FED and the Bank of England denied the news about cooperation

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.

One of the large bank of WallStreet in front of bankruptcy

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.

USD with top bottom

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.

Japanese economy with 3.5% increase

The economy raising of Japan in the last three months of 2007 had been 3.5%, announced today Japanese government ot ministry. That is a little bit lower that the expectings from the government, published a month ago, but second economy in the world had developed much faster, that the experts predcited. After the reporting of the data, the JEN got more expensive, because of the specualtions for decresing of the interest level later this year from the Japanese Central Bank were declined. One of the chiefs of BoJ, announced that it was normally the Central Bank of one country to increase the interest levels in the country, in paralel with increasing of the economy.
In Tokyo immidiately after the publishing of the report, JEB reached 103.01 JEP per USD. The currency specialists think, that JEP may increase its speed and to pass the level of 102.70, because some traders put there automatical orders for buying.
Together with this, the index of Japanese shares Nikkei 225 Stock Average had increased with 1.6% because of the expectings, that the decision of Federal Reserve of USA to invest 200 billions USD in the financial system, will help for export in the largest market of Japanese goods.

Jean-Claude Trichet is scared from hard increase of the EUR

The president of European Central Bank, Jean-Claude Trichet announced earlier today, that he is affraid from the too hard increase of the EUR price toward the USD. In this way, Trichet is making the first try for intervention of currency market, which from some time is hardly destablized.
"We are affraid from too hard movements of the currencies in heavy moment like those today", commented a banker Basel. Trichet told his oppinions for currency market for last in the November, when he told against too unstable currency cources.
Jean-Claude Trichet tried to restrict the growing of the EUR, which got raising of its price with 18% toward the USD in the last year. After going over th psychological
border of 1.50 USD per 1 EUR, the European currency started to restrict the export and production. In the same time inflaion in the Eurozone is with 14 years pick, which made European Central Bank to keep a high level of interest, stimulating more its currency. The expectings for new aggressive increase of the interest of FED, additional will made the situation worse for the European Business and better for the EUR. Trichet is feeling much uncomfortable, because he cannot made a own monetary politic.

The union of Cyprus will give 1.8 billions EUR to the country

If we find a decision of the division of Cyprus, this will be not only peace for the country, but also will guarantee an incomes from 1.8 billions EUR every year, due to the chance for the business with Turkey and other possitive incomes. This is the conclusion for the examination, sponsored from the Norwegian International Insitute for studying of the peace. A group of scientists from Greece and Turkey Cyprus had counted, that the union of Cyprus will get on every Cyprus family dividend of 5,500 EUR yearly for the first 7 years.
The union of the island hardly will favour the tourism, building, university education, financial and legal services and trading companies. The trading of goods and services with Turkey will have its pick.
"One fair negotiation means growing security for people in Cyprus, larger stability in the region, increasing of the trade and service, making of conditions for the growing of culture and arts, and Cyprus will show as a model for the peace living of one world, built from divisions", told a special deputy of United Nations' Organization for Cyprus, filling that the new begining was extremely important for future disscusions for the destiny of the island.

Wolfgang Munchau about Great Britain crisis in real estates sector

Swedish economist Axel Leijonhufvud, working in American univercity UCLA, often loves to tlk about the practise of central banks to keep to the Inflation targeting. "This policy is wirking better on practise, than on theory", told he. The comentor of Financial Times - Wolfgang Munchau would tell them samo for British economy. If we have in mind the low producity of employees in Great Britain, and also the weak engineering achievements, the country should not develope so good in the last 15 years. From economic point of view, the prosperity of the country is looking impossible.
According to Munchau in the next some years, the British economy wonder will be in front of many problems. The balloon in the property sphere will bfrake somewhen and the citizens will be in front of harder crisis the the USA's now. A serious percent of Gross Domestic Product of Great Britain is forming from financial sector.

Asian Indexes finally raising again

Asian capital markets had grown for the first time from 6 days, reflected by strong presentation of mining companies and Japanese producers of electronic. The record prices of commodities and cheaper JEN, restricted the affraids of investors, that weak economy development will hurt the profits of companies. Japanese company Mitsubishi raised hardly on the stock exchange in Tokio, and the mining company BHP Billiton got more expensive on the Australian capital market because of the higher prices of petrol, gold and copper. The export oriented company Nintendo turned back the confidence in shares, after the cheaper JEN and increasing of expectings for better percent of profits.
"The shares were hardly underrated in the last week, so it was normal to see turning back of the investors' confidence to the market", commented Japanese analyzers in Bloomberg. "The prices of goods will continue to be a little bit more expensive, which will support some Asian companies", continued he.
The regional index MSCI added 1.6% and finished with value of 13.60 points. In the last week, the index lost 5.5%, which is making the whole lose from the begining of the year of about 10%. The Japanese index NIkkei growed with 1.9% tonight to 13 215.42 points, after the decreasing of the pric of JEN toward the USD.All other Asian indexes finishedon green with exception of New Zeland.

The Weakness of Wall Street hit Asia

The Asian funds market lost a maximum money in the first day from the working week, because of the affraids for American Economy. The financial sector was the most seriously hit from investors sales and in the panik slowly caught the whole sector, wrote Bloomberg. The Japanian corporation Takefuji signed its largest daily decreasing from three weeks ago, because of the news from realized losses in a count of 291 millions. The automobile company Toyota decreased the pric of its shares, because of getting up of the JEN, which made the export harder. The minning company BHP Billiton lost because of the becoming a cheaper copper.
"The American Economy is getting narrow and that is sure", commented analyzer from Deutsche Bank. "The weakness of capital markets will continue in the next some months", continued he.
The regional index MSCI lost 3% from the level of 143.11 points, which is the hardest decreasing from 6th February. In February the exchange indexes in Asia finished on possitive area, but with its weak presentation today, are again on the values of January.