The Chinese Premier Jiabao proposed draft budget envisages a deficit of 1.05 trillion. dollars, or about 2.8 percent of gross domestic product this year. Negative balance due to increased costs for construction of housing for the poor and for rural and agricultural regions in the country, transmitted Market Watch. About 850 billion yuan will be the deficit of the central government, and another 200 billion will be generated by the local authorities plans show the prime minister. In 2009 the budget deficit reached 950 million dollars, which is highest in absolute value for the last six years. Gross domestic product rose by even 8.7 percent to 33.5 trillion. yuan, the government estimates show.
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The Germany’s exports fell by 18.4% in 2009 This is the biggest decline since 1950, according to figures released today. Recently, China officially overtook the lead economy in Europe as the largest exporter in the world, forward Agence France-Press. “According to information from the Chinese Ministry of Commerce, Chinese exports totaled over 1.2 trillion. dollars, and Germany – to 1.12 trillion. dollars last year, said National Statistical Office of Germany. Germany’s total exports amounted to 803.2 billion euros (1.1 trillion. Dollars), while imports decreased by 17.2 percent to 667.1 billion euros compared to the level of 2008. But the country has seen a trade surplus of 136.1 billion euros in 2009, although it is less than in 2008 when it was 178.3 billion. Germany’s exports increased by 3.4 percent in December over the same period the previous year. This is the first growth on an annual basis from October 2008 onwards.
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The U.S. president Barack Obama said he was ready to take a robust stance against China. The reason for this is to make opening the Chinese market for American goods. At a meeting with senators Democrats, Obama has promised to provide constant pressure on China to complete the package of trade agreements between the two countries. Barack Obama pointed out that there was no intention to take a position on protectionism against China. Would be a mistake to close the road to the Chinese market, the U.S. president added, quoted by the BBC. Recalled the tension in relations between the U.S. and China has grown in the last week because of the transaction for the sale of American weapons to Taiwan. Came from China and cyber attacks against American sites. Meanwhile, Chinese authorities have warned that relations between the two countries will be dealt a serious blow if the U.S. president met with the Dalai Lama. In the words of Barack Obama, however, the approach of America lies in the fact to observe existing rules and to provide a permanent impact on countries like China to open on that more and more their markets.
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The Economists from around the world expect further growth of the Chinese economy. Personality of the financial world, however, predicted a severe economic downturn since there was nowhere greater “credit excesses” of those in China. While most experts expect that China will break the global economy from recession, an investor sees storm clouds. Cheynas James, one of the few who predicted the bankruptcy of U.S. energy giant “Enron”, warns of dangers of Chinese economy. According to him, the Chinese economy has been disastrous to collapse.
A thousand times worse than Dubai?
Bloated sector of the real property on which is poured torrent of speculative capital, reminiscent of Dubai, only in China, “the situation is a thousand times worse,” said China’s to the New York Times. He expressed suspicion that China makes tricks to maintain economic growth of 8 percent.
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China’s manufacturing activity rose for the tenth consecutive month in December amid continuing apace on the local economy recover from the effects of global crisis. This popular show on Friday official government data. Index PMI, reflecting manufacturing activity rose to 56.6 points from 55.2 in November. Levels above 50 indicate that the sector as a whole is growing, and below 50 indicates a decline in activity. Reduction of export orders in the months observed, however, suggest that major trading partners of China are still suffering from the global economic crisis. According to the Chinese authorities is still too early for optimism on the stability of the global market. In 2009 China is expected to take account of economic growth of 8%. Growth of gross domestic product for the third quarter was 8.9% at 7.9 percent for the second quarter and 6.1 percent for the first.
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From March onwards from emerging stock markets saw unprecedented gains in the high exchange zone and partly even two-digit three-digit figures. Since the beginning of the year the Russian MICEX stock index reached a growth of 120% whole, the Indian SENSEX climbed almost 70 percent and Chinese shares in Hong Kong grew by nearly 60%. Naturally these markets and had to swallow heavy losses during the financial crisis in 2008, however development of the background of global economic and financial framework conditions is more than impressive. Because even the prospects for growth in the U.S., EU and Japan are much more limited and continue to report and before the risks of downward movement. Although in 2010 is hardly likely to repeat growth, Raiffeisen Capital Management in emerging markets saw further potential for upward movement, not a potential investment bubble. “The shares of these countries really are no longer regarded as too favorable, but from our perspective, they continue to represent attractive investment opportunities. And in 2010 the focus of investors will stand Russia, China and India, “said Angelika Milendorfer, Head of Equities of emerging markets at Raiffeisen Capital Management in Vienna.
Russia – oil production will be appreciated
The largest volatility among the three countries mentioned shows Russian stock market. After a sharp downturn in the second half of 2008, Russia is currently one of the countries with the highest performance. “Among the investors Russia is usually limited to its rapid large stocks of oil and natural gas and energy sector is undoubtedly the most important for the country. However, many other sectors offer interesting investment opportunities. Telecommunications, finance and other sectors have potential for further growth, “continues Milendorfer.
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The Chinese car company Geely is sure to become the new owner of Volvo. Bid for division of Ford Motor addition seems to be preferred when the seller, or at least similar announcement made by Ford earlier this week. According to a statement from Friday Geely deal negotiations are still at an early stage and must act with caution, officials said. According to the company boss “has a lot of details and it takes time. “We will continue to work hard and take you Geely in every corner of the world,” the company said. Geely, whose name in Chinese means “successful”, discussed the offer as head of the consortium, whose funding will come from local and foreign banks. Ford and the Chinese company has not mentioned a specific price possible for the Swedish manufacturer, but according to speculations in the media world can be an amount closer to $ 2 billion than to them, and 6.45-billion that Ford paid for Volvo in 1999.
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The good news for sudden growth of Chinese economy in the third quarter failed to stop the sale of stock exchanges in Asia and the Pacific region. Instead, they strengthened fears that the Chinese central bank will soon need to raise the base interest rate, and the government to suspend its program to promote consumption. The regional index MSCI Asia Pacific, which monitors the securities markets in nine Asian countries plus Australia and New Zealand are lowered for the second straight day, losing 1.1 percent to 119.22 points. This is the strongest one-day decline in the stock measure from the beginning of this month and reduced his lead to five-year bottom of the beginning of March to 69 percent. Financial companies in the MSCI Asia Pacific contributed 39% of its fall today. Since the beginning of this year it has grown by 33% and outpaced the broad U.S. index, S & P 500 and the pan-European Dow Jones Stoxx 600. The optimism of investors made a market valuation of companies in the MSCI Asia Pacific 1,6 times greater than their book value. The stock market in Shanghai, Shanghai Composite was down by 0.6 percent to 3051.4 points, while Hong Kong’s Hang Seng slid 0.5 percent to 22,210.5 points.
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China’s economy grew in the third quarter at a pace greater than the previous two fourth, because of record levels of lending and government granted incentives. For the period July-September the country’s economy grew by 8.9 percent over the same period last year. Results for the first and second quarter were respectively 6.1 and 7.9 percent. The data for this quarter were slightly below expectations of analysts who predicted a growth of 9%. China the chance to meet the objective of economic growth of 8 percent in the year becomes more real, the country’s Deputy Prime Minister Lee Kekjang. For the first nine months of the country recorded GDP growth of 7.7%. Compared with last year, domestic demand increased by 4 percentage points, investments by 7.3, while exports of goods and services account, it decreases 3.6 percentage points.
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