Financial Trade

Wall Street indexes recovered some of the loses

Viliyana Filipova — Wed, 15 Feb 2012 08:43:24 +0000

With the movement of the index in a narrow range to distinguish today’s session on Wall Street. Finally, two indicators were able to overcome losses from the beginning of the session, but with minimal increases. Dow Jones rose 0.03 percent to 12,878 points, S & P 500 fell by 0.09 percent to 1351 points and the Nasdaq rose 0.02 percent to 2932 points.
The data on retail sales in the U.S. proved to be a serious factor in market movements. Investors continue to monitor developments in Greece.
“The expectations for retail sales in the United States have been raised because of better statistics in recent times”, told Bloomberg Matthew Di Filippo of Stewart Capital. In his words, Europe will continue to stand in the center of events, but the main question is which of the problems of troubled countries are solvable. The message that eurozone finance ministers will discuss the new rescue program for Athens on the phone led to speculation that the funding probably would still not be approved. Meanwhile, the PASOK leader George Papandreou has yielded and gave written guarantees for the implementation of economic and fiscal commitments to Greece and after the elections.
Among the most unprofitable positions in New York ran the shares of Yahoo, after the AP and Reuters reported that negotiations with Alibaba to sell the Asian assets of American company failed because of a number of disagreements.

EUR may reach 1.15 USD at year end

Viliyana Filipova — Tue, 07 Feb 2012 12:55:37 +0000

The euro headed for a week down from 16 major currencies, amid ongoing uncertainty about whether Greece will reach an agreement with private creditors. The yen continued to trade the yen from its historic low against the dollar amid speculation the central bank intervention. The Australian and New Zealand dollar fell from near its five-month highs against the dollar after the Asian indices registered decreases, and this intensified the demand for risky assets.
“There are indications that Greek lenders will voluntarily agree to write off the Greek debt, which leads to the conclusion that the agreement will be difficult”, said Daisuke Karakama, strategist at Mizuho Corporate Bank Ltd. “Levels above 1.3000 the euro is simply an overestimation of the single currency”, added Karakama. Meanwhile, the single currency is traded without significant change against the dollar at levels of 1.3140, pointing to decline by about 0.5 percent against the greenback.
The EUR was traded at levels of 100.10 against the yen and decline until there is significantly greater for the week amounted to 1.1%. The yen was traded at levels around 76.20 yen to the dollar yesterday reached the highest value of 76.03. So it is less than yen of historical lowest value achieved on October 31 last year. The index tracking the performance of the MSCI Asia Pacific Index, fell 0.2%. This tracking the performance of global stock exchanges rose 0.2 percent yesterday. Yesterday the Prime Minister of Luxembourg made negative comments that the efforts of the Eurozone are not sufficient to tackle the crisis and further measures are necessary.
At Morgan Stanley lowered its forecast for euro at the end of the year to 1.15 from a previous one of 1.20.

German government pressed Greece to stick to the reforms

Viliyana Filipova — Mon, 06 Feb 2012 13:01:41 +0000

Greece needs to provide more guarantees for the implementation of fiscal consolidation and reform of law to return to normal. This was stated by Georg Strayter – deputy spokesman of Chancellor Angela Merkel earlier today. Strayter declined to comment on the possibility of failure of Greece or of potential output in the euro zone.
“The key to return to Greece in the normal way is adherence and strict enforcement of rate consolidation reforms”, said Strayter a regular press conference. “The basis for making specific decisions are as before the recommendations of the so-called” troika “- the ECB, IMF and European Commission,” he added.
Angela Merkel and Nicolas Sarkozy will discuss at a meeting in Paris, Franco-German relations, but will also be affected and Greece, said Strayter. The Greek political leaders resumed talks on Monday, as major differences in the reforms that were not aired yet, must be overcome in order to provide international assistance. While Greece continued their struggle to obtain a second bailout, the finance minister of Bavaria, said in a radio interview earlier today that Greece was unable to implement necessary reforms and will not be able to avoid bankruptcy.

Mixed start of the week in Asian markets

Viliyana Filipova — Mon, 06 Feb 2012 12:55:00 +0000

The major Asian indexes turned his back again, although the regional index registered an increase again after the data on the labor market in the U.S. on Friday exceeded expectations, boosting the outlook for profits to Asian exporters. The Regional MSCI Asia Pacific Index rose 0.5 percent to 124.93 points, although the session was to increase and reached 1%, extending a series of positive last week.
In Japan the Nikkei 225 advanced 1.1% to 8 929.20 points, shares of Nikon Corp. jumped 11 percent to 2,604 yen after the maker of cameras and lenses raise its forecast for operating profit for the financial year ending on 31 March by 7.5% while those of Panasonic Corp. have added 6.3 percent to its value to 637 yen after the company announced that in the new financial year can be returned to profit from record losses for this. The shares of the largest automaker in the world by market capitalization Toyota Motor Corp. rose 3% to 2986 yen, but those of the semiconductor manufacturer Tokyo Electron Ltd. sank by 8.2 percent to 4,040 yen after it became clear that the net profit for the first nine months of the financial year are plummeted by 47% yoy.
The Chinese Shanghai SE Composite Index gained 0.03% minimum to 2 331.14 points, after it was announced that the International Monetary Fund has decreased its forecast for growth of the country this year to 8.25 percent on expectations for growth of 9% in September, but in Taiwan Taiex fell 0.7% to 7 687.98 points.
The Hong Kong’s benchmark Hang Seng Index slid 0.2 percent to 20 709.90 points, wiping out profits accumulated in the session, shares of the third Chinese credit institution by market capitalization Agricultural Bank of China Ltd. lost 2% of its value to 3.84 HK dollars after it became clear that three of its major competitors in the country will set aside a small portion of their profits to pay dividends and those of the Chinese construction company, Shimao Property Holdings Ltd. fell 0.5 percent to 8.73 HK dollars. The shares in Europe’s biggest bank HSBC Holdings Plc, however, increased in value by 1.6 percent to 67.90 HK dollars.
The South Korean KOSPI rose 0.04 percent minimum to 1 973.13 points, shares of the largest local exporter of consumer electronics, Samsung Electronics Co. rose 0.8 percent to 1.074 million won, but the company’s marketing of fuels and chemicals Hanwha Corp. value decreased by 4.6% to 37,000 won after it announced that part of the management staff is indicted for violation of his duties.
The Australian Index S & P / ASX 200 gained 1.05 percent to 4 295.98 points, while stocks of the biggest mining company in the world, BHP Billiton Ltd. have added 1.6 percent to its value to 38.21 Australian dollars and those of its biggest local rival Rio Tinto Group rose 2.6% to 72.30 points after U.S. newspaper Sunday Times said it expected company to increase its dividend by 40%, without citing the source of information.
“There is a moderately positive outlook for the stock market”, said Andrew Peace, chief investment strategist at Russell Investment Group in Sydney. “In the second half of last year, spoke only on whether the U.S. will return to recession. Now I think I will comment on whether the U.S. recovery will gather enough power. This is an important change for balancing the risk”, he added.
In Indonesia, the Jakarta Composite fell 1 percent to 3 974.79 points, falling below the psychological barrier of 4000 points, while Singapore’s FTSE Straits Times Index advanced 0.8 percent to 2 940.10 points, while stocks based in Hong Kong Noble Group Ltd. have added 3.9 percent to its value to 1.45 Singapore dollars.

Debt crisis will again be the focus of the markets

Viliyana Filipova — Mon, 06 Feb 2012 01:05:22 +0000

The struggle to achieve a comprehensive package of aid to Greece is followed by severe tensions and the U.S. stock market. Hopes of a rapid conclusion of negotiations for a massive debt write-off by private lenders went out.
“This is the old game of ping pong. USA Today, Tomorrow – Europe again”, said Joe Saluzzo from Thamis Trading in New Jersey. “Usually in this situation, if no economic news, the trend is upward”. But possible developments in Europe, such as raising interest rates for government bonds, will pose a potential risk even for the U.S. market. The season reports for U.S. companies will reach a peak point after the results and will present Walt Disney, Cisco and Coca Cola. Exchange operator Nyse Euronext will also present its financial data after Wednesday billion merger with Deutsche Borse fails. The European Commission refused to give permission for the merger of the two largest stock exchange operator in the world. So far 283 companies in the S & P 500 have submitted their quarterly reports. About 60% of them managed to exceed analysts’ expectations of earnings. This share is below the values in previous quarters so far. The recovery of the labor market in the U.S. surprise at the end of last week, Wall Street and positively reinforce hopes to strengthen the largest economy in the world. Nasdaq index rose to its highest level in eleven years. The increase in job creation is highest in nine months.
“The report on the development of the labor market was wonderful, but the volume of trade is not very large, so there are still some doubts”, says Ken Polchari of ICAP Equities in New York. It was a big asset managers will wait to get to solution for Greece to return to trade in large scale.
The Eurozone finance ministers will meet again, according to Greek Finance Minister Evangelos Venizelos on Wednesday. Originally supposed to be meeting on Monday but was postponed because of lack of progress and unity among the Greek cabinet. However, Venizelos announced that representatives of the Greek government will discuss the weekend on further steps to reduce government spending. Later it became clear that this meeting has been postponed.

Creditors of Greece want answers to the approved conditions

Viliyana Filipova — Sun, 05 Feb 2012 23:02:14 +0000

Continuing yesterday 6-hour continuous negotiations between the Greek government and representatives of international creditors in the face of the European Commission, IMF and European Central Bank led to a compromise for the second financial bailout package, said officials of the European Commission.
“The consultations continue, but hardly in the coming hours will be progress”, they said. It became clear that creditors have set conditions before the Greek government to “respond positively to any requests today to 11.00 hours CET”.
According to the conditions imposed Greek government must assume additional obligations on austerity budgets, including reducing the salaries of public sector pensions. Late yesterday did RIA Novosti, citing the press service of the Greek government, said Prime Minister Lucas Papadimos country and leaders of political parties have agreed to further reduce government spending.
“The prime minister and political leaders agreed on major issues, which include among others and taking steps in 2012 to cut government spending by 1.5% of gross domestic product”, the statement said. Leaders of political parties have also agreed to “ensure the viability” of the pension funds that control the payment of that portion of pensions, which is collected by pension insurance. The communication also says that it was decided to be done to recapitalize the banks. From the press stated that the consultations will continue today.
Antonis Samaras, the leader of the second party in Greece, according to parliamentary representation – New Democracy, has rejected a number of measures that lenders require. Samaras said that these measures lead to recession, “that country will not survive”. It is expected in 2012 to fifth in an economic downturn in Greece and the economic contraction to exceed 6% of GDP. But Greece is threatened with bankruptcy if it fails to agree rather with its private creditors to restructure the debt with international creditors in the face of the EU, IMF and ECB’s new program for the bailout.

Bulgaria with the second lowest debt/GDP ratio in EU for Q4 2011

Viliyana Filipova — Sun, 05 Feb 2012 22:08:30 +0000

Bulgaria was second in the European Union’s lowest government debt in the third quarter of last year, according to the European statistical office Eurostat. For the period July-September 2011 our government debt was 15% of gross domestic product (GDP). Estonia is ahead of us only by 6.1%, and after us is Luxembourg with 18.5%. In the third quarter of 2011, Greece was the country with the highest debt – 159.1% of GDP. It is followed by Italy (119.6%), Portugal (110.1%) and Ireland (104.9%). Top ten is completed by Belgium, France, Britain, Hungary, Germany and Austria. Bulgaria is among the countries most severely reduced the public debt in the third quarter of last year compared to the same period of 2010 according to Eurostat, Bulgaria’s public debt has registered an annual decrease of 0.9 percentage points. Only Luxembourg and Sweden have reduced public debt over rate. The most significant annual increase in debt for the period was registered in Greece (20.3 pp), Portugal (18.9 pp) and Ireland (16.5 percentage points). In the third quarter of last year compared with the second highest increase in debt was recorded in Hungary (4.8 percentage points), followed by Greece (4.4 percentage points) and Portugal (3.6 percentage points), and the a decrease in Italy (1.6 percentage points), Malta (1.6 percentage points) and Romania (1 pp). In the third quarter of last year, the average amount of debt in the euro area was 87.4 percent of GDP, almost unchanged from the previous three months. In comparison with the amount of debt from the third quarter of 2010, however, government debt in the euro area rose by over 4 per cent.
For the period July-September 2011 the average amount of debt throughout the European Union (EU) rose to 82.2 percent of GDP from 81.7 percent of GDP in the second quarter. The annual increase of public debt of the EU was 3.7 points.

Financial Loans and Break-even

Viliyana Filipova — Sun, 05 Feb 2012 18:32:36 +0000

Mostly while getting a loan, a borrower does not consider a very important factor, which is dear to borrowers, which are getting money on the behalf of businesses. This is the consideration of the concept of break even. Break even concept states the amount at which the company’s is in a state of no profit no loss. Applying this concept to the lending of money, borrowers need to estimate the minimum amount which can bear their expenses also and the return of investment gained over this income must at least equal to the payment of debt and interest. At this point thus, borrower will be aware that his costs will be met and he will not be getting loss whereas below that amount the borrower definitely will be incurring los over the borrowing. Therefore, by borrowing more than that value, he will be able to get the intended profit he seeks. For getting best financial loans, all the risk and mitigation factors needs to be answered beforehand and hence there exists certain factors which are crucial too for instance at certain occasions credit card companies have been sued by the borrowers for charging them usury interest rates. Hence, borrower needs to get complete market information beforehand.

Time Tested Debt Management Advice You Can Use

Viliyana Filipova — Sat, 04 Feb 2012 14:55:33 +0000

If you have debt, and you are finding it very hard to pay your bills, it is a smart decision to go for free consultancy services.
There are many different kinds of debt advice services which are provided by non-profit organizations all over the world. Debt consultants can help you form a budget and also advise you on how to pay your bills properly and which loans to prioritize. This way, you can save a lot of time and money. Also, this can also help you stay debt-free later on.
Debt management can be tricky to handle, but proper communication can always help you. Remember; never agree to any deal on the phone or the internet, because it may just be a way to scam you. The best way to get on a debt management program is always by visiting a certified debt consultant, who is licensed to operate in your state. The FTC or your state’s equivalent keeps a record of licensed debt consultants who can help you by giving you free information and recommend you to a good debt managementprogram. Depending on your fiscal situation, they can advise you which program would be best for you: debt negotiation, debt consolidation loans, or bankruptcy.
Each of these methods is very different from the others and offersdifferent forms of relief from debt. However, also bear in mind that they each have different benefits and repercussions.

The uncertainty settled in Asian markets at the end of the week

Viliyana Filipova — Fri, 03 Feb 2012 12:14:11 +0000

The main indexes of the Asian markets were unable to form a general trend for the second time this week and backed by the regional index reached peak after weak quarterly reports of companies affected by the European debt crisis and the uncertain prospects for the U.S. economy. The Regional MSCI Asia Pacific Index fell 0.1% to 124.41 points, shrinking profits for the week to 1.1%. In Japan the Nikkei 225 slid 0.5% to 8 831.93 points, stock manufacturer of glass Nippon Sheet Glass Co. fell by 12% to 132 yen after the company forecast a loss of 3 billion yen (about $ 40 million) for the financial year ending March 31 due to a decline in demand for its core European market and announced it would cut 3500 jobs, while those of the manufacturer of bicycle parts, Shimano Inc. fell 3.9 percent to 3795 yen.
The shares of Sony Corp. however, jumped 8.1 percent to ¥ 1,435 after being CEO of the company Kazuyo Hira said it will eliminate some of the divisions with poor results, to help rebuild it.
“Shares risen on expectations that the company will take the path of recovery”, said Makoto Sengoku, a market analyst at Tokai Tokyo Securities Co. “All the negative factors have already been shown (in price)”, he added. The Chinese Shanghai SE Composite Index rose 0.8 percent to 2 330.41 points, after it was reported that non-manufacturing sectors have expanded at a slower pace in January, sparking speculation that the central bank may take additional measures to support economic growth, but in Taiwan Taiex advanced 0.3% to 7 674.99 points.
“While growth in China slows down, landing will be hard”, said Zhang Lin, general manager at Shanghai River Fund Management Co. “He started loosening monetary policy and increasing market expectations for reducing the reserve requirements of banks. Shares are also cheap just now”, he added.
The Hong Kong’s benchmark Hang Seng Index rose 0.08% minimum to 20 757 points after repeated oscillation between profit and loss, shares of China Shipping Container Lines Co. jumped 8.5 percent to 2.17 HK dollars after the company announced plans to increase prices for services to increase revenues and those of Hutchison Whampoa Ltd. value increased by 3.3% to 76.40 HK dollars. In South Korean KOSPI fell 0.6% to 1 972.34 points, shares the second-largest maker of computer memory chips in the world Hynix Semiconductor lost 3.7 percent of its value to 26,300 won after the company announced a loss for the fourth quarter of 2011 from 239.9 billion won (214.8 million dollars), exceeding analysts’ expectations for a loss of 161.7 billion won.
The shares of the largest shipyard in the world, Hyundai Heavy Industries Co. sank 7.7% to 293,000 won after it announced shrinking operating profit for the fourth quarter by 62% and the largest Asian consumer electronics manufacturer Samsung Electronics Co. fell 1.3% to 1.066 million won.
The Australian Index S & P / ASX 200 lost 0.4 percent to 4 251.17 points, while shares of Newcrest Mining Ltd. increased its value by 1% to 34.25 Australian dollars, while those of Perseus Mining Ltd. also rose 1% to 2.97 Australian dollars after the price of gold in New York reached 11-week high.
In Indonesia, the Jakarta Composite fell 0.02% minimum to 4 015.95 points, while Singapore’s FTSE Straits Times Index advanced 0.6 percent to 2 917.25 points, shares the second airline in the world by market capitalization Singapore Airlines fell 3.6 percent to 10.61 Singapore dollars after the company announced that its net profit for the fourth quarter of 2011 decreased by 53% to 135 million Singapore dollars (108 million U.S. dollars).