The crude oil prices recorded a decline over the past day, which is mainly due to recent disappointing data on the state of American consumers. To contribute to the pressure and expectations for growth of new oil reserves in the U.S. As part of yesterday’s trading session in New York oil contracts with delivery in October dropped by 0.6 percent to 74.70 dollars a barrel. This morning, the raw material gave a further 70 cents to $ 74 a barrel. Since the beginning of the month the price of oil fell 6.3 percent, although last week there has been a growth of 2.3 per cent. Since the beginning of the year did the black gold has lost 6.8 percent of the price. Fall in oil prices yesterday came because of evidence that Americans’ incomes rose by 0.2 percent last month. This was below market expectations for growth of 0.3 per cent and cause negative feelings. The price of Brent crude oil dropped to the minimum 5 cents to 76.60 dollars a barrel.
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The Price of U.S. light crude rose nearly threefold to bed after the U.S. Dollar weakened against the euro yesterday for the first time in six days and went on to lose in today’s currency during the session. Weakening of the dollar against other major currencies usually reduces the interest of investors to inputs that are traded in U.S. currency. The crude oil jumped more than 1 percent on Wednesday after he fell in morning trade to their lowest level in 11 weeks. This gave rise to the data of the Ministry of Energy Mr. USA, which showed that the country’s stocks of crude oil and natural gas rose last week because of weak demand. U.S. light crude for October delivery ended the session with an increase of 86 cents, or 1.2 percent, to 72.49 dollars a barrel. The price continues to go up and during today’s e-commerce, increased by 0.3 percent to 72.75 dollars a barrel. Meanwhile Brent with delivery in October to 0.3 percent more expensive to 73.73 dollars a barrel in electronic trading hours of the London Petroleum Exchange today. Its price rose by 1.09 dollars or 1.5 percent, to 73.47 dollars per barrel at the end of yesterday’s session. The U.S. dollar fell 0.2 percent to 1.2657 dollars per euro on Wednesday and lost a further 0.5 percent today to 1.2714 dollars per euro at 9:10 am local time.
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The French President Nicolas Sarkozy again called on leaders of the 20 most advanced economies to work together for comprehensive reform of the global monetary system. “We need to create a new framework for discussion of movements in exchange rates,” said Sarkozy, adding that China is not meaningless to talk about conversion rates. As a reason for it indicates the huge reserves of foreign currency available to the Asian country. Sarkozy said that the stabilization of moving large change currency markets and raw materials will be the main topic of the G-20 are in November. It will pass under the presidency of France, as the country holds the rotating presidency of the G-20 and G-8 November. Important topic will be the need to limit the dominance of the U.S. dollar as primary reserve currency. In this respect, Sarkozy calls for action towards increasing the role of alternative currencies. Improving the coordination of economic policies at the global level is also among the priorities of Sarkozy as he said so you can be battled volatile exchange rates. This is necessary as a prevention against the accumulation of significant reserves, particularly in developing countries.
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The Philippines economy unexpectedly accelerated its growth rate in the second quarter, which reached its levels before the financial crisis in mid-2007. Consumer spending and the state contribute to the growth of gross domestic product (GDP) of the country by 7.9 percent annually. During the first three months of this year Philippine economy also reported high annual growth of 7.8 per cent. The increase was more than expected growth of 6.3 per cent and is the largest of the second quarter of 2007. Philippine economy proved more resilient to slowing world economy in comparison with neighboring Malaysia and Thailand, where growth rates fell in the second quarter. Analysts say the country’s low inflation will allow the Philippine central bank to maintain its liberal monetary policy during this month. The base rate in the Philippines fell to a record low level since 4 percent last year, expectations are that it will not change until the end of this year. This, combined with rapid rates of economic growth is expected to give impetus to the local stock exchange and the Philippine peso. Liberal fiscal and monetary policy is also aimed at raising incomes of the population, as estimated by the World Bank one in four people in the country lives on less than 1.25 dollars a day.
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The crude Oil prices continue to retreat and in yesterday’s trading session, registering a decline for the fifth consecutive day. Thus quotes are back to 11-week bottom, where they found some support this morning and moving with a slight increase. Yesterday in New York oil contracts with delivery in October lost 2 percent to 71.63 dollars a barrel. This is the lowest level since June 7, a raw material is already moving at a retreat of 9.4 per cent this year. Within the past five days with the black gold retreated 5.5 percent. This is due to concerns that the global recovery lost momentum again his. Approaching the level of 70 dollars a barrel attract buyers and the price of black gold found some support. She came because of the temporary retreat of the dollar against the euro, ending a five-day rally in U.S. currency. This prompted a rise in oil prices of around half a percent. But the dollar quickly recover and again this morning against the euro ahead as both currencies are exchanged at a rate of 1,2635 EUR / USD. This is reflected in the oil market, where this morning the black gold of the earnings lost during the night and move to a growth of 0.25 per cent yesterday to 71.83 dollars a barrel.
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The risk of new recessionary bottom increased during last six months, claims the president of the Federal Reserve in Chicago Charles Evans. New recessionary bottom is still the most likely scenario to the U.S. economy, but I am concerned about the strength of the recovery, “he said. High unemployment and a strong housing sector concerned do so fragile recovery, says Evans. It provides that unemployment, now 9.5 percent, remain high in the foreseeable future. Against this background, he said, ultra-expansionary monetary policy the Fed is appropriate. Evans argues that the securitization process by which mortgage loans are converted into packets of bonds sold to investors, reducing the incentive for creditors in the restructuring of troubled home loans. He said efforts to restructure these loans to prevent defaults are “drop in the ocean. Securitization appears a conflict between the interests of creditors and those companies serving the process, he says. The U.S. housing market collapse is already three years as construction is only 25% of their peak levels, and prices fell sharply across the country. Many economists fear that without the driving force behind the housing sector, economic recovery will take longer than usual. Shortly after Evans comments were exported data for sales of existing homes in the U.S. fell more than expected to 27.2 percent on a monthly and 25.5 percent yoy in July, reaching its lowest level since data began to be kept in 1999
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New week would probably passed as well as the previous – with a relatively limited number of corporate news, low liquidity and routine economic indicators. However, this poses its own risks and, as it is a low liquidity market movements can be quite sharp and dangerous. Late summer is typically a period in which investors monitor market movements from the beach – season completed reports, and most institutions have made an important decision for the economies are in summer vacation. It is the stagnation in the corporate sector is the main reason not to expect major turmoil in the market. During this week of U.S. data expected new housing market, which will be published tomorrow and Wednesday. Also on Wednesday are expected news on durable goods orders, and on Thursday are scheduled for initial unemployment data. Exactly they managed to stretch the market last week, pushed him down after a surprising increase in the requests for assistance. Most important news for the U.S. will come on Friday and are associated with preliminary data on gross domestic product for the second quarter. On the same day and is expected speech Federal Reserve Chairman Ben Bernanke.
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The investors spend their money in bonds, are willing to invest money in almost anything you offer them market. In this situation, bankers are willing to undergo a test that claim – through the issuance of bonds maturing in 100 years, says the Wall Street Journal. Bonds with longer period as is considered very exotic, they may be issued only by the most powerful companies in the world – those that can be expected that the next century will be on the market. Hundred bonds were in fashion in the mid 90’s and the beginning of the century, when several companies were able to put such issues. Most of them were released in 1993, 1996 and 1997. This type of instruments are used quite rarely, because the issue should be offered a serious premium over 30-year bonds. The current record low historical interest rates lure companies to issue long-term debt. The reason for this is that companies can borrow cheap loans from banks and do not have to pay higher interest on bond issues. If issued, 100-year bonds will pay principal prior to 2110 – the year in which in all likelihood, today’s investors will be among the living. The main risk in these securities is that interest rates can jump so as to reset the bond face value. In view of market developments over the past decades, so it’s not sounds amazing. That is the reason for the skepticism, which sees the desire to place such term bonds.
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The European banks will be subjected to more frequent stress tests to be strengthened, thus investor confidence in the banking system in the old continent. It told the Bloomberg European Commissioner for Economic and Monetary Policy Commissioner Olli Rehn, specifying that regulatory authorities in the European Union (EU) to consider in what interval to repeat testing of credit institutions in Europe. According to Olli Rehn, stress tests are very important and useful tool for restoring confidence in the financial system and ensure transparency in the banking sector. He added that through them that will provide information for making a solid and reliable analysis of its condition. Olli Rehn plans to discuss the introduction of more frequent testing of banks with the 27 EU finance ministers at the meeting with them, which will be held on 7 September in Brussels. Financial regulators in Europe each year to undergo stress tests the largest banks in the EU. In July were tested 91 of the largest European banks, which account for 65% of the banking industry on the continent. Of these, seven did not pass, including Germany mortgage lender Hypo Real Estate Holding, Greek Agricultural Bank of Greece and five savings banks in Spain. Tests showed that they have enough capital to avoid bankruptcy in case of re-recession and depreciation of government securities.
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The stock market indexes in Asia and the Pacific region resumed its upward movement today after the largest automobile company in the world – Japanese Toyota, increased its forecast for profit this year because of increasing sales in the U.S. and Asia. Tokyo stock indexes are best presented during today’s session, led by shares of Toyota, which rose 3.4 percent. The company management said it expects net profit of 340 billion yen (3.98 billion dollars) for the fiscal year to March 31st, 2011. Previous estimates had a positive financial result of 310 billion yen. The main Japanese stock index Nikkei 225 rose 1.7 percent to 9 653.92 points while the insurance protection from bankruptcy, the Japanese state fell to its lowest level in three months. The rate of the yen has remained almost unchanged against the dollar today after yesterday jumped to its highest level in 15 years. Stock optimism in Japan was also supported by remarks of the Prime Minister of the country forms of the Khan, who said the government is prepared to grant a new impetus to the economy by using the current budget provisions. He fears that high unemployment and expensive yen would hurt the economic recovery of the country.
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