In spite of the refusal of the organization to sell his near 10% of Repsol to Lukoil, sources of the Caixa assured this weekend that the group presided over by Isidro Fainé does not discard "to look for an alternative", once Sacyr materializes the sale of its participation or once the operation is run aground completely. The Caixa does not want to participate in this operation to three bands mainly to avoid that it is considered like "an arranged" performance in damage of the small shareholders.
With its announcement of today the Caixa ends the speculation of the market, that in the last weeks aimed at a possible sale of 9.9% that the Caixa controls of Repsol the Lukoil group, which added to the participation of 20.01% of Sacyr it had given the control of the oil Spanish to the Russian group.
Òscar Roca Aris
martes, 30 de diciembre de 2008
lunes, 29 de diciembre de 2008
Cheap oil places the great oil-exporting countries to a critical situation
The countries economically dependent on oil are in continual warning of its downfall. In its last meetings, the OPEC has announced drastic cuts: the oil’s barrel has slumped below 40 $ a barrel, in wintertime that it’s when there’s a higher consume.
For the great oil-exporting countries it means a critical situation; the IMF informs that countries such as Iraq will have a few problems to assume their budgets. Iraq’s programme foresee around 110 $ a barrel needed for the petroleum industry. In addition, there are Iran and Venezuela, important countries in this field, which cannot balance prices, unless they put the barrel up to 80 $ (they both are now dependent upon crude prices of $100 a barrel to balance their budgets). There’s also Argelia who’s got the prices around 60 $ a barrel and it might fall to 50 $ and then it would be a disaster, since the average should be around 100 $, something really doubtful for this next year. All this could mean a meaningful number of investor’s suspensions.
Now, they are exploring and planning to exploit new zones such as Canada and Brazil. In the case of Brazil, Petrobras (its Brazilian petroleum PLT) has problems with its investors, since they don’t trust in their capacity for exporting new oil wells, even though they’ve recently has gained some profits. However, they lately found a new great oilfield and now they’ve planned to increase the production during these next years, as they’ve increased the production of new developed technology, but this innovation in technology supposes high costs. Petrobras’ managers assure that the necessary fixed costs can be covered by the ‘cash and flow’ (profits plus amortization) of the firm.
Despite all this, investors don’t trust in it.
For the great oil-exporting countries it means a critical situation; the IMF informs that countries such as Iraq will have a few problems to assume their budgets. Iraq’s programme foresee around 110 $ a barrel needed for the petroleum industry. In addition, there are Iran and Venezuela, important countries in this field, which cannot balance prices, unless they put the barrel up to 80 $ (they both are now dependent upon crude prices of $100 a barrel to balance their budgets). There’s also Argelia who’s got the prices around 60 $ a barrel and it might fall to 50 $ and then it would be a disaster, since the average should be around 100 $, something really doubtful for this next year. All this could mean a meaningful number of investor’s suspensions.
Now, they are exploring and planning to exploit new zones such as Canada and Brazil. In the case of Brazil, Petrobras (its Brazilian petroleum PLT) has problems with its investors, since they don’t trust in their capacity for exporting new oil wells, even though they’ve recently has gained some profits. However, they lately found a new great oilfield and now they’ve planned to increase the production during these next years, as they’ve increased the production of new developed technology, but this innovation in technology supposes high costs. Petrobras’ managers assure that the necessary fixed costs can be covered by the ‘cash and flow’ (profits plus amortization) of the firm.
Despite all this, investors don’t trust in it.
The financial crisis comes to the football
The financial international crisis is passing many invoices and not even the football, that was looking like an unbreakable business, has managed to escape of the financial crisis.
After many years of excesses, in which in general it does not look alike to have repaired in expenses, the crisis is going to do that we see the unthinkable thing: the big clubs of football narrowing the belt.
After many years of excesses, in which in general it does not look alike to have repaired in expenses, the crisis is going to do that we see the unthinkable thing: the big clubs of football narrowing the belt.
sábado, 27 de diciembre de 2008
Crisis for christmas
This year there has been a crisis, and now for christmas is when more is noticed because normally is the time of spend.Even the price of the seafood has fallen and the people buy less than other years,now the consumer prefer buy a cheaper product though the quality decrease. There will be less gifts below the tree, seems that this crisis will affect the bag of "Santa Claus". The only way for face the crisis is winning the lottery, hopefully able to win it.
Danae Moreno García
Danae Moreno García
lunes, 8 de diciembre de 2008
"Sweden cuts interest rates to 2%"
Sweden is acting to ease the effects of the global downturn and Sweden's central bank has cut its key interest rate by a record 1.75 percentage points to 2%.
The Riksbank said the move was intended to "dampen the fall in production and employment" caused by the global financial crisis.
The Riksbank said it thought the rate would remain at the same level throughout 2009.
The decision, which came two weeks earlier than expected, followed a half-point cut last month.
Elsewhere in Europe, Bank of England policymakers have cut UK rates to their lowest level for more than half a century, with a one-point reduction to 2% - a level not seen since 1951.
And the European Central Bank's governing council, meeting in Brussels, is expected to reduce rates by at least half a percentage point from the current level of 3.25%.
I think that a fall in the interest taxes can increase economic growth, at least in the short term. However, the growth may be unsustainable, especially if interest rates rise in the near future. There is also a danger of increased consumption causing inflation.
Alot of people think that this fall of taxes will help them with the mortatges pay, but I think that this action isn’t the correct solution. One example was the japanese deflation in 90s.
Iris Baño
The Riksbank said the move was intended to "dampen the fall in production and employment" caused by the global financial crisis.
The Riksbank said it thought the rate would remain at the same level throughout 2009.
The decision, which came two weeks earlier than expected, followed a half-point cut last month.
Elsewhere in Europe, Bank of England policymakers have cut UK rates to their lowest level for more than half a century, with a one-point reduction to 2% - a level not seen since 1951.
And the European Central Bank's governing council, meeting in Brussels, is expected to reduce rates by at least half a percentage point from the current level of 3.25%.
I think that a fall in the interest taxes can increase economic growth, at least in the short term. However, the growth may be unsustainable, especially if interest rates rise in the near future. There is also a danger of increased consumption causing inflation.
Alot of people think that this fall of taxes will help them with the mortatges pay, but I think that this action isn’t the correct solution. One example was the japanese deflation in 90s.
Iris Baño
Cheaper oil cuts producer prices
The cost of goods leaving UK factories fell 0.7% during November compared to October, which itself saw a 1% fall.
It is vindication for the Bank of England's view that inflation is not currently a threat, which has allowed it to make three successive rate cuts.
Much of the fall in prices has come from the rapid drop in the price of oil, which is more than $100 a barrel below its July peak.
Analysts say the falling factory-gate prices will feed through to shops soon.
"It's coming down fast and there's plenty more where this came from," said Alan Clarke, an economist at BNP Paribas.
"We're going to see this in supermarkets and high streets pretty much imminently."
Slowing inflation
Producer prices are 5.1% above their level this time last year.
While the falling oil price has led to an overall cut in inflation, there are concerns that the falling value of the pound may lead to some cost pressures.
"For example, imported chemicals and imported parts and equipment both show increases during November," said Philip Shaw, an economist at Investec.
"Overall, this probably doesn't derail the disinflationary story but the selected cost increases are interesting."
The Bank of England's interest rate-setters have cut three percentage points off the cost of borrowing over the past three months, bringing the Bank Rate down from 5% to 2%.
http://news.bbc.co.uk/2/hi/business/7770836.stm
As we can see the crisis has also good things like that. Before the crisis the price of oil were increasing all the time, but now it’s decreasing, so that means the price of products will be lower and the inflations will decreases too. May this can be a way to find out the solution of the crisis.
Octavi Casas 1r batx A
It is vindication for the Bank of England's view that inflation is not currently a threat, which has allowed it to make three successive rate cuts.
Much of the fall in prices has come from the rapid drop in the price of oil, which is more than $100 a barrel below its July peak.
Analysts say the falling factory-gate prices will feed through to shops soon.
"It's coming down fast and there's plenty more where this came from," said Alan Clarke, an economist at BNP Paribas.
"We're going to see this in supermarkets and high streets pretty much imminently."
Slowing inflation
Producer prices are 5.1% above their level this time last year.
While the falling oil price has led to an overall cut in inflation, there are concerns that the falling value of the pound may lead to some cost pressures.
"For example, imported chemicals and imported parts and equipment both show increases during November," said Philip Shaw, an economist at Investec.
"Overall, this probably doesn't derail the disinflationary story but the selected cost increases are interesting."
The Bank of England's interest rate-setters have cut three percentage points off the cost of borrowing over the past three months, bringing the Bank Rate down from 5% to 2%.
http://news.bbc.co.uk/2/hi/business/7770836.stm
As we can see the crisis has also good things like that. Before the crisis the price of oil were increasing all the time, but now it’s decreasing, so that means the price of products will be lower and the inflations will decreases too. May this can be a way to find out the solution of the crisis.
Octavi Casas 1r batx A
Dow Chemical to cut 5,000 jobs
Dow Chemical Co. said Monday it will streamline its business by cutting about 5,000 jobs, closing plants and shedding assets.
In response to poor market conditions, Midland, Mich.-based Dow (DOW, Fortune 500) said it will eliminate about 11% of its global workforce.
The company said it expects the restructuring, which will be effective in January to save $700 million in annual costs by 2010. It said the savings would be in addition to the previously announced $800 million a year from the anticipated Rohm and Haas acquisition.
"Today's restructuring is designed to support the Dow of tomorrow," said Dow Chairman Andrew N. Liveris, in a statement. "However, we are accelerating the implementation of these measures as the current world economy has deteriorated sharply, and we must adjust ourselves to the severity of this downturn."
Shares of Dow Chemical rose nearly 3% in premarket trading.
In response to poor market conditions, Midland, Mich.-based Dow (DOW, Fortune 500) said it will eliminate about 11% of its global workforce.
The company said it expects the restructuring, which will be effective in January to save $700 million in annual costs by 2010. It said the savings would be in addition to the previously announced $800 million a year from the anticipated Rohm and Haas acquisition.
"Today's restructuring is designed to support the Dow of tomorrow," said Dow Chairman Andrew N. Liveris, in a statement. "However, we are accelerating the implementation of these measures as the current world economy has deteriorated sharply, and we must adjust ourselves to the severity of this downturn."
Shares of Dow Chemical rose nearly 3% in premarket trading.
China milk scandal continues
A Europe-wide ban on all children's food imported from China has come into force. It follows the deaths of four Chinese children after drinking contaminated powdered milk. 13,000 children in China are still being treated in hospital.
Batches of powdered milk in China have been contaminated with melamine - which is used in pesticides and plastics. The European Union has now banned imports of Chinese baby food that contain any traces of milk.
The decision, under the bloc's health and safety provisions, will also mean all food imports from China which contain at least 15 percent milk products will be subjected to tests. Officials at the European Commission in Brussels are emphasising that, as far as they know, there has been no contamination of food originating from China, and these measures are purely a precaution.
The ban comes as production of a popular milk-based sweet known as White Rabbit has been stopped in China after traces of a toxic chemical were found in the product.
Chris Mason, BBC News, Brussels
Batches of powdered milk in China have been contaminated with melamine - which is used in pesticides and plastics. The European Union has now banned imports of Chinese baby food that contain any traces of milk.
The decision, under the bloc's health and safety provisions, will also mean all food imports from China which contain at least 15 percent milk products will be subjected to tests. Officials at the European Commission in Brussels are emphasising that, as far as they know, there has been no contamination of food originating from China, and these measures are purely a precaution.
The ban comes as production of a popular milk-based sweet known as White Rabbit has been stopped in China after traces of a toxic chemical were found in the product.
Chris Mason, BBC News, Brussels
Tax trebles in town's cash crisis
People who live in a small town in Norfolk (East of England) will have to pay more council tax, since their local administration has trebled the amount it charges them. The Council Hall in south Norfolk has raised the tax from £60 to £184 a year.
The town council chairwoman, Sue Kuzmic said that the council had inherited the financial crisis.
All this tax rising is due to build up reserves, South Norfolk District Council has made a £40,000 loan to Harleston as a short term measure and the town council will raise £295,000 through trebling its precept. Kuzmic stands that to obtain the necessary money from South Norfolk, they have to have a policy of how they’re going to build up the reserves in the next three years, and they assure that this may increase their budget and they’ll be able to bring the precept down.
Others, more sensible, say that they don’t want to make any promises which they cannot keep and deliver.
The decision was voted in unanimously after it was revealed that the council would be £65,000 in debt if it did nothing and carried on spending at the same rate.
In addition to all what government said, they partly blame the financial crisis as an excuse for raising the tax in line with inflation and the cost of several large projects like a leisure centre, a new cemetery and the provision of free parking in the town.
The town council chairwoman, Sue Kuzmic said that the council had inherited the financial crisis.
All this tax rising is due to build up reserves, South Norfolk District Council has made a £40,000 loan to Harleston as a short term measure and the town council will raise £295,000 through trebling its precept. Kuzmic stands that to obtain the necessary money from South Norfolk, they have to have a policy of how they’re going to build up the reserves in the next three years, and they assure that this may increase their budget and they’ll be able to bring the precept down.
Others, more sensible, say that they don’t want to make any promises which they cannot keep and deliver.
The decision was voted in unanimously after it was revealed that the council would be £65,000 in debt if it did nothing and carried on spending at the same rate.
In addition to all what government said, they partly blame the financial crisis as an excuse for raising the tax in line with inflation and the cost of several large projects like a leisure centre, a new cemetery and the provision of free parking in the town.
The big banks will have to expand capital if the market is normalized
The capital increase made recently by the Banco Santander was the first of "many", as explained in charge of Equity Investment and Atlas Capital, Ignacio Cantos. According to the expert, in 2009 virtually all major banks have sought to resort to such operations in search of liquidity to the increase in delinquencies.
Songs for the large consumption of capital they have to assume due to the increase in arrears and the recommendations of payments from companies or individuals are among the reasons that could lead to the entities to make this decision. Last week, Citi predicted that several European banks will carry out further capital increases as you near "the worst" of recession.
The financial group which is chaired by Emilio Botín announced on November 10 raising capital by more than 7190 million euros, the third biggest enlargement ever, with the issuance of 1598.81 million new ordinary shares, to strengthen his creditworthiness . The chairman of the entity, Emilio Botín, said he was "very satisfied" with the outcome of the operation and stressed that shows "confidence and strength that offer the economy and the Spanish financial system."
Songs for the large consumption of capital they have to assume due to the increase in arrears and the recommendations of payments from companies or individuals are among the reasons that could lead to the entities to make this decision. Last week, Citi predicted that several European banks will carry out further capital increases as you near "the worst" of recession.
The financial group which is chaired by Emilio Botín announced on November 10 raising capital by more than 7190 million euros, the third biggest enlargement ever, with the issuance of 1598.81 million new ordinary shares, to strengthen his creditworthiness . The chairman of the entity, Emilio Botín, said he was "very satisfied" with the outcome of the operation and stressed that shows "confidence and strength that offer the economy and the Spanish financial system."
Oil prices up on talk of Opec cut
Oil prices have rebounded from four-year lows after Opec's president said the oil cartel could announce a large reduction in oil production.
US light, sweet crude rose $2.55 to $43.36 a barrel and London's Brent crude went up $2.51 to $42.25 a barrel. On Friday, oil prices fell to a low of $40.50 after weak US economic data. Opec President Chakib Khelil said on Saturday the cartel could "surprise" markets with an output cut at its meeting on 17 December in Algeria. He did not specify how big the cut could be, but said that some analysts were expecting a reduction of up to 2 million barrels per day. "The possibility of Opec moving to tighten up the oil market is real," said David Moore at Commonwealth Bank of Australia. A jump in stock markets and hopes for a stimulus plan for US carmakers also helped support oil prices. Oil prices reached an all-time record of $147 a barrel in July. Now analysts forecast much lower prices amid the worsening situation in the global economy. Merrill Lynch said crude prices could fall to $25 a barrel if China is hit hard by the global recession.
Everything that rises, goes down, and the price of oil isn't an exception. I think that this is a beginning to restore the economy.
US light, sweet crude rose $2.55 to $43.36 a barrel and London's Brent crude went up $2.51 to $42.25 a barrel. On Friday, oil prices fell to a low of $40.50 after weak US economic data. Opec President Chakib Khelil said on Saturday the cartel could "surprise" markets with an output cut at its meeting on 17 December in Algeria. He did not specify how big the cut could be, but said that some analysts were expecting a reduction of up to 2 million barrels per day. "The possibility of Opec moving to tighten up the oil market is real," said David Moore at Commonwealth Bank of Australia. A jump in stock markets and hopes for a stimulus plan for US carmakers also helped support oil prices. Oil prices reached an all-time record of $147 a barrel in July. Now analysts forecast much lower prices amid the worsening situation in the global economy. Merrill Lynch said crude prices could fall to $25 a barrel if China is hit hard by the global recession.
Everything that rises, goes down, and the price of oil isn't an exception. I think that this is a beginning to restore the economy.
Banks face pressure on rate cut
Many homeowners will benefit from a cut in the Bank rate
Banks and building societies are moving after pressure from MPs to pass on the latest cut in interest rates to their mortgage customers.
Some of the major lenders made an immediate decision to pass on the one percentage point Bank rate cut to customers with variable rate mortgages.
RBS/NatWest, which is majority owned by the government, will cut by 0.75 of a percentage point, it said on Friday.
The UK's biggest lender HBOS will only pass on 0.25 of a percentage point.
A spokesman for HBOS said the government had expected it to be run along commercial lines, which was what it was doing.
Initially, it seemed that customers on mortgage tracker deals with the Nationwide would see only a 0.25 percentage point cut in interest rates.
But late on Thursday the UK's biggest building society said it was passing on the full one percentage point cut to existing tracker customers.
Banks and building societies are moving after pressure from MPs to pass on the latest cut in interest rates to their mortgage customers.
Some of the major lenders made an immediate decision to pass on the one percentage point Bank rate cut to customers with variable rate mortgages.
RBS/NatWest, which is majority owned by the government, will cut by 0.75 of a percentage point, it said on Friday.
The UK's biggest lender HBOS will only pass on 0.25 of a percentage point.
A spokesman for HBOS said the government had expected it to be run along commercial lines, which was what it was doing.
Initially, it seemed that customers on mortgage tracker deals with the Nationwide would see only a 0.25 percentage point cut in interest rates.
But late on Thursday the UK's biggest building society said it was passing on the full one percentage point cut to existing tracker customers.
viernes, 5 de diciembre de 2008
U.S. jobless rate surges to 6.7 percent
With the economy deteriorating rapidly, the nation's employers shed 533,000 jobs in November and the unemployment rate rose to 6.7 percent.
The decline, the largest since December 1974, was fresh evidence that the economic contraction accelerated in November, promising to make the current recession, already 12 months old, the longest since the Great Depression.
The employment report increased the likelihood that Congress, with the support of President-elect Barack Obama, will enact a stimulus package by late January that could exceed $500 billion over two years. More than half that money would probably be channeled into public infrastructure spending.
The manufacturing sector has been particularly hard hit, losing more than half a million jobs this year, the job cuts are rising in nearly every sector of the economy. Companies in every industry sector announced layoffs this week.
Economists are estimating that the gross domestic product is contracting at an annual rate of 4 percent or more in the fourth quarter, after a decline of 0.3 percent in the third quarter.
The decline, the largest since December 1974, was fresh evidence that the economic contraction accelerated in November, promising to make the current recession, already 12 months old, the longest since the Great Depression.
The employment report increased the likelihood that Congress, with the support of President-elect Barack Obama, will enact a stimulus package by late January that could exceed $500 billion over two years. More than half that money would probably be channeled into public infrastructure spending.
The manufacturing sector has been particularly hard hit, losing more than half a million jobs this year, the job cuts are rising in nearly every sector of the economy. Companies in every industry sector announced layoffs this week.
Economists are estimating that the gross domestic product is contracting at an annual rate of 4 percent or more in the fourth quarter, after a decline of 0.3 percent in the third quarter.
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