Modern Business

Archive for the ‘Economy News’ Category

United States dollar weakened against the euro on Wednesday and rose against the yen, due to strong manufacturing data in the United States and China sparked investor risk appetite. The euro rose to 1.2807 dollars in New York at 2100 GMT from 1.2681 dollars late Tuesday. Dollar rose against the Japanese currency, taken 84.42 yen compared with 84.22 yen the previous day, after approaching the lowest level in 15 years at 83.60 yen.

“Common sense of numbers today, with few exceptions, is that the world economy does not work too badly,” said Brown Brothers Harriman analyst, Marc Chandler, citing recent data showing improvement in the U.S. manufacturing sector.

Institute of Supply Management on Wednesday said that the index of manufacturing rose to 56.3 points from 55.5 percent in July. Readings above 50 percent indicates the manufacturing sector to grow. Strong U.S. figures followed data from China which showed manufacturing in the second-largest economy in the world also rose last month, reducing the fear economy was heading for a sharp decline in the second half of 2010. Positive economic data is needed to support risk-seeking investors. Against other major currencies, the dollar rose to 1.0156 Swiss francs from 1.0144 on Tuesday while the British pound rose to 1.5450 dollars from 1.5346.

Rating agency Standard and Poor put the government of Cyprus on a credit of watch list with negative implications last Wednesday. It was done as a reaction to the parliamentary rejection of two proposals to reduce public debt.

“Rating Standard and Poor` s putting the long-term credit ratings of the Republic of Cyprus at `A +` on credit watch list with negative implications, “said international rating agencies. “Short-term credit monitoring following the rejection of the legislative branch on July 9, 2010 from two government proposals to raise revenue,” S & P credit analyst Trevor Cullinan said. The majority of members of parliament rejected government proposals to increase corporate taxes by one percent to 11 percent and increase the levy on the ownership of large properties that will generate annual revenues of 90 million Euros. Parliament said the government must cut bloated salaries alone before trying to raise taxes.
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It’s been four days, as world crude oil prices decline. This happens due to the level of the growing U.S. consumer confidence slumped. In addition, there is also investors’ concern on the decline of foil demand in the US.

For your information, oil prices declined after the Thomson Reuters / University of Michigan consumer confidence index released for the month of July. In the data shown, the consumer confidence index declined to a level of 66.5 from the position on June 76. This is the lowest level since August last year. It also predicted the index would drop songs to the position 74.

“Sentiment is negative macro impact. Outlook global growth outlook participate aggravate the oil market,” said Toby Hassall, analyst CWA Global Commodity Markets Pty in Sydney. Read the rest of this entry »

Today, Asian stock markets are still colored by negative sentiment seems like last week. You’ll see, almost the entire reference index in Asia is decreasing, Monday (7/19/2010) morning. The Hang Seng Index has slumped 0.93% to 20061.98 positions. Similar conditions experienced by the Shanghai Composite Index fell 0.20% to a level of 2419.75. Singapore’s benchmark index also drifted in Asia. Today, the Straits Times Index fell 0.40% to a level of 2945.99. Meanwhile, the Nikkei stock exchange did not operate on this day.

As you know, weeks ago, both regional and global exchanges fall into. Conditions that caused many financial reports of companies that do not fit the prediction. In the U.S., the Federal Reserve also lowered growth forecasts in the United States. As a result, many investors who choose to be cautious and wait until there are clarity that is more certain.

Financial Sector Reform Bill on the United States had entered the desk of President Barack Obama and is expected to be signed and ratified next week.

“After beating the level the Senate yesterday and escaped at the Congress a few weeks ago, the bill was now on the table the president,” wrote White House press statement quoted Bisnis.com from his official site, today.

Bloomberg reported the U.S. Senate approved the bill on reforming the financial sector will trigger a financial industry to making approaches to a number of regulatory bodies charged with preparing detailed rules. They will attempt to adjust the rules to the interests of industry.

“Implementation of this legislation will be a challenge. We are ready to cooperate with regulatory bodies to ensure that they have sufficient information to ensure the regulatory process is run effectively and efficiently as possible, “Edward said Yingling, president of the American Bankers Association, in a written statement which also showed disappointment over the bill. Read the rest of this entry »

Daejeon, South Korea: Asia is considered necessary to tighten control over the inflow of capital into this area which was considered too easy to go out quickly so that could destabilize financial markets.

Strategy and Finance Minister of South Korea Yoon Jeung Hyun expressed the need for world security network (global safety net) to tackle these capital flows.

“A number of developing countries would have the option to accumulate reserves in order to face the crisis. However, it is the high cost that is not the best choice. Global safety net is a good choice for all countries,” he said this afternoon.

He explained the IMF to prepare a more detailed plan to address capital flows that are too easy in and out and ensure global financial stability. However, IMF Managing Director Dominique Strauss Kahn assess actual Asia has shown resilience to the global financial crisis and even its economy continues to grow.
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