Sunday, March 23, 2008
From the Federal Reserve and the British bank denied the possibility for masked buying of obligations, financed with Amercian mortgages, with purpose to return the confidence to financial sector. In spite of this, the bankers in Great Britain announced that is possible to go to more aggressive purposes for managing with the mortgage crisis and the problems on the financial markets.
From the European Central Bank had refused to comment the case, announced Reuters agency.
The previous week, newspaper Financial Times wrote, that central banks from the two sides of Atlantic Ocean are trying to establish a large operation of buying all depreciated securities, which are in the basic of the financial crisis. This may repair the redit system and will return the confidence in financial system, but the US Dollar will continue to get cheaper.
"The central banks are trying to find the solution of the crisis situation", commented a speaker of the Bank of England. "Our institution will not go in risk situation, which may load up the taxpayers with the problems of trade banks", continued he.
From the federal Reserve answered, that they are not making any negotiations with foreign colleagues for coordinated buying of obligations financed with mortgage debt.
Monday, March 17, 2008
The American investing bank JPMOrgan Chase agreed to buy Bear Stearns for 240 millions USD, which is nearly 90% form irs price from the previous week. We can remeber, that the investing bank Bear Stearns was hurt a lot from the mortgage crisis in USA and is in front of the bankrupcy. In Friday afternoon, the financial markets broke after the news for bankrupcy of the bank, which cannot pay its engagements.
The shareholders of Bear Stearns will be compensated with shares from JPMorgan, and for every of their share they will get 2$. Just before the Friday news, the shares were at prices of 55-60 USD, and for the previous year the price was over 100 USD. It is expected that Federal Reserve will finance the transaction, and also 30 billions USD for supporting the licvidity of the bank.
The future change of the authority in the Kremlin in taking the attention of the foreigners, who are making business in Russia, told "Nezavisimaya Gazetta". So, for example the previous Thursday in the Swisss capital Bern, was made a conference in Comitee of collaboration between Russia and Switzerland. The bankers "privately" had discussed the possible schocks in changing the authority from Vladimir Putin to Dmitrii Medvedev and the connected with this perspectives for running of Russian capitals outside of the country, in this count in banks of Switzerland and Lichtenstein.
The organizers of the meeting in bern spent maximum fetch, to keep political propriety. In the conference was discussed the critics to Russia from the Swiss medias, which are a little bit harder sometimes. The accent in the conference had been Constantine Kosachev, the leader of international section of the Government.
Kosachev signed, that Putin is the first after Peter the First, Russian leader, who when leaving the rule was not devoted from anathema.
Saturday, March 15, 2008
Just 3 days ago the chief of the famoust American bank Bear Stearns, was convincing WallStreet, that the company is in great danger. Now the assurances of Mr. Alan Schvartz turned in apprehensions for bankruptcy, when the client want their money back, which is making the situation for the bank worse.
In Friday JPMorgan Chase and the Federal reserve Bank of New York should give a hand to Bear Stearns, with one financial package, to keep it living, wrote The New York Times. This step was extreme shock for the financial system, made by the credit crisis. The expectings of Wallstreet are that one of the great investors there may fall. The situation may lead to selling of part of Bear Sterns, which loss from invests, connected with mortgages increased. To keep the 85 years'old bank, JPMorgan with a support of FED helped to credit line, which is giving to Bear Stearns. The Bear has 28 to tighten the financial position or more possible after that to search for buyer.
Thursday, March 13, 2008
To continue the business with luxury goods is necessity most of all, the people to feel good, spending a lot of money. In the time of conferention in Moskow, the director of Louis Vuitton - Bernard Arno went in explanations, to take out the fears of investors connected with negative influence of the credit crisis, the possibility of recession and weak dollar. Against all expectings, Mr. Arno announced, that sellings will jump double in the next 5 years because of the stable searching from the side og growing markets.
After going away of the bad doings in the beginning of the 10-years, connected with terrorist attacks in USA, fears of terrorism and the war of Iraq, which killed the interest of the people in excentric goods, the market in the last 3 years waked up. According to marketing agency Bain, in 2006 sellings had growed with 9% to159 billions USD. The expectings for this year had reached 170 billions USD, which is 2 times more than the incomes realized in 1996.
In spite of the crisis in the US economy, the luxury goods sellings are going in good direction and the prioritets of Americans are really changed and absolutely turned down
In 1971, when the USD was weak and was getting cheaper with every day, the financial minister John Connolly paid attention to the whole world with the words “Dollar is our currency and your problem". Thirty years later when the US Dollar was stronger and didn’t stopped to increase, the financial minister Robert Rubin told “Strong Dollar is a good for America”.
Today the US Dollar is again in situation from 1971, and analyzers expected the American positions and economists to pay attention to the words of Connolly, but in spite of that they repeat the phrase of Rubin. The problem is that as much as you claim that you care about American Dollar, when it is decreasing every day, means that you have an interest the situation to be in that way. So the American economists, repeat without words the phrase of Connolly.
The president of European Central Bank, Jean-Claude Trichet, finally began to comment, how dangerous can be the hard and uncontrolled currency movements. The banker is pressed from the production sector in Europe, to make an attempt for stopping of the hard running EUR. For the last month, the Dollar lost nearly 8% toward the EUR, and for the last year, the losing is more than 20%.
The USA currency fell under the psychological value of 100 YEN per USD, which happens for the first time for the last 12 years. This is because of hard apprehensions about going of American economy in recession and the continuous credit crisis.
The currency crashed to a record bottom toward the EUR and CHF, before the important data for American retails and the applications for unemployment later. The Japanese currency raised with 24% toward the USD for a period of 9 months, which will cause a serious problems to the profit of Japanese companies. China often use the YEN as a currency in stead of its, inb international transactions.
”The investors are leaving too quickly their USD positions, which will be a great problem for us”, commented Japanese analyzer in front of Bloomberg. “The American economy, which is the strategy important market, is going in recession”, continued he.
The USD decreased to 99.76 YEN, earlier today, which is the lowest level from 9th November, 1995. In the moment the price is again over 100 JEN, but yesterday the US currency 102 YEN per USD. The USD fell to new top bottom with a fixing of 1.5628 USD per 1 EUR.
Japanese government involved into the currency markets 4 times from 1995 till now, to decrease the price of the YEN and to support the export. The Japanese bank sold 14.8 trillions YEN (146 millions USD) in the first 3 months of 2004, which were after the selling of 20.4 trillions YEN in 2003. All this were done, because the Japanese economy is directed for exports and don’t need expensive currency. With a less expensive currency the Japanese economy will keep the good in concurrent prices. The too cheap US Dollar is making a bad reflection over Japanese export to USA, where are going 25% from all goods made in the Asian country.