Category Archives: World Finances

High IPO data for the begining of the year

Stock ExchangeThe companies worldwide have attracted a record-high funding from investors through initial public offerings (IPO) earlier this year. The Reuters Survey shows that initial public offerings have collected 24.3 billion dollars worldwide since the beginning of this year until today. The amount is a record for this time of year and highlights the recovery of stock markets and increased interest from investors. Attracted by the IPO from January until funds are up 20% over the same period of 2010. The increased activity of the companies began to be felt in the last quarter of 2010 when initial public offerings have attracted a record 122.2 billion dollars. Within the last three months of 2010 Asian life insurer AIA Group carried out the largest IPO in the history of the stock exchange in Hong Kong and the other big IPO was that of U.S. automaker General Motors. The offerings in the secondary market in the world in turn increased by 23% annually and reach 67.7 billion dollars. The raising funds through stock exchanges was supported by the strong performance of equity markets, whose prices have reached their levels prior to the bankruptcy of investment bank Lehman Brothers. Asia dominated on the stock market in 2010, continues to be a leader this year. 41% of the stock debuts come from China. The data also include listing the company’s wind turbines Sinovel Wind for 1.4 billion dollars in January.

Nexia Holdings And Its Ventures Into Real Estate and Other Operations

Nexia HoldingNexia Holding Inc is a company in the state of Utah in the USA. This company is well-known for having diverse holdings in various industries. The main area of operation of Nexia is real estate, beauty hair care salons and the film and entertainment business. This company trades and is listed on PINKSHEETS as a penny stock under the NXDH symbol. The company, as mentioned above, is one that lays emphasis on real estate, beauty hair care salons and the movie industry. The company is making constant endeavors to expand its operations in the above fields and the company also has two subsidiaries that are helping it in this regard.
The two subsidiaries that have been mentioned above are Revel Entertainment Inc and Endeavors, Inc. (OTCQB:GRNE). There are about 70 people that are working here and the staff is very efficient and dedicated. With the aid of this staff the company is now expanding and it is also improving on its services day by day. Through the first subsidiary the company holds a majority interest in the film ”The Kane Files”. The company is trying its best to expand in the area with this venture. The second subsidiary is one that deals with the hair care beauty salons that the company has. These beauty hair salons come under the AVEDA world class product lines and they are reputed for the good services of their staff. The main focus of the staff is the clientele and this is the reason why these services are widely sought after.

OECD warned for disballances in the world economy

RomaniaThe world economy will grow by 4.6 percent this year, but in a slow recovery in the richest countries and the dynamic growth in developing economies. The recovery of the euro area will be slow and uneven over the next two years, while 16-nation currency bloc reduce budget deficits and looking for a way to deal with their large trade imbalances and indebtedness to block the peripheral countries. This was claimed by the Organization for Economic Cooperation and Development (OECD) in its regular report on prospects for the economy, which comes twice a year, sent Wall Street Journal. OECD analysts expect the world economy to grow by 4.2 percent in 2011 and 4.6 percent in 2012, led by developing countries outside the organization in which members of the 30 richest countries in the world. According to OECD estimates of gross domestic product (GDP) of the eurozone will grow by 1.8 percent this year and 1.7 percent next year. Forecast in May, foresaw economic growth of 1.2 percent this year and 1.8 percent next year. The growth in the 16 countries sharing the single European currency will remain vulnerable to financial market tensions and concerns about high levels of public debt in Greece, Ireland, Spain and Portugal. Consumption growth and recovery of household incomes in the euro area will support the economy. However, unemployment is expected to remain above 9% until 2012 according to OECD area GDP will grow by 2% in 2012

Increasing prices may cause new crisis with foods

FoodsFears of a new global food crisis swept global stock exchanges on Friday, the prices of crops such as corn, rice and wheat, have risen strongly over the U.S. government’s warning of “dramatic” drop in supply. Hot summer in the U.S., droughts in several countries, including Russia and Brazil, and torrential rains in Canada and Europe affected the harvest of many grains and oilseeds this year, writes Financial Times. This raises fears of a sharp drop in food supply, which can cause a crisis similar to that in 2007-08. The USDA announced yesterday that stocks of corn in the country will be halved this year to their lowest levels for the past 14 years. As a result, shares of some of the biggest food producers in the world have greatly decreased by the end of yesterday’s trading session. Analysts said Morgan Stanley’s food crisis is a fact. The index of the Reuters-Jefferies, which tracks the prices of basic agricultural raw materials rose to its highest level in two years yesterday. UN economists say that the new U.S. government report shows that when the balance between supply and demand is very fragile. U.S. is the largest producer of maize in the world and exports is a source of much of world trade in grain. Earlier this year, the USDA projected a record crop of corn, but a combination of adverse heat and high rainfall led to a sharp correction of the forecasts.

Banking Regulators agreed for the liquidity

Credit SuisseThe global banking regulators have made a breakthrough in negotiations to tighten capital requirements for banks and the imposition of new standards liquidity and leverage, but relaxed some of the proposals, others delayed until early 2018, writes Financial Times. Basel Committee on Banking Supervision (Basel Committee on Banking Supervision) announced on Monday that all but one of the 27 member states of the organization sign the new document to limit the capital that banks may adopt a capital first-order ( tire-1) – the only assets that are disregarded in absorbing losses. Abstaining party as familiar with the negotiations is Germany, announced that it will decide whether to join the agreement later this year. The new rules aim to prevent the recurrence of financial crisis, but also may restrict lending. The real effect of the new regulations will depend largely on the subsequent decision of the Committee scheduled for autumn in which will determine the ratio between capital and tier one risk-weighted assets. The greater the ratio, the greater will be the effect. The Committee postponed a few of the more radical proposals, such as reporting “net ratio for stability of funding – first of its kind rule of liquidity, which will require banks to more closely link the timing estimates of assets and liabilities.

Citigroup: 24 banks should not pass the stress tests

CitigroupIn the event that stress testing of banks in Europe were made based on examination of the entire portfolio of government bonds to banks, 24 financial institutions it would not be able to withstand successfully. Such is the opinion of analysts of U.S. bank Citigroup. Such a scenario would have shown that the financial institutions need to raise capital amounting to 15 billion euros to be stable at any shock to the system, reported Financial Times. The problem with stress testing, which was attended by 91 banks, is that called were tested. commercial paper, rather than purchased in order to hold to maturity government bonds. The difference between them is that first used for commerce in the short and medium term, while others show real risk that government securities carry. Analysts say the U.S. Spanish bank financial institutions had the greatest benefit from such testing in this way. The reason is that they have significant positions in the Portuguese and Spanish government bonds, many of which fall under the heading hold to maturity, the newspaper added.

Banking sector in Asia earns from Western regulations

Bank ManagerIncreasingly central role as Asia takes a global hub for financial services may gain even more weight to the imposition of U.S. and European governments for new taxes on the profits of banks, “said Josef Ackermann, CEO of Deutsche Bank, quoted by the Wall Street Journal. “The relative weight of Asia will increase as a result of regulatory action against the banks in the West, says Ackerman. “Asian countries know very well that you should not copy the new taxes, so popular in other parts of the world.” Taxes could be a serious blow to credit institutions with operations in many countries such as Deutsche Bank, which generates about three quarters of its revenue abroad, “says Ackerman. Emerging markets may even benefit from the negative reaction of the financial sector to the banking regulation in the West and to gain market share in the financial sector “Many governments, including China, are committed to building financial centers in times when many other countries demonstrate skepticism financial sector, “said Ackerman, noting that it is trying to make Turkey and Russia. Like other banks, evaluating prospects global economy, Asia is a priority for Deutsche Bank.

Russian bonds are higher risky than Turkish

Government BondsSwaps provide protection against non-payment of Russian bonds rose 52 basis points to 194 points over last quarter – the biggest growth since the end of 2008. Thus, five-year contracts worth more than providing protection on the bonds of Turkey (190 points), Indonesia (178 points) and Philippines (168 points), although all three countries have lower rates of Russia as Standard & Poor’s. Turkey and Indonesia are rated BB and BB-Philippines have. For the last Russian swap were cheap on May 18. 100 basis points in these instruments are equal to 1%. This is the annual premium on the nominal value of bonds, against which the swap will provide appropriate compensation in case of failure to pay the debt. Contracts are used for speculation credit-ability with the issuer. According to Russian Finance Minister Alexei Kudrin Russia’s largest energy exporter in the world deserves a higher rating of this BBB, awarded by Standard & Poor’s. The big jump in insurance costs of government bonds in Russia shows that investors do not agree with that. Kudrin claims of a higher rating based on the fact that the country has the lowest level of debt among the G-20. The IMF estimates that in 2010 Russian debt will be a level of 7.7 percent of GDP on average 80% for the group. Turkey’s debt is expected to reach 50% of GDP this year.

G-20 should beat the deficits after the crisis

G-20The Leaders of the G-20 agreed that should be taken to reduce budget deficits. They extend to the statement that the action will begin to reduce the negative balances, but it will happen only if there is sufficient evidence that economic recovery is sustainable. Goal set developed countries up to 2013 budget deficits to be reduced halfway and 2016 to be stabilized level of indebtedness. It is clear from the general opinion released by the leaders of the G-20 after meeting over the weekend in Toronto. Other commitments that countries undertake the group is to tighten the rules governing banks. Expected in many countries to introduce more stringent capital adequacy and liquidity, analysts say. “Frankly, this is more than expected, because the questions are quite specific,” he said after meeting Chancellor Angela Merkel. “The fact that developed countries have adopted this goal is success,” said Merkel on the common goal of fiscal policy. The general opinion says that the countries of G-20 will maintain plans for promoting economic and will take joint actions to ensure sustainable recovery. This issue moderate tone of the common position and shows that attempts to approximate the views of the United States and Germany did not have success. Discrepancies between the two countries are linked to Barack Obama calls Germany to increase government spending and to try to stimulate domestic consumption. Chancellor of Germany’s intentions however are fundamentally opposed by Merkel insisted on limiting spending and deficit control.

The price of gold reached top levels

GoldThe price of gold reached a new historic high, passing more than 1265 dollars an ounce. The main reason for this article suggests that the central banks of developing countries have purchased more gold than was expected beforehand. The new price is a record 265.30 dollars an ounce, and was placed on the London stock exchange today. ‘Precious metals won because the status of “island life” and strong demand likely will continue as long as doubts remain in the ability to successfully resolve the debt crisis in Europe, “said Carsten Frich of Commerzbank. The main news, which determines market sentiment today is related to the decision of China to increase flexibility in their exchange rate. Many believe this will lead to appreciation of Chinese currency against the dollar – something that U.S. demand for quite some time. Rubies economist Nouri does not share this vision and warns that the result of China’s decision may be further depreciation of the yuan against the dollar.