Financial Communique » Barack Obama

The increased debt limit in USA grew the crude oil prices

Viliyana Filipova — Mon, 01 Aug 2011 08:42:59 +0000

The crude oil prices started the new week with a promotion that night after Barack Obama announced that he had agreed to lift the ceiling on the debt of the United States. This prompted optimism in the market since at least in the short term threat of default on U.S. debt disappeared. The electronic platform of the New York Stock Exchange oil contracts for delivery in September increased its price by 1.2 percent to 96.87 dollars per barrel. Earlier in the night the price of black gold moved with an increase of 1.7 percent. Traded in London Brent oil price increases with 1.2 percent to 118.15 dollars a barrel.
The increase in oil prices contributed data to higher than expected manufacturing activity in China. The index, which tracks attitudes of managers in the sector has given way to 50.7 points in July. Expectations were to shrink to 50.2 points in June after its value was 50.9 points.

US Government approved BHP Billiton feeler

Viliyana Filipova — Mon, 14 Mar 2011 10:09:55 +0000

BHP Billiton won the second state to permit drilling in the deepwater Gulf of Mexico since the explosion of the BP platform in the Gulf in April last year led to the disaster with large amounts. The Australian company BHP will use equipment to Helix Energy Solutions Group in the event of an explosion. The first permit drilling in the Gulf, awarded after the explosion, was for Noble Energy. It was granted on 28 February, after rising oil prices because of riots in North Africa and Middle East increased calls from Republicans in Congress to restore the work of oil companies at bay. At a press conference at the White House on Friday, U.S. President Barack Obama said his administration encourages exploration and extraction in deep water, but does so in a responsible manner. The crude oil production in the U.S. Gulf has reached record levels in 2010, has advised Obama. The administration of the White House bans mining in deep water after the explosion on the platform of BP. The moratorium was removed on 12th October, but according to latest news this will be passed and the crude oil production in the Mexican bay will continue in case to stabilize the crude oil crisis.

USA extended the embargo against Cuba

Viliyana Filipova — Fri, 03 Sep 2010 05:32:16 +0000

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.
Pirated copies of Windows 7 available for months on the black market, while last hit movie, James Cameron’s “Avatar” is broadcast on Cuban national television in February. “The reality is that American products and services offered in Cuba whether companies that manufacture them, sell them there or not,” said Jack Kolvin, vice president of the National Foreign Trade Council. “Worrying point is that U.S. companies get nothing for it,” he added. According to the Washington-based Business Software Alliance in 2009 63% of software in Latin America worth 6.2 billion dollars was unlicensed. In Cuba, the proportion of pirated software is about 80%, if not higher, analysts indicate. “Until you fix your relationship as the two governments begin to talk and do not establish diplomatic relations, ensuring the rules of doing business, you can not solve the problem of piracy,” says Kolvin. In April, Obama has removed many restrictions on travel to Cuba for U.S. citizens of Cuban origin.

Weak expectations for a breakthrough at the meeting of G-8 in Canada

Viliyana Filipova — Sun, 27 Jun 2010 10:25:40 +0000

The leaders of the eight most industrialized countries have different views on how to ensure recovery of the world economy. The G-8 in Huntsville, Canada the weekend will probably show the direction of meeting the broader group of G-20 meets on Sunday in Toronto, Canada, shortly after the G-8 completed work. Agency notes that expectations for a breakthrough on economic issues the Summit of the G-8 (Group of Eight most industrialized countries) and D-20 (which includes large emerging countries like China and India) in Canada are weak. According to the Wall Street Journal, however, world leaders have converged positions on whether the economic focus should be on growth or on reducing the deficits and debts. “Among the G-8 consensus on a balance between mid-term tightening of fiscal policy and promoting growth, said on Friday a senior official of the administration of the US President Barack Obama. The G-8 and donor groups have promised to make 2015 a total of 7.3 billion dollars to reduce child mortality and maternal in poor countries, transmit dpa, referring to the Canadian Prime Minister Stephen Harper. The eight most developed industrialized countries are committed to allocate $ 5 billion. The rest of the amount promised by countries like New Zealand and Norway, as well as donor groups such as the Foundation of the Bill and Melinda Gates. U.S. President Barack Obama invited 18 African leaders to come to Washington in August to celebrate the 50th anniversary of independence of their countries forward AFP, citing a senior U.S. delegation to the summit of the G-8. Obama will launch in early August a special event to mark the coming of a half century of independence of these former colonies.
The signs of deep discord among participants in the meetings of the G-8 and G-20 of this rate with what the governments should reduce their deficits, touched on Friday the financial markets. Americans warned of the dangers of dual recession, if the parties suddenly start reducing your costs. Leading European economies, especially Germany placed new emphasis on reducing government outlay and expected by some G-20 may adopt a statement on Sunday, to determine an indicative timetable for the size and pace of contraction in government spending. British daily points out that the desire of Canada is the host G-20 proposal to adopt the national deficit to be cut in half by 2013. The U.S. President Barack Obama urged leaders of member countries of G-20 to join efforts to achieve economic growth, saying that world economies are “intrinsically linked with one another.”

USA will follow economy growing in each case

Viliyana Filipova — Fri, 18 Jun 2010 12:09:26 +0000

U.S. intends to pressed their economic partners of G20 is not rash with plans to tighten fiscal policy, while recovery in the global economy still looks uncertain, says the Wall Street Journal. U.S. President Barack Obama expressed concern that the context of fragile global economic recovery may again fall into a recession if government incentives are withdrawn too quickly, as happened during the administration of President Herbert Hoover in the 30 years past century, soon after the start of the Great Depression. Obama will call on leaders of the G20, which will meet in Toronto this weekend to extend their programs to stimulate the economy and thereby promote economic growth. Meanwhile, governments worldwide adopted measures to cut spending and tightening fiscal discipline. Especially wary European leaders have proved over the situation in Greece, where the huge debt and the prospect of bankruptcy of the state scared investors and led the European Union and the International Monetary Fund to adopt a rescue plan for nearly a trillion dollars. Representatives of the Chinese government stressed that if the programs to stimulate the economy be maintained, this can create financial bubbles that will generate risk. Analysts say one reason why China announced on Saturday that will allow some flexibility in its currency, is inflation, making the country imports more expensive. Furthermore, fiscal policy and other topics, which are expected to be discussed at a meeting in Toronto, have low levels of consumption and large trade imbalances of Germany and Japan.
Canada in turn calls for double reduction of budget deficits by 2013. Administration officials in Washington said that the apparent difference of the G20 are just the surface. He stressed that all work in the same direction – to gradually restrict government programs to stimulate the economy, the markets are convinced that governments will be able to reduce its budgetary deficits over the next 3 to 5 years. The pace of reduction in state funding is vital for the world economy is gradually recovering from deep recession. Main debate is what constitutes a greater risk to growth – reduced demand and escalating debts? Theme number one discussions will be how fast to download packages to stimulate the economy, “said Kenneth Rogoff, former chief economist of the IMF. “The U.S. is at one extreme, pursuing economic growth at any cost, while other countries are more cautious.”
Economists say Obama, if the level of government funding is reduced too quickly, it will negatively affect demand, which in turn will undermine growth and the world will be facing a new recession – a scenario known as the inertia of Hoover.

Soros has called for radical reform of the banking sector

Viliyana Filipova — Mon, 01 Feb 2010 01:41:25 +0000

The legendary investor George Soros called from Davos to radically reduce the size of banks that are too big to be allowed to fail transmitted BBC. At the World Economic Forum, he spoke in support of U.S. President Barack Obama in his attempts to separate commercial and investment banking. According to him, however, even after such action, most investment banks will still remain too large to fail. To control these banks, all major economies need to rally around strict rules to limit the risk – how much money banks can borrow to invest, “said billionaire. He acknowledges that it will be difficult to determine the exact ceiling on leverage, but that governments have enough time to develop a global regulatory framework. George Soros called the current economic crisis “super bubble” which was created by the system itself, and was the culmination of a series of smaller balloons in the last 25 years, and unsuccessful attempts to remove them. They add balloons were caused by facilitated credit and high financial leverage. As regulators and bankers were wrongly believed that markets are efficient, Soros continued, and were blinded by ideology that they should always be less regulated. And when the bubble burst, governments and regulators to further worsen the situation by reducing interest rates make money cheaper and thus to the mortgage crisis in the United States, which rocked the entire financial system.
Soros also warned politicians to prevent hasty and ill-considered regulation. According to him it is wrong to impose high taxes on the profits of banks, because the crisis is still not fully overcome.

The series of economic news in the U.S. decreased the indexes

Viliyana Filipova — Sat, 30 Jan 2010 17:22:32 +0000

Plenty of economic news, quarterly financial reports and data on the labor market in the U.S. made investors on Wall Street to take a cautious stance at the beginning of today’s trading session. The U.S. President Barack Obama confirmed that the creation of new jobs in the United States will be a major priority of the government this year in his statement before Congress. Meanwhile, in the Swiss resort town of Davos to hold the World Economic Forum, and today French President Nicolas Sarkozy called for a thorough rethinking of capitalism and criticized the scheme for payment of bonuses, which have no relation to the quality of management. Participate in the forum and renowned investor George Soros, who called for reducing the size of banks. Before the start of the session weekly data on new applications for unemployment benefits showed that initial unemployment in the United States remains relatively high during the past week. Moreover, the data were disappointing for the orders for the production of durable goods, whose value increased four times less than expected by 0.3 percent on a monthly basis in December. Among the most important quarterly results are those of carmaker Ford Motor, which came to an annual profit for the first time since 2005 and those of the communication company Motorola, which returned to profit in the fourth quarter of 2009, Procter & Gamble, involved in the index Dow Jones IA, turn out a profit of 4.66 billion dollars for the last three months of 2009
The index of the largest and most frequently traded U.S. companies stock Dow Jones IA decreases by 0.7% to 10 169.66 points an hour after the start of trading. The broad S & P 500 gave up 0.6% to 1 091.49 and the Nasdaq Composite, which brings together companies from Nasdaq, retreated to 1.2% to 2 194.09 points. Top losers today are technology and extractive companies. Friday’s session ended with the rise of the indices after the U.S. Federal Reserve left the Fed funds rate unchanged in the range from 0% to 0.25% and confirmed that the country’s economy continues to recover from the crisis, but slowly. Shares of technology giant Apple cheaper by 4% to 199.96 dollars on the stock exchange Nasdaq, after chief executive Steve Jobs introduced the long-awaited Tablet PC yesterday iPad. He was expected to mark the next chapter in the company’s development, but initial estimates for it are quite controversial. For the last 12 months, shares of Apple have risen by 112%.

No hopes for soon agreement on emissions

Viliyana Filipova — Mon, 07 Dec 2009 14:58:25 +0000

The European Union today rejected new emissions targets proposed by the United States and China, on the ground that are too low to prevent catastrophic climate change, forward Journal Times. The dispute between the three main forces of the summit on climate change in Copenhagen darkened first day of negotiations and shattered hopes that will soon be reached on emissions. The EU has called U.S. President Barack Obama to announce higher goals next week when he will come to Copenhagen for the last day of the conference – 18th December. Representatives of the United States, however, insist that the proposed emission occurs before 10 days after Barack Obama was “remarkable” and in line with the recommendations of scientists. Obama suggested the United States emissions to be reduced by 4 percent compared to 1990 levels until 2020 did the EU have committed to cut emissions by 20 percent over the same period. Moreover, the EU is committed to the reduction to 30 percent if other countries are ready to take “such action”.
Andreas Karlgren, Minister of Environment of Sweden and the EU’s chief negotiator, said that proposed by the United States and China targets are too low can be defined as “similar acts”, so the EU would not confirm its goals.