Throughout its history, dating from the 16th century, private banks in Germany have experienced two world wars, the Great Depression and financial crisis, but now face a different challenge – new regulations. M.M. Warburg & Co., Berenberg Bank, Bankhaus Lampe, Hauck & Aufhaeuser Privatbankiers and B. Metzler seel. Sohn & Co., The largest private banks in the country, argue that their conservative strategies are translated them through the credit crunch. However, their performance will not exempt them from the proposed new regulations designed to improve market stability and to limit the risks of their larger public competitors Deutsche Bank AG and UBS AG. “All banks, no matter what wine to bring the crisis will be affected,” says Van Volker Ruth, a partner at Hauck & Aufhaeuser. “For the moment it is unclear how regulators will distinguish between banks that had a healthy policy and those who have followed higher-risk models,” he added. On August 25 the cabinet of Germany’s Chancellor Angela Merkel approved measures requiring banks to Germany invest in the fund, designed to shift the cost to rescue troubled financial institutions in future financial crises from taxpayers to the banking system. According to the draft banks will calculate the amounts to be imported into the new fund, according to their assets and risks incurred. According to government estimates in the new year fund will come around 1.3 billion. Under the new regulations proposed by the Basel Committee on Banking Supervision (BCBS), private banks may be faced with higher capital adequacy requirements and liquidity as well as new restrictions on how many can borrow. In BCBS members of regulatory authorities and central banks from 27 countries. To fulfill the requirements of regulators, banks may be forced to devote more funds to carry out transactions, information technology and its employees, which will affect its profit.
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The value and number of transactions in the mining and metals industries are expected to soar due to global competition to secure raw materials, said in an analysis prepared by Mike Elliott of Ernst & Young. The number of transactions in the first half of 2010 is 20% (544) over the same period the previous year, while the value of transactions is 46% greater (40.6 billion dollars). “The activity of transactions has increased at the end of 2009 and continues gaining momentum,” added Elliott. In his analysis is that “expectations are diversified global investment in mining to show desire for new acquisitions. In this connection, we will probably witness a significant association of North American market, which in the first half of 2010, dominated in large deals and this will continue over the next 6-12 months”. While Australia was a leading investment destination in 2009, Canada leads the first half of this year, Latin America also demonstrate the growth of sensitive activities. Security of resources continues to be a driving force for growth of transactions in the production of metals. Other factors that contribute to the process are improved cash flow and availability of capital for transactions. As for raising funds for financing preferred shares remain a source of capital in the sector, says the analysis of Ernst & Young. Until last year, primarily large enterprises in the mining industry have taken their capital increase, this year, medium-sized companies are more active in raising funds from the market.
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The U.S. President Barack Obama continued for one year trade embargo against Cuba. President underlines that punitive measures “comply with the national interests of the United States. Thus, sanctions remain in force until September 14, 2011. Trade embargo in 1962 and aimed to overthrow the communist government of the island, prohibits links to U.S. companies in Cuba. The only exception is allowed for trade in agricultural products and some medicines. The unofficial position of Cuba is that the embargo restricts access to so many products that compels people to resort to piracy, says Reuters. Several weeks after the premiere of the comedy “Murderers” in the U.S., the film can now be seen in the cinemas of communist Cuba about 9 U.S. cents. Strip adventures of Ashton Kutcher as a CIA assassin and is available on DVD. The problem is that the film will be officially released on DVD on September 7 in the U.S. and even then, because the U.S. embargo against Cuba, it can spread to the island. The years of embargo against Cuba cost the American business and countless missed opportunities at the same time the island became a haven for pirated goods. Although the embargo prohibits U.S. companies such as Microsoft’s software export to Cuba, the island’s most computers have installed unlicensed versions of the operating system.
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The stock Exchange of Thailand reached their highest levels since 1996 in the first September session, after the political situation in Asian countries has improved considerably over the past three months. The increase in gross domestic product (GDP) and the financial performance of local companies during the second quarter, meanwhile, improved investor sentiment about the largest economy in Southeast Asia. The Chief of Thailand SET stock index advanced by 0.6 percent to 918.31 points, led by banks and energy companies. It’s time to end the session at the highest level since December 1996 when the Asian financial crisis dealt a severe blow to most securities markets in the region. Of Thailand Baht more expensive in turn by 0.4 percent to 31.17 baht per dollar, which is at its strongest rate since March 2008 onwards. SET was up 27 percent from its lowest point this year, which reached in May during anti-government protests in the country, which killed 89 people. Because of political tensions in Thailand, foreign investors sold shares of local companies for a record 1.9 billion dollars in May. In August, they bought shares for 505 million dollars, one of the most active investors in the country is known investor Mark Mobius.
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Ten U.S. banks that have received assistance with rescue money taxpayers have spent over 16 million dollars for lobbying during the first six months of the year. Money is spent to influence the participants in the debate on financial sector reform in the U.S. The regulatory data show that the ten banks that have received the largest share of state aid in 2008 and 2009 spent a lot to influence the views of members of Congress, representatives of the White House, Treasury, Federal Reserve, and some of the federal agencies involved in designing the new regulatory framework. “I’m not surprised that these banks have spent so much money because I saw every day how it happens,” said Ed Mirtsvinski, director of the US Public Interest Research Group. He said reform of the financial sector have worked over 2000 lobbyists. The new regulatory framework, signed by President Barack Obama in July, with volumes in 2300 pages and outlines new rules for derivative trading, charging and regulation of transactions with debit and credit cards. Many of the new rules laid down by banks as too harsh and cause discontent. The sum of 16.32 million dollars set aside for lobbying during the first half, with 26 percent more than the money allocated to this activity for the same period last year.
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Manufacturing in China increase its growth rate in August, which fell to its lowest level since early 2009 in July. Better than expected data on Chinese industries have shown that Asian country is able to maintain its growth momentum despite the economic climate deteriorated globally in recent months. Index of business activity in the factory sector rose to 51.7 points in August compared to 51.2 points in July. Its value lies within the area of growth over 50 points for the 18th straight month, topped market expectations, as reported by China Federation of Logistics and purchases (CFLP). They were in line with those of HSBC Bank Institute and market Markit Economics, which in turn is calculated index of business activity in the manufacturing sector of China. Its value for August rose to 51.9 points in July after having fallen to 49.4 points. The growth of manufacturing sector in China in August soothe concerns that the gross domestic product will significantly reduce its growth rate in the second half of the year. Oil prices rose, while the regional MSCI Asia Pacific Index advanced by 0.5 per cent in the first September session in Asia. China’s GDP grew by 10.3% yoy in the second quarter, reducing its growth rate to 11.9 percent growth recorded in the first quarter.
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