The national stock indexes in Asia and Pacific region rose strongly today, bringing the regional stock measure MSCI Asia Pacific the largest of its increase for the past two weeks. MSCI Asia Pacific, which covers the stock markets in ten Asian countries, Australia and New Zealand increased by 1.1 percent to 113.07 points and is on track to record its highest session from June 21 onwards. Earlier today, it decreased by 0.9% due to the volatility of financial markets in recent weeks caused by concerns about Debt Crisis in Europe. Low ratios of price and expected profit (P / E) of shares in its composition, however, gave a signal to investors purchasing. Increases in mining companies in the region continued for a second day after news of major acquisitions in the sector on Monday. Well presented yet producers of copper and aluminum after losing their series, which lasted nine sessions. Among national indexes most today is the main Chinese stock increase meter Shanghai Composite, which added 1.9 percent to 2 409.42 points. He drive him from their lowest level in 15 months, which reached yesterday. In Hong Kong’s Hang Seng rose 1.2% to 20 084.12 points. In Japan the Nikkei 225 rose 0.8 percent to 9338 points, stock optimism was supported by a rally in China. In Taiwan Taiex added 1.5 percent to 7 548.48 points for second straight day, a South Korean Kospi index rose 0.6 percent to 1 684.94 points.
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Most stock indexes in Asia and the Pacific region started the week with slight rises amid news of major acquisitions in Australia. Shares in Australian coal producer Centennial Coal rose 32 percent after Taiwan Banpu mining company said it will buy the remaining 80% of the shares of Centennial Coal, which still holds. Shares in building materials manufacturer CSR, in turn, rose 3.5 percent on the stock exchange in Sydney, once the largest producer of palm oil in the world Wilmar International said it would buy a unit of CSR for sugar production for the sum of 1.75 billion Australian dollars. Shares of Singapore-based Wilmar International rose 2.4 percent. Regional stock measure MSCI Asia Pacific, which oversees securities markets in ten Asian countries, Australia and New Zealand increased by 0.3 percent to 112.01 points. Last week it suffered its largest weekly loss since May 21 amounted to 3.4 percent and is 13% below its highest point this year, which said on April 15th. Depreciation of the yen against the euro support Japanese exporters on the stock exchange in Tokyo. Shares of Panasonic rose 1.6 percent. Japan’s Nikkei 225 index rose 0.7 percent to 9 266.8 points. Even more by 1.5% to 7 439.96 points to increase the main index Taiwanese Taiex, led by industrial and mining companies. In South Korea Kospi rose 0.2 percent to 1 675.37 points.
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Three hours before the closing of the exchange, U.S. indexes saw a sharp decline, after disappointing data on factory production fueled fears of slow economic recovery in the U.S., writes Market Watch. In recent trading Dow Jones Industrial Average fell 0.84 percent to 9650 points and is on track to finish the week with nearly 5% losses. Among the major losers were found to be Walt Disney, once the giant of the entertainment business said it has acquired a company producing games for mobile devices like the iPhone of Apple. Data for the decline in factory production and dragged down shares of industrial giants such as Caterpillar, 3M and Boeing. Nasdaq Composite lost 0.71 percent to 2087 points while the Standard & Poor’s 500 divided by 0.66 percent to 1021 points, which is also on track to finish the week with losses of over 5%.
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The U.S. shares started the new quarter with decreases after disappointing data on the labor market, production and sales of homes in the U.S., transmit CNBC. Gradually, after the initial sharp decline, however, the indexes recovered part of the losses, however, failed to move into positive territory. Instead, strong negativism move in raw materials. The leading indicator Dow Jones Industrial Average lost 0.44 percent of its value to the level of 9731 points. S & P 500 fell 0.3 percent to 1027 points and NASDAQ fell by 0.4 percent to 2101 points. Significantly higher losses were recorded in raw materials. Gold finished trading fell by 3.2 percent to 206.07 dollars an ounce, taking its sharpest one-day decline since February 4. Silver hand decreased by nearly 5 percent to 17.79 dollars an ounce. Oil did finish with a decline of 3.5 percent to 72.95 dollars a barrel with supply in August. With over 5 per cent decline and the price of natural gas. Reason for the sale was a series of disappointing data from the U.S. economy. Negative signals came from the labor market, housing market and manufacturing. Applications for unemployment benefits have increased during the week with 13 thousand to 472 thousand, while economists had expected a decline in the indicator. Other data did today showed growth in planned cuts by the companies and the private sector has added only 13 thousand jobs in July – well below expectations.
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Accumulating debt is a powerful drug such as alcohol and nicotine, and. In times of economic prosperity in Western consumer countries resorted to loans continuously to further improve their lifestyles. Companies, in turn, used the loans to expand their business. Investors invented with the help of new debt instruments with which to increase their returns. And while the boom continued, massive excess revenue over expenditure led to a happy and carefree life, rather than to difficulties in writing their analysis The Economist. Thus, in many years, rich countries debt increased by much faster than incomes. Thus, not only swell the public deficits and debt but private sector. In the U.S. private sector debt increased from 50 percent of GDP in 1950 to nearly 300%. Unusually high increase in debt due to major changes in public attitudes during the last century. In 19th century defaulting borrowers were sent to prison. Generation that survived the Great Depression, learned frugality. But with the penetration of credit cards in the 60’s of 20th century society requires the “buy now, pay later”. So failure simply becomes a choice of lifestyle, as the blame for it lies with the “irresponsible” creditor and not the irrationality of the debtor.
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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.
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With one billion dollars can do a lot: for example, to escape death 800,000 infants. But this money can be organized and meeting a giant, as was the G-20 in Canada. Against the background of financial profligacy, result from the Forum in Toronto is actually quite modest. But things may be considered in another way: the background of spending now to save banks and entire countries, one billion is less.
Banks as insatiable octopus
All agree that the world needs a new structure of financial markets. The question is how to do this. Thought leadership is that banks should return to its original role as servants of the economy – rather than as insatiable octopus. They should also be able to fail without entailing by itself the entire financial system. In Toronto Barack Obama proudly presented the plan for a new financial architecture, even this week is expected to be adopted by Congress. Europeans were impressed and now will have to try to draw something. On the eve of the meeting is very murmured: America against Germany – cyclical policy programs for savings. At the end wins the mind in the form of an ambitious formula – growth through smart saving. After this crisis are all basking in an unfamiliar terrain, so there are no winners and the losers in current discourse. This is a surprise from Toronto.
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Analysts say if the GDP data in the U.S. disappointed, this is a clear sign that the economy will not be able to save the banks and they will need to write off trillions of dollars of losses. Two feet of closure of the exchange, U.S. indexes continue to fall as Dow Jones Industrial Average lost nearly 1 percent to 10,200 points after the Fed said it saw weakness in the economic reconstruction of the country. “Taking a defensive position for the summer,” said Rob Morgan, Chief Investment Strategist of Fulcrum Securities. Morgan said he prefers shares of companies in the energy and technology sectors. “Although for a while is good to keep the market, I think in the long term the U.S. economy looks pretty good and will overcome the crisis in Europe relatively easily,” he says. If U.S. GDP in the second quarter of the year be less than 1 or 1.5 percent, then the investor is best to move into cash positions, advises David Hefti, executive director of Cornerstone Wealth Management. “If the GDP data disappoint us, this is a clear sign that the economy will not be able to save the banks and they will have to write off the loss of trillions of dollars, which will return us to a new downward spiral and a new cyclical bear market” says Hefti.
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American and European investors are trying to get back 170 million dollars from China Milk Products Group Ltd, another large number of Chinese companies that ceased to pay its debts after the beginning of 2009, writes Wall Street Journal. Among the companies whose shares went down headlong in the last 16 months, have ever hit among investors Celestial NutriFoods, China Sun Bio-Chem Technology, Delong Holdings, Fu Ji Foods & Catering Services, Sino-Environment Technology and Sunshine Holdings. In recent years, investors eagerly bought Chinese stocks, often paying a high price just to find a niche in a significant increase marked the Chinese economy. Now, many Western investors are facing problems with debt collection, especially from companies that sold shares and bonds during the boom years of 2006-2007. According to data from the Wall Street Journal investors currently have a problem with collecting a total of 1.3 billion dollars debt by Chinese companies. Although China Milk operates in China, it is registered in the Cayman Islands. Trade in company shares that are traded on the stock exchange in Singapore, was arrested in February but investors fall into a vicious circle. Regulatory authorities for securities in China say that China Milk is not a Chinese company and they are not legally entitled to dispose of its shares and bonds. “Our obligation is solely to protect local investors,” said a spokesman of the Chinese Securities Commission.
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The chief executive of Ford, Alan Malali, said that the company will be able to accelerate the payment of its obligations due to improved financial results. Ford is intervention by major U.S. automaker, which avoided bankruptcy last year. The company took borrow more than 23 billion dollars in 2006, and bet all their remaining assets, including the famous oval logo. The aim was to provide funds to reorganize and eventually Ford managed to surprise analysts with a small profit in 2009. Malali confirmed its forecast for profit in 2010, and his expectations for 2011 are for “solid profit. “Now we can expedite the payment of its debts and to improve the financial balance of the company,” he said. Ford will pay $ 3 billion revolving credit facility in early April. The company’s debt at the end of last year were worth 34.4 billion dollars. At the end of last week, Ford announced that it has reached an agreement for the sale of Volvo in China Geely.
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