Financial Communique » US

US Indexes closed with decrease

Viliyana Filipova — Thu, 24 Jun 2010 21:28:13 +0000

The U.S. shares lost positions in the last hours of trading stock on Thursday, with unsatisfactory results dragged down shares of companies trading in consumer goods, while the energy sector has suffered due to uncertainty about the moratorium on drilling for oil in deep waters. Standard & Poor’s 500 has made a loss for the fourth straight day – the longest red index series for seven weeks. S & P 500 fell 1.68 percent to 1074 points. Nasdaq Composite lost 1.63 percent to 2217 points. “The mood of the market is bleak,” said Steve Sosnik, strategist Timber Hill LLC / Interactive Brokers Group LLC. “The feeling is not good, and the reason is not just one article or adopting a new law. This is a disease, “he added. Dow Jones Industrial Average lost 1.41 percent to 10,153 points. J.P. Morgan Chase and Bank of America lost their positions in anticipation of new details about the legislation governing the financial sector, which is expected to agree the Senate and Congress in Washington. The new law is likely to tighten control over the financial sector more than analysts expected. Lawmakers have agreed on new capital requirements for banks that will have a five-year grace period. According to a clause proposed by Congress, the White House administration will be able to levy any bank that failed to repay the Federal Reserve rescue packages for granted during the financial crisis.
However, representatives of the Senate said they would reject a proposal to Congress that would make the big banks to pay for the losses of mortgage giants Fannie Mae and Freddie Mac. Investors will remain cautious until the finalization of the new law. Shares of energy companies also fell because of uncertainty surrounding the moratorium on drilling for oil in the deep shelf of the U.S. coast.

US unemployment decreasing in April

Viliyana Filipova — Sun, 23 May 2010 11:47:31 +0000

Most of America States decreased unemployment in April compared to March, according to government figures published today. In 34 states and the Federal District of Columbia, which is located Washington, DC, the unemployment rate decreased from the previous month. Only six state unemployment rises, but 10 others remained unchanged according to Ministry of Labour of the USA. In the March 24 state reported an increase in unemployment compared to February, reports CNBC. Overall the country, unemployment has risen to 9.9 percent in April from 9.7 percent in March, although employers in April showed 290 thousand new jobs – the highest rate of four years. The highest unemployment rate in Michigan (14%), followed by Nevada (13.7 percent), California (12.6 percent) and Rhode Island (12.5 percent). Lowest it is in North Dakota (3.8 percent), South Dakota (4.7 percent) and Nebraska (5%). The decreasing of the unemployment rate is good sign for recovering of the economy and business.
The new requests received by the companies are requiring more employees.

US indexes dropped from Friday results

Viliyana Filipova — Mon, 08 Mar 2010 15:40:49 +0000

Lack of important economic data in the early weeks of the new exchange led to the tentative start of today’s session on Wall Street. All three major indexes found themselves in positive territory in early trade but shortly thereafter changed direction and gravitate around the neutral zone. Dow Jones Industrial Average, which brings together 30 most actively traded stock in U.S. companies with the highest market capitalization remains unchanged at 10 570.51 points by one hour after the start of trade. Broader index S & P 500, meanwhile rose by 0,1 percent to 1 138.68 points. On the Nasdaq stock exchange, however, the main Nasdaq Composite index rose by 0.2% to 2 330.15 points, which is its highest level since early September 2008, technology companies are among the most profitable today, but those in the health sector is ranked among the top losers in the trade. The last session last week led to significant increases in the indexes after the data on the labor market showed that unemployment in the United States remains at a level of 9.7 percent for the second consecutive month in February, but the cuts in non-agricultural sectors of the economy fell more than expected. Trading last week was volatile because of the key data on employment in the sectors of U.S. economy and may continue to be volatile in coming days and because of scarce economic data.
The Shares of AIG risen by 5.3 percent to 29.56 dollars as the reason for this given the news that the U.S. insurance company will sell its international life assurance unit Alico for 15.5 billion dollars. Buyer in the transaction will be the largest U.S. life insurance company MetLife, whose shares Increase 4.3% to 40.61 dollars on the New York Stock Exchange. Meanwhile, oil prices rose by 0.4 percent to 81.83 dollars a barrel, while gold cheaper by 0.6% to 1 125.20 dollars an ounce. The yield on ten-year U.S. government securities decreased by one basis points to 3.71 percent of the market in debt securities.

Surprising rise in consumer loans in USA

Viliyana Filipova — Sat, 06 Mar 2010 18:11:50 +0000

The Consumer loans in the United States in January unexpectedly increased by $ 5 billion or an annual rate of 2.4 percent. With the largest contribution to growth is the increase in loans to buy cars. The data of the Federal Reserve (U.S. central bank) for December were revised down. In the last month of last year loans fell 4.6 billion dollars instead of the original estimate of a decline of 1,7 billion. After initial assessment in December, economists predicted a decline in January amounted to 4,5 billion dollars. This is the first increase in loans last year and shows that consumer confidence in the U.S. economy growing. “This is a sign that the economy is on the bottom and consumers begin to spend again,” said Chris Rapkey, an economist at Bank of Tokyo-Mitsubishi. “The increase in loans kicks prospects for the economy this year.” Consumer spending represents 70% of GDP.
In recent quarters of 2009 they grew at an annual rate of 1.7 percent after 2.8 percent growth recorded during the previous quarter.

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%.

Bernanke still on the head of FED

Viliyana Filipova — Fri, 04 Dec 2009 07:34:51 +0000

The Federal Reserve Chairman Ben Bernanke defended his post and taken steps under his leadership from the central bank in the U.S. to fight economic and financial crisis. Bernanke made the statement before the Senate, which must consider his candidacy for a second four-year term until the end of December. Under his leadership, the Federal Reserve cut the key rate in the United States to levels close to zero and set aside 3 trillion. dollars to strengthen the financial system. Bernanke warned that lower interest rates can not be changed prior to the careful analysis and assessment of the economic situation. He added that the Federal Reserve will implement the strategy of tightening monetary policy in such a way as to encourage job creation and to maintain price stability in the country. Some of the MPs in the Senate believe that the reelection of Bernanke will become the right message to the financial markets. Others, however, vehemently criticized the measures taken by the Federal Reserve steps forward BBC. Ben Bernanke’s mandate expires at the end of January. U.S. President Barack Obama nominated him for another term as chairman of the Central Bank of the United States in August, but his reappointment must be confirmed by the Senate.
Together with the Treasury of the U.S. Federal Reserve has developed in the autumn of last year’s plan to rescue the financial system worth $ 700 billion. Both chambers of the Senate of the United States insist on reducing the powers of the Federal Reserve. They want and audit of central bank decisions on interest rates and a reduction of its regulatory powers over private banks.

Richard Bouv: Big banks in the U.S. will have to raise money for emergency

Viliyana Filipova — Tue, 01 Dec 2009 04:25:55 +0000

Most large U.S. banks will soon have to take public offerings if the Treasury require repayment of funds lent to them by the program to buy troubled assets (TARP), Reuters said banking analyst Richard Bouv. Earlier this month asked the Federal Reserve Banks, subject to “stress test” to come forward with plans to repay the amounts allocated in exchange for the issued preference shares in them. “In fact, all banks can easily redeem these securities of its cash balances, but only 3 of the top 30 banks would be left with adequate Tier if they do,” explains Bouv. It is believed that the Treasury aims ratio Tier assets to 12 percent, which means that banks will be forced to raise capital without government assistance before they are allowed to repay the funds under the program continues Bouv. “It stirs the thought that some banks would rather have public offerings, although their profits are in doubt.” Rochdale Securities analyst said that the swell of the U.S. budget deficit, which is expected to reach 9.5 percent of GDP in this fiscal year and the drop-down dollar, forcing the government to obtain funds where possible. Collection of funds awarded through the TARP program is one of the possible sources, according Bouv. Many banks want to return the funds received under the program, which was worth 700 billion dollars as participation in it is associated with restrictions on expenditure on salaries, dividends and redemptions.
From the Finance Ministry said on November 19 that it will tender the warrants (rights to purchase securities knzha) who received three major banks in exchange for their allocated budget funds the program through TARP.

The United States will have to introduce VAT in order to tackle the budget crisis

Viliyana Filipova — Wed, 25 Nov 2009 09:32:33 +0000

The United States will ultimately be necessary to introduce a national value added tax to reduce its budget deficit, told CNBC on Thursday, Paul Donovan, chief executive and deputy chief economist at UBS. Taxing consumption has never been on the agenda of the United States. “The United States is the only OECD member state without value added tax, but I think I will need to change that at some point,” said Donovan. “This is a cheap way to raise funds, but is not particularly fair since it falls disproportionately on groups with lower income. So perhaps it will require some changes in tax legislation to avoid it. But overall this is a good way to collect money, “continues the economist. Proposals to close the loophole allowing international companies to avoid U.S. income tax at the time of her repatriation, were overshadowed by the U.S. government attempts to stabilize the economy. According to Donovan such proposals have a single effect. They do not contribute to sustainable increases in tax revenues. “We all know that taxes in the United States will increase, but it is frustrating to say the consumer. It is better to leave them to shop with the thought that so far their incomes will be affected, “he reflects. “There is no dispute, however, that consumers will have to reduce their costs, and it in all directions.”
Over the past 11 years in the United States observed historical increase in government spending, said Donovan. The budget deficit is currently more than 1,4 trillion.