production. He stated that companies which refuse to launch its service platforms involved in a conspiracy to weaken the government of Chavez. “There is a group of owners of the platforms, which declined to discuss fees and services to PDVSA and preferred to keep the equipment in storage for a year. This is the case with the U.S. multinational company Helmerich and Payne “, said Ramirez told reporters. In September the country will hold elections for a legislative body, and Chavez usually take radical steps in the campaign, said Thursday.
Currently, it is necessary to deal with difficult situation in the country, whose economy is presented worst in Latin America this year.

Bad data for mortgage sector decreased US indexes

viliyana89 — Tue, 22 Jun 2010 12:20:44 +0000

Extremely poor sales figures of new homes in the U.S. in May, with sales of shares covered the stock exchanges in Asia and Europe, U.S. indexes drowned at the beginning of today’s session. Trading was volatile and in anticipation of the interest the Fed decision, which will be released at 21:15 am local time. The majority of economists expect the U.S. base rate to remain at historically low levels in the range of 0 to 0.25% for the fragile state of the economy. Even more important will be updated projections of the U.S. central bank for the country’s economic prospects, which will provide guidance on the direction of U.S. economy. The index of 30 largest companies and traded on Wall Street Dow Jones Industrial Average lost 0.3 percent to 10 266.62 points and a half hours after the start of the session. Broader S & P 500 in turn sank by 0.5% to 1 089.65 points, mainly under the weight of sales in the extractive and energy sectors. Technology companies fell 0.6 percent to 2 points 247.8 index for all companies by the exchange Nasdaq – Nasdaq Composite. Yesterday’s session brought three index decreases due to poor performance of the energy sector. The reason for this was the news that the administration of President Barack Obama plans to introduce new rules to regulate the sector because of the accident with BP oil rig in the Gulf of Mexico.
Fiscal crisis in Europe and the forthcoming meeting of leaders of the group G-20 in Toronto, also hold the securities markets under pressure since the beginning of this week. Oil prices dropped sharply on the New York Petroleum Exchange by 2.6 percent to 75.82 dollars a barrel, while gold cheaper by 0.9 percent to 228.40 dollars an ounce. The yield on 10-year U.S. government bonds fell to 3.18 percent to 3.22 percent on Tuesday.

Military expenses are increasing in spite of the crisis

viliyana89 — Wed, 02 Jun 2010 08:20:34 +0000

In a time when governments worldwide are forced to take loans to fill holes in their budgets, it seems the defense industry has benefited more than others, says the BBC. According to data from Stockholm International Peace Research Institute (SIPRI) funds spent on armaments in the world last year were 1.531 trillion. dollars, an increase of 5.9% from 2008. However, increasing military budgets is not a new phenomenon. Last year, despite the inflated budget deficits in many countries, the world spends almost 50% more for weapons and military operations than in 2000. U.S. remains the country with the largest defense budget, which in 2009 reached 661 billion dollars or 47 billion more than in 2008 compared to 2000 increased U.S. defense spending by 63%. Second only to U.S. defense spending is among China’s 100 billion dollars in 2009, followed by France with 64 billion dollars, Britain with 58 billion dollars, Russia with 53 billion dollars, Japan with 52 billion the $ 46 billion with Germany, Saudi Arabia 41 billion dollars and India and Italy with 36 billion. Rather than reduce military spending, governments appear to have determined that it is dangerous to risk job cuts in the defense sector during the recession.
“Many countries have increased public spending in 2009 as a way to increase demand and thus to combat the recession,” said Sam-Pearl Friman by SIPRI. “Although military spending is usually not a major part of economic package to stimulate the economy, and they are not exempt from them. For countries with global or regional political influence as the U.S., China, Russia, India and Brazil, defense costs are long-term strategic choice, they tend to do even in difficult economic times, “he added. The smaller countries in Central and Eastern Europe, meanwhile, shrugged their military spending as part of measures to reduce its budgetary deficits. Other large countries – both developed and developing, have also increased their military spending last year, the highest growth occurred in Asia and some Pacific islands, where the average growth rate for 2009 reached 8.4%. As a percentage of GDP for defense spending are greatest in the Middle East.

EU requires high restrictions for CO2

viliyana89 — Sun, 30 May 2010 17:02:18 +0000

The European Union will present surprising new plan to combat global warming, according to which EU countries will have to meet the most ambitious program to reduce greenhouse gas emissions worldwide in this decade, reports the British Times. The European Commission has decided to impose new restrictions on emissions of CO2, despite the financial difficulties of the old continent. According to information in Times plan provides for the EC by 2020 greenhouse gas emissions in the Union to be reduced by 30 percent from their levels in 1990, which will cost extra 39 billion euros per year. Under existing arrangements, by 2020 the EU must reduce greenhouse gas emissions by 20% from levels in 1990, the price which is 56 billion euros per year. The arguments of the committee are that the new cuts in CO2 emissions are much more easily achievable due to the recession. Last year’s greenhouse gas emissions in Europe fell by 10% as a consequence of the closure of thousands of factories. Also in 2009, CO2 emissions were already 14 percent below levels in 1990. After the collapse of the World Summit on climate change in Copenhagen in December last year, reaching a global climate agreement by the end of 2011 is unlikely.
Under the plan, the EC, the new restrictions on greenhouse gases will reduce air pollution and improve the health of millions of people, which will generate in the Union’s economy 9.4 billion euros annually.