The indexes in Europe ended with the first trading increases day of the week. Thus the old continent growth seen for the fifth time in six sessions. Today, the regional index Dow Jones Stoxx 600 advanced by 0,4 percent to 242 points. It was continued growth of 1,5 per cent achieved over the last week. Then indexes in Europe have risen in four consecutive days, but weak GDP data for the euro area led to a decline on Friday. Greece continues to be the leading news in the financial circles of the Old Continent. Today, the eurozone finance ministers meeting there to discuss the problems of our southern neighbors. ECB President Jean-Claude Trichet did ask the country to tighten its fiscal policy to overcome. Meanwhile, the EU asked Greece to provide explanations for derivative transactions, which was probably artificially lowering the budget deficit in the country. On Britain’s FTSE 100 rose by 0,5 per cent to 5 167 points, the DAX in Germany increased by 0,2 percent to 5 511 points. In France the CAC 40 advanced even by 0,3 percent to 3 609 points. In Central and Eastern Europe also overwhelming optimism. In Hungary BUX added 0.8 percent, while Romanian Beth index advanced by 0,5 percent. Exchanges in the Republic of Poland and even had achieved increases in indices of respectively 1.5 and 1,6 per cent.
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The economy of Ukraine has contracted by 7% in the fourth quarter of 2009 over the same period the previous year. This was the smallest decline in gross domestic product (GDP) in the country last year, police Bloomberg. The main reason for this probably lies in increasing exports in the last months of 2009, which gives impetus to the industrial production of Eastern European countries. Preliminary statistics do not give details of individual components of GDP. For comparison, the GDP of Ukraine decreased more strongly by 15.9 percent in the third quarter, 17.8 percent in the second and 20.3 percent in the first three months of 2009. Ukraine plunged into recession in the fourth quarter of 2008, after the global economic crisis undermines demand for steel, which occupies a central place in its exports. Meanwhile, in 2009 require the Government to grant aid of 20 of the largest banks in the country. Ukrainian bracelet is impaired by 42% against the U.S. dollar since the beginning of September 2008 as the political crisis in the country has caused the IMF to stop to pay the loan from EUR 16,8 billion allocated last year to enable Ukraine to finance its budget. According to economists RBS Ukrainian economy remains in poor condition despite the appreciation of the metals and the depreciation of local currency last year. During today’s foreign exchange session one Ukrainian bracelet be exchanged for 8.0215 U.S. dollars.
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The British bank Barclays lay a pleasant surprise with its report for 2009, which was released today. He showed that the financial institution has made a profit of 11.6 billion liras in the year after the 2008 year was registered a positive result of 6,1 billion pounds. With a major contribution to the strong performance has Investment Banking division where he will be awarded significant bonuses. Employees in this unit will receive an average of 191 thousand pounds last year, transmit CNBC. Nearly half of the profit – 6,3 billion liras – accounted for the sale of the division of asset management Barclays Global Investors (BGI), it is clear from the report. Preliminary expectations of analysts polled by Reuters were for a profit of 11.2 billion pounds. Profit from operating activities, which does not include the sale of BGI, the impressive amount of 5.6 billion pounds. For comparison, in 2008 it amounted to 1,6 billion pounds. In the investment banking division Barclays Capital e achieved profit growth of 89 percent to 2,5 billion pounds. With a strong commitment to it’s acquisition of the investment business of Lehman Brothers in the United States, and the growth of positions in Europe and the United States.
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The U.S. company Kraft Foods, which is the largest producer of food products in the U.S., please their shareholders with news that its profits had tripled in the last quarter of 2009, a primary source of this impressive growth is the increase in the volume of its sales in developing countries and the rise in the prices of its products forward AP. Its net profit increased to 710 million dollars, or 48 cents a share, in the last quarter of 2009 compared with a positive result of 178 million, or 12 cents per share for the same three months of 2008, Kraft Foods is the second largest food company in the world and one of the 30 largest U.S. companies entering the index of blue chip Dow Jones IA. Market Analysts forecast lower earnings per share from 45 cents. Kraft Foods sales increased by 3.2 percent annually to 11 billion dollars in the quarter in question, which was close to the projected revenue from the market. Company sales in Europe increased by 8% annually, while revenues from sales in developing countries have risen by 11 per cent. The company management plans to turn into Kraft’s largest producer of confectionery in the world. In January, Kraft Foods has been able to obtain the approval of the shareholders of British chocolate maker Cadbury to absorb the company against the amount of 11,5 billion pounds.
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The sales of new cars in Europe are still maintained in some countries by government incentives, increased by an average 12.9 percent in January on an annual basis, figures released today data on the association of European car manufacturers. In EU countries, excluding Cyprus and Malta for months have sold 1 058 868 new cars, but to include Iceland, Norway and Switzerland, the number reached 1 085 894 cars (+13% yoy). For the first time the association provides separate statistics for individual Member States and to include information listed three states. According announced earlier this month, data from Association of Automobile manufacturers and their authorized representatives in Bulgaria for January in our sales have decreased by 47% compared to January 2009. The largest decline for the first month of 2010 is recorded on the market in Romania (-84.6%) and highest growth – this in Portugal (62%). In Britain, sales increased by nearly 30% to 145 479 units, in France has increased by 14.3 percent to 171 478 number in Spain is rising by 18% to 70 130 units, and in Italy are registered growth of 30.2% to 206 341 units. Germany, however, reported a fall of 4.3% in car sales annually to 181 189 pieces in January.
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The billionaire investor George Soros said he believes in the ability of Greece to remain in the euro area. He also said that the eyes of market participants are currently targeting the debt problems of several countries, including Greece stands in the foreground. “I believe that Greece will do whatever is necessary to meet the requirements to remain in the euro area,” said Soros told reporters in Jakarta. Among the main reasons the country is fighting for his membership in the euro area is that when the ECB adopts its bonds as collateral for a loan of commercial banks. In the event that the country lost the credit rating, however, its securities will no longer meet the necessary conditions and will not be accepted as collateral. “Support in Greece aims to achieve, I hope the EU, the ECB and the euro area to find a way to finance the country which is not too expensive to support,” said Soros, quoted by Bloomberg.
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Quotes of the Asian oil trade fell below $ 72 a barrel after yesterday overcame declines, made late last week and reported a minimum 17-month price agency reported Reuters. Depreciation of the new “black gold” due to the oppression of stock players for uncertainty about budget problems in most euro area countries, especially Greece, Spain and Portugal. Diverging signals the degree of recovery of the economies of countries that are the biggest users Oil also confused investors on the stock markets. Price of oil on Monday was due to the intertwining of several factors: strong and sharp cooling in the U.S. geo-politics direction about Iran’s intention to begin enriching uranium, and the weakening of the dollar against five major currencies. Since the beginning of 2010, oil prices have fallen by nearly 10 percent mainly due to the increase in raw material stocks in the U.S., aggressive monetary-credit policy in China and because of doubts about the financial stability in Europe. Two hours after trading opened in London, March futures added 9 cents to $ 71.82 a barrel, after having decreased slightly in the morning. U.S. trade with appreciation Monday close of 70 cents to $ 71.89 a barrel.
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The exchange rates of the Asian oil trading slightly more expensive today, reports agency Reuters. Reason for the rise the investors interest to benefit from a minimum 17-month price reached late last week. They apparently decided to take advantage of the chance to buy “black gold”, which is expected to rise due to bad weather conditions in the U.S. and Europe. Notwithstanding the rise in quotations is not expected sharp jump. Players of the exchange do not want to risk much. They are discouraged by good results for the unemployment in the U.S. and are concerned about budget problems in Greece. Gentle crude for March delivery rose 55 cents to $ 71.74 a barrel. On Friday trading in New York close of a 17-month minimum of $ 71.19 per barrel. In the variety “Brent” futures rose by 63 cents to $ 70.22 a barrel. Additional pressure for oil price rises may have tensions over Iran and the decision by President Mahmoud Ahmadinejad to start producing enriched uranium.
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Latvia’s economy has contracted by 17.7 percent in the fourth quarter of last year, which is the smallest decline for the year but more than economists’ expectations, sent Bloomberg, citing preliminary statistics. For the third quarter of the country’s economy shrank by 19 percent. Average expectations of economists polled by Bloomberg, were beginning to fall in the fourth quarter from 15.9 per cent. From the third quarter of the country’s economy increased by 2,4 percent. Revised GDP data will be published on 11 March. Latvian economy is showing signs of stabilization, the decline in industry is slowing. Increased exports to Western Europe is likely to help the country return to growth as domestic demand is under pressure because of measures introduced under the conditions for obtaining a rescue loan. “It is possible that the revised GDP data are better,” said Leah Strasuna, an economist at the Latvian unit of Swedbank AB.
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The Swiss bank UBS came first profit since Oswald Gryubel assumed leadership of the company a year ago. Net profit for the financial institution for the fourth quarter of 2009 amounted to 1.205 billion Swiss francs (1.1 billion), Reuters reported. This is a significant improvement compared to the same period in 2008 when the bank had a loss of 9.58 billion francs. The improvement is partly due to a tax credit of 480 million Swiss francs, and the reduction of bonuses. However, under pressure from the continuing effects of the global financial crisis led to tax evasion cases in the United States and pressure from other countries for violation of banking secrecy to disclosure of tax crimes, UBS continues to lose the trust of its customers. “We are sure that the measures we took for withdrawal of capital from the bank’s clients are effective, but in the immediate future we expect to continue to draw,” says Oswald Gryubel CEO and Chairman of the Board of Directors Vilidzhar Kasper in a letter to investors.
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