Financial Communique » expected

Jump of deals in mining and metals industry is expected

Viliyana Filipova — Sat, 04 Sep 2010 04:17:00 +0000

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.
“Even some time we will continue to see a preference for self raising capital due to lack of options to bank loans, especially for medium-sized companies,” said Elliott. Nearly 60% of the credits for August are aimed at restructuring or expansion of existing funding lines are still found in the analysis.

Wave of sales on Asian markets

Viliyana Filipova — Thu, 29 Apr 2010 12:34:26 +0000

The wave of increased sales, which covered yesterday the securities markets in Europe and the U.S. broke today and Asian stock exchanges. Although it was expected, the decision by ratings agency Standard & Poor’s to cut the credit rating of Greece and Portugal brought sharp decreases in the indexes and the risk premium on government securities of the two countries jumped sharply. Regional stock measure MSCI Asia Pacific, which brings together public companies from 10 Asian countries plus Australia and New Zealand slid 1.6 percent to 125.20 points today. This is his fourth decline in five trading session, and meanwhile the cost of insurance to protect against the failure of Asian countries reached its highest level since February. Stock prices of raw materials and the euro rate fell because of concerns that the fiscal crisis in Greece will be released in the eurozone. President of the European Central Bank Jean-Claude Trichet will meet with German politicians and the head of the International Monetary Fund Dominique Strauss-Kahn in Berlin today to discuss a possible rescue plan for Greece. All ten industry groups included in the MSCI Asia Pacific, noted a sharp drop as financial companies ran among the losers. Among national indexes in the region most Japanese Nikkei fell 225, which slid 2.6 percent to 10 924.79 points as investors shrugged off a strong 5-percent increase in retail sales in Japan in March.
Shares of Japanese exporters fell due to the appreciation of the yen, which their goods more expensive abroad and reduces the realized gain on foreign markets. More expensive Japanese currency against all other major currencies today and the most against the euro and Swiss franc, because it is used by investors as a refuge in times of economic uncertainty. The second most loser index in the region today was Hang Seng, which fell 1.5 percent to 20 949.40 points, mainly because decrease for banks and companies in the housing sector. In China, Shanghai Compoiste broad index decreased by 0.3% to 2 900.33 points and Australia S & P / ASX 200 fell 1.2 percent to 4 822.80 points largely because of sales in mining companies.
Earlier today it became clear that inflation in Australia has doubled in the first quarter and accelerate to 2.9 percent annually, which exceeded forecasts the central bank. It strengthened investor expectations that next week Australia’s central bank may again raise its key interest rate and also outweigh quotations on the stock exchange in Sydney.

The economy of Latvia with higher decrease than expected

Viliyana Filipova — Sun, 07 Feb 2010 07:41:23 +0000

Latvia’s economy has contracted by 17.7 percent in the fourth quarter of last year, which is the smallest decline for the year but more than economists’ expectations, sent Bloomberg, citing preliminary statistics. For the third quarter of the country’s economy shrank by 19 percent. Average expectations of economists polled by Bloomberg, were beginning to fall in the fourth quarter from 15.9 per cent. From the third quarter of the country’s economy increased by 2,4 percent. Revised GDP data will be published on 11 March. Latvian economy is showing signs of stabilization, the decline in industry is slowing. Increased exports to Western Europe is likely to help the country return to growth as domestic demand is under pressure because of measures introduced under the conditions for obtaining a rescue loan. “It is possible that the revised GDP data are better,” said Leah Strasuna, an economist at the Latvian unit of Swedbank AB.
Latvia was forced to apply for a loan of 7,5 billion euros to EU and International Monetary Fund after the second largest bank in the country seek state aid, a bubble in the real estate market, supported by credit burst.