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Obama accuses Europe and Japan for the US economy problems

viliyana89 — Mon, 06 Jun 2011 12:59:01 +0000

As part of the reason for the delay in the U.S. economy Barack Obama pointed out problems in Japan and Europe. Published on Friday data reveal that for the past eight months in May, U.S. employers have recruited at least new employees, and unemployment has risen to 9.1 percent from 9.0 percent in April. The economic data are political challenge for President whose re-election in 2012 will depend on its ability to convince voters that the economic policies of his administration have been successful. Part of the President’s election strategy will involve a shift of voters to external factors for domestic economic problems. In his address Saturday, Obama has done exactly that, warning of cross winds, harm the U.S. economy.
“Although in the past 15 months our economy has created more than 2 million jobs in the private sector continues to grow, we are now facing strong opposition winds”, he says.
These are high gas prices, the earthquake in Japan and concerns about the fiscal situation in Europe. From time to time on the road to recovery will encounter similar shocks.
The republicans also pay attention to these shocks, describing them as evidence of failed policies of Obama. The weak growth in new jobs in the private sector became a key argument of the Republicans and vulnerability for Obama before the 2012 elections

Investors withdraw billions USD from the developing markets

viliyana89 — Sun, 06 Mar 2011 14:58:58 +0000

The investors disappointed by the loss of large corporations on Wall Street, economic anemia in Japan and debt problems in Europe, seeking investment opportunities in emerging markets like China and India. Now, however, worried about the riots in the Middle East and discontent fueled by rising food prices and declining incomes in many regions of the developing world, stunning investors withdraw funds from developing economies and again turn to relatively safe financial havens, for any considered the U.S., Europe and Japan, says AP. This trend speaks of radical change in sentiment from the financial crisis, languish notions about what is risky and what is not, after the Anglo-Saxon model of liberal capitalism was brought to the brink of collapse. Vigorous efforts of Europe to curb debt crisis, the ability of Japan to support its exports despite the strong yen and good corporate results in the U.S. failed to convince investors that the outlook for developed economies in 2011 is pretty good. According to the EPFR Global in the second week of February, investors have pulled 5.45 billion dollars of funds in China, India, Brazil and other emerging markets, redirecting them to the developed economies – the biggest weekly transfer for more than 30 months. By mid-February, the funds from developed countries reported 7 consecutive weeks of gains by investing in European funds to hit record levels last 41 weeks. Since the beginning of the year, investors have invested 47 billion dollars in funds from the U.S., Europe and Japan, only investments in U.S. funds reach 29 billion dollars.
From January until now investors have pulled more than 20% of the 95 billion dollars were invested in emerging markets in 2010. Since the beginning of the year, the outflow of investments only from central China reached 1 billion dollars.

Decrease in return on public property companies in Europe

viliyana89 — Sat, 06 Nov 2010 04:06:00 +0000

The return of public property companies in Europe reported sequence drop in October after a strong performance on the continent in September, according to an index tracking what is happening in the sector. According to the GPR 250 Europe Index return in the sector last month was 3.6 percent compared with 6.7 percent in September. In recent months, the strongest level was reported in July – 7.8 percent while the index in August for Europe was only 0.4 percent. The only two countries with negative returns were Spain with a decline of 6.3 percent and Sweden with a fall of 2.1 percent. Among individual countries at levels indicate strong Israel with a growth of 11%, Italy and Belgium, each with 6%, Norway 5.9 percent and Britain with 5.6 percent. Generally speaking, the real estate market determines one of the strongest sectors of the economy, combines construction, brokerage firms and the land market. Globally return in October was 2.7 percent. Asian markets finished the month along with Europe at a level of 3.6%. It is followed by the Americas with a 2.6 percent return.
The Negative returns reported African and Pacific region, respectively -0.4% and -1%.

Nestle will finance expansion with selling of its stake in Alcon

viliyana89 — Wed, 30 Jun 2010 12:12:45 +0000

Nestle, the biggest company by market capitalization in Europe, will receive 28.1 billion dollars by Novartis in the second half of the year from the sale of its majority stake in Alcon – manufacturer of cleaning products for contact lenses. Thus, Nestle will have more cash than Google, which has had its accounts at the end of March, 26.5 billion dollars. The funds will allow the Swiss company to buy the cash almost every public company in the sector. The only public companies for food and drinks with a market capitalization of more than 28.1 billion dollars are Coca-Cola, PepsiCo, Unilever, Kraft and Groupe Danone SA. Nestle will invest the proceeds in his business or make acquisitions, said last week Jim Singh, chief financial officer of the company. Investors want the company to undertake expansion of emerging markets to catch up with Unilever, which realized about half of its sales in developing countries. “They’re definitely behind in these markets,” said Wendy Treviso, fund manager at Thornburg Investment Management, whose investment in the company amounted to 700 million dollars. Nestle Forecasts indicate that over the next 10 years about 1 billion users in emerging markets will be able to afford her products. Nestle gets about a third of their revenue from these markets, Chief Executive Paul Balk aims to increase this share to 45% within a decade.
The company’s sales in emerging markets grew by 8.5 percent last year – more than double the increase in total revenue.

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.

Confidence to Eastern Europe is growing

viliyana89 — Sun, 23 May 2010 20:36:02 +0000

The investor confidence in Eastern Europe rose in May by region seemed remains untouched by concerns about euro in Western Europe, where levels of government obligations generally exceed those in EU member countries with developing economies. Index reflecting the expectations of analysts and investors in Eastern Europe over the next six months rose by 7.2 points to 35.2 points in May. This study shows the institute ZEW and Erste Bank, quoted by Bloomberg. In January, the index had reached its highest level at 59.1 points. “The region of Central and Eastern Europe seems to be the only one who is only partially affected by the uncertainty relating to the debt crisis of some countries using the euro as their currency,” the report said the two institutions. On May 19, the euro fell to a four-bed against the dollar, reflecting investor concerns about expansion of the Greek debt crisis among other countries of the Old Continent. For the initiated in previous days crash of the single currency and then contribute the decision by Germany to limit short sales in the country, which increased the negative sentiment against the single currency. Greece (which the report is not considered part of Eastern Europe, or at least not as countries with developing economies in the region), Spain and Portugal, logically raise the greatest concerns among investors. Conversely, as the indicator, the fastest growing confidence in Poland, the index for the country increased by 15.9 points in May to 37 points after a fall of 15 points the previous month. Slovakia indicator grew by 10,3 percentage points to 38.3 points and a Republic is an increase of 8.3 points to 40.4 points.
Attitudes to Hungary remain unchanged and the index of the country remains at 40 points. Falls were observed in Romania and Croatia, respectively, 8.2 to 27.2 points and 8.5 points to 23.3. The countries which form the general index for the region are: Croatia, Czechia, Hungary, Poland, Romania, Serbia, Slovakia, Slovenia and Bulgaria, but separate data for our country not mentioned.

Pessimism is back on the markets in Greece and Europe

viliyana89 — Sat, 10 Apr 2010 05:30:25 +0000

The pessimism of investors returned with full force on stock exchanges in Greece and Europe, after fears that Greece will go bankrupt, have increased the yield of ten-year Greek government bond to 7.6 percent. This is a record of the creation of the euro zone 11 years ago. This raised the risk premium and a ten-year Greek government bond to a new highest historical value of 448 basis points. This means that Greece has to pay interest on its bonds by 4.48 percentage points above that which the German government pays on its government bonds. The main measure ASE Greek stock slid 3.1 percent to 1 926 points, after swaps from bankruptcy protection in the country jumped to a record 430 basis points. Greek banks were among the losing stocks, led by the largest representative sector, National Bank of Greece, whose shares fell more than 7 percent. Falling prices of Greek government bonds is problematic for Greek banks because they are an essential tool used by them as collateral for refinancing operations of the European Central Bank. Selling stock exchange index dropped significantly in the Old continent, the common European index Dow Jones Stoxx Europe 600 lost 0.9 percent to 266.28 points. This is the strongest its decline for the past six weeks, but the beginning of this year, he still added 4.9 percent to its value. The index of blue chips in Britain’s FTSE 100 fell 0.9 percent to 5 712 points despite good news for British industry, which has seen significant growth in February. Were encouraging and the data for the appreciation of homes in March, whose prices are 5% above last year’s levels.
Bank of England leaves base rate unchanged in the country today due to unclear prospects for the British economy and keep the size of its program to increase liquidity in the financial system by purchasing securities for a total of 200 billion pounds. Shortly afterwards, the European Central Bank also refrain from changes in its key interest rate and leave him a record low of 1 percent in April. The debt crisis in Greece probably will force the ECB to delay the withdrawal of its measures to support the economy of the euro area this year. The main stock index of the Frankfurt DAX gave up 0.8% with 6 172 points after the German industry reported zero growth in February. In France, the CAC fell 1.2 percent to 3 978 points after the reduction of retail sales underlined the fragile state of the European economy.

Toyota will draw 9 million defective cars worldwide

viliyana89 — Sat, 30 Jan 2010 22:58:16 +0000

Largest car company in the world, Toyota has found a defect in the brake pedal to accelerate to around 1,8 million of its cars in Europe, cited by New York Times. The Japanese company will withdraw the problematic vehicles over the next few months from market. A similar problem was found with models of Toyota in the U.S. and China, the total number of affected cars is outnumbered 9 million. Among the models in Europe, where defects are established, enter Yaris, Corolla and RAV4. Yesterday it became clear that Toyota will withdraw from the sale even 1,1 million cars in the U.S. and will stop production of eight popular models in the U.S. market in the U.S. and Canada. Previously, the management of Toyota said that 2,3 million vehicles in the U.S. have a problem with the pedal to accelerate. Another 5 million cars have a manufacturing defect resulting in the accelerator can be blocked.
A statement by the company it became clear that so far in Europe and the U.S. have not been established incidents caused by the defect.

Ueroze with high level of unemployment

viliyana89 — Sat, 31 Oct 2009 17:23:07 +0000

Unemployment in the euro area rose to its highest value of establishing a monetary union in January 1999, says statistics from Eurostat. The indicator for September increased by 0.1 percentage points to 9.7%, as were the expectations of analysts. A year ago, unemployment was 7.7%. Across the European Union level indicator has also increased by 0.1% to 9.2%, a record since 2000 when the statistical office has begun to report aggregated data. The number of unemployed is the EU grew by 286 per month to 22.123 thousand million euro only people without permanent employment for 15.324 million, as compared to August the number rose by 184 thousand
Eurostat published and original data on inflation in October, as it annually in at minus 0.1 percent to minus 0.3 in October.

Volkswagen with 11% growth in sales

viliyana89 — Sat, 17 Oct 2009 18:47:31 +0000

Volkswagen has announced that sales for September, and globally have increased by 11.9% over the same month last up to 615 thousand cars. As best present in the home markets of Germany and China, where in September were first sold more than 1 million cars per month. The company announced that next month plans to hold a meeting of shareholders to seek approval to issue 135 million new preferred shares to the value 10 billion as part of taking over Germany’s group for production of luxury cars, Porsche. Under the deal with Porsche Volkswagen will pay 3.3 billion euros for 42-percent stake in the manufacturer of sports cars.
The increase during the crisis is showing that Volkswagen is really the European leader in car industry.