The Executive Director of Goldman Sachs defended the company’s role in the creation of complex securities, considered by some to be the cause of the financial crisis, Reuters reported. Lloyd Blankfane had to answer questions from the committee investigating the causes of the crisis, focusing on the creation by Goldman risk on derivatives of mortgages, while the bank has been going on short sales with them, or bet for lowering their value. “These exposures are sought by professional investors,” said Blankfeyn, who occasionally interrupted the committee chairman, Phil Angelides. “Even now people come to us asking for exposures to these instruments,” he added. “I sound a little like to sell a car with damaged brakes and then buy an insurance policy to the buyer of the car, not comment on Angelides. Testimony before the Committee, except Blankfeyn, have CEOs of JPMorgan Chase Jamie Diamond and Bank of America Brian Moynihan, as chairman of Morgan Stanley John Mack. Have defended the four practices before the Commission to distribute bonuses in the sector, while recognizing the need for regulatory changes. Angelides has four bank directors warned that the committee will continue throughout the year with hearings on hundreds of witnesses. Commission created by Congress in model Pekora committee investigating the collapse of Wall Street in 1929, must submit its report by 15 December. Pekora findings of the Committee helped lead to the creation of the U.S. stock regulator (SEC) and other major reforms.
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Eurozone industrial production in November rose by 1.0% on a monthly basis and decreased by 7.1% yoy, with expectations for a rise of 0.7%, respectively, and decreased by 8.5%. Production for October was down by 0.3 percent revised on a monthly basis and by 10.9% per year compared to previous data for -0.1% respectively. and -11.1%. Faster rise to expectations due to growth in manufacturing in all sub-sectors without energy. Annual decrease was even the least since October, but still negative for the 19th consecutive month. Thus improving the progression index coincides with the studies on the activity of the industrial sector, which is significant in recent months.
However, maintaining levels of negative annual highlights the slow steps of recovery and because of its economists are firm that the ECB will keep its key interest rate unchanged today. We recall that it is 1%. Data showed that manufacturing in the industrial sector decreased by 2.2%, while the remaining 4 sub-sector growth is between 0.6% and 1.8% on a monthly basis in November with the strongest is the production of intermediate and capital goods.
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With remarkable allocation of $ 11.8 billion and 70 transactions in 2009 (an increase of 118 percent compared to $ 5.4 billion and 58 transactions in 2008), BNP Paribas Corporate and Investment Banking is Number 1 loans for trade financing, coverage of the export credit agency. The assessment is based in New York consulting firm Dealogic, communicated by the Bulgarian office of BNP Paribas. From there, comment, is that was very difficult year this is a great achievement of the teams and the result of an enormous number of significant transactions during the year. The Bank is the undisputed world leader with a market share of 30%. According to Dealogic world market of loans for trade financing, coverage of the export credit agency, has increased by 29 percent per year, reaching $ 38.6 billion in 2009. BNP Paribas is present in Bulgaria since 1994 in the present moment more with your credit and life insurance company “Cardiff” and for Bulgaria’s leading consumer finance company BNP Paribas Personal Finance. ”
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The impairment of assets announced in the last 2 years are far below expectations of 47% of the investors, analysts and lenders. This shows a study prepared by Ernst & Young, the consulting company reported. “Disclosure of Impairment – for greater stakeholder confidence is a survey among 170 users of financial statements in 32 countries, drawn from one of the most respected global audit companies. The analysis found that these 3-sectors where most more likely to be impaired assets further over the next 18-24 months, as real estate, banking and capital markets and the automotive industry. Over 90 percent of respondents recognize that to predict cash flows over the next 12-18 months will be a major challenge. Jim Iyls, Department of Evaluation and Business Modeling at Ernst & Young, commented: “Investors, analysts and lenders are familiar with the difficulties and uncertainties in managing the business in current economic conditions. However, their confidence is fragile and they are cautious to forecast the future management of their businesses. As a result, they will be more demanding and seek greater transparency and more accurate interpretation of the assumptions made by management in the future of their businesses. ”
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The price of oil conquer new 15-month high during today’s e-commerce in Asia, supported by the recent good economic data for the third largest economy in the world – China, which renewed expectations for the recovery of global economy this year. Depreciation of the dollar to a three-week low against the euro, and extremely low temperatures in most of the northern hemisphere, also raised the price of energy input at the beginning of the week to the highest level since October 2008. Economic optimism contributed data on exports to China, which increased by 17.7% yoy in December. This is the first annual export growth for the past 14 months. China is expected to be engine of global economic growth this year. Moreover, today it became clear that oil imports in the country rose to a record 203.8 million metric tons last year. China is the second largest energy consumer in the world after the United States. U.S. light crude for delivery in February to 0.1 percent more expensive to 82.75 dollars a barrel during electronic trading today on the stock exchange in New York. This is the highest price level since October 14, 2008.
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The rally in Asian and Pacific stock markets continue after China reported the export of its first annual growth for the past 14 months in December. The growth of imports of goods into the country to record levels has an even better sign for the prospects of the global economy. Moreover, last year China has become the biggest market for cars gain on U.S. forward Bloomberg. Sales of cars, buses and trucks in the country increased by 46% yoy to 13.6 million units compared to 10.4 million units in the United States. The regional index MSCI Asia Pacific, excluding Japan, rose by 1.1 percent during today’s session at 432.24 points. Most of extractive companies that helped after the delivery of copper in three months rose by nearly 3% to 7 675 dollars per metric ton on the London Stock Exchange. Gold price, in turn, jumped to a record 1.8 percent last month to 1 158.4 dollars an ounce. With increased session ended in Shanghai, where the Shanghai Composite rose by 0.5 percent to 3 212.75 points, led by financial companies and those in the real estate sector. Yesterday it became clear that exports to China increased by 17.7% yoy in December to 130.7 billion dollars, while imports of Asian countries increased by nearly 56 percent to a record high value of 112.3 billion dollars. Complete with increased trade and exchange in Hong Kong where the Hang Seng added 0.5% to its value at 22 411.52 points. More strongly increased the index of blue chips in Australia S & P / ASX 200, which rose by 0.8 percent to 4 950.7 points, supported by extractive companies. New Zealand NZX 50 closed session, however, negative territory, losing 0.2 percent to 3 303.75 points.
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Disappointing data on the reduction of employment in the U.S. economy in December, however, failed to wipe out the economic optimism of investors. He was a driver of the rally on Wall Street over the past ten months, together with the measures of governments and central banks to combat the effects of financial and economic crisis. The next few weeks, will be much more dynamic with the beginning of the first corporation to the new year season. Three of the largest companies in the index of blue chip Dow Jones IA – Alcoa, Intel and JPMorgan Chase, will publish its financial results for the fourth quarter of last year over the next five days, police CNN. On the economic front, the most important will be data on retail sales in the U.S. in December, and those for consumer confidence, industrial output and trade balance. The indexes reached new 15-month highs earlier this year, their rally would depend largely on the financial performance of the stock companies that would be indicative of the actual state of the economy. For the last quarter of 2009 is expected to increase the profits of companies in the S & P 500 by over 200% yoy. However impressive forecast is due largely to the sharp deterioration in financial results over the last comparable quarter of 2008, when the crisis hit very companies most like those suffered from the automotive and financial sectors. Week, and corporate season will begin with reports of aluminum giant Alcoa, which is expected earnings per share of 6 cents to a loss of 28 cents a year ago. On Tuesday, after the end of the session and the results will come out of the technology company Intel, which is expected to more than seven times greater earnings per share from 30 cents.
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The Bankers in the City will hardly be affected by the tax bonus, introduced by the British government last month, according to a Financial Times survey among leading investment banks. The majority of banks surveyed in the anonymous survey said they will bear all expenses for single tax rate of 50% or more of them by increasing funds for bonuses, even at risk to irritate the government and its own shareholders. The results coincide with information gathered by companies for recruitment. “90% of the tax will be borne by the banks,” says consultant by one company with customers in the City. In many cases this will mean that banks will double the funds allocated for bonuses, and tax costs will be borne by shareholders. Likely to be affected dividends that will already be under pressure because of the requirements of regulators to keep the profits banks to strengthen capital, the bankers admitted. Some investors have become increasingly dissatisfied with the plans of banks. According to the survey more likely to take a full tax at state institutions. However, some, as U.S. and Europe say they will try to share the cost of taxes and bonuses between the bank employees. In cases in which costs are shared by bankers that will apply globally, not only for employees in London. This strategy will not like the British finance ministry. When British finance minister Alistair Darling said the tax he expected that banks refuse to distribute large bonuses, such as forecasting that it will attract additional revenue of only 550 million pounds.
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The Argentine court ordered the governor of the Argentine Central Bank Martin Redrado be restored to the position and block plan of the country’s president Cristina Fernandez de Kirchner to use foreign reserves to pay external debt, reported BBC. The court decided the emergency decree of the President for the release of Redrado be suspended until the vote on the country’s parliament. The court also held that the government can not pass 6.6 billion by the central bank in a special fund. Redrado angered the president by refusing to transfer to the reserves. He said he would wait for parliament to ratify the measure. Argentina must meet the 13 billion dollar international debt this year and has a budget deficit of between 2 and 7 billion dollars. In two rulings on Friday Judge Maria Jose Sarmiento thwart the efforts of the President to use forex reserves for the payment of Argentina’s debt and its decision to dismiss Redrado. Sarmiento agreed with lawyers Redrado under which the president has no power needed.
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Poland intends, if necessary through the court to ask the giant Gazprom total 410 million dollars as part of charges for gas transmission to past periods. This Polish newspaper reported Dziennik Gazeta Prawna, citing unofficial sources of information in Polish. According to the paper 350 million dollars of this amount are fees for transit of Russian gas through the country during 2006/09, since the Polish side is now estimated that the fees paid for the period were low. For the remaining 60 million claim for the energy concern PGNiG requested but undelivered gas in Poland last year by the current company for a short time firm RosUkrEnergo, as its liquidation after Gazprom took over all of its obligations. It is from PGNiG claim that they are prepared to file suit against Gazprom in order to get those 60 million dollars.
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