U.S. mutual funds investing in equities, with the lowest percentage of its assets in cash from 2007 onwards. In January, the share of the cache has fallen to 3.6 percent from 5.7 percent a year earlier, according to the Investment Company Institute. This is the biggest drop of the indicator in the past 18 years. Currently, managers have available funds in the amount of 172 billion dollars. The last time the managers behaved as a small percentage of cash was in September 2007, a month before the broader index S & P 500 to start 57% decline. The index has lost an average of 16% over the last three times, in which managers are beginning to increase their reserves of cash. The reason for this is that the cache is often due to increased sales. In this situation, when reserves have reached the opposite pole, it is assumed that the growth potential has been exhausted. According to the investment company Parnassus Investments growth stock will fall after last year S & P 500 rose by 23%. For the past 12 months did it rose by 67 percent in a remarkable year for U.S. exchanges. “This is not a red semaphore, but it is flashing yellow, which warns that the strongest part of the recovery of the market probably is over,” said Jerome Dodson, managing 3.6 billion dollars for Parnassus Investments. According to him this year S & P 500 will rise by between 6% and 9%. “There is only so much buying power of the market,” he said.
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The U.S. central bank began tightening cycle of monetary policy. This happened quite a surprise, since no signals were given prior to such intentions. Policy on withdrawal of money from the system began with an increase in the discount rate that commercial banks pay the Fed on its direct loans from the central bank. He was raised by a quarter percentage point to 0,75 percent. Among the reasons the central bank is that commercial banks must rely more heavily on money markets to raise the necessary funds, rather than resorting to the services of the Fed. These changes are considered as a step toward normalization of credit facilities the Fed,” says the official release of the institution. “No change is expected to lead to further tightening in financial conditions for households and businesses and they are not intended to signal a change in the outlook for the economy or monetary policy,” the Fed explained. After news of the dollar shot up sharply since the central bank’s actions are perceived by the market as a signal that is to tighten monetary policy. The dollar jumped to a level of 1,3485 EUR / USD, as at an earlier stage had reached a level of 1,3444 EUR / USD.
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JPMorgan Chase will launch its global branch banking, which will offer commercial banking multinational corporations transmit Financial Times. This will instruct the bank alongside Citigroup and HSBC. From JPMorgan plans to invest more than $ 100 million in commercial banking division, which will consist of 300 people. The activity will initially be focused on emerging economies such as China, India and Brazil reveals Financial Times. JPMorgan is the aim of reducing their dependence on the weak U.S. economy and to benefit from the problems of Citigroup, have shared the bank’s executives told the newspaper.
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With remarkable allocation of $ 11.8 billion and 70 transactions in 2009 (an increase of 118 percent compared to $ 5.4 billion and 58 transactions in 2008), BNP Paribas Corporate and Investment Banking is Number 1 loans for trade financing, coverage of the export credit agency. The assessment is based in New York consulting firm Dealogic, communicated by the Bulgarian office of BNP Paribas. From there, comment, is that was very difficult year this is a great achievement of the teams and the result of an enormous number of significant transactions during the year. The Bank is the undisputed world leader with a market share of 30%. According to Dealogic world market of loans for trade financing, coverage of the export credit agency, has increased by 29 percent per year, reaching $ 38.6 billion in 2009. BNP Paribas is present in Bulgaria since 1994 in the present moment more with your credit and life insurance company “Cardiff” and for Bulgaria’s leading consumer finance company BNP Paribas Personal Finance. ”
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Finance ministers of the G-7 remains unchanged opinion that excessive volatility and disorderly movements in exchange rates may endanger their economies forward Bloombergan, citing a representative of one of them. For the last finance ministers of the G-7 and central bankers met today in Istanbul, using such phrases in April. During the week, officials from the G-7 expressed concern that cheaper dollar threatens to slow recovery from recession in their economies, their exports more expensive. Since early March, the dollar has depreciated by 14 per cent against basket of seven currencies. “We welcome the statement of Finance Minister of the United States Timothy Gaytnar that has a strong interest in the United States have a strong dollar,” said Bundesbank President Axel Weber told reporters before talks. On his arrival in Turkey, Canadian Finance Minister Jim Flaharti said in turn that it is “worried” by the “upward pressure on the Canadian dollar,” the weakening U.S. currency.
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