Usually in the years of financial crisis and bankruptcies of hundreds of banks in USA and all over the world, the payments for the credits and credit cards are heavy weight for all the people. The bank charges are really pretty large for the customers, but interference in the operation of banks is against the marketing economy. The global economy escaped from financial crisis, but still the customers are against serious offense of increasing debt and expenses for their credits. The reclaiming ppi of the main European and USA banks are still quite high in spite of the large competition against them. The financial analyzers still claim that governments should get in charge of taking control over the bank taxes. Simple example for this was the last days project of Bulgarian Financial Ministry to limit the credit refund charges to 1% from the price of the credit. This should decrease the weight of the credits and their payments. The financial and insurance companies are usually having some extras for the credits, just like payment protection refunds, but this really is not enough for the customers to have undoubtly payments of the monthly taxes. Really financial institutions are having very difficult situation, while managing their business in the years of bankruptcies, economy decreased and unstable business.

The European shares turned away from six-week reached bottom after the Irish government unveiled a four-year plan for deficit reduction and negotiations for the rescue of banks in the country coming to a close. The positive effect on the performance of the indexes in Europe have had data on initial claims for unemployment benefits in the U.S. last week fell to its lowest level since July 2008, The Pan-European Stoxx Europe 600 index rose 1% to 266.29 points. Yesterday, the index dropped to its lowest level since October 12 because of growing concerns that the debt crisis will spread from Ireland to Portugal and Spain. The major national indexes rose in 14 of 18 western European markets. Britain’s FTSE 100 rose 1.4 percent to 5657.10 points, France’s CAC 40 won 0.6 percent to 3747.61 points. The main stock index in Ireland – ISEQ, rose 0.8 percent after yesterday dropped 3.4 percent. The most reported a strong increase in the German DAX – by 1,8% to 6 823.80 points. Today was exported data on business confidence in the country, which unexpectedly rose to a record level.
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Euro recorded strong growth of over 2 percent against the U.S. dollar yesterday, gaining support from weak U.S. economic data and encouraging signals of financial stability in the euro area. This caused a significant drop in the price of oil and gold, which yesterday lost more than 3% of its value. The single currency has reached the level 1,25 EUR / USD, which is its highest value since June 21. The appreciation came after news of another problem in the U.S. housing market and because of data problems in the labor market and the slowing of production activity. Meanwhile, the ECB yesterday organized an auction for commercial banks’ lending, which was used quite a bit of financial institutions. This and the success of the bond issue in Spain, have strong support of the single currency. On the New York Stock Exchange yesterday, oil contracts with delivery in August dropped by 3.5 percent to 72.95 dollars a barrel. This is the lowest cost of raw material from 8 June onwards, and earlier this morning quotes remain at the same level. This means that travel week black gold has dropped by as much as 7.2 per cent, taking the greatest decrease in the week since May 7.
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The G-20 does not give the desired impetus to investors in Asian trade today, it is felt by most of the shares in the region reported a decline. After meeting the most developed economies, held in Canada this weekend, was circulated communique, which gives a greater grace period for banks to increase their capital and liquidity and which promises to strike a balance between fiscal consolidation (reducing the deficit ) and the ongoing measures to stimulate the fragile economic recovery. Meanwhile, one of the biggest players in the forex market – John Taylor, who runs the biggest currency hedge fund FX Concepts LLC stated that “we are very scared some owners euro. Taylor predicted with great accuracy the decline in the single European currency had two months, said he hoped the depreciation of the euro should not last longer than August. Asia-Pacific MSCI Asia Pacific Index closed with a fall of 0.1 percent. Nikkei fell 0.45% (due mainly to the strengthening of the yen forex market that Japanese exports more expensive), Hang Senga rose by 0.49%, Shanghai Composite fell by 0.58 percent, while South Korean Kospi index rose by 0.13 percent, says Finance.news.bg . Before the official start of trading in Wall Street index S & P 500 reported a decrease of 0.1%. European index futures 600 Euro Stoxx went up after last week they reported the first index to decline last month. FTAE100 futures rose by 0.6%, the DAX by 0.5% and 0.9% CAC40.
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The British economists have suggested the Greek government to rescue its economy abandon the euro and declared bankruptcy on its debt of 300 billion euros, says the Times. London-based Centre for Economics and Business Research (CEBR) warned the Greek ministers that will be able to escape the debt trap of the country, unless it devalued its currency to encourage exports. The only way this can happen is to return to Greece its own currency – the coin. Greek politicians rejected the idea of leaving the euro area would lead to disintegration of the single currency. “Leaving the euro would mean that the new currency will be cheaper at least by 15% and as the national debt is measured in euros, it would automatically increase the level of debt of 120% of GDP to 140% of GDP,” said Doug Makuilyams, executive director of the CEBR, during talks in Athens yesterday. “So part of the idea of leaving the euro is Greece unilaterally convert debt into the new local currency. Separation of Greece to the euro would be a disaster for Germany and French banks, which Greece owes billions of euros. However Makuilyams sets this development as “practically inevitable” and added that other eurozone countries could follow suit in Greece.
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The crude oil price is back below $ 70 a barrel last night, blotting out its minimum height of yesterday’s trading session in New York. The decrease is mainly due to renewed subsidence of the euro, which in turn is under pressure because of problems in the banking sector in Spain. At the time the single currency is moving to a serious decline 1,2280 EUR / USD, which is a retreat from more than 100 pips for the night. This is due to fears that Spain is facing a banking crisis, since Saturday the country was nationalized Savings Bank CajaSur. Exchange in New York yesterday, the price of U.S. light crude rose 0.2 percent to 70.21 dollars a barrel. At night, however, quotes about lost 1.5 per cent this morning raw material traded on 69.13 dollars a barrel. Yesterday in London Brent with delivery in July fell 51 cents to 71.17 dollars per barrel, but this morning the price of raw materials fell by more dollars to 70.17 dollars a barrel. The price of crude oil supported the strong US Dollar and in end of Asian markets session, the USD reached new high levels.
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France and Germany intend to launch a new project for economic cooperation and assistance within the euro area. This would include the creation of a European Monetary Fund, resembling the structure of the International Monetary Fund, said senior government sources quoted by the FT. Intentions are to create rules and tools for preventing the occurrence of instability in the whole euro area from the problems of a single country. Right now this is the situation with Greece, whose budgetary problems negatively affect the whole community. The first beginnings of that plan were announced by the finance minister of Germany Wolfgang Schäuble, who announced the intention to create a fund similar to the IMF. “I support greater coordination of economic policies within the EU and the euro area,” Schäuble said in an interview with German newspaper Welt am Sonntag. If France and Germany fail to reach agreement, which has lobbied for some time Paris, they probably will create the basis for the most radical reform of the euro in 1999 onwards. At present, neither Germany nor France Greece supported the proposal to have recourse to the IMF. This is another argument for establishing a European support fund, which, however, is unlikely to happen fast enough to help Athens, indicated by the FT.
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In less than an hour after the opening of auction the sale of a 5-year Greek government bond was declared interest securities 9 billion, says Reuters. Market expectations of the Greek government was neighbor to distribute securities up within the framework of 3 to 5 billion, says Finance.news.bg. According to various sources of interest for the purchase of securities worth 16-17 billion. According to a banker involved in today’s auction, the average price achieved for this auction is for approximately 350 basis points interest rate spread. Thus the yield of 5-year Greek bonds is now at 5.97% to 2.32% return for their German equivalent (Bunds). This very successful auction and lead to a decline in interest rate spread between 10-years Greek and German bonds to 297 points after earlier today spread was 309 points to a record peak on Friday at 318 basis points. The news caused contraction of the interest spread between 10-year debt of Spain / Germany by 5 basis points to 87 points. The news helped to a strong surge in share prices of Greek banks on stock markets around 4 percent since the last weeks they were subjected to aggressive sales.
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The price of crude oil fell in Asian trade because of fears that lending in China will reduce the pace and because of expectations that stocks will rise in the U.S. for the third consecutive week. Among the reasons for the decrease in cost of raw materials and the growth was the dollar to levels of 1.4196 EUR / USD at 1.4288 EUR / USD yesterday. U.S. light crude for delivery in February fell by 82 cents, or 1 percent to 78.20 dollars a barrel in afternoon trading on Asian trade. Today is the last trading day of the February futures. The more active the March contracts fell by 72 cents, or 0.9 percent to 78.60 dollars per barrel. Yesterday the price of raw materials rose by 1.02 dollars or 1.3 percent to 79 dollars for barel.
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