Archive for the ‘Economic News’ Category
Rupiah sharply observed superior to the pound sterling in foreign exchange trading today (05-09).
This is related to the latest information about the Services PMI indicator has just been released by Markit, which the report shows a decrease in performance in the UK services sector.
Indicator Services PMI fell to 51.1 which was reported previously expected only to fall to 54.3 from 55.4 the previous value.
that the British pound weakened observed moving around – 1:15% against the rupiah at foreign exchange trading today, and led Sterling to a close range of the weakest since August. Read the rest of this entry »
Deputy Head of Global Economics Paul Donovan said if he was optimistic the U.S. economy could recover.
United States and the European Union pose different threats to the global economic recovery. But there are reasons to be optimistic about economic recovery in the United States and the media have been exposing excessive debt crisis triggering a negative market sentiment
He said also, the euro as a currency that is damaged and he criticized politicians for being outside the scope of the economy and therefore can not find a solution to the debt crisis.
What we want is a European statesman not a politician, a statesman will come out, lead, and saying that he knew what he would do, and know what there is for the interests of European
For information, the Euro managed to rebound on Friday triggered some buying from central banks and the purchase of technical ease the selling pressure that hit since the previous session. Read the rest of this entry »
Prices of wheat in late trading yesterday recorded an increase. Rising grain movement was triggered by reports that in some states in the U.S. was hit by drought in the last 10 days such as is happening in Kansas, Oklahoma and Texas.
Based on reports from the National Wheater Service, the lack of rain gave drought in some areas. That condition is expected to last until the end of August.
Wheat futures for December increased by 3% to 7.6125 dollars per bushel. Throughout this week the price of wheat has increased by 4%.
movement of wheat prices are expected to still more likely to have increased although not very significant, given the commodity prices are still moving unstable.
The U.S. Justice Department is investigating the ratings agencies Standard & Poor’s for its actions against the mortgages that caused the financial crisis in 2008. The investigation relates to the S & P analysis of the letters of the mortgage-based debt.
According to sources close to the matter, as quoted by Reuters on Thursday (08/18/2011), an investigation conducted before the agency lowered the long-term U.S. debt rating to AA-plus from AAA rating this month.
The investigation was led by the civil division of the Department of Justice. But the source declined to be identified further because the investigation is ongoing and is not common.
The Justice Department has also investigated other rating agencies, Moody’s ratings are given with respect to structured products during the financial crisis.
Read the rest of this entry »
Venezuelan President Hugo Chavez is preparing legislation that allows the state to take over gold mines to prevent the ‘mafias’ exploit the country’s natural resources.
The announcement came less than a week after gold prices hit a record high of more than $ 1,800 per ounce last week as investors flocked to safe-haven amid the market volatility sparked by the debt crisis of the euro zone.
In December, Venezuelan lawmakers gave an extraordinary legislative powers to Chavez to rule the country with a decision until mid next year.
Venezuelan government has taken over a number of strategic economic sectors since 2007, and in 2010 he took over about 500,000 hectares (1.2 million hectares) of land of gold mining. Read the rest of this entry »
Gold prices shot higher after the France-German meeting failed to convince investors that the euro zone debt crisis will be solved.
gold prices rose one percent, the difference is only 1.6 percent below the record highs reached USD1.813 gold in the last week. While today, Wednesday (08/17/2011), price of gold in the spot market in the parking lot USD1.785, 44 per ounce. Furthermore, the price of gold in USD gold GCcv1 rose 0.2 percent to USD1.788, 60.
Earlier, French President Nicolas Sarkozy and German Chancellor Angela Merkel announced it will integrate the euro zone. It is also stressed also the euro zone rescue efforts continue, and the discourse of the euro bond does not seem to be running.
Adding to investor anxiety, the eurozone economy slowed sharply in the second quarter, hobbled by sluggish growth in Germany and the stagnation in France. The world’s largest gold bourse, SPDR Gold Trust rose 0.2 percent from the previous day to 1262.899 tons on August 16.
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Asia, including China and India, will be vulnerable if the United States and Europe slipped into another recession. Concerns were conveyed by the Prime Minister of Singapore Lee Hsien Loong.
In his annual policy speech, Lee warned, the world may be sinking into recession because the debt crisis in Europe and the U.S. economic woes resulting downgrade by Standard & Poor’s.
market volatility “is only a reflection of the real issues” that reduce investor confidence in U.S. and European governments whether they can “make the hard decisions and to solve the problem of deep and very serious.”
The U.S. government judged Lee spent too much and the fiscal deficit “unsustainable”. He added that the deep divisions between Republicans and Democrats have made the country more difficult to solve the problem.
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Italian Economy Minister Giulio Tremonti proposes to issue euro bonds in response to the debt crisis in the European zone ahead of the French-German meeting next week.
proposal was intended as a solution of the debt crisis that hit the euro zone. However, the idea was rejected by German Finance Minister Wolfgang Schaeuble, who said that the issuance of the bonds will actually undermine the basic functions of the single currency to weaken fiscal discipline among member countries.
Meanwhile, the British finance minister George Osborne said if maybe it takes a fiscal union for the euro zone region as a solution to the crisis that hit the euro zone.
As is known, Italy has the second highest burden of public debt in the euro zone that is 120 percent of Gross Domestic Product (GDP). Read the rest of this entry »
Temporary suspension of tax incentives (Tax Holiday) would indeed seem to result in reduced state revenues, but in the medium to long-term tax holiday will mengenjot tax revenues.
Therefore, granting a tax holiday can not be interpreted to the potential loss of state tax revenue. “Because he was later to create their own employment. More and more labor that created the company, we also make money from the other side,”
Therefore, the policy can not be viewed piecemeal, the article at this time how many companies take advantage of tax deferral incentive is still unknown. “But I believe this (tax holiday) needs to be done,”
As reported previously, after a long-delayed government finally issued a temporary tax deferral rules of tax cuts and incentives (tax allowance). Read the rest of this entry »
Four EU countries namely France, Italy, Spain, and Belgium banned short-selling in the shares of banks and other financial companies. The policy was made because of sharp gains and losses the bank’s shares last few days.
Head of the French Financial Markets Authority (AMF), Jean-Pierre Jouyet, said France had decided to ban short-selling 11 types of stocks for two weeks, including the three largest French bank Societe Generale ie, BNP Paribas and Credit Agricole.
The decision was taken after the French stock market regulator said that the French stock market plummeted since Wednesday (10/08/2011), because of unfounded rumors about the potential loss of debt rating “AAA” France.
In addition, the stock market turmoil also occurred after news emerged that the French banking giant Societe Generale is affected by the instability and problems of financial stability though later denied. Short-selling is the act of investors who profit by betting the stock or bond price declines.
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