Financial Communique » business

Germany was complicit in irrational credit practices of Greece

Viliyana Filipova — Sun, 05 Feb 2012 16:19:41 +0000

A little more than a week the German government proposed “Budget Commissioner” of the euro area to exercise direct control over the budget of Greece. With this proposal, Berlin, Athens asked to give up its sovereignty in the name of financial assistance, to prevent the bankruptcy of our southern neighbor. Although the European Commission (EC) rejected the proposal, it is not sunk into oblivion. Greece can not settle with its creditors, which leads to two outcomes for the country: either declare bankruptcy or to continue negotiations with the private sector, the European Union (EU) and International Monetary Fund (IMF), says the CEO of American company Stratfor Strategic Analysis and reputed political scientist George Friedman. In his agreement with its creditors Greece will consist of three parts: the forgiveness of the debt, additional financial assistance from the EU and IMF agreement to limit government spending and raise taxes so as to avoid future sovereign crises or at least to be paid to the Greek debt. The Germans certainly do not believe the Greeks, as the latter have not met already made commitments to creditors. That lack of confidence led to the proposal for budget control, but it would be okay, if it is a corporation or a private person, says Friedman. Such a request from a nation state, however, is unacceptable according to the analyst. State is based on two premises. The first is that the nation state is unique legitimate community whose members share a common range of values and interests. The second condition is related to the occurrence of the state. Friedman points out that this happens in people’s will and only has the right to determine state action.
“There is no doubt that Greece is a nation and the government in Athens in accordance with the principles of the state is responsible to the Greek people,” wrote Friedman in his analysis. Germany claims that Greece has failed as a country, for which creditors have a moral right and power to suspend the principle of national self-determination. This is a very radical concept and it is important to understand how it came to her, wrote in the analysis of the expert. The reasons he says are two. First Greek democracy, and many other democracies, requires the state to the benefit of people. Politicians in Greece who want to be selected to provide guarantees for those benefits. Hence the pressure for excessive costs. The second reason, according to George Friedman is associated with the status of Germany as the second largest exporter in the world. About 40% of German gross domestic product (GDP) is formed by exports of the country, most of it is for the EU. Therefore Berlin’s interest to increase demand and consumption, otherwise the country would be depressed.

Starbucks started partnership with Tata

Viliyana Filipova — Mon, 30 Jan 2012 22:27:48 +0000

Shortly after the U.S. coffee chain Starbucks reported record results for the first quarter of the current financial year, it became clear that the company intends to enter India. The chain will open its first facility in India in August. Entering the local market will be in partnership with the manufacturer of tea and soft drinks Tata Global Beverages, part of conglomerate Tata Group. By the end of the year the company expects to have 50 new branches throughout the country. Although Indians are known as a connoisseur of tea, the taste of coffee is more beloved. “We are witnessing an evolution in the style of life in India. More and more Indians try to fit in your standard of living and lifestyle of international standards, “says the opinion of the joint venture. The entry of Starbucks in India will continue expanding the company’s Asian and Pacific markets, which currently generate more revenue for the company compared to U.S. business. For the first decade of the century coffee consumption in India has almost doubled to 108 thousand tons, and last year in India, there were 1,600 coffee shops. President of Starbucks to China, Asia Pacific, John Culver expects growth of 30% for 2012.
Earlier this month the Indian government changed the number of laws that were abolished restrictions on foreign investment to chain retailers. Under the new laws international companies hold over 51% of local companies must obtain at least 30% of raw materials and goods in the local market, recalls Bloomberg. Starbucks already has signed a contract for the supply of coffee with Tata Coffee, a subsidiary of Tata Global Beverages.

The business climate in Germany is beneficial

Viliyana Filipova — Sat, 26 Mar 2011 11:00:14 +0000

The business climate in Germany is estimated to be extremely good and beneficial to the local companies in the industry and commerce in March. This monthly survey of the Munich research institute Ifo, confirmed that the upswing in the German economy continue. The results of this is that the German companies assess conditions for doing business in the country is still as extremely favorable. This indicates the Ifo index of business climate in Germany, which decreased to 111.1 points, but remains near its record high value of 111.3 points recorded in February. A fall in the Ifo index in March was due entirely to the expectations of companies’ business environment over the next six months worsened slightly. The index rose significantly last year, when the German economy achieved record for the past 20 years growth rates of 3.5 percent and went up over the past nine months. The economists expected the index to drop more then 110.6 points in March. He is among the most important benchmarks for prospects before the German economy, which generates about 19% of the GDP of the EU. Ifo institute indicated that a slight worsening expectations of German companies this month due to severe earthquake in Japan on 11 March and disaster in Fukushima.
The EUR lost 0.1 percent against the dollar in today’s session and currency as of 12:55 pm local time, one EUR is exchanged for 1.4159 dollars.

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.

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.

70% from the companies are planning more expneses for the climate changes

Viliyana Filipova — Wed, 26 May 2010 05:35:14 +0000

70% of companies with revenue of $ 1 billion or more plan to increase spending on initiatives related to climate change in the next two years, according to global study commissioned by Ernst & Young and said. Nearly half of 300 directors of companies surveyed said that their investments related to climate change will vary from 0.5% to over 5% of their revenues by 2012. 82% of respondents indicated that they plan to invest in energy efficiency over the next 12 months, while 92 percent believe that energy costs will be an important factor during this period. The heads of companies commit to taking action, although said that complying with different regulations in different countries will be a challenge. The fact that 70% of company bosses are planning to spend more for programs related to climate change is “one of the amazing discoveries, the study indicates Melanie Steiner of Ernst & Young. Despite regulatory uncertainty on climate change “companies really take action because they see that this is a business issue and opportunity to generate new revenue,” said Steiner. While action to tackle the consequences of climate change in the past been a question in the field of public relations today are able to make money through new services and products, savings through better efficiency and reducing the risk, she adds.
The study was conducted by independent company Verdantix anonymous in methodology. Respondents were from 16 countries: Australia, Canada, China, Denmark, Finland, France, Germany, Iceland, India, Japan, Norway, South Africa, Sweden, Switzerland, UK and USA. Are covered 18 different sectors ranging from airlines to media, consumer products and real estate.

Mergers and acquisitions worldwide are gaining power

Viliyana Filipova — Thu, 25 Mar 2010 11:46:17 +0000

Mergers and acquisitions worldwide are gaining momentum in the first quarter of the year in the last three months were made over 2 thousand cross-border acquisitions and hostile takeovers 10. To contribute to this recovery in the global economy and stock market rally over the past 12 months. The value of takeovers increased by 5% annually during the first three months of this year to 498.24 billion dollars, cited by Bloomberg. Hostile acquisitions recorded growth of over 300 percent to 17.46 billion dollars. According to Mark Sharif, head of the Department of mergers and acquisitions for Citigroup, acquisitions may increase by 15-20% by the end of this year, provided that the global economy to shrink again. Last year, the realized value of acquisitions fell by 27 percent to 1.8 trillion. dollars, which is the lowest level for the past six years. Citigroup is one of the largest consultants in this field, she managed the sale of Asian life insurance unit of AIG, which was bought by Prudential of Britain’s 35.5 billion dollars earlier this year. It is the biggest deal in the market of mergers and acquisitions this year. Among the biggest deals this year and became hostile takeover of British chocolate maker Cadbury on the U.S. food manufacturer Kraft Foods. After four tense battle Cadbury has been absorbed by Kraft Foods for an amount of 21.4 billion dollars in February this year.
Hostile acquisitions this year include a number of companies in the pharmaceutical and chemical industries. Much of the acquisitions were made by companies operating in neighboring countries, which enables them to expand their markets. In Latin America, much of acquisitions in the food industry, extractive and telecommunications sectors. Most companies, however, are active in the Asian region where mergers increased by 100% yoy to 185.5 billion dollars in the first quarter. Thus it is close to the amount of acquisitions in the U.S., which has 250.5 billion dollars for the same period.
The biggest consultant in mergers and acquisitions in the world is U.S. investment bank Goldman Sach, followed by Swiss Credit Suisse, German Deutsche Bank, and U.S. banks JPMorgan and Citigroup.