Finance ministers of the G-7 remains unchanged opinion that excessive volatility and disorderly movements in exchange rates may endanger their economies forward Bloombergan, citing a representative of one of them. For the last finance ministers of the G-7 and central bankers met today in Istanbul, using such phrases in April. During the week, officials from the G-7 expressed concern that cheaper dollar threatens to slow recovery from recession in their economies, their exports more expensive. Since early March, the dollar has depreciated by 14 per cent against basket of seven currencies. “We welcome the statement of Finance Minister of the United States Timothy Gaytnar that has a strong interest in the United States have a strong dollar,” said Bundesbank President Axel Weber told reporters before talks. On his arrival in Turkey, Canadian Finance Minister Jim Flaharti said in turn that it is “worried” by the “upward pressure on the Canadian dollar,” the weakening U.S. currency.
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The G-20 can draw up a list of countries that have less restrictive financial regulations and to impose sanctions, said British finance minister Alistair Darling, said. “As we pursue tax shelters, so we want to pursue and regulatory havens,” Darling said in an interview. “It is good for financial stability that some companies can operate from a Caribbean island and we do not know what to do,” he said. Darling’s remark, which is one of the strongest so far on the issue by the official representatives of the G-20 suggests that the group has decided to impose financial reforms around the world to reduce the risk of another crisis like the present size. From D-20 will prepare a “temporary blacklist of regulatory havens to meeting the financial ministers of the Group in November, and “gray” list of countries which also need to tighten standards.
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The former Federal Reserve Chairman Alan Greenspan said the U.S. believes that America does not need a new plan to stimulate the economy. Moreover, the specialist believes that before it comes to positive news about the labor market, unemployment in the country probably will reach 10 percent. Greenspan indicates that there are at least two reasons not to consider ideas for developing a new rescue plan. One is that only 40 percent of the projected under the current plan funds were allocated to the economy. Others relate to the debate on the effectiveness of such plans and disputes whether they are needed, writes Market Watch. The specialist believes that, some signals to improve the economy of the country. However, labor markets remain under pressure and unemployment will likely continue to grow in the short term, Greenspan believes.
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The International credit rating agency Standard and Poor’s announced that it confirms the long-term rating of A European banking group UniCredit Group. Short-term rates e A-1, a stable outlook, the bank said. The decision of Standard and Poor’s follows the disclosure of UniCredit’s intention to further strengthen its capital position by increasing its capital by 4 billion. The Board of Directors of the Bank adopted a proposal for a capital increase by issuing new ordinary shares. Thus, the group’s capital base will grow by an additional 80 basis points. At the end of June 2009 the index Core Tier 1 is 6.85%. With the capital increase UniCredit aims to continue its support for countries in which it works and to develop lending to small and medium-sized businesses, individual customers and households, says the message.
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The index of investor confidence in the euro zone rose to -12.6 points in October from -14.6 points in September. This is the highest value of the index of July 2008, it is clear from the data of the research institute Sentix. Economists had predicted a slightly stronger growth of the barometer of investor confidence to -12 points. The index recorded a monthly increase for the seventh last eight months under the influence of expectations that Europe’s economic situation will improve. Moreover, the uncertainty of investors regarding the U.S. economy has disappeared. Increases significantly and their assessment for developing economies, particularly those from Latin America. The study of Sentix was conducted in early September, among the 3 thousand individual and institutional investors. It reveals that their optimism for the future is growing again because of the expectations index rose by 5.75 points to 5.5 points for September. Assessment of current economic conditions rose to -29.25 to -32.75 points points.
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