U.S. mutual funds investing in equities, with the lowest percentage of its assets in cash from 2007 onwards. In January, the share of the cache has fallen to 3.6 percent from 5.7 percent a year earlier, according to the Investment Company Institute. This is the biggest drop of the indicator in the past 18 years. Currently, managers have available funds in the amount of 172 billion dollars. The last time the managers behaved as a small percentage of cash was in September 2007, a month before the broader index S & P 500 to start 57% decline. The index has lost an average of 16% over the last three times, in which managers are beginning to increase their reserves of cash. The reason for this is that the cache is often due to increased sales. In this situation, when reserves have reached the opposite pole, it is assumed that the growth potential has been exhausted. According to the investment company Parnassus Investments growth stock will fall after last year S & P 500 rose by 23%. For the past 12 months did it rose by 67 percent in a remarkable year for U.S. exchanges. “This is not a red semaphore, but it is flashing yellow, which warns that the strongest part of the recovery of the market probably is over,” said Jerome Dodson, managing 3.6 billion dollars for Parnassus Investments. According to him this year S & P 500 will rise by between 6% and 9%. “There is only so much buying power of the market,” he said.
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France and Germany intend to launch a new project for economic cooperation and assistance within the euro area. This would include the creation of a European Monetary Fund, resembling the structure of the International Monetary Fund, said senior government sources quoted by the FT. Intentions are to create rules and tools for preventing the occurrence of instability in the whole euro area from the problems of a single country. Right now this is the situation with Greece, whose budgetary problems negatively affect the whole community. The first beginnings of that plan were announced by the finance minister of Germany Wolfgang Schäuble, who announced the intention to create a fund similar to the IMF. “I support greater coordination of economic policies within the EU and the euro area,” Schäuble said in an interview with German newspaper Welt am Sonntag. If France and Germany fail to reach agreement, which has lobbied for some time Paris, they probably will create the basis for the most radical reform of the euro in 1999 onwards. At present, neither Germany nor France Greece supported the proposal to have recourse to the IMF. This is another argument for establishing a European support fund, which, however, is unlikely to happen fast enough to help Athens, indicated by the FT.
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The American auto giant Ford Motor took first place in sales of new cars in the U.S. in February and surpassed its rival General Motors in Detroit for the first time in 12 years, and the world leader in the automotive industry in the face of Toyota. In the past month Ford managed to sell 142 285 cars and trucks in the U.S.. The increase amounted to 43.1 percent annually, which puts Ford at the forefront of the automotive market, whose foundations were built by the same company more than a century, sent Wall Street Journal. Sold by all companies in the U.S. automotive vehicles rose to 10.38 million units annualized in February compared to 9.17 million years ago. Autodata calculations show that Ford’s market share has increased by about 2 percentage points last year to 17%. Sales of General Motors rose by 11.5 percent annually to 141 951 cars and trucks in February, while those of Toyota fell by 8.7 per cent to 100 027.
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The week started with the growth in oil prices. The reason for this is mainly speculation that OPEC’s new measures to curtail production will lead to a reduced supply of raw material. At the time of high interest are expected consumer confidence data in the U.S., which will be published tomorrow. Estimates for the improvement of the indicator, which can also lead to an increase in oil prices because of expectations that positive attitudes will be conveyed in the corporate sector. This morning American barrel light crude oil is traded with a growth of 0,5 per cent on Friday, as the quotations are close to 82 dollars per barrel. Last week, black gold has managed to rise by 2,3 per cent on Friday as only the price of oil has increased with 1,3 percent, reminds Bloomberg.
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Lack of important economic data in the early weeks of the new exchange led to the tentative start of today’s session on Wall Street. All three major indexes found themselves in positive territory in early trade but shortly thereafter changed direction and gravitate around the neutral zone. Dow Jones Industrial Average, which brings together 30 most actively traded stock in U.S. companies with the highest market capitalization remains unchanged at 10 570.51 points by one hour after the start of trade. Broader index S & P 500, meanwhile rose by 0,1 percent to 1 138.68 points. On the Nasdaq stock exchange, however, the main Nasdaq Composite index rose by 0.2% to 2 330.15 points, which is its highest level since early September 2008, technology companies are among the most profitable today, but those in the health sector is ranked among the top losers in the trade. The last session last week led to significant increases in the indexes after the data on the labor market showed that unemployment in the United States remains at a level of 9.7 percent for the second consecutive month in February, but the cuts in non-agricultural sectors of the economy fell more than expected. Trading last week was volatile because of the key data on employment in the sectors of U.S. economy and may continue to be volatile in coming days and because of scarce economic data.
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Sweden’s government today approved a project to build a park of wind turbines to produce electricity, which will be the largest in the world, Itar-Tass on details of the Swedish Ministry for Environmental Protection. After building a huge wind-park its current production capacity will reach 8.12 TWh, which produce electricity from wind in the country will increase more than 3 times the current volume. The wind-park consisting of 1100 numbers 200-meter generators will be located in an area of 450 square kilometers of territory in north-eastern coast of the country. That area is now pasture for deer, so the government undertook the project for the contractors to pay for the wind-park compensation in the event that any way wind-park negatively affect livestock in the area.
The innovation is according to latest requirements of the European Commission for electricity producing.

The U.S. Federal Reserve will probably raise its main interest within six months, with between a quarter and half percentage points, according to a survey of the National Association of Business Economics (NABE), said. According to the survey, conducted every six months, most of NABE economists find this almost zero interest rate the Fed is appropriate. More and more of them, however, feel that it is too stimulating. “The majority believes that the increase in interest rates over the next six months is as likely and appropriate,” said NABE president Lynn Riyzar. According to the Fed’s high unemployment and low inflation to justify keeping interest rates extremely low for an extended period. The data indicate that the economy has gradually recovered and by some leaders of the Fed Reserve needs to start preparing the markets for the tightening of financial conditions. Economists interviewed by NABE, believe that the suspension of purchases of mortgage securities by the Fed will increase interest rates on mortgage loans with an average of 42 basis points. The program, worth 1.25 trillion. dollars, will be discontinued at the end of the month. 44% of the respondents believe that inadequate regulatory oversight was the main reason for the deep financial crisis, which led the country to a painful recession.
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The Consumer loans in the United States in January unexpectedly increased by $ 5 billion or an annual rate of 2.4 percent. With the largest contribution to growth is the increase in loans to buy cars. The data of the Federal Reserve (U.S. central bank) for December were revised down. In the last month of last year loans fell 4.6 billion dollars instead of the original estimate of a decline of 1,7 billion. After initial assessment in December, economists predicted a decline in January amounted to 4,5 billion dollars. This is the first increase in loans last year and shows that consumer confidence in the U.S. economy growing. “This is a sign that the economy is on the bottom and consumers begin to spend again,” said Chris Rapkey, an economist at Bank of Tokyo-Mitsubishi. “The increase in loans kicks prospects for the economy this year.” Consumer spending represents 70% of GDP.
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The price of crude oil increased to near 81 dollars a barrel during electronic trading today in Asia, together with all the major stock indexes in the region. The price of energy input is about to celebrate third growth in the last four weeks, after having surged by 1.2 percent over the past five days. Reason for today’s rise in oil gave news that the Organization of Petroleum Exporting Countries (OPEC) will cut oil supplies by 2.3 percent within months, ending on March 20. Countries that are members of OPEC, the source of about 40% of global oil supplies. U.S. light crude for delivery in April, is rising by 60 cents, or 0.8 percent, to 80.81 dollars a barrel during electronic trading today on the New York oil exchange. By the end of the session on Thursday, oil futures fell by 66 cents to 82.21 dollars per barrel. Meanwhile, the price of Brent rose by 64 cents, or 0.8 percent, to 79.18 dollars per barrel in today’s times of electronic commerce in the international petroleum exchange in London. The April oil futures ended the session yesterday with a decrease in price by 0.9 percent to 78.54 dollars per barrel.
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The European stocks rose for the fifth consecutive day thanks to some better-than-expected corporate profits, police Bloomberg. The Shares of Ahold chain stores reported the strongest growth since May – with 5 percent after the company announced an increase its dividend by 28 percent. At the opposite pole were shares of shipping company Maersk, which sank 4 percent after the group announced its first annual loss since World War II. Pan-European Stoxx Europe 600 index ended trading with a growth of 0,1 per cent to 252.93 points after a highly volatile session. Growth was limited by the end of the planned report on housing sales in the U.S. unexpectedly fell in January. Major national indexes advanced on 9 of the 18 western European markets. The UK’s FTSE 100 lost 0.1 percent to 5527.16 points while France’s CAC 40 and German DAX retreated with 0.4 per cent respectively to 3828.41 and 5795.32 points.
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