The Stock indexes in Europe suffered the biggest decline since the beginning of this month after fears of slowing world economy decreased demand for riskier assets such as shares. Extractive companies and banks led the sale of European exchanges after seven consecutive sessions of their growth. Data on the weaker growth of Chinese economy, in line with the weaker outlook for the Federal Reserve this year worsened the economic mindset of investors. They ignored the successful auction of government securities of Spain and the Green Wave on the Athens Stock Exchange, caused by the French intention of Piraeus Bank to buy stakes in two competing Greek banks, announced Bloomberg based on comments from top forex brokers. The common European Stoxx 600 index lost 1.2 percent to 252.97 points, which is his biggest decline since 1 July. The index, which combines stock companies from 18 European countries rose by 8.1 percent in the previous seven sessions, but still 7 percent below its highest point this year, celebrated on April 15. In Spain, the main stock market index IBEX 35 fell 1.2 percent to 10 160.20 points, although the country’s government successfully sold all the new 15-year bonds for 3 billion. Demand from investors was about 2.6 times higher compared to the value of securities offered. According to latest requirements of EC, the forex broker reviews of activities should be made weekly, because of the risk of high speculations. This reflected hardly to indexes and the national benchmarks fell in 15 of the 18 Caucasian monitored exchanges. In Switzerland, the Swiss Market fell 0.7% to 6 291.07 points, after it became clear that investors’ assessment of the state of the Swiss economy has fallen to its lowest level last year. UK’s FTSE 100 lost 0.8% to 5 211.29 points. In Paris the CAC 40 slid 1.4 percent to 3 581.8 points while the stock exchange in Frankfurt DAX fell 1% to 6 149.36 points.
(more…)

Most stock indexes in Asia and Pacific region are brought to negative territory in today’s session, many of them are about to be completed the week with decreases. Economic disappointing data from Asia, Europe and the U.S. in recent days, the forthcoming meeting of leaders of the G-20 this weekend and unexpected decision of China to loosen controls on the exchange rate of its currency have made investors nervous and trade – volatile. Regional MSCI Asia Pacific index suffered its biggest decline in three weeks today, falling by 1.5 percent to 115.37 points. It includes nearly 1000 traded companies from 10 countries in Asia, plus Australia and New Zealand. Within the past five sessions stock measure lost 0.8 percent of its value after last week advanced to 3.4 percent thanks to strong performance of stock markets in Japan and Australia. The same two securities market and registered the biggest loss this week, contributed most to the decrease of the MSCI Asia Pacific. Appreciation of the yen lower the price of the shares of Japanese exporters and the Nikkei 225 slid 2 percent to 9 points at 737.48 in Tokyo Stock Exchange, which is the strongest its decline for the past three weeks. Shares of Toyota fell 2.5 percent, while those of Canon dropped by nearly 5 percent, according to Bloomberg.
(more…)

The European indexes suffered a decline for the third straight session Thursday after the U.S. Federal Reserve presented a less optimistic forecast for growth of U.S. economy and debt problems in the eurozone, writes MarketWatch. Stoxx Europe 600 lost 1.83 percent to 250 points, after having suffered a decline of 1.5 percent over the last two session. “Bad data from the real estate market in the U.S. and fears about debt problems and budget deficits are fixed, the mood of investors,” said an analyst at RBC Capital Markets. The Federal Reserve announced Wednesday that the problems around The debt crisis in Europe reflect negatively on the economic recovery in the U.S. and interest rates remain historically low levels, predicts that interest rates will remain unchanged for some time. In a statement made after two days-long meeting of government experts, the Fed lowered its forecast for U.S. economy, declaring that the recovery continues “instead that” strengthens “, as noted in April. European banks are major creditors of European governments, suffered losses. Among the losers were the French BNP Paribas and Spain’s Santander. Focus around the Debt Crisis in Europe adversely affect Greece, the Greek insurance on debt has made new record highs on Thursday.
(more…)

The U.S. indexes suffered decline for the second straight day on Wednesday amid growing concerns about the debt crisis in Europe and the strong dollar, which negatively affected the prices of resources, writes MarketWatch. Industrial, energy and mining sector resources were most affected, but financial statements showing the growth in services and data to reduce unemployment have helped mitigate the decline. Dow Jones Industrial Average fell 0.55 percent to 10,867 points, 16 of 30 blue chips closed in the red. “There are problems with the national debt in many countries in Europe, but does this mean that the market is worth 5% less than three days?” Said Art Hogan market strategist at Jefferies & Co. S & P 500 Index fell 0.66 percent to 1166 points, the most poorly known companies in the energy sector. Nasdaq Composite Index fell 0.91 percent to 2402 points. “Overall, the financial statements of companies are good and there are signs that the economy is doing well,” said Kevin Kruzenski, director of the KeyBanc Capital Markets. After the U.S. indexes suffered their worst decline for the past three months on Tuesday, trade began on Wednesday with a new decrease, influenced by growing concerns about the stability of the financial situation in Europe after violence broke out in Athens and is expected to decrease the credit rating of Portugal . “Uncertainty hovers over European markets and of course comes to us’, says Kruzenski.
(more…)

Project to supply Europe with solar energy from the Sahara no longer seems so distant future after a recent World Bank announced it would invest 5.5 billion dollars to build the first solar plant in North Africa, reported the British Guardian. In 2009 was launched Desertec Industrial Initiative, designed to build plants for concentrated solar power (CSP). The project worth 240 billion euros, which was supported by the business names such as Siemens, E. On and Deutsche Bank, will provide 15 percent of electricity consumption in Europe by 2050. Morocco, the only country in the region without oil reserves, declares its readiness to five years to build the first CSP plants on its territory. Produced by CSP energy will be imported into Europe through the custom-built electricity transmission network in Spain. Morocco plans to build five solar power plants with total capacity of 2000 megawatts by 2020. In the words of Geoffrey Wolff, coordinator of Desertec UK, what keeps the project is currently relatively high cost of solar energy – 10-20 cents per kilowatt hour compared to 5 cents per kilowatt hour for natural gas. The construction of large-scale solar power plants and rising fuel prices on world markets is about to change.
(more…)

The European Commission President Jose Manuel Barroso has spent over 730 thousand euros for travel and entertainment expenses, says the Spanish newspaper La Vos de Galicia. “According to inside information Barroso spends 200 days a year outside Brussels but not their own aircraft. The Commission also stressed that last year there was more international than usual meetings, including that of the G20, Pittsburgh, USA. Earlier, AFP reported that the commissioners spent nearly 4 million in 2009, but have limited representation expenses between 5000 and 16 000 euro, with the exception of President Jose Manuel Barroso, which for this purpose has spent 32 457 euros. The most expensive European taxpayers, according to AFP was worth the cost of Barroso. For its work was spent in total 730 230 euro. Commission representative told AFP justified the high costs of Barroso with his frequent trips. In 2009 Barroso, who is Portuguese, was of 66 missions – 56 EU and 10 abroad – a total of 697 000 euros. Commissioner for External Relations and European Neighborhood Policy Benita Ferrero-Waldner (Austria), in turn, has spent 429 000 euro for 60 trips, including 21 from outside the EU. Representative of its costs are € 5000.
(more…)

Now is the time to act boldly. Now is the time to show our citizens that we care and that the entry into force of the Lisbon Treaty will make it possible to achieve a big difference in our ability to serve their interests. Said in his speech to European Parliament President Jose Manuel Barroso, which were opened debate before voting on the new European Commission. What Europe needs is a policy that focuses on results, better governance structures and confidence in our own ability to cope with problems, said Barroso. European Commission President and defend the EU’s common currency – the euro, saying it is the main instrument for the Union. Those who believe that this can be subjected to discussion, should be aware that we will stick to his course, he said. As the main priorities for the new Barroso said a successful exit from the crisis, a leading role in combating climate change, development of market economy and opening the new era of global Europe. I can promise you that if you give your support to this Association, we will proceed to work immediately, making the policy guidelines in an ambitious work program. We will provide short-term measures for Europe to work again for our long-term objectives such as promotion of new jobs through sustainable development, is the President Jose Manuel Barroso.
(more…)

The European stocks fell by withdrawing from the 14-week highs registered in the previous session. The prices of bank shares retreated the most, while shares of Swiss pharmaceutical company Basilea collapsed after receiving a refusal to sell in the U.S. on its primary medicine. Pan-European index Dow Jones Stoxx 600 fell by 0.4 percent to 253 16 points. On Tuesday the measure closes at highest level since October 2008 onwards. German DAX 30 closed with a fall of 0.9% at 5 957.43 points from the last session of the year. Germany’s market surged by 23.8 percent traveled to 2009, which was his best performance since 2005. For the year the largest rise among the main German stock index registered shares of Infineon Technologies, which jumped 353 percent, while those of Commerzbank is ranked last with an increase of 11.4%. Today, the French CAC 40 dropped by 0.6 percent to 3 935.5 points, the UK’s FTSE 100 lost 0.7% to 5 397.86 points. Shares of most European banks fell. Among them were shares of Royal Bank of Scotland, with a decline of 3, 2%, and those of Bank of Ireland, which were down by 1%.
(more…)

Ford Motor Co. will reduce its production in Europe next year – a sign that the car manufacturer provides a significant weakening of sales in 2010 in the region who previously served as an engine of market performance. Sales of cars on the Old Continent will be about 15.7 million units in 2009, said in an interview with the Wall Steet Journal, John Fleming, director of the company in Europe. Ford has forecast that number will fall to 13-14,5 million next year. It is expected to decline due to the still weak economy and the termination of government programs to support the sector. “We want our production to meet the actual demand and market next year will still remain very, very uncertain,” states Fleming. He did not specify how much production will be reduced, but according to a source close to the company and quoted by the newspaper, the contraction may be over 10%. In North America, however, is expected to increase production, which will for the first quarter amounted to 58 percent over the same period of 2009 to 550 thousand cars and trucks.
(more…)

The Bank of America-Merrill Lynch increased its forecast growth in gross domestic product (GDP) of Russia for 2010 from 3.9% to 5%, says the analysis, quoted by RIA Novosti. The increase in the estimate is based largely on expectations of increases in 2010/11, the average prices of Brent crude oil to 85 dollars per barrel in the previous forecasts for $ 75 a barrel. “The rise in oil prices by an average of 10% leads to accelerate the growth of Russia’s GDP by 1 percentage point,” said analysts from Merrill Lynch. They estimated that an additional 10 dollars a barrel to the price of oil will bring to Russia 26 billion dollars more revenue, which will affect positively the balance of payments. Thus, the positive trade balance of the country in 2010 amounted to 4,1% of GDP (compared with a previous forecast of 2.6 percent). According to the latest Merrill Lynch forecasts the budget deficit to Russia next year will be 4.3 percent (compared with a previous forecast of 5%). The bank commented that the accumulated funds in the so-called. Reserve and home loans will be sufficient to cover the budget deficit, but in 2011 Russia will probably have to borrow funds from outside. Consumer demand in Russia is still a low level, but this situation is normal for this stage of the economic crisis, says an analysis of the bank. From Merrill Lynch provide unemployment in Russia soon begin to decline, while there is growth in real incomes of the working population by 2%, and pensions – by 40%. Specified by the financial institution that wage growth in the private sector is questionable, but because of relatively low inflation (an average of 8% last year) and employees in private companies will have to rely on, albeit insignificant, increase their income.
(more…)