The stock market indexes in Asia and Pacific region rose for first time since April 30, after the European Union (EU), International Monetary Fund (IMF) and European Central Bank (ECB) agreed an unprecedented plan to rescue and recovery of the euro area calm the financial markets. Shares of banks and financial companies reacted positively to the news and rose, along with those of mining companies, which benefited from higher commodity prices. The reason for that a coordinated intervention by the EU, IMF and the ECB in support of the euro, which fell to 14-month low against the dollar on May 6. The regional index MSCI Asia Pacific, which brings together the securities markets in ten Asian countries plus Australia and New Zealand, jumped 1.5 percent to 120.2 points. The increase is greatest for the last two weeks and the first since April 30. Last week, Asian markets reported strongest decline in its February 2009. Most increase the Indonesian stock index Jakarta Composite, which jumped 3 percent to 2821 points, followed by the Australian S & P / ASX 200, which rose 2.7 percent to 4599 points. Jakarta Composite reached its lowest point in the last six weeks on Friday, slipped 2.6 percent to end the session. The exchange in Tokyo the Nikkei 225 rose 1.6 percent to 10 530.7 points, having lost more than 6 percent of its value during the previous two trading session. Bank of Japan expected left its key interest rate unchanged at a level of 0.1 percent today after Friday decided to fueling an extraordinary two trillion. yen in the banking system because of the turmoil in financial markets.
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The Nobel laureate Robert Mundell believes that the International Monetary Fund (IMF) should be lender of last resort for European countries discussed how to help Greece to overcome the budgetary crisis, reported Bloomberg. “Greece must first seek help from Europe, meanwhile, made budgetary reforms,” he said. “It must contribute to be able to rely on the help of Europeans.” Greece’s problems continue to divide Europe in terms of whether and how to help her. “The IMF should support if Europe as a whole needs it,” said professor Columbian University. The euro as it is still safe. “Europe will be better if it falls to 1,30-1,25 dollars,” he said. “This will make it easier for Greece and other European countries to solve its budgetary problems.” The financial crisis in Greece put the euro under pressure as investors drive to seek asylum in the U.S. dollar and the yen, which are regarded as safe assets. The world of the financial analyzer are coming in the time of many speculations with the bankrupcy of Iceland and the coming financial problems of Greece.
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The International Monetary Fund (IMF) is considering a new scheme for the allocation of billions of dollars that would apply in times of crisis by offering money to states, even if they do not like them, said the Wall Street Journal. According to “multinational credit line for the first time the IMF will allocate funds to groups of countries which it considers are in danger in times of financial crises, rather than individual countries, says a senior official of the fund. Not necessarily the parties have requested assistance, but rather the IMF will provide credit lines to those countries whose policies deemed reasonable. Member will be required to utilize the money. “The fund will declare that there is a systemic problem and a credit line granted to the following countries,” said the officer. He stated that no formal proposal is expected to be ready by September and will need to be approved by the Governing Board of the IMF. “We are looking for a new focus and capacity to deal with systemic risks”, said on Friday the fund’s managing director Dominique Strauss-Kahn, in a speech which hinted at the proposal.
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The CEO of the Bank of England (Bank of England) Marvin King on Tuesday proposed a radical reform of arrangements for managing the international economy, says the Telegraph. King insisted that an effective merger of the functions of the G-20, which includes 19 countries with the largest economies in the world plus the European Union with those of the International Monetary Fund (IMF). According to King, if the authorities did not establish an international body which has authority to reform the monetary system, the world may run into another crisis in a few years. He warned that paying very close attention to efforts to reform the financial sector, but in the meantime the economic imbalances that have resulted in crisis continued to worsen. Marvin King has repeatedly expressed its concern about imbalances in the global economy. They have accumulated after a period of many years, rich countries have relied on loans to pay for cheap exports from overseas. To solve this problem, he believes that politicians need to transform the institutions currently responsible for the global economy. Governor of the Bank of England believes that the G-20 can take the task to push reforms needed to induce exporters to increase their domestic consumption, a population of indebted economies like the United States and Britain to start saving more. According to him the legitimacy and authority of the G-20 will increase if the group become the Board of the IMF. Marvin King strongly criticized the IMF in recent years after the Fund has warned repeatedly about the extent of imbalances in the global economy, but their actions failed to achieve any noticeable reform in the creditors nor the debtor countries.
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Dominique Strauss-Kahn, who is managing director of the International Monetary Fund said that world leaders must continue to reform the financial sector to avoid a repetition of last financial crisis. We need reforms and political will, “said Strauss-Kahn, he added, a financial forum in Hong Kong. Much remains to be done. I’m afraid that after six or 12 months, all will work again as before and that lessons learned from the financial crisis will be forgotten, warns the head of the IMF. He stressed that the pace of revitalization has been weak and uneven, noting that the Asian region growth accelerated faster than the rest of the planet. The companies forgot this quite fast commented the specialists and analyzers.
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The Gold hits another record her this morning, after traders were influenced by news that India is ready to buy more gold, “the International Monetary Fund. This was announced by the local paper and immediately led to massive purchases of the metal. India has already purchased 200 metric tons of gold from the IMF over the price of 1 000 dollars, which led to a serious rally in the price of the metal. After news of the deal set a series of gold records, have already begun to appear on predictions that raw material prices will rise by around 1 200 – 1 500 dollars an ounce. The IMF has about 200 more metric tons of gold, which are available for sale. For now announced that plans for the purchase of this quantity is considered by China, Taiwan and South Korea. This morning gold with immediate delivery reached a historic peak of 1 177.40 dollars an ounce. Gold with delivery in fevtuari also reached a new record, rising to 1 178.40 dollars an ounce. Since the beginning of year gold has risen by 34 percent and is on track to reach nine consecutive years of growth. The main reason for this is the buying of the metal is the desire of central banks, pension funds and many individual players to restructure their portfolios so that they can be protected against inflation and a possible devaluation of the dollar.
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India, which is the largest consumer of gold in the world, has bought 200 metric tons of bullion by the International Monetary Fund (IMF) against 6.7 billion dollars. This is happening against a background of growing interest among leading central banks around the world to diversify its foreign exchange reserves can thus protect themselves from the depreciation of the dollar. The deal amounts to 8 percent of world production of gold. This is the largest such transaction to the IMF for the past nine years. Thus, India ranks ninth in the amount of their gold stocks, according to the London-based research company GFMS Ltd. The news surprised analysts who are conjugate China for potential buyers. India’s gold reserves amounted 358 metric tonnes before the transaction. India has purchased gold for an average price of 1045 dollars per troy ounce, says the IMF statement. The price of gold rose by 0.2 percent today to 1601.48 dollars an ounce on the London Stock Exchange. On October 14, the metal rose to a record 1070.80 dollars an ounce.
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