The crude oil price rose over the past day, as the quotations again turned to 77 dollars a barrel. This gave rise to some positive signs for the Chinese economy and the retreat of the dollar. Oil supported the second consecutive growth indexes in China. He came because data for increased domestic consumption, leading to increased profits of car manufacturers. This gives rise to expectations that demand for fuels in the country will increase. On the New York Stock Exchange yesterday, oil contracts with delivery in August increased its price by 0.7 percent to 76.54 dollars a barrel. The deadline for trading with them expires today, but this morning their price increased by 0.15 percent to 76.65 dollars a barrel. The September futures which are already traded more actively, rose 0.1 per cent to 77 dollars a barrel. This morning the euro managed to advance to 1,2968 EUR / USD, and again towards the attack rate of 1.30 dollars per euro.
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The Greek economy is in difficulty, and its financial system is under pressure since the country became the epicenter of the biggest crisis in the history of the euro area. However now it seems that Greek banks will pass through the stress test of the banking system in Europe. A similar paradox is seen in Europe. While regulators prepare to publish the results of stress tests of the largest European banks on Friday, political and financial leaders sound surprisingly optimistic in their expectations of the outcome, writes Wall Street Journal. Sentiment among investors are fundamentally different, as many believe that some European banks experiencing serious difficulties. Given that the U.S. government made 10 of 19 largest banks in the country to attract more capital after the stress testing them in 2009, very good results in Europe may undermine the feeling of confidence that European politicians try to regain. According to economists of the Royal Bank of Scotland if the Greek banks withstand the test without a problem, the markets may appear skeptical about whether the tests were sufficiently stringent and that give an objective assessment of the state of the financial system of the Old Continent. One of the banks that tests will show that there are difficulties, the German mortgage lender Hypo Real Estate. It told the Wall Street Journal source familiar with the matter. We Hypo Real Estate is 100% government ownership, is expected to pass their toxic financial assets of 200 billion of bad bank “, supported by the Fund German financial market stabilization (SoFFin). Hypo may request a further 2 billion capital Sofiin, having already received 8 billion.
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The Global foreign direct investment (FDI) reached a new nadir in the second half of 2009, then had a modest recovery in the first part of this year, which raised optimism about prospects for FDI out annual survey of global trends in investments of the United Nations Conference on Trade and Development (UNCTAD). Recovery appears to gaining strength as global FDI is expected to surpass 1.2 trillion. dollars in 2010 to reach 1.3 to 1.5 trillion. dollars in 2011 and to near 1.6 to 2 trillion. in 2012, however, these perspectives on foreign direct investment are filled with risks and uncertainties, including that global economic recovery seems fragile at this point. For 2009, the conference reported nearly 40% decline in global FDI. Some major changes in trends in global FDI preceded global crisis and is likely to escalate in the short and medium term, the report provides. The relative importance of developed economies and transition economies as destinations and sources of global FDI is expected to continue to increase. Although FDI inflows to developed economies and economies in transition decreased by 27% in 2009 and outflows of FDI from these two groups of economies have shrugged by 21%, they are still made almost half of the inflows of foreign direct investment in 2009 , and have provided a quarter of global FDI outward.
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China must make a choice on how to combat the threat of inflation, one option is to raise interest rates in the country and another – to resort to increasing the value of the yuan. Such was the view of analysts at the Asian Development Bank. Like most countries of Asia and China significantly increased public expenditure and resort to a decrease in the rate last year. The purpose of this was to promote economic growth in the global recession, writes AR. Now, authorities in the region discuss options for the removal of economic incentives and increased interest rates to prevent the risk of overheating. ‘Over the next 12-18 months should interest rates rise significantly, depending on how monetary policy is conducted, said in a report, analysts at the bank. The document dealt with Southeast Asia and Hong Kong, Taiwan, China and South Korea. China should take quick action on economic policy back to its normal state, to avoid inflation or “hard landing”, considered by the bank. The persistence of price growth could be done by raising the exchange rate and the country must decide on which of the two ways to act, the report said. For South Korea, Malaysia, Singapore, Thailand and Taiwan is recommended a further increase in interest rates. Hong Kong, Indonesia, Philippines and Vietnam would also have to start cutting costs and tightening monetary policy, recommended by the bank.
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The first session on Wall Street this week started with a strong growth indexes, but the positive mood could not be kept until the end of the day. Initial support came after a strong rise in European markets, where exchange measurements progressed with more than 2%. On the other hand, market participants were attracted by lower prices of U.S. stocks, resulting from sales in the last two weeks. On the economic calendar ISM index for services for June recorded a decline from 55.4 to 53.8 points, which was below analysts’ expectations for a weak correction to 55.2 points. Enterprise-level Microsoft bulls lead among blue chips, rose 2.35 percent to 23.82 dollars per share. Second Home Depot recorded the largest decline in the Dow Jones Industrial Average, losing 1.7 percent to 27.30 dollars. The energy sector remained the most stable after shares of British Petroleum advanced 8.7 percent to a 31.9 dollars per share. Exxon Mobil rose 1.5 percent to 57.46 dollars, while Chevron advanced by 0.37 percent to 67.56 dollars. Financial sector Bank of America rose 1.6 percent to 14.05 dollars, and JPMorgan added 1.4 percent to 36.33 dollars per share.
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Intentions to organize a record-sized IPO in the world by the Chinese bank Agricultural Bank of China undoubtedly attract media interest. Moreover, they clearly show the lack of finances in the banking system because large amounts of funds withdrawn last year. Initial estimates indicating whether the bank will be able to attract 30 billion dollars but the market situation is unlikely to allow it. We are seeing problems with the financing of Chinese banks, which last year allowed a record 9.6 trillion. yuan order for the government to support the economy. “The timing of the IPO-organizing it depended on the Agricultural Bank. It simply must be done to enable the bank to raise cash to meet regulatory requirements, “the Founder Securities. “All banks are facing a huge hole in revenue and massive demand for capital will surely outweigh the market in the long run, analysts say the company. Agricultural Bank is the last major bank in China, which is not public, will attempt to increase the supply of stock shares in Hong Kong 15%, with revenue that it could reach 22 billion dollars.
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The price of U.S. light crude went up and centered around 72 dollars a barrel during electronic trading today on the New York Petroleum Exchange, increasing for the first time in ten days. This gave rise to expectations that the data of the American Petroleum Institute, to be published today will show that U.S. stocks of raw energy decreased. U.S. is largest consumer of petroleum and petroleum products in the world, followed by China. The average forecast of analysts surveyed by Bloomberg, shows a decline in oil reserves of 2.75 million U.S. to 363.1 million barrels last week. Official figures of the American Petroleum Institute is expected before the end of today’s trading session in the U.S.. Price increase helped the successful auction of government securities of Spain, which was held yesterday, writes Bloomberg. The country sold 10-year government bonds for 6 billion euros, orders were submitted for 13 billion because of strong interest from investors. U.S. light crude for August delivery finished yesterday’s session with a fall in the price of 16 cents to 71.98 dollars a barrel. During the e-commerce Today it more expensive by 0.2 percent to 72.11 dollars a barrel. Since the beginning of this year its price has fallen by 9.2 per cent.
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The crude oil trades decreased for the seventh straight day during today’s electronic trading in New York after concerns about economic recovery in Europe continued to weigh on quotations. Economic data of recent days showed that the manufacturing sector and service sector in China have slowed their growth, which bodes less demand for energy inputs in the second largest consumer of oil in the world. The same situation occurred in the manufacturing sector of the U.S. and Europe. The price of U.S. light crude fell by 0.4 percent to 71.86 dollars a barrel in today’s times of electronic trading on the New York Stock Exchange. U.S. financial markets were closed Monday on the occasion of Independence Day. Oil futures with delivery in August fell by 81 cents or 1.1 percent, to 72.14 dollars per barrel by the end of Friday’s session. Last week energy raw materials fell 8.5 per cent because of worsening economic attitudes of investors. Since the beginning of this year its price has plummeted by 10 percent.
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The investors are worried that increased the risk of non-performing the duties of local authorities in the U.S.. Is increasing evidence that some regions are facing the same difficulties to curb the budget deficit and pension system, as some eurozone countries. The yield on certain municipal bonds related to infrastructure projects has increased compared with that of government treasury bonds because of fears that the difficult financial local authorities will have problems paying their debts, says the Financial Times. Data Release of borrowing costs to local governments (in absolute terms) remain relatively low in historical perspective, thanks to high-liberal monetary policy of the Federal Reserve (U.S. central bank). Any variation in the yield of municipal bonds, however, will be closely monitored by investors, since they assume that the fiscal concerns about the eurozone could be conveyed in the USA. “In the second half there is a risk investors to shift its attention from Europe to the U.S.,” said Robert Parker, senior adviser at Credit Suisse Securities. He said parts of California and individual cities in the states Illinois, Michigan and New York are among the most vulnerable. “Inevitably, concerns among investors about these cities will be reflected in widening the spread on yields of municipal bonds,” he says.
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The youth unemployment in Britain, educated, could reach record levels due to planned cuts in public spending. This warning by the British Centre for Career Development, Air Force forward. The center of Higher Education Careers Service (HECSU) indicate that as many young people graduating college, seeking employment in the public sector, they are particularly vulnerable under the proposed cuts. The working positions which they normally cupy, are not considered so important by the government to be maintained. If one fifth of the 39 thousand just graduates who start work in the public sector each year lose their jobs, it will double the unemployment rate in this population group. It is expected that about 600 thousand jobs in the public sector to be cut by 2016. According to Charlie Ball Higher Education Careers Service of unemployment graduates young people can reach over 20% and even 25 percent, since its highest level was recorded in 1983 at 13.5 percent.
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