Business News » USA

The customer confidence in USA dropped sharply

viliyana89 — Sun, 14 Aug 2011 20:16:38 +0000

The U.S. consumer confidence has fallen to 59.9 in August, according to the index of the University of Michigan, which is its lowest level since 1980. The decline surprised analysts, who expected it to be smaller – to 62,5. In July the same index fell to 63.7 from 71.5 in June. This indicator is more sensitive to events in financial markets other than sentiment, measured by the private Institute Conference Board. It is considered the most important barometer of economic conditions, providing mood and purchasing propensity of U.S. consumers. Consumer spending is equal to two-thirds of U.S. economic activity.
The main problems that afflict Americans, are related to employment and appreciation of food and fuel, say analysts.

The bankruptcy of USA is more probable than those of Indonesia and Slovenia

viliyana89 — Thu, 26 May 2011 10:23:42 +0000

Sounds strange to suggest that the U.S. stands a risk of bankruptcy. This is considered a great scenario for the country, which rarely had the opportunity to be credited so cheap that issue debt in their own currency and which clearly showed that it can printed as much money as it needs to cover its interest obligations. In recent days however, more and more traders come to the conclusion that America may have violated its own constitutional rule for taking on new debt and to experience problems. According to data from Markit price swaps to prevent bankruptcy of the United States for a period of one year has almost tripled in just six days. The data that might be quite biased, show that the bankrupt U.S. is now more probable than that of Indonesia and Slovenia. For these developments on the market of swaps bankruptcy protection, it was because of lack of commitment and flexibility in making important decisions by Congress. Complication is facilitated by congressmen like John Bonar, according to which is better U.S. to declare bankruptcy rather than raise the limit of indebtedness not deal with deficit. The traders believed that a traditional political approach, but only until the opinion of Bonar was not supported by Stanley Drukhaymer – distinguished former hedge fund manager.
He said the omission of any interest payment will be more valuable and useful in persuading the White House to cut some costs. The danger lies in the fact that the technical bankruptcy at which the state will stop servicing their debts, are unlikely to persuade Democrats that have to change their views as regards the contraction of government spending. At the same time and no signs that Republicans are willing to accept a tax increase. Instead it may be that this political move leads U.S. to total disaster. If the technical bankruptcy led to lower the credit rating of U.S., as should happen, it would be a disaster. The reason is that a huge amount of institutional investors will have to bankrupt position with a lower rating, which will cause a collapse in the price of U.S. debt. For the moment, fear of this scenario appear to be fairly limited as far as can be judged from the market of swaps for protection against bankruptcy. The more congressmen, however, play around with a political discourse about non-performing debt, however, the more fear will be soaked to the bond markets.

Chrysler repaid the billion USD aid USA and Canada

viliyana89 — Wed, 25 May 2011 08:05:44 +0000

As announced earlier, the U.S. automotive concern Chrysler back state aid amounting to 7,6 billion dollars. U.S. budget received 5.9 billion dollars, and Canadian – 1,7 billion dollars, said the headquarters of Chrysler in Oabarn Hills. Thus pave the way for and majority ownership of Fiat in the concert. However, the Italians said it increased its share from the current 30% to 46%. By the end of the year as scheduled, Fiat will acquire 51% and thus will become the majority owner of Chrysler. According to chief executive officer of Fiat Sergio Marchione this share may reach 70%. According to the Italian concern due to the repayment of government loan Chrysler will save $ 300 million annual interest. In late 2008, the American corporation received its first emergency aid of $ 4 billion, which allowed him to survive several months. Then followed several financial injections. The return of rescue loans to the two governments is the last still not fulfilled, which the Italians put on their American partners to take majority company. Chrysler rest were to begin assembling fuel-efficient engines in its factory in Dundee (Michigan), to sell cars outside the U.S. for 1.5 billion dollars and create a compact model based on the car of Fiat, which has a fuel consumption up to 5 , 9 l/100 km.
“Less than two years promise to bring U.S. and Canadian taxpayers anything, today delivered on that,” said Sergio Marchione said a press release from the company. Marchione, who actually manages and Chrysler, thanks to extremely “rare second chance” that automobile is obtained thanks to state aid. The U.S. President Marriage Obama described the step as a “cornerstone” for Chrysler and countless American families that depend on this “cult brand”. The U.S. government has provided billions in aid program to buy troubled assets (TARP), to save the sinking businesses, Obama recalled. A closer link with Fiat makes Chrysler more attractive to investors and banks. The IPO could be done more this year or next year.

Google is the company with top corporate reputation in the USA

viliyana89 — Mon, 02 May 2011 22:04:51 +0000

Google topped the annual survey of Harris Interactive for corporate reputation, and Johnson & Johnson maintained his second place despite the withdrawal of its products from the market last year. The last year’s leader in research – Berkshire Hathaway of Warren Buffett, fell to fourth place, although it improved its score. Third was the Minnesota-based 3M Co., A fifth – Apple. Despite the improved public image of the big banks, the financial industry is still ahead in this ranking only tobacco companies. The study found improvement in corporate reputation of companies once the economy is recovering, and scandals of the time of financial crisis resolved.
“44% of respondents say that the reputation of corporate America continues to fall, but the proportion of these people has dropped significantly,” said Robert Fronk of Harris. The results are improved for all 17 industries considered, but still 77% of corporate public profiles assessed as poor or bad. In an online survey involving 30 thousand people, which ranked 60 most popular companies in America according to their reputation. Lastly, this year is AIG, a most seats lost Toyota, which descends from 20th to 43rd.
The survey was conducted this year to 22 February before the scandalous transactions of David Sokol of Berkshire, which has since left the company for Buffett, and before the recent accusations against Google and Apple, that their smartphones keep data on the location of their customers. The respondents also indicated they are more likely to buy products or services of companies with good reputation, whose shares also were more stable over the last decade.

Ford surpassed GM in new cars sales in USA

viliyana89 — Sat, 02 Apr 2011 12:53:49 +0000

Enhanced by the improving the economy and the labor market, car sales in the U.S. increased by 16.9% yoy in March. The second-largest U.S. carmaker Ford is ahead of sales in the U.S. its larger rival General Motors for the second time in its history. The reported by Ford is growth of 19% yoy to 212,295 new cars. The sales of General Motors at the same time increased 10% to 206,621 cars. General Motors discontinued in March largest discounts offered in early 2011, which puts pressure on its sales for the month. The carmakers Chrysler, Honda and Hyundai are headed for growth, while Nissan, Hyundai and Kia recorded its largest monthly sales since the market in the U.S. Chrysler sold 121,730 cars and vans March, making an increase of 31% compared to last March. Moreover realized by Chrysler sales are the biggest for the company over the past three years. Nissan ranks shortly after Chrysler with 121,141 new vehicles sold, due to the proposed company considerable discounts. Toyota suffers drop in sales of 6% annually in March and became the only major manufacturer with a fall because of weak sales of light trucks. Overall, auto companies have sold 1,246,623 cars and light trucks in the country in March. If the data is aligned on an annual basis, sales amounted to 13.1 million vehicles. March is the sixth month in the U.S. with annual sales exceeding 12 million, although they fall slightly compared to the February level since 13.4 million.
Honda and Hyundai reported growth in sales, up 23.5 percent and 31.6 percent respectively, supported by increasing demand for more fuel-efficient cars.

One more bankruptcy in the US banking sector

viliyana89 — Sun, 27 Mar 2011 13:00:43 +0000

The U.S. authorities closed another small bank on Friday – Bank of Commerce of Wood Dale in Illinois, bringing the total number of bankruptcies in the country since the beginning of 2011 – 26. The Bank has assets of about 163.1 million dollars out of the Federal Deposit Insurance Corporation (FDIC). Depositors of the failed bank will be assumed by Advantage National Bank Group of Elk Grove Village, also in Illinois. In 2010 a total of 157 U.S. banks failed, while in 2009 140 were closed banks. The majority of bankruptcies lately are smaller institutions with assets under $ 1 billion because big banks have recovered more quickly from the financial crisis in 2007-2009. The FDIC Chairman Sheila Bair said the agency expects the number of bankruptcies in 2011 to decline. Small banks remain affected by the weak economy and bad loans, particularly in the commercial real estate. In the last quarterly report of the FDIC, published on February 23, indicating that the number of banks’ troubled list “grew to 884 from 860. Most of them will fail, but the list gives an idea of how many banks experiencing difficulties. Presenting the report, however, Bear said the outlook for the sector is improving as a whole, including small bank.

Banks in USA made 21.7 billion USD profits for the 4th quarter

viliyana89 — Thu, 24 Feb 2011 00:03:20 +0000

The U.S. banks have made with a profit of 21.7 billion dollars in the fourth quarter of 2010, which is the fourth consecutive profitable quarter for the banking industry in the U.S. For the same period the previous year was reported loss of 1,8 billion dollars. The net profit of banks in the U.S. decreases compared with those reported in the third quarter, 24.7 billion dollars profit, writes Wall Street Journal, citing data from the FDIC to insure deposits in the U.S. They reveal also that the list of problem banks in the country has increased by 24 over the last three months of 2010, although the banking sector continues to recover with the economy. At the end of last year’s total of 884 of all 7,657 U.S. banks are troubled list compared with 860 at the end of September. Since the beginning of the year, 22 failed U.S. banks, from FDIC to insure deposits expected number for the whole year will not surpass question last year, a record for the past 18 years from 157. The FDIC to insure deposits set 2010 as a year of turnaround for the banking sector, net profit is greatest for the last three years and amounted to 87.5 billion dollars. The increase was helped by its reduction in reserves for problem loans, which decreased by 50% yoy in the fourth quarter to 31.6 billion dollars.
About 21% of U.S. banks have come to a profit last year compared with nearly 32% in 2009. In 2009, the U.S. banking industry reported a loss of 10.6 billion dollars.

SAP should pay 1.3 billion USD to Oracle for infringed copyright

viliyana89 — Wed, 24 Nov 2010 11:09:30 +0000

The German business software maker SAP will have to pay 1.3 billion dollars compensation to U.S. rival Oracle for software theft and copyright infringement. This court has decided a jury in Oakland, California, ruling a victory for Oracle in four years-long legal battle between the two companies. The two software giants faced each other because of the accusation by Oracle, that already exist through its subsidiary TomorrowNow, based in Texas, the German company has entered illegally to the Oracle servers and stole its software. By SAP, however, claim that the injury does not really exceed $ 40 million. “Of course we’re disappointed by this verdict and will pursue all options, including an appeal to change it,” said the SAP after the lawsuit. Oracle’s lawyers insisted that the company must receive at least 1.7 billion dollars in damages as it was in their view, the price of licenses, which SAP has had to pay for legal use of software. The German company, however, insisted that the damages are smaller and should be limited to the amount of revenue from the actual use of the software, which are defined as “minor.” The benefits come in addition to the sum of 120 million dollars that SAP has agreed to pay to cover the costs of Oracle. According to information agencies the fine is the largest in U.S. history for copyright infringement and is nearly ten times more than the next largest such case.
By SAP announced that it will adjust its financial results forecast for the current financial year because of fine imposed on them.

BP may lose its approvement for crude oil extraction in USA

viliyana89 — Sun, 01 Aug 2010 11:31:43 +0000

The British oil company BP could not get in the future to permit oil production in the U.S. coast, provides an energy bill passed yesterday by the lower house of U.S. Congress. The reason for this may be the low level of safety in the company led to the spill in the Gulf of Mexico,. The measure is far from becoming law and is not yet considered by the Senate. However, so called. Miller Amendment puts pressure on BP, which is a magnifying glass by legislators who wish to punish for safety problems. The Senate, in turn, discussed his reform package, which does not include an explicit ban on production by BP. The measure may ultimately fall within the law during the final negotiations between the two chambers of Congress, but under most lobbyists is unlikely. Amendment is part of wider legislation on drilling, which was approved by 209 votes against 193. It provides new safety standards for offshore production, including independent certification of equipment, more thorough inspections and tougher penalties for breaches of safety.
The bill includes tax environment than $ 2 a barrel until 2021, which is expected to be raised 5.3 billion dollars over five years.

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.