China Investment Corporation / CIC / announced September 10 that as of July this year, the company managed to recover all monies invested by it in the oldest American Foundation "The Reserve Primary Fund".
In April and May 2008, the CIC, according to management needs cash in two installments invested a total of 5.3 billion U.S. dollars in the world's first money market fund "The Primary Fund" managed by "The Reserve". In September 2008, due to bank failure "Lemen Brothers" under the influence of financial crisis, the fund was forced to cancel the promissory notes and bonds, "Lemen Brothers, which he owned, and thus to announce liquidation of the fund.
In the CIC noted that even before the announcement of the elimination of the fund company filed an application for redemption of investment units. KMC with keen interest the developments and about this repeatedly conducted contacts with U.S. governmental control bodies as the Ministry of Finance and the Committee on the Control of securities. Since October 2008, "The Primary Fund" in seven receptions returned CICs all invested funds
9/11/10
Hong Kong ranked second in the ranking of countries and regions in the world with the best business climate for the magazine "Forbes"
Hong Kong ranked second in the ranking of countries and regions in the world with the best business conditions compiled by the magazine "Forbes". Compared to the Year 2009 Special Administrative Region of China has moved up significantly in the ranking - from ninth to second, behind only Denmark, which is the third consecutive year, named the country with a better business climate. Hong Kong has risen in the rating immediately to 7 seats due to its low taxes, protection of investors, free trade and monetary circulation.
In contrast, the U.S., last year found themselves in second place, lost just 7 positions, dropping to 9 th place. The main reasons for such a sharp fall is called a high level of tax payments from businesses and the low level of free trade.
Thus, as noted by Hong Kong media, the area has made almost the most serious breakthrough in the rankings, covering 128 countries and regions. According to "Forbes", Hong Kong's economy recovered much faster than any other territories, through interaction with mainland China in the field of tourism, trade and finance. In addition, it is an important platform to attract foreign capital by Chinese companies.
In addition to Denmark and Hong Kong in the top five also included New Zealand / 3rd place / Canada / 4 e / and Singapore, which has lost one position and dropped to fourth place at pyatoe.-0-
In contrast, the U.S., last year found themselves in second place, lost just 7 positions, dropping to 9 th place. The main reasons for such a sharp fall is called a high level of tax payments from businesses and the low level of free trade.
Thus, as noted by Hong Kong media, the area has made almost the most serious breakthrough in the rankings, covering 128 countries and regions. According to "Forbes", Hong Kong's economy recovered much faster than any other territories, through interaction with mainland China in the field of tourism, trade and finance. In addition, it is an important platform to attract foreign capital by Chinese companies.
In addition to Denmark and Hong Kong in the top five also included New Zealand / 3rd place / Canada / 4 e / and Singapore, which has lost one position and dropped to fourth place at pyatoe.-0-
China 2020 will be the largest market in the world of credit cards - MasterCard
Prior to 2025 the number of credit cards in China will grow by 11% per year, the volume of transactions on them - at 14%, projected to MasterCard.
Proceeds from issuance of bank cards, according to a study to grow in 2025 at 20 times earnings - 30 times.
At the end of June 2010 in China was in circulation 2.3 billion bank cards, including both credit and debit. This figure is 14.5% higher than a year earlier, according to data of the People's Bank of China.
Competition between payment systems in China increases with the fact that the volume of transactions on payment cards in the country increased from 2001 in 84 times - up to 7.7 trillion yuan ($ 1.1 trillion) in 2009.
In China in 2025 will be about 1.1 billion credit cards, compared with 230 million now, predicts vice president of the Chinese unit MasterCard Chen Bin.
The volume of transactions on credit cards, according to him, by the year 2025 could reach $ 2.5 trillion and surpass the U.S..
Proceeds from issuance of bank cards, according to a study to grow in 2025 at 20 times earnings - 30 times.
At the end of June 2010 in China was in circulation 2.3 billion bank cards, including both credit and debit. This figure is 14.5% higher than a year earlier, according to data of the People's Bank of China.
Competition between payment systems in China increases with the fact that the volume of transactions on payment cards in the country increased from 2001 in 84 times - up to 7.7 trillion yuan ($ 1.1 trillion) in 2009.
In China in 2025 will be about 1.1 billion credit cards, compared with 230 million now, predicts vice president of the Chinese unit MasterCard Chen Bin.
The volume of transactions on credit cards, according to him, by the year 2025 could reach $ 2.5 trillion and surpass the U.S..
U.S. Federal Reserve closer to an additional economic stimulus
President of the Federal Reserve Bank of St. Louis, James Bullard said on Friday that the central bank is even closer to stimulate the economy through additional acquisitions, but noted he did not expect that such actions may be necessary.
While economic growth is likely to accelerate in 2011 and there are some signs the completion of a hitch in the restoration, which was observed this summer, the government "should be ready for unexpected events, Bullard said in an interview with reporters and editors of Dow Jones Newswires and The Wall Street Journal.
Commenting on the decision last month by the Committee on Open Market decision to keep the size of the balance at the same level, Bullard said: "I think the Fed has taken steps to have the opportunity to act when necessary to take further action, further actions to mitigate the policy."
"The acquisition of long-term Treasury securities - is the most promising measure that we can take," - he added.
"If the Fed really will take further measures, I do not think that this should be a shock therapy", - said Bullard. Instead, he prefers a more gradual approach to the purchase of Treasury securities, which may be consistent with the incoming data.
"I think we should be ready to act, and I think that the committee is much closer to what had to be prepared than, say, June or May of this year" - said Bullard.
"I do not think it will be necessary to take additional measures," - he added.
While economic growth is likely to accelerate in 2011 and there are some signs the completion of a hitch in the restoration, which was observed this summer, the government "should be ready for unexpected events, Bullard said in an interview with reporters and editors of Dow Jones Newswires and The Wall Street Journal.
Commenting on the decision last month by the Committee on Open Market decision to keep the size of the balance at the same level, Bullard said: "I think the Fed has taken steps to have the opportunity to act when necessary to take further action, further actions to mitigate the policy."
"The acquisition of long-term Treasury securities - is the most promising measure that we can take," - he added.
"If the Fed really will take further measures, I do not think that this should be a shock therapy", - said Bullard. Instead, he prefers a more gradual approach to the purchase of Treasury securities, which may be consistent with the incoming data.
"I think we should be ready to act, and I think that the committee is much closer to what had to be prepared than, say, June or May of this year" - said Bullard.
"I do not think it will be necessary to take additional measures," - he added.
Fund Dubai World restructured debts
Fund Dubai World, whose debt problems at the end of 2009 nearly caused a second wave of the global financial crisis, announced an agreement with 99% of creditors to restructure debts amounting to $ 24.9 billion
This agency reports MarketWatch. The government of Dubai will continue to support the fund Dubai World as one of the shareholders of the fund, said the head of the Supreme Committee of Dubai Financial, Sheikh Ahmad bin Saeed Al-Maktoum.
In August, Dubai World announced its intention in the next eight years to sell some assets, was rescued with $ 19.4 billion for repayment of debts to creditors. The Fund's experts felt that the sale of assets by the then prices could bring a maximum of $ 10.4 billion
In November 2009, Dubai World, one of the top three companies owned by the emirate's government, caused panic in world financial markets, requesting postponement of debt payments, at least until May 2010. In May 2010 Dubai World agreed with creditors on debt terms.
After the debt restructuring Dubai World to creditors, not tied to the Government of Dubai and represented the creditors' committee, the fund will pay the debt in two tranches - $ 4.4 billion over five years and nearly $ 10.0 billion over eight years.
Total Fund intends to pay $ 14.4 billion (approximately 60% of total debt). It is the duty of holding the government of Dubai in the amount of $ 8.9 billion to be satisfied by issuance of securities.
Dubai - second only to Abu Dhabi on the size of the principality in the United Arab Emirates. According to the International Monetary Fund, the state-owned Dubai to the freezing of credit markets due to the global crisis in 2008 had borrowed about $ 109 mldr to finance the transformation of the emirate as a global financial and tourist center.
Прослушать
На латинице
This agency reports MarketWatch. The government of Dubai will continue to support the fund Dubai World as one of the shareholders of the fund, said the head of the Supreme Committee of Dubai Financial, Sheikh Ahmad bin Saeed Al-Maktoum.
In August, Dubai World announced its intention in the next eight years to sell some assets, was rescued with $ 19.4 billion for repayment of debts to creditors. The Fund's experts felt that the sale of assets by the then prices could bring a maximum of $ 10.4 billion
In November 2009, Dubai World, one of the top three companies owned by the emirate's government, caused panic in world financial markets, requesting postponement of debt payments, at least until May 2010. In May 2010 Dubai World agreed with creditors on debt terms.
After the debt restructuring Dubai World to creditors, not tied to the Government of Dubai and represented the creditors' committee, the fund will pay the debt in two tranches - $ 4.4 billion over five years and nearly $ 10.0 billion over eight years.
Total Fund intends to pay $ 14.4 billion (approximately 60% of total debt). It is the duty of holding the government of Dubai in the amount of $ 8.9 billion to be satisfied by issuance of securities.
Dubai - second only to Abu Dhabi on the size of the principality in the United Arab Emirates. According to the International Monetary Fund, the state-owned Dubai to the freezing of credit markets due to the global crisis in 2008 had borrowed about $ 109 mldr to finance the transformation of the emirate as a global financial and tourist center.
Прослушать
На латинице
Georgia will receive from the United States nearly $ 74 million to improve the living conditions of refugees
Georgia will receive from the U.S. government grant of $ 73.9 million amount is intended to improve the living conditions of refugees. Presented to Parliament of Georgia on the ratification of the treaty "On the improvement of infrastructure and economic opportunities and support to internally displaced Dietz" was considered at the meeting of the Committee Industrial Economics and Economic Policy on 10 September.
Slon.ru
* How to write petitions kings
* From what banks expect defaults? List
* The attack on the hydroelectric power station benefits all
From document signed by the governments of Georgia and the U.S., deputies briefed Deputy Minister of Finance of Georgia, Natia Mikeladze. Members of the committee supported the imposition of a treaty to parliament for ratification. They also endorsed submitted to the ratification of the Framework Agreement between the Government of Georgia and the Asian Development Bank on a loan of $ 300 million for "investment programs for sustainable urban transport", and signed by the Georgian government and the European Bank for Reconstruction and Development loan agreement on the allocation of $ 50 million for the second phase of the program "Policy Development"
Slon.ru
* How to write petitions kings
* From what banks expect defaults? List
* The attack on the hydroelectric power station benefits all
From document signed by the governments of Georgia and the U.S., deputies briefed Deputy Minister of Finance of Georgia, Natia Mikeladze. Members of the committee supported the imposition of a treaty to parliament for ratification. They also endorsed submitted to the ratification of the Framework Agreement between the Government of Georgia and the Asian Development Bank on a loan of $ 300 million for "investment programs for sustainable urban transport", and signed by the Georgian government and the European Bank for Reconstruction and Development loan agreement on the allocation of $ 50 million for the second phase of the program "Policy Development"
9/10/10
Deutsche Bank may hold additional issue of 9 billion euros in anticipation of Basel-3 "
Germany's biggest bank Deutsche Bank AG is considering conducting additional share issue amounting to 9 billion euros to increase its stake in Deutsche Postbank AG and achieve regulatory capital figures in the discussion of the provisions of the Basel Committee on Banking Supervision Basel-3 ", reports Bloomberg referring to three a source familiar with the situation.
Deutsche Bank approached several companies to assess their interest in organizing additional issue, which could take place as early as next week, said the sources. The share of the financial institution in Deutsche Postbank to date is almost 30%. In addition, Deutsche Bank has an option to purchase additional shares in Deutsche Postbank. At the end of 2009, capital adequacy ratio Deutsche Postbank was minimal among the largest banks in Germany.
Earlier, the head of Germany's largest bank, Josef Ackermann (Josef Ackermann) announced that Deutsche Bank will attract additional capital only for the purposes of acquiring assets in other organizations. "The only reason for such action now, Deutsche Bank - is striving to acquire Deutsche Postbank is cheaper than in the long term, - told the news agency Bloomberg analyst at MF Global Mohan Simon (Simon Maughan). - Share capital increase is Deutsche Bank could be limited during the additional issue.
Nevertheless, some analysts believe that Deutsche Bank may be another reason for the additional issue. As reported on Monday the Association of German Banks, the ten largest banks in Germany, including Deutsche Bank and Commerzbank AG, may need additional capital amounting to 105 billion euros in giving effect to the provisions of the Basel-3. According to calculations by analysts, it is this amount will be needed for banks to achieve the level of capital adequacy at 10%.
According to the developed but not yet approved the rules of the Basel-3 ", credit institutions will have to significantly increase the amount of capital to secure cover risks associated with the securitized assets and derivatives. Adaptation period when this will last 5-10 years since 2013, but the solution itself for entry into force of new regulations can be accepted by the members of the Basel Committee has already met on September 12.
Deutsche Bank approached several companies to assess their interest in organizing additional issue, which could take place as early as next week, said the sources. The share of the financial institution in Deutsche Postbank to date is almost 30%. In addition, Deutsche Bank has an option to purchase additional shares in Deutsche Postbank. At the end of 2009, capital adequacy ratio Deutsche Postbank was minimal among the largest banks in Germany.
Earlier, the head of Germany's largest bank, Josef Ackermann (Josef Ackermann) announced that Deutsche Bank will attract additional capital only for the purposes of acquiring assets in other organizations. "The only reason for such action now, Deutsche Bank - is striving to acquire Deutsche Postbank is cheaper than in the long term, - told the news agency Bloomberg analyst at MF Global Mohan Simon (Simon Maughan). - Share capital increase is Deutsche Bank could be limited during the additional issue.
Nevertheless, some analysts believe that Deutsche Bank may be another reason for the additional issue. As reported on Monday the Association of German Banks, the ten largest banks in Germany, including Deutsche Bank and Commerzbank AG, may need additional capital amounting to 105 billion euros in giving effect to the provisions of the Basel-3. According to calculations by analysts, it is this amount will be needed for banks to achieve the level of capital adequacy at 10%.
According to the developed but not yet approved the rules of the Basel-3 ", credit institutions will have to significantly increase the amount of capital to secure cover risks associated with the securitized assets and derivatives. Adaptation period when this will last 5-10 years since 2013, but the solution itself for entry into force of new regulations can be accepted by the members of the Basel Committee has already met on September 12.
Latvian Rietumu Banka bought a 51% InCredit Group, specializing in potrebkreditovanii and leasing
Latvian Rietumu Banka bought 51% of the company InCredit Group for 51 thousand lats (about 72 thousand euros). As reported on Friday IA REGNUM, the transaction was carried out in the second half of July, but the official bank announced it only now.
Work in the Latvian company InCredit Group, which will deal with consumer lending and leasing, begins in September. In the future InCredit Group plans to become one of the market leaders. Its founders - Bank Rietumu (51%), company chairman Alexander Ekimenkov (24,5%) and board member Olga Orlova (24,5%). Equity capital InCredit Group - 200 thousand lats (284 thousand euros).
«Rietumu - corporate bank, and we will continue this strategy in the future. At the same time, today we have a bank operating in Latvia, we see prospects in retail lending and leasing: the economy is emerging from crisis, consumer loans are becoming popular again, while their supply on the market is practically nonexistent. This is the best time to start a business. That is why we supported the initiative to establish a company that will specialize in precisely Retail segment. Together with InCredit Group, we intend to begin a new era - an era of responsible consumer lending ", - said vice-president Rietumu Banka Vadim Alexeev.
"This year we will focus our development in Riga, and already in 2011 InCredit Group will come to the regions. Our experience suggests that we fully able to become market leaders ", - emphasizes the chairman InCredit Group Alexander Ekimenkov. Creators InCredit Group in 1995 was based company Inserviss, sold in 2006 the French group Societe Generale.
Until the end of 2011 InCredit Group plans to attract about 10-15 thousand customers, and the gross loan portfolio is expected to be about 10-12 million lats (14-17 million euros).
Work in the Latvian company InCredit Group, which will deal with consumer lending and leasing, begins in September. In the future InCredit Group plans to become one of the market leaders. Its founders - Bank Rietumu (51%), company chairman Alexander Ekimenkov (24,5%) and board member Olga Orlova (24,5%). Equity capital InCredit Group - 200 thousand lats (284 thousand euros).
«Rietumu - corporate bank, and we will continue this strategy in the future. At the same time, today we have a bank operating in Latvia, we see prospects in retail lending and leasing: the economy is emerging from crisis, consumer loans are becoming popular again, while their supply on the market is practically nonexistent. This is the best time to start a business. That is why we supported the initiative to establish a company that will specialize in precisely Retail segment. Together with InCredit Group, we intend to begin a new era - an era of responsible consumer lending ", - said vice-president Rietumu Banka Vadim Alexeev.
"This year we will focus our development in Riga, and already in 2011 InCredit Group will come to the regions. Our experience suggests that we fully able to become market leaders ", - emphasizes the chairman InCredit Group Alexander Ekimenkov. Creators InCredit Group in 1995 was based company Inserviss, sold in 2006 the French group Societe Generale.
Until the end of 2011 InCredit Group plans to attract about 10-15 thousand customers, and the gross loan portfolio is expected to be about 10-12 million lats (14-17 million euros).
In Ukraine, published a list of banks that do not meet obligations to customers
Ukrainian public organization "Protection of human consumers of financial services" based on appeals for August compiled a list of financial institutions that fail to meet obligations to its customers.
Over the past month in the SBI "Protection of human consumers of financial services" is most often treated customers the following banks: "Nadra", Privatbank, Ukrprombank, Rodovid Bank, Alfa Bank, Land Bank, "Synthesis", Ukrsotsbank, Universal Bank, "Forum".
In a public organization are the greatest customers of credit unions: "Ukrainian Financial Union", "Mayak", "thirteenth month", "credit union retirees," South "," Ukrainian loans "," Marine Credit Company "," Accord " , "Marine Credit Union", "Dobrobut," The first credit society "," Odessa Credit Company "," Fortress "," ripe Meotida ", etc.
Mutual Company to provide "fast loans without guarantors and any product", which regularly receives complaints: TOV "Єдина motherland", "Electret-2", Financial Company Eurocapital "," National Program соціальної dopomogi "," Fildes Ukraine " "Avtoplyus", "Autoplan", LLC "Automobile Club" program "is good-Invest", LLC "Spozhiv service.
SBI, "Protection of human consumers of financial services" - a non-profit structure, which provides free legal advice to consumers of financial services.
Over the past month in the SBI "Protection of human consumers of financial services" is most often treated customers the following banks: "Nadra", Privatbank, Ukrprombank, Rodovid Bank, Alfa Bank, Land Bank, "Synthesis", Ukrsotsbank, Universal Bank, "Forum".
In a public organization are the greatest customers of credit unions: "Ukrainian Financial Union", "Mayak", "thirteenth month", "credit union retirees," South "," Ukrainian loans "," Marine Credit Company "," Accord " , "Marine Credit Union", "Dobrobut," The first credit society "," Odessa Credit Company "," Fortress "," ripe Meotida ", etc.
Mutual Company to provide "fast loans without guarantors and any product", which regularly receives complaints: TOV "Єдина motherland", "Electret-2", Financial Company Eurocapital "," National Program соціальної dopomogi "," Fildes Ukraine " "Avtoplyus", "Autoplan", LLC "Automobile Club" program "is good-Invest", LLC "Spozhiv service.
SBI, "Protection of human consumers of financial services" - a non-profit structure, which provides free legal advice to consumers of financial services.
Spanish Santander to buy 70% of the Polish Bank Zachodni for 4 billion euros
Spanish bank Santander, the largest in the euro zone by market capitalization, won the auction for the right to buy out Irish rival Allied Irish Banks (AIB) controlling stake in Polish bank Bank Zachodni WBK. This, as reported on the website of the newspaper Vedomosti, wrote The Financial Times citing informed sources. Santander offered AIB, sell assets because of the difficult financial situation, four billion euros for 70% stake in Polish bank. This asset is also claimed by the French BNP Paribas, Fortis Netherlands and Poland's largest bank PKO.
In search of new opportunities outside covered recession Santander of Spain has recently been growing through acquisitions. In late August, he bought a British HSBC portfolio of U.S. auto loans for about $ 4 billion, and in March for the 1 billion - a platform for servicing automobile loans. Last month, Santander also acquired 318 British branches of Royal Bank of Scotland for 2.6 billion dollars. In late July, he bought 173 of the German branch of Swedish bank SEB, and in June reached an agreement with Bank of America to buy 24.9% stake in Mexican unit for 2.5 billion dollars. In a crisis in 2008 Santander absorbed the British bank Alliance & Leicester.
Earlier this week, FT, citing a source reported that Santander intends over the next year or two, almost one-third increase their number of employees working directly with clients (from 22 thousand to 28 thousand people). These figures do not include the 5 thousand employees, who joined the company as a result of purchases in August offices RBS.
In search of new opportunities outside covered recession Santander of Spain has recently been growing through acquisitions. In late August, he bought a British HSBC portfolio of U.S. auto loans for about $ 4 billion, and in March for the 1 billion - a platform for servicing automobile loans. Last month, Santander also acquired 318 British branches of Royal Bank of Scotland for 2.6 billion dollars. In late July, he bought 173 of the German branch of Swedish bank SEB, and in June reached an agreement with Bank of America to buy 24.9% stake in Mexican unit for 2.5 billion dollars. In a crisis in 2008 Santander absorbed the British bank Alliance & Leicester.
Earlier this week, FT, citing a source reported that Santander intends over the next year or two, almost one-third increase their number of employees working directly with clients (from 22 thousand to 28 thousand people). These figures do not include the 5 thousand employees, who joined the company as a result of purchases in August offices RBS.
Barack Obama has named a new head of his economic advisers
Place head of the group of economic advisers to the president, vacant after the resignation of Christina Romer, will Austan Goolsbee, told a press conference Friday, U.S. President Barack Obama.
Earlier 41-year-old Goolsbee, a graduate of Yale University, was a professor of economics at the University of Chicago. Many American edition called him among the leading economists of the country.
"This week, Christina Romer returned to Berkeley. It is amazing, dedicated "- Obama said, noting that his administration will be deeply missed by Romer. "But today I am pleased to announce that it will be replaced Austan Goolsbee. He is my longtime friend and economic adviser for many years. I trust him very much ", - said the U.S. president.
Goolsby begin his duties immediately, as has already been approved by the Senate as a member of the Council of Economic Advisers, and therefore undergo the approval process for the post he did not have to.
Earlier 41-year-old Goolsbee, a graduate of Yale University, was a professor of economics at the University of Chicago. Many American edition called him among the leading economists of the country.
"This week, Christina Romer returned to Berkeley. It is amazing, dedicated "- Obama said, noting that his administration will be deeply missed by Romer. "But today I am pleased to announce that it will be replaced Austan Goolsbee. He is my longtime friend and economic adviser for many years. I trust him very much ", - said the U.S. president.
Goolsby begin his duties immediately, as has already been approved by the Senate as a member of the Council of Economic Advisers, and therefore undergo the approval process for the post he did not have to.
Tymoshenko accused the government of the uncontrolled emission of hryvnia
The leader of the bloc in its own name Yulia Tymoshenko accused the authorities of the uncontrolled emission of the hryvnia. This is stated in the press service of BYuT.
"If Yanukovich and Azarov will continue to print blank money, they will not stop inflation", - said Tymoshenko. In her view, this may adversely affect the stability of the hryvnia. Tymoshenko said that the actions of Yanukovich and Azarov unprofessional.
Member of the Verkhovna Rada (Parliament), a member of the BYT faction, Prime Minister Sergei Sobolev opposition government considers too high inflation rate in August. In his view, it provoked the government and emission. National Bank binds the August inflation rate of 1,2% with an increase in excise taxes on tobacco and alcoholic products, as well as the price of gas for the population, thermal power plant and industrial customers.
Earlier, Tymoshenko predicted that due to unbalanced monetary policy of the Cabinet of Ministers and National Bank of Ukraine in the fall there is an outbreak of inflation.
"If Yanukovich and Azarov will continue to print blank money, they will not stop inflation", - said Tymoshenko. In her view, this may adversely affect the stability of the hryvnia. Tymoshenko said that the actions of Yanukovich and Azarov unprofessional.
Member of the Verkhovna Rada (Parliament), a member of the BYT faction, Prime Minister Sergei Sobolev opposition government considers too high inflation rate in August. In his view, it provoked the government and emission. National Bank binds the August inflation rate of 1,2% with an increase in excise taxes on tobacco and alcoholic products, as well as the price of gas for the population, thermal power plant and industrial customers.
Earlier, Tymoshenko predicted that due to unbalanced monetary policy of the Cabinet of Ministers and National Bank of Ukraine in the fall there is an outbreak of inflation.
FRB of St. Louis: in the second half, the recovery of the U.S. economy will slow
n the second half of this year, restoring the U.S. economy really slows, but in the first half of 2011-th, we expect the return of stable dynamics. Fed, and so did a lot for economic recovery: the rates have long been virtually zero, and the total funds quantitative easing is already up 1.7 trillion dollars. Nevertheless, we consider the new measures in case of worsening economic conditions. I can assure you that any steps will be taken in the key of super soft monetary policy ", - said the air CNBC president of the Federal Reserve Bank of St. Louis, James Bullard.
Прослушать
На латинице
Прослушать
На латинице
9/9/10
The White House will replace the head of the Council of Economic Advisers under President
President Obama plans to appoint Austan Goolsbee (Austan Goolsbee) new head of council of economic advisers of the presidential administration, transmits television channel CNN on Friday citing two senior administration officials of the White House.
Goolsby replaced by Christina Romer (Christina Romer), who led the council since November 2008. It is expected that a formal announcement of the new appointment will be made on Friday morning.
Goolsby replaced by Christina Romer (Christina Romer), who led the council since November 2008. It is expected that a formal announcement of the new appointment will be made on Friday morning.
In Buenos Aires criminals for two minutes in the bank stole almost $ 1 million
Just two minutes it took to armed criminals, to steal nearly $ 1 million from the branch of the National Bank of Argentina to the southern outskirts of Buenos Aires. Told Channel C5N, RIA Novosti reported. Robbery without a single shot happened on Thursday at 16:52 local time (23:52 Moscow time) on the street named after Abraham Luppi a quarter of Pompey.
Five criminals in sports caps with slits for eyes came to the office of the State Bank in SUV Peugeot Partner white. Four of them using a magnetic card went into a separate room, where the ATM is installed. Then they smashed reinforced glass that protected the entrance to the branch directly. To do this, as a battering ram was used special steel bolvanka about a meter and a diameter of 15 centimeters.
According to one witness (a former security guard), the robbers were armed with 9 mm pistol. Pointed their guns at the bank employees, they went into the store, where they took more than 3 million pesos (about 800 thousand dollars) and 80 thousand dollars in cash. At 16:54 on the SUV had driven them they left in an unknown direction.
Police in the nearby area did not immediately return to the scene on call. According to one version, the bandits previously sent patrol cars off the track, telling the police about the robbery to call the store in another quarter.
The city announced a plan "interception". The exact amount of stolen money is being specified.
Similar to "handwriting" attack on a bank with an iron ingots were committed on December 18 last year at 300 meters from the place of the current robbery. Then the criminals managed to escape, injuring a leg by the police.
Five criminals in sports caps with slits for eyes came to the office of the State Bank in SUV Peugeot Partner white. Four of them using a magnetic card went into a separate room, where the ATM is installed. Then they smashed reinforced glass that protected the entrance to the branch directly. To do this, as a battering ram was used special steel bolvanka about a meter and a diameter of 15 centimeters.
According to one witness (a former security guard), the robbers were armed with 9 mm pistol. Pointed their guns at the bank employees, they went into the store, where they took more than 3 million pesos (about 800 thousand dollars) and 80 thousand dollars in cash. At 16:54 on the SUV had driven them they left in an unknown direction.
Police in the nearby area did not immediately return to the scene on call. According to one version, the bandits previously sent patrol cars off the track, telling the police about the robbery to call the store in another quarter.
The city announced a plan "interception". The exact amount of stolen money is being specified.
Similar to "handwriting" attack on a bank with an iron ingots were committed on December 18 last year at 300 meters from the place of the current robbery. Then the criminals managed to escape, injuring a leg by the police.
One of the largest Japanese banks began bankruptcy proceedings
Bank Nihon Ginko Cinco "and one of the largest in Japan, on Friday began bankruptcy proceedings. In accordance with the order of the Japanese Ministry of Finance, the Bank has suspended all operations, ITAR-TASS.
According to newspaper Nikkei, losses Nihon Ginko Cinco "in the first half of fiscal year 2010 amounted to more than 150 billion yen (nearly 1.8 billion dollars), which forced the Finance Ministry to start the process of bankruptcy. In accordance with the Government's deposit insurance program, investors can expect to offset up to 10 million yen (about 111 thousand dollars).
According to newspaper Nikkei, losses Nihon Ginko Cinco "in the first half of fiscal year 2010 amounted to more than 150 billion yen (nearly 1.8 billion dollars), which forced the Finance Ministry to start the process of bankruptcy. In accordance with the Government's deposit insurance program, investors can expect to offset up to 10 million yen (about 111 thousand dollars).
Forecast Forbes: U.S. has a long recession, oil prices shoot up, and Madoff hang himself in cell
Forbes magazine on Thursday published its view on the development of peace in the new decade, predicting events in the economy, politics, science, technology and social life.
UN Secretary General Ban Ki-moon in 2011 will arrive in Cairo to welcome the birth of semimilliardnogo inhabitant of the earth. It will be a girl.
Fraudster century Bernard Madoff, life convict for the creation of the largest in world history, billions of dollars in a pyramid, find a noose in his cell, writes the magazine. Perhaps it will be staged suicide, suggest the authors.
2012 looks in the prediction of futurists unstable. Forbes expects that Israel will airstrikes on Iranian nuclear facilities. Tehran in response may block the Strait of Hormuz, through which come the Arab oil and gas to world markets. Such a scenario would drive oil prices to unprecedented heights.
The great recession will end only in 2018 and will be marked by the restoration of the labor market in the U.S. with a reduction in unemployment below 7%, suggests the magazine.
Richard Branson's company Virgin Galactic in 2020, will offer the first tour to the moon in the ticket cost $ 200 million, the magazine concludes.
UN Secretary General Ban Ki-moon in 2011 will arrive in Cairo to welcome the birth of semimilliardnogo inhabitant of the earth. It will be a girl.
Fraudster century Bernard Madoff, life convict for the creation of the largest in world history, billions of dollars in a pyramid, find a noose in his cell, writes the magazine. Perhaps it will be staged suicide, suggest the authors.
2012 looks in the prediction of futurists unstable. Forbes expects that Israel will airstrikes on Iranian nuclear facilities. Tehran in response may block the Strait of Hormuz, through which come the Arab oil and gas to world markets. Such a scenario would drive oil prices to unprecedented heights.
The great recession will end only in 2018 and will be marked by the restoration of the labor market in the U.S. with a reduction in unemployment below 7%, suggests the magazine.
Richard Branson's company Virgin Galactic in 2020, will offer the first tour to the moon in the ticket cost $ 200 million, the magazine concludes.
Oil is traded in different directions on the background data on the labor market report, OPEC and the U.S.
The cost of oil is moving in different directions on the background of a decrease in the number of initial applications for unemployment benefits in the United States and statements by OPEC about a possible decrease in demand for raw materials, according to data trading. The cost of the October futures for U.S. light crude oil WTI (Light Sweet Crude Oil) in electronic trading in New York as of 7:45 Moscow time the dollar rose 0.49, or 0.66% - up 74.74 per barrel . Spot price of North Sea petroleum mix of mark Brent at 7:50 Moscow time the dollar fell by 0,3, or 0,39% - to 76.27 per barrel.
"Stock markets rose slightly after the publication of better-than-expected data on unemployment in the U.S., and oil prices jumped on this background in the price" - leads the agency Bloomberg according to general director CWA Global Markets Pty McGuire, Peter (Peter McGuire). Demand for raw materials increased after the United States on Thursday was published statistics on the labor market. The number of initial applications for unemployment benefits for the week ending Sept. 4, fell by 27 thousand compared to the previous week - up to 451 thousand Analysts had expected the number of initial applications will be 470 thousand
Moderate pressure on the market at the same time may have published on Thursday monthly report of the countries - exporters of petroleum. OPEC experts believe that global oil consumption could decline in the remaining months of this year due to "acute economic crisis and its prolonged effect on the global economy." Support to the market of "black gold" have a Friday news from Asia. According to the updated assessment, economic growth in Japan in April - June this year amounted to 1,5%. Earlier it was reported that GDP grew in the II quarter at only 0.4% compared with January - March. Furthermore, as it became known the day before oil reserves in the U.S. for the previous week declined by 1.85 million barrels against the expected growth of 1 million
"Stock markets rose slightly after the publication of better-than-expected data on unemployment in the U.S., and oil prices jumped on this background in the price" - leads the agency Bloomberg according to general director CWA Global Markets Pty McGuire, Peter (Peter McGuire). Demand for raw materials increased after the United States on Thursday was published statistics on the labor market. The number of initial applications for unemployment benefits for the week ending Sept. 4, fell by 27 thousand compared to the previous week - up to 451 thousand Analysts had expected the number of initial applications will be 470 thousand
Moderate pressure on the market at the same time may have published on Thursday monthly report of the countries - exporters of petroleum. OPEC experts believe that global oil consumption could decline in the remaining months of this year due to "acute economic crisis and its prolonged effect on the global economy." Support to the market of "black gold" have a Friday news from Asia. According to the updated assessment, economic growth in Japan in April - June this year amounted to 1,5%. Earlier it was reported that GDP grew in the II quarter at only 0.4% compared with January - March. Furthermore, as it became known the day before oil reserves in the U.S. for the previous week declined by 1.85 million barrels against the expected growth of 1 million
OPEC: The needs of the world economy in crude oil will increase in 2011 to 86.56 million barrels a day
The needs of the world economy in the crude oil will increase in 2010 compared with last year at 1.05 million barrels per day to average 85.51 million This forecast is contained in a monthly report, OPEC's status in the global oil market. In the future, this figure will increase by 1.05 million barrels, to reach 86.56 million a day, ITAR-TASS.
Experts believe that OPEC, the increase in oil demand due to the rather rapid development of world economy, which this year will amount to 3,9%. Next year, world economic growth to decelerate to 3.6%. In China, they will account for respectively 9,5% and 8,6% in India - 8,2% and 7,7% in the USA - 2,2% and 1,9% in Japan - 2.5% and 1 , 3%, while in the euro zone countries - 1.2% and 1%. Most of the growth of consumption of crude oil will be in countries outside the Organization for Economic Cooperation and Development (OECD) countries - China, India, Latin America and the Middle East.
According to the report that oil production in countries outside of OPEC, will rise this year to 0.92 million barrels per day and will reach 52.06 million, and next year will increase to 52.42 million Thus in Russia the production of oil will increase in 2010 to 0.17 million barrels per day and will be 10,09 million current forecast of 20 thousand barrels more than the one that was launched a month ago. OPEC experts explain this circumstance the general rehabilitation of oil industry, as well as putting in place a small deposit "linear" and escalating of volumes on the South Hylchuyskom field.
Experts believe that OPEC, the increase in oil demand due to the rather rapid development of world economy, which this year will amount to 3,9%. Next year, world economic growth to decelerate to 3.6%. In China, they will account for respectively 9,5% and 8,6% in India - 8,2% and 7,7% in the USA - 2,2% and 1,9% in Japan - 2.5% and 1 , 3%, while in the euro zone countries - 1.2% and 1%. Most of the growth of consumption of crude oil will be in countries outside the Organization for Economic Cooperation and Development (OECD) countries - China, India, Latin America and the Middle East.
According to the report that oil production in countries outside of OPEC, will rise this year to 0.92 million barrels per day and will reach 52.06 million, and next year will increase to 52.42 million Thus in Russia the production of oil will increase in 2010 to 0.17 million barrels per day and will be 10,09 million current forecast of 20 thousand barrels more than the one that was launched a month ago. OPEC experts explain this circumstance the general rehabilitation of oil industry, as well as putting in place a small deposit "linear" and escalating of volumes on the South Hylchuyskom field.
U.S. stock markets closed down a slight increase
U.S. stock indexes up bidding on Thursday, September 9, slightly increased in the range 0,27-0,48%, while the more positive than expected, statistics has on the economy and unemployment, reports Reuters.
On Thursday it became known that the number of initial applications for unemployment benefits in the U.S. for the week ending Sept. 4, fell by 27 thousand compared to the previous week - up to 451 thousand Analysts had expected the number of initial applications will be 470 thousand addition , the U.S. trade deficit in July dropped to 42800000000 dollars from a revised deficit figure for June at 49,8 billion analysts expect the U.S. trade deficit in July drop to just 48 billion dollars.
By the closing trading the Dow Jones index rose by 0.27% to 10 415.24 points. S & P's 500 rose on Thursday to 0.48% - up to 1 104.18 points. NASDAQ index on the basis of trades rose to 0,33% - to 2 236.20 points.
On Thursday it became known that the number of initial applications for unemployment benefits in the U.S. for the week ending Sept. 4, fell by 27 thousand compared to the previous week - up to 451 thousand Analysts had expected the number of initial applications will be 470 thousand addition , the U.S. trade deficit in July dropped to 42800000000 dollars from a revised deficit figure for June at 49,8 billion analysts expect the U.S. trade deficit in July drop to just 48 billion dollars.
By the closing trading the Dow Jones index rose by 0.27% to 10 415.24 points. S & P's 500 rose on Thursday to 0.48% - up to 1 104.18 points. NASDAQ index on the basis of trades rose to 0,33% - to 2 236.20 points.
9/8/10
Exchanges in America grows at the opening on the news from Europe
U.S. stock markets are showing positive momentum at the opening of trading environment due to the weakening of concerns about the state of the financial sector in Europe, according to data exchanges.
DJIA index at auction in New York as of 17:32 Moscow time has grown on 0,32% and amounted to 10 373.91 points. The index of wide market S & P 500 rose 0.27% and was at 1 094.82 points. NASDAQ index of technology companies added 0.45%, an increase of up to 2 219.28.
European stock indexes during the session at 17:30 Moscow time, grow to 0,1-0,5% due to reports from Portugal, whose government has successfully placed a three-year and ten-year bonds amounting to 1.04 billion euros.
"Today's news about the successful sale of debt bonds in Europe have brought little relief to the markets" - leads the agency Bloomberg opinions manager Pioneer Investments Roberto Campaign.
Federal Reserve System (FRS) the USA on Wednesday will publish a "Beige Book", which is the economic characteristics of industrial production, services, agriculture, financial institutions, labor market and real estate.
"Beige Book, likely to confirm that economic growth remains slow, - believes Standard Chartered Bank economist David Semmens. - The greatest concern for the Fed is the situation on the labor market. "
DJIA index at auction in New York as of 17:32 Moscow time has grown on 0,32% and amounted to 10 373.91 points. The index of wide market S & P 500 rose 0.27% and was at 1 094.82 points. NASDAQ index of technology companies added 0.45%, an increase of up to 2 219.28.
European stock indexes during the session at 17:30 Moscow time, grow to 0,1-0,5% due to reports from Portugal, whose government has successfully placed a three-year and ten-year bonds amounting to 1.04 billion euros.
"Today's news about the successful sale of debt bonds in Europe have brought little relief to the markets" - leads the agency Bloomberg opinions manager Pioneer Investments Roberto Campaign.
Federal Reserve System (FRS) the USA on Wednesday will publish a "Beige Book", which is the economic characteristics of industrial production, services, agriculture, financial institutions, labor market and real estate.
"Beige Book, likely to confirm that economic growth remains slow, - believes Standard Chartered Bank economist David Semmens. - The greatest concern for the Fed is the situation on the labor market. "
Fitch has improved the outlook for the ratings of Russia to "positive"
International rating agency Fitch on Wednesday confirmed the long-term issuer default rating (IDR) Russian Federation in foreign and national currencies at level «BBB», and revised its outlook on long-term issuer default rating to 'positive' from 'stable' against the background of the economy recovered, RIA News.
Analysts at Fitch Affirms Short-term IDR of Russia in foreign currency at the level «F3» and a credit limit of the country at the level «BBB».
Analysts at Fitch Affirms Short-term IDR of Russia in foreign currency at the level «F3» and a credit limit of the country at the level «BBB».
Goldman Sachs: the volume of exchanges in developing countries by 2030 may grow to 80 trillion
The market value of securities, rotating stock markets of developing countries could grow five-fold to 80 trillion dollars within the next two decades, surpassing the exchange of developed countries, leads the agency Bloomberg opinion of analysts Goldman Sachs.
Faster economic growth and expansion of capital markets could lead to an increase in the share of developing countries in the total capitalization of world stock markets to 55% by 2030 from 31% currently. Bank experts also believe that institutional investors, developed countries will get to this time, the stock of companies in developing countries, well, worth about 4 trillion dollars by increasing the proportion of these shares in the total portfolio to 18% from 6% currently.
In addition, analysts believe that growth will be the leader of the Chinese stock market.
Forecasted that the market value of the shares of Chinese companies can grow to 41 trillion dollars by 2030 from 5 trillion in 2010, overtaking the U.S. stock market, for which the expected volume of 34 trillion dollars.
In August, analysts at HSBC have expressed the view that the world stock markets in the IV quarter of this year, a chance to rally due to a possible change in investor sentiment, which recently set up too pessimistic.
Faster economic growth and expansion of capital markets could lead to an increase in the share of developing countries in the total capitalization of world stock markets to 55% by 2030 from 31% currently. Bank experts also believe that institutional investors, developed countries will get to this time, the stock of companies in developing countries, well, worth about 4 trillion dollars by increasing the proportion of these shares in the total portfolio to 18% from 6% currently.
In addition, analysts believe that growth will be the leader of the Chinese stock market.
Forecasted that the market value of the shares of Chinese companies can grow to 41 trillion dollars by 2030 from 5 trillion in 2010, overtaking the U.S. stock market, for which the expected volume of 34 trillion dollars.
In August, analysts at HSBC have expressed the view that the world stock markets in the IV quarter of this year, a chance to rally due to a possible change in investor sentiment, which recently set up too pessimistic.
European exchanges closed on the growth of the domestic positive life
Leading European stock indices on the basis of trading environment have increased following the successful placement of bonds by Portugal and positive corporate news, according to data exchanges.
By the closing of the auctions the British index FTSE 100 rose 0.41% - up to a mark 5 429.74 points. Deutsch DAX rose 0.76% - 6 164.44 points. The French CAC 40 index on the basis of trades added 0,92%, having increased to 3 677.21.
On Wednesday, the Portuguese authorities have attracted 1.04 billion euros from the sale of three-year and ten-year bonds. Demand for paper in both cases exceeded the supply.
Also, the focus of the bidders on Wednesday was a message that the international rating agency Fitch upgraded long-term issuer default rating (IDR), the British oil company BP on three stages - before the «A» to «BBB», as well as short-term rating with «F3 "to« F1 »against the background of further eliminate the threat of oil spills.
"The market remains strong volatility, so we are seeing a strong reaction to positive news", - told the news agency Bloomberg analyst at Barclays Stockbrokers Ltd. Hank Potts.
At the same time moderating the pressure on the growth of European stock indexes have had a macro-economic news from Germany and Greece. In particular, the volume of industrial production in Germany in July compared to June rose by 0.1%, while analysts had expected growth rate in July on a monthly basis at 1.0%.
In addition, on Wednesday it became known that, according to revised data, GDP in Greece declined in II quarter on 1,8% in comparison with I quarter, not 1.5% as previously reported. In annual terms, GDP for the period decreased by 3,7% against the previously published estimates to reduce the economy of Greece at 3.5%.
By the closing of the auctions the British index FTSE 100 rose 0.41% - up to a mark 5 429.74 points. Deutsch DAX rose 0.76% - 6 164.44 points. The French CAC 40 index on the basis of trades added 0,92%, having increased to 3 677.21.
On Wednesday, the Portuguese authorities have attracted 1.04 billion euros from the sale of three-year and ten-year bonds. Demand for paper in both cases exceeded the supply.
Also, the focus of the bidders on Wednesday was a message that the international rating agency Fitch upgraded long-term issuer default rating (IDR), the British oil company BP on three stages - before the «A» to «BBB», as well as short-term rating with «F3 "to« F1 »against the background of further eliminate the threat of oil spills.
"The market remains strong volatility, so we are seeing a strong reaction to positive news", - told the news agency Bloomberg analyst at Barclays Stockbrokers Ltd. Hank Potts.
At the same time moderating the pressure on the growth of European stock indexes have had a macro-economic news from Germany and Greece. In particular, the volume of industrial production in Germany in July compared to June rose by 0.1%, while analysts had expected growth rate in July on a monthly basis at 1.0%.
In addition, on Wednesday it became known that, according to revised data, GDP in Greece declined in II quarter on 1,8% in comparison with I quarter, not 1.5% as previously reported. In annual terms, GDP for the period decreased by 3,7% against the previously published estimates to reduce the economy of Greece at 3.5%.
Fed: Economic growth in the East and Midwest slowed
In the American states on the East Coast and Midwest saw a slowdown in economic growth. According to ITAR-TASS, such survey data, which on Wednesday published the Federal Reserve System (FRS), performs the role of the U.S. central bank.
In 5 out of 12 regions, for which the Fed watches in such reports, economic activity has recently slowed down or has been "mixed." It is about New York (NY), Philadelphia (Pennsylvania), Richmond (Virginia), Atlanta (Ga.) and Chicago (Illinois). In July, the problems were noted only on the last two paragraphs.
The reasons for the deterioration everywhere different. In New York, for example, and in the same state to reduce the volume of sales representatives complain retailers. The same applies to industrial production. In Philadelphia, slowed activity in the housing market and manufacturing industry. In Richmond and Atlanta, opposite tendencies are observed in all these areas, but in general we can talk about lowering rates. In Chicago, state of the retail sector has improved, but not on the processing industry and construction sector.
Nevertheless, the Federal Reserve welcomes the American economy as a whole. It is emphasized that in the second half of summer, she continued to evolve, but "there have been signs of slowing.
In 5 out of 12 regions, for which the Fed watches in such reports, economic activity has recently slowed down or has been "mixed." It is about New York (NY), Philadelphia (Pennsylvania), Richmond (Virginia), Atlanta (Ga.) and Chicago (Illinois). In July, the problems were noted only on the last two paragraphs.
The reasons for the deterioration everywhere different. In New York, for example, and in the same state to reduce the volume of sales representatives complain retailers. The same applies to industrial production. In Philadelphia, slowed activity in the housing market and manufacturing industry. In Richmond and Atlanta, opposite tendencies are observed in all these areas, but in general we can talk about lowering rates. In Chicago, state of the retail sector has improved, but not on the processing industry and construction sector.
Nevertheless, the Federal Reserve welcomes the American economy as a whole. It is emphasized that in the second half of summer, she continued to evolve, but "there have been signs of slowing.
Oil moderately expensive on the background of a weak dollar and lower stocks in the U.S.
The cost of oil increased slightly in trading on Thursday amid falling stocks of raw materials in the U.S. and a falling dollar to the currencies in the world, according to data trading. The cost of the October futures for U.S. light crude oil WTI (Light Sweet Crude Oil) in electronic trading in New York as of 7:45 Moscow time the dollar rose 0.05, or 0.07% - up 74.72 per barrel . Spot price of North Sea petroleum mix of mark Brent at 7:53 Moscow time the dollar rose to 0,09, or 0,11% - to 77,46 per barrel.
"This is due to the continuing decline of concern about the probability of relapse of the world economy back into recession", - told the news agency Bloomberg analyst at CMC Markets Ltd. David Taylor (David Taylor). Support prices for "black gold" have data from the American Petroleum Institute, the oil reserves in the U.S. for the previous week declined by 7.31 million barrels. Nevertheless, analysts expect the U.S. Energy Ministry report on Thursday will show growth of oil reserves in the country by 1 million barrels. A weak dollar also pushed up the price of oil as an alternative site for investment. As of 7:50 Moscow time the dollar has fallen in price against the yen to 83.7 yen to the dollar against 83.92. The dollar also dropped in price to the common European currency - up to 1.2717 dollars per euro against 1.2718
"This is due to the continuing decline of concern about the probability of relapse of the world economy back into recession", - told the news agency Bloomberg analyst at CMC Markets Ltd. David Taylor (David Taylor). Support prices for "black gold" have data from the American Petroleum Institute, the oil reserves in the U.S. for the previous week declined by 7.31 million barrels. Nevertheless, analysts expect the U.S. Energy Ministry report on Thursday will show growth of oil reserves in the country by 1 million barrels. A weak dollar also pushed up the price of oil as an alternative site for investment. As of 7:50 Moscow time the dollar has fallen in price against the yen to 83.7 yen to the dollar against 83.92. The dollar also dropped in price to the common European currency - up to 1.2717 dollars per euro against 1.2718
British authorities fined Goldman Sachs for concealing information on the ongoing U.S. investigation
British authorities fined Goldman Sachs for 20 million pounds (31 million U.S. dollars) for withholding information held in the United States with respect to the investigation of a U.S. bank, reported Itar-Tass Broadcasting Corporation BBC.
According to her, the Financial Supervisory Authority (UFN), the UK decided in such a way to punish Goldman Sachs for being silent about the bank filed against him in U.S. civil lawsuit based on allegations of fraud brought against him in April, the Federal Commission on Securities and SEC. Goldman Sachs agreed in July to pay the U.S. authorities and its customers a fine of 550 million dollars, but for some reason, without notifying the British authorities.
The fine brought by the Office of Financial Supervision Goldman Sachs, considered one of the largest in the history of UFN, reported BBC. Neither the bank nor the administration had no immediate comment on the information fine.
According to her, the Financial Supervisory Authority (UFN), the UK decided in such a way to punish Goldman Sachs for being silent about the bank filed against him in U.S. civil lawsuit based on allegations of fraud brought against him in April, the Federal Commission on Securities and SEC. Goldman Sachs agreed in July to pay the U.S. authorities and its customers a fine of 550 million dollars, but for some reason, without notifying the British authorities.
The fine brought by the Office of Financial Supervision Goldman Sachs, considered one of the largest in the history of UFN, reported BBC. Neither the bank nor the administration had no immediate comment on the information fine.
The authorities of Ireland have decided on the restructuring of Anglo Irish Bank
The authorities of Ireland have decided to restructure one of the largest credit and financial institutions in the country - Anglo Irish Bank Corp. Itar-Tass Radio Corporation BBC. Thus, the Government hopes to end a costly operation to remove from the crisis of the nationalized bank, which in 2008 became the victim of a sharp collapse in the Irish property market.
As reported in the Irish Finance Ministry, businesses Anglo Irish Bank will be split between two new banks. In one of them will be transferred all deposits and deposits from customers. Their safety is guaranteed by the Government. The second bank will retain the license and will focus on the management of existing problem loans, which the official Dublin "inherited" when taken over management of the credit institution. New money loans for both banks to be prohibited.
About a week ago, Anglo Irish Bank has announced a record for the country's corporate loss of $ 8.3 billion euros in the first half. The decision to restructure followed a Cabinet meeting that discussed the plight of the bank, has already received 23 billion euros of state aid to stay afloat. The current step is taken to reduce the nervousness in the markets and improve the reputation of the financial system. The bank with distressed loans can now be sold or closed gradually.
This solution enables the country to avoid a hurried version of the elimination of a major bank. As previously warned the Irish Prime Minister Brian Cowen, in the latter case, the solution of problems Anglo Irish Bank would cost taxpayers up to 70 billion euros, as its assets, if getting rid of them would occur by way of a reduced price would not cover the debt. The Government has announced that the final cost of bank restructuring will be released by October.
As reported in the Irish Finance Ministry, businesses Anglo Irish Bank will be split between two new banks. In one of them will be transferred all deposits and deposits from customers. Their safety is guaranteed by the Government. The second bank will retain the license and will focus on the management of existing problem loans, which the official Dublin "inherited" when taken over management of the credit institution. New money loans for both banks to be prohibited.
About a week ago, Anglo Irish Bank has announced a record for the country's corporate loss of $ 8.3 billion euros in the first half. The decision to restructure followed a Cabinet meeting that discussed the plight of the bank, has already received 23 billion euros of state aid to stay afloat. The current step is taken to reduce the nervousness in the markets and improve the reputation of the financial system. The bank with distressed loans can now be sold or closed gradually.
This solution enables the country to avoid a hurried version of the elimination of a major bank. As previously warned the Irish Prime Minister Brian Cowen, in the latter case, the solution of problems Anglo Irish Bank would cost taxpayers up to 70 billion euros, as its assets, if getting rid of them would occur by way of a reduced price would not cover the debt. The Government has announced that the final cost of bank restructuring will be released by October.
The share of highly liquid assets on the balance sheets of banks fell to 2007 levels
In January - June 2010 the ratio of the average of the most liquid assets with the average value of total assets of the banking sector amounted to 8,5% - "that is returned to pre-crisis level." Such a conclusion is made in the Central Bank published in Wednesday edition of the Bulletin of the Bank of Russia ", assessing the risk of banks' liquidity, according to Kommersant. For comparison, the regulator led indicator of this relationship in January - June 2009 - 12,3%. Under the highly liquid assets of banks in this case refers to "cash, precious metals and stones, the balances on correspondent accounts nostro, balances on correspondent and deposit accounts in the Bank of Russia".
Close to the current level of highly liquid assets from the banks was in 2007 - 8,8%, according to data of annual reviews of the Central Bank on the development of the banking sector and banking supervision. However, if you count the pre-crisis period of the first half of 2008, we can state that banks are still not completely got rid of the supply of liquidity crisis. In January - May 2008, according to the Central Bank, the share of highly liquid assets of banks stood at 6.8% (in total for 2008 - at the level of 7,9%). 2007 - not the best basis for comparison, similar to the experts. "This year's auctions for the sale of assets of Yukos, which many companies have transformed their existing non-monetary assets in the accounts of the banks, which led to an increased level of liquidity" - recalls director of the Department of Banking Audit FBK Alexei Terekhov.
Nevertheless, the general trend, on which the regulator is correct, confirm the market participants. Now, as before the crisis, banks have become the preferred return on excess liquidity, gradually minimizing its level. "The remaining excess liquidity in banks is readily absorbed by investing in something that allows you to earn income - says Chief Financial Officer of Bank Uralsib Yuri Petukhov. - In crisis as banks, by contrast, tried to have enough liquidity to fulfill the obligations: they have accumulated a large amount of funds in highly liquid assets, despite their zero-yield ". "We, like other banks, trying to reduce the amount of non-performing assets: for example, from the beginning of the year reduced the funds in accounts at the Central Bank for 61 billion rubles - Reaffirms Financial Officer of Sberbank Alexander Morozov. - When you stabilize banks reduce their holdings and invest in a reliable, but for monetizing tools, primarily in government securities (OFZ) and the Bank of Russia bonds (OBR). The volume of investments of credit institutions in the OBR increased from 283.7 billion rubles on January 1 to 999.8 billion on July 1 in the OFZ - from 767.9 billion to 818 billion, reckons the head of the analytical units of Jones Lang LaSalle Eugene Nadorshin. From the placement of excess liquidity in other assets banks are holding back a conservative policy with regard to the risks and the lack of fast-growing demand for loans from borrowers, he says.
However, in the future the process of transferring highly profitable assets will be accelerated. "By pushing the banks declining profitability of business, - indicates first deputy chairman of Credit Bank of Moscow Vladimir Chubar. - Now the challenge for banks to earn, and they will continue to shift funds into instruments that will generate income.
Close to the current level of highly liquid assets from the banks was in 2007 - 8,8%, according to data of annual reviews of the Central Bank on the development of the banking sector and banking supervision. However, if you count the pre-crisis period of the first half of 2008, we can state that banks are still not completely got rid of the supply of liquidity crisis. In January - May 2008, according to the Central Bank, the share of highly liquid assets of banks stood at 6.8% (in total for 2008 - at the level of 7,9%). 2007 - not the best basis for comparison, similar to the experts. "This year's auctions for the sale of assets of Yukos, which many companies have transformed their existing non-monetary assets in the accounts of the banks, which led to an increased level of liquidity" - recalls director of the Department of Banking Audit FBK Alexei Terekhov.
Nevertheless, the general trend, on which the regulator is correct, confirm the market participants. Now, as before the crisis, banks have become the preferred return on excess liquidity, gradually minimizing its level. "The remaining excess liquidity in banks is readily absorbed by investing in something that allows you to earn income - says Chief Financial Officer of Bank Uralsib Yuri Petukhov. - In crisis as banks, by contrast, tried to have enough liquidity to fulfill the obligations: they have accumulated a large amount of funds in highly liquid assets, despite their zero-yield ". "We, like other banks, trying to reduce the amount of non-performing assets: for example, from the beginning of the year reduced the funds in accounts at the Central Bank for 61 billion rubles - Reaffirms Financial Officer of Sberbank Alexander Morozov. - When you stabilize banks reduce their holdings and invest in a reliable, but for monetizing tools, primarily in government securities (OFZ) and the Bank of Russia bonds (OBR). The volume of investments of credit institutions in the OBR increased from 283.7 billion rubles on January 1 to 999.8 billion on July 1 in the OFZ - from 767.9 billion to 818 billion, reckons the head of the analytical units of Jones Lang LaSalle Eugene Nadorshin. From the placement of excess liquidity in other assets banks are holding back a conservative policy with regard to the risks and the lack of fast-growing demand for loans from borrowers, he says.
However, in the future the process of transferring highly profitable assets will be accelerated. "By pushing the banks declining profitability of business, - indicates first deputy chairman of Credit Bank of Moscow Vladimir Chubar. - Now the challenge for banks to earn, and they will continue to shift funds into instruments that will generate income.
Castro recognized the inefficiency of Cuban economic model
Fidel Castro pointed out the inefficiency of Cuban economic model. This recognition of the leader of the Cuban Revolution has made during a meeting with a correspondent of the American magazine Atlantic. As ITAR-TASS, the meeting was held in the Cuban capital in late August, an interview published Wednesday in the latest issue of the journal.
"The Cuban model is no longer valid, even for us" - said 84-year-old politician, when asked about the possibility of exporting Cuban economic model. According to the journalist, these words are so "shocked" him, that he was forced to ask for explanations of the interpreter who was present at the meeting. She explained that Castro "has denied the ideas of the Cuban revolution" and meant that the state in the "Cuban model" is "extremely important role in the economic life of the country.
According to the magazine, Castro's statement may be a signal to his younger brother Raul, now occupying the post of head of the State Council and Chairman of the Council of Ministers of Cuba. The latter announced in early August, the launch of economic reforms in the country. Speaking at the plenary session of the People's National Assembly (Parliament) of the Caribbean countries, Raul Castro said that Cuba will be a large-scale phased reduction of overstaffing of public companies, and will be expanded opportunities for private entrepreneurship. The State is currently in Cuba, controls more than 90% of the economy.
"The Cuban model is no longer valid, even for us" - said 84-year-old politician, when asked about the possibility of exporting Cuban economic model. According to the journalist, these words are so "shocked" him, that he was forced to ask for explanations of the interpreter who was present at the meeting. She explained that Castro "has denied the ideas of the Cuban revolution" and meant that the state in the "Cuban model" is "extremely important role in the economic life of the country.
According to the magazine, Castro's statement may be a signal to his younger brother Raul, now occupying the post of head of the State Council and Chairman of the Council of Ministers of Cuba. The latter announced in early August, the launch of economic reforms in the country. Speaking at the plenary session of the People's National Assembly (Parliament) of the Caribbean countries, Raul Castro said that Cuba will be a large-scale phased reduction of overstaffing of public companies, and will be expanded opportunities for private entrepreneurship. The State is currently in Cuba, controls more than 90% of the economy.
The third special survey among banks does not give any indication about the future of the credit crisis in Germany
In July 2010 the Deutsche Bundesbank conducted its third special survey among selected German banks and banking associations. In July 2010 the Deutsche Bundesbank held its third special survey of selected German banks and banking associations. The current survey provided no indications of an imminent credit crunch in business with domestic non-financial corporations over the next 12 months. The current survey, no signs of an imminent credit crunch in the business of domestic nonfinancial corporations in the next 12 months. Fears of the German economy being undersupplied with liquidity when the upswing gathers steam are therefore not shared by the banks. Concerns about the German economy in too little liquidity, when the couple is going to rise, therefore, is not shared by the banks.
Overall, survey participants expect the volume of lending to rise over the next 12 months, mainly on account of loans to small and medium-sized enterprises. Whole survey participants expect that the volume of lending to grow in the next 12 months, mainly due to loans for small and medium-sized enterprises. An optimistic assessment of new lending is accompanied by the expectation of high repayments on existing loans, especially by large enterprises. Optimistic assessment of new loans is accompanied by the expectation of higher payments on existing loans, especially from large enterprises. In contrast to past survey rounds, write-downs on the loan portfolio do not seem to have affected the volume of lending over the forecasting horizon. Unlike previous rounds of the survey, write-offs, the loan portfolio does not seem to affect the volume of lending for the time horizon.
With regard to the determinants of the forecast lending volume, an improvement in the outlook for general economic activity and rising demand are cited as positive factors. With regard to the determinants of prognosis in lending, to improve the overall prospects for economic activity and growth in demand were cited as positive factors. This assessment is also demonstrated by the expectation of increasing drawdowns on existing credit lines and by a larger overall volume of credit applications. This estimate also shows the expectation of the use of existing credit lines and large total loan applications. In response, the surveyed banks are planning to expand the credit lines granted while leaving the rejection ratio unchanged. In this regard, surveyed banks plan to expand credit lines provided, leaving unchanged the coefficient of variation.
While the previous survey in January 2010 showed that banks had still been expecting the tier 1 capital ratio to decline in a number of cases, they now anticipate a constant ratio on average over the next 12 months. Although previous studies in January 2010 showed that banks are still waiting for tier 1 capital ratio to decline in some cases, they now expect a constant ratio of the average over the next 12 months. Some, mainly smaller institutions even expect their tier 1 capital ratio to increase slightly. Some, mostly smaller institutions, even expect their Tier 1 capital ratio will increase slightly.
As institutions see it, the chief factors weighing on capital are likely to be changes in the ratings of structured securities and poorer borrower creditworthiness. How institutions think the main factors weighing capital are likely to be changes in ratings of structured securities, and poor borrower creditworthiness. The surveyed institutions hope that planned balance sheet reductions and profit retention will improve their capital position, however. Surveyed institutions hope that the planned balance reduction and profit will improve their capital position, however. The participating banks do not expect government measures to provide any relief. Participating banks do not expect government action to provide any assistance.
Прослушать
На латинице
Overall, survey participants expect the volume of lending to rise over the next 12 months, mainly on account of loans to small and medium-sized enterprises. Whole survey participants expect that the volume of lending to grow in the next 12 months, mainly due to loans for small and medium-sized enterprises. An optimistic assessment of new lending is accompanied by the expectation of high repayments on existing loans, especially by large enterprises. Optimistic assessment of new loans is accompanied by the expectation of higher payments on existing loans, especially from large enterprises. In contrast to past survey rounds, write-downs on the loan portfolio do not seem to have affected the volume of lending over the forecasting horizon. Unlike previous rounds of the survey, write-offs, the loan portfolio does not seem to affect the volume of lending for the time horizon.
With regard to the determinants of the forecast lending volume, an improvement in the outlook for general economic activity and rising demand are cited as positive factors. With regard to the determinants of prognosis in lending, to improve the overall prospects for economic activity and growth in demand were cited as positive factors. This assessment is also demonstrated by the expectation of increasing drawdowns on existing credit lines and by a larger overall volume of credit applications. This estimate also shows the expectation of the use of existing credit lines and large total loan applications. In response, the surveyed banks are planning to expand the credit lines granted while leaving the rejection ratio unchanged. In this regard, surveyed banks plan to expand credit lines provided, leaving unchanged the coefficient of variation.
While the previous survey in January 2010 showed that banks had still been expecting the tier 1 capital ratio to decline in a number of cases, they now anticipate a constant ratio on average over the next 12 months. Although previous studies in January 2010 showed that banks are still waiting for tier 1 capital ratio to decline in some cases, they now expect a constant ratio of the average over the next 12 months. Some, mainly smaller institutions even expect their tier 1 capital ratio to increase slightly. Some, mostly smaller institutions, even expect their Tier 1 capital ratio will increase slightly.
As institutions see it, the chief factors weighing on capital are likely to be changes in the ratings of structured securities and poorer borrower creditworthiness. How institutions think the main factors weighing capital are likely to be changes in ratings of structured securities, and poor borrower creditworthiness. The surveyed institutions hope that planned balance sheet reductions and profit retention will improve their capital position, however. Surveyed institutions hope that the planned balance reduction and profit will improve their capital position, however. The participating banks do not expect government measures to provide any relief. Participating banks do not expect government action to provide any assistance.
Прослушать
На латинице
Financial investment and financing sector in the first quarter of 2010
According to current financial accounts data, households' financial investment in the first quarter of 2010 showed an increase for the fourth time in succession. According to modern financial reporting, household financial assets in the first quarter of 2010 showed growth for the fourth consecutive time. The main beneficiaries were liquid bank deposits and insurance assets. The main beneficiaries of liquid deposits of banks and insurance assets. At the same time, there was a further reduction in debt. At the same time, it was further debt reduction. In the case of non-financial corporations, however, external financing rose for the first time in three quarters, mainly in market-based financing. For nonfinancial corporations, however, external funding has increased for the first time in three quarters, mainly in countries with market financing. Government debt also continued to rise and reached a new high at the end of March. The national debt continued to grow, reaching new highs in late March.
Households' financial assets up further, debt down Household financial assets is even higher, debt down
Households' financial investment in Germany in the first quarter of 2010 amounted to more than € 51 billion, thus matching its high level in the same quarter of 2009. financial investments of households in Germany in the first quarter of 2010 amounted to over € 51 billion, which corresponds to its highest level in the first quarter of 2009.
Bank deposits (including currency) accounted for a major part of this, increasing by € 16 ½ billion net on the quarter. Bank deposits (including currency) was a big part of this is increased by € 16 billion network of ½ quarter. As in the preceding quarters, inflows were chiefly in sight and savings deposits. As in previous quarters, capital inflows mainly in the form of savings and deposits. At € 18 ½ billion and € 12 billion, respectively, they were weaker than before, however. At € 18 ½ billion and € 12 billion, respectively, they were weaker than before, however. These inflows are to be seen, above all, against the backdrop of the ongoing reduction in fixed-term deposits since more than one year ago; they were down again by € 13 billion in the reporting quarter. These inflows should be considered, especially against the background of the continuing decline in term deposits with more than a year ago, they were again on the € 13 billion in the quarter. Low interest rates, in particular, are likely to be one of the responsible factors. Low interest rates, in particular, may be one of the responsible factors. There was only a minor increase in households 'currency holdings, at € 1 ½ billion; this points to a further normalisation in households' investment behaviour. There was only a slight increase in stocks of household currency, the € 1 ½ billion, it indicates a further normalization of the investment behavior of households.
In the case of securities, too, there was a total net inflow of more than € 9 ½ billion in the first quarter of 2010. In the case of securities, too, was the total net inflow of over € 9 ½ billion in the first quarter of 2010. Roughly two-thirds of these funds (€ 6 billion) consisted of investment in investment funds, mainly mixed funds and open-end real estate funds. Approximately two-thirds of these funds (€ 6 billion) consisted of investments in investment funds, mainly mixed funds and open-end real estate funds. By contrast, equity-based funds open to the general public were of no more than minor significance. Unlike stock funds, open to the public were no more than minor. Together with the - yet again - small volume of direct share purchases in the amount of € 1 billion, this suggests that households have a greater need for safety than in 2009. But - again - a small amount of direct share purchases in the amount of € 1 billion, this suggests that households have a greater need for security than in 2009. Claims against insurers increased sharply, however. Claims against insurers rose sharply, however. Owing to the crediting of bonuses at the beginning of the year, this increase in this figure is generally higher than in the other quarters. Due credit bonuses at the beginning of the year, the increase in this figure is usually higher than in other areas. Nevertheless, at € 24 billion on balance, the inflows are - with the exception of the same quarter last year - well above the usual first-quarter level. Nevertheless, the € 24 billion to the balance, the flow - with the exception of one and the same quarter last year - far above normal in the first quarter level. One of the probable reasons is the increasing range and availability of quasi-bank products, say, in the form of single-premium insurances which resemble an attractively remunerated fixed-term deposit. One probable reason is the increasing range and availability of conventional banking products, for example, in the form of a single premium insurance, resembling an attractive paid on term deposit.
Overall, this financial investment resulted in financial assets of € 4,739 billion at the end of the first quarter of 2010. In general, this has resulted in investments in financial assets amounting to € 4.739 trillion dollars at the end of the first quarter of 2010. Households' financial assets were thus around € 315 billion up from the same quarter one year earlier, when assets reached a low in the wake of the financial crisis and the associated losses in securities. Household financial assets, thus, about € 315 billion compared to the same quarter a year earlier, when the assets reached the lowest in the financial meltdown and related losses in securities.
Debt fell further, however. Debt has fallen further, however. On balance, loans (including other liabilities) in the amount of € 8 billion - mainly loans for house purchase - were repaid. As a result, loans (including other liabilities) amounting to € 8 billion - essentially, loans to buy homes - have been repaid. At the end of the quarter, debts to banks and insurers thus totalled € 1,526 billion and were therefore unchanged compared with the same quarter of 2009. At the end of the quarter, debt to banks and insurers thus amounted to € 1,526 billion, and therefore no changes compared with the same quarter in 2009. As a result, net financial wealth rose to € 3,212 billion. As a result, net financial wealth has increased to € 3212 billion.
Non-financial corporations: low financial investments and increasing external financing non-financial corporations: low financial investment and increasing external funding
Although producing enterprises' financial investment was positive, at € 6 ½ billion, it was still comparatively weak. Although the term "investments production facilities has been positive, at € 6 ½ billion, was still relatively weak. The last time that inflows were so small was during the economic downturn at the beginning of the decade. Last time that the flow was so small, was during the recession at the beginning of the decade. One factor contributing to this is likely to have been that more resources were used for real investment than in the preceding quarters. One of the factors that were probably more, that resources were used for investment than in previous quarters. The main increases were in equities (€ 28 billion), bonds (€ 16 ½ billion including money market paper), and loans (€ 8 billion). The main increases were in equities (€ 28 billion) , bonds (€ 16 billion, including ½ of paper money, market), as well as loans (€ 8 billion). Smaller outflows, of € 1 billion each, were recorded in bank deposits (including currency) and investment fund shares / units, however. Smaller outflows of € 1 billion each, have been recorded in bank deposits (including foreign currency) and investment fund shares / units, however. Furthermore, enterprises reduced their other accounts receivable by € 53 billion. In addition, the company reduced its other receivables of € 53 billion
Following three weak quarters, there was an increase again (€ 18 billion) in external financing. After three weak quarters, it will further increase (€ 18 billion) in external financing. These resources derived primarily from a comparatively strong issuance of new debt securities, growth in which, at € 8 ½ billion, was more than twice as large as in the same quarter of last year. These funds are derived mainly from the relatively strong issuance of new debt securities, whose growth in the € 8 ½ billion, more than twice higher than in the same period last year. There was also a market increase in equity-capital-based financing. There was also an increase in equity capital market-based financing. Non-financial corporations placed € 6 billion net worth of shares - a volume unmatched since the end of the internet boom at the beginning of the decade. Non-financial corporations placed € 6 billion net cost of the shares - the amount of unmatched since the end of the Internet boom in the beginning of the decade.
In the case of loans, net borrowing amounted to a total of € 5 billion. In the case of loans, net borrowing amounted to a total of € 5 billion. This was due mainly to a net increase of € 6 billion in cross-border loans among group affiliates, which are used primarily by larger and internationally active enterprises, as well as the € 10 billion increase in loans from domestic insurers and other lenders. This was due mainly to a net increase of € 6 billion in cross-border loans among a group of branches, which are mainly used by large and internationally active companies, as well as € 10 billion increase in loans of domestic insurance companies and other lenders. Loans from domestic and foreign banks were again repaid in net terms, however, although these repayments, at € 11 billion, failed to match the volumes of the preceding quarters. Loans from domestic and foreign banks once again paid off in a pure form, however, although these payments to € 11 billion, failed to match the levels of previous quarters. A large part of this was accounted for by the reduction in liabilities to foreign banks (€ 8 billion). Most of this had to reduce the liabilities to foreign banks (€ 8 billion).
General government: rising debt accompanied by declining financial wealth Governments: the growth of debt associated with lower financial well-being
General government ran further into debt in the first quarter of 2010. General government ran further into debt in the first quarter of 2010. Total liabilities rose by € 20 billion net. Total liabilities increased by € 20 billion net. The increase was thus sharper than in the two previous quarters, but noticeably weaker than in the first half of 2009, when the launching of economic stimulus packages led to considerable deficits. Thus, the increase was more dramatic than in the previous two quarters, but much weaker than in the first half of 2009, when the beginning of economic stimulus packages have led to significant deficits. This was funded primarily by the issuance of new debt instruments, which increased by € 24 billion net. It was funded primarily through the issuance of new debt instruments, which increased by € 24 billion net. Loans in the amount of € 3 billion were repaid, however. Loans of € 3 billion had been repaid, however. Furthermore, there was a reduction in financial assets. In addition, there was a reduction in financial assets. Bank deposits (including currency) were liquidated in the amount of € 10 billion and bonds were sold (- € 2 billion). Bank deposits (including currency) were eliminated in the amount of € 10 billion, and bonds were sold (- € 2 billion). As a result, financial investment was again negative at - € 12 billion. As a result, financial investments back negative - € 12 billion. The debt of the government sector (which, in the financial accounts, is calculated at current prices) amounted to € 1,863 billion at the end of March 2010 and was thus € 114 billion higher than one year previously. Public sector debt (which, in the financial statements, calculated in current prices) amounted to € 1 863 billion at the end of March 2010 and, thus, € 114 billion more than a year ago.
Households' financial assets up further, debt down Household financial assets is even higher, debt down
Households' financial investment in Germany in the first quarter of 2010 amounted to more than € 51 billion, thus matching its high level in the same quarter of 2009. financial investments of households in Germany in the first quarter of 2010 amounted to over € 51 billion, which corresponds to its highest level in the first quarter of 2009.
Bank deposits (including currency) accounted for a major part of this, increasing by € 16 ½ billion net on the quarter. Bank deposits (including currency) was a big part of this is increased by € 16 billion network of ½ quarter. As in the preceding quarters, inflows were chiefly in sight and savings deposits. As in previous quarters, capital inflows mainly in the form of savings and deposits. At € 18 ½ billion and € 12 billion, respectively, they were weaker than before, however. At € 18 ½ billion and € 12 billion, respectively, they were weaker than before, however. These inflows are to be seen, above all, against the backdrop of the ongoing reduction in fixed-term deposits since more than one year ago; they were down again by € 13 billion in the reporting quarter. These inflows should be considered, especially against the background of the continuing decline in term deposits with more than a year ago, they were again on the € 13 billion in the quarter. Low interest rates, in particular, are likely to be one of the responsible factors. Low interest rates, in particular, may be one of the responsible factors. There was only a minor increase in households 'currency holdings, at € 1 ½ billion; this points to a further normalisation in households' investment behaviour. There was only a slight increase in stocks of household currency, the € 1 ½ billion, it indicates a further normalization of the investment behavior of households.
In the case of securities, too, there was a total net inflow of more than € 9 ½ billion in the first quarter of 2010. In the case of securities, too, was the total net inflow of over € 9 ½ billion in the first quarter of 2010. Roughly two-thirds of these funds (€ 6 billion) consisted of investment in investment funds, mainly mixed funds and open-end real estate funds. Approximately two-thirds of these funds (€ 6 billion) consisted of investments in investment funds, mainly mixed funds and open-end real estate funds. By contrast, equity-based funds open to the general public were of no more than minor significance. Unlike stock funds, open to the public were no more than minor. Together with the - yet again - small volume of direct share purchases in the amount of € 1 billion, this suggests that households have a greater need for safety than in 2009. But - again - a small amount of direct share purchases in the amount of € 1 billion, this suggests that households have a greater need for security than in 2009. Claims against insurers increased sharply, however. Claims against insurers rose sharply, however. Owing to the crediting of bonuses at the beginning of the year, this increase in this figure is generally higher than in the other quarters. Due credit bonuses at the beginning of the year, the increase in this figure is usually higher than in other areas. Nevertheless, at € 24 billion on balance, the inflows are - with the exception of the same quarter last year - well above the usual first-quarter level. Nevertheless, the € 24 billion to the balance, the flow - with the exception of one and the same quarter last year - far above normal in the first quarter level. One of the probable reasons is the increasing range and availability of quasi-bank products, say, in the form of single-premium insurances which resemble an attractively remunerated fixed-term deposit. One probable reason is the increasing range and availability of conventional banking products, for example, in the form of a single premium insurance, resembling an attractive paid on term deposit.
Overall, this financial investment resulted in financial assets of € 4,739 billion at the end of the first quarter of 2010. In general, this has resulted in investments in financial assets amounting to € 4.739 trillion dollars at the end of the first quarter of 2010. Households' financial assets were thus around € 315 billion up from the same quarter one year earlier, when assets reached a low in the wake of the financial crisis and the associated losses in securities. Household financial assets, thus, about € 315 billion compared to the same quarter a year earlier, when the assets reached the lowest in the financial meltdown and related losses in securities.
Debt fell further, however. Debt has fallen further, however. On balance, loans (including other liabilities) in the amount of € 8 billion - mainly loans for house purchase - were repaid. As a result, loans (including other liabilities) amounting to € 8 billion - essentially, loans to buy homes - have been repaid. At the end of the quarter, debts to banks and insurers thus totalled € 1,526 billion and were therefore unchanged compared with the same quarter of 2009. At the end of the quarter, debt to banks and insurers thus amounted to € 1,526 billion, and therefore no changes compared with the same quarter in 2009. As a result, net financial wealth rose to € 3,212 billion. As a result, net financial wealth has increased to € 3212 billion.
Non-financial corporations: low financial investments and increasing external financing non-financial corporations: low financial investment and increasing external funding
Although producing enterprises' financial investment was positive, at € 6 ½ billion, it was still comparatively weak. Although the term "investments production facilities has been positive, at € 6 ½ billion, was still relatively weak. The last time that inflows were so small was during the economic downturn at the beginning of the decade. Last time that the flow was so small, was during the recession at the beginning of the decade. One factor contributing to this is likely to have been that more resources were used for real investment than in the preceding quarters. One of the factors that were probably more, that resources were used for investment than in previous quarters. The main increases were in equities (€ 28 billion), bonds (€ 16 ½ billion including money market paper), and loans (€ 8 billion). The main increases were in equities (€ 28 billion) , bonds (€ 16 billion, including ½ of paper money, market), as well as loans (€ 8 billion). Smaller outflows, of € 1 billion each, were recorded in bank deposits (including currency) and investment fund shares / units, however. Smaller outflows of € 1 billion each, have been recorded in bank deposits (including foreign currency) and investment fund shares / units, however. Furthermore, enterprises reduced their other accounts receivable by € 53 billion. In addition, the company reduced its other receivables of € 53 billion
Following three weak quarters, there was an increase again (€ 18 billion) in external financing. After three weak quarters, it will further increase (€ 18 billion) in external financing. These resources derived primarily from a comparatively strong issuance of new debt securities, growth in which, at € 8 ½ billion, was more than twice as large as in the same quarter of last year. These funds are derived mainly from the relatively strong issuance of new debt securities, whose growth in the € 8 ½ billion, more than twice higher than in the same period last year. There was also a market increase in equity-capital-based financing. There was also an increase in equity capital market-based financing. Non-financial corporations placed € 6 billion net worth of shares - a volume unmatched since the end of the internet boom at the beginning of the decade. Non-financial corporations placed € 6 billion net cost of the shares - the amount of unmatched since the end of the Internet boom in the beginning of the decade.
In the case of loans, net borrowing amounted to a total of € 5 billion. In the case of loans, net borrowing amounted to a total of € 5 billion. This was due mainly to a net increase of € 6 billion in cross-border loans among group affiliates, which are used primarily by larger and internationally active enterprises, as well as the € 10 billion increase in loans from domestic insurers and other lenders. This was due mainly to a net increase of € 6 billion in cross-border loans among a group of branches, which are mainly used by large and internationally active companies, as well as € 10 billion increase in loans of domestic insurance companies and other lenders. Loans from domestic and foreign banks were again repaid in net terms, however, although these repayments, at € 11 billion, failed to match the volumes of the preceding quarters. Loans from domestic and foreign banks once again paid off in a pure form, however, although these payments to € 11 billion, failed to match the levels of previous quarters. A large part of this was accounted for by the reduction in liabilities to foreign banks (€ 8 billion). Most of this had to reduce the liabilities to foreign banks (€ 8 billion).
General government: rising debt accompanied by declining financial wealth Governments: the growth of debt associated with lower financial well-being
General government ran further into debt in the first quarter of 2010. General government ran further into debt in the first quarter of 2010. Total liabilities rose by € 20 billion net. Total liabilities increased by € 20 billion net. The increase was thus sharper than in the two previous quarters, but noticeably weaker than in the first half of 2009, when the launching of economic stimulus packages led to considerable deficits. Thus, the increase was more dramatic than in the previous two quarters, but much weaker than in the first half of 2009, when the beginning of economic stimulus packages have led to significant deficits. This was funded primarily by the issuance of new debt instruments, which increased by € 24 billion net. It was funded primarily through the issuance of new debt instruments, which increased by € 24 billion net. Loans in the amount of € 3 billion were repaid, however. Loans of € 3 billion had been repaid, however. Furthermore, there was a reduction in financial assets. In addition, there was a reduction in financial assets. Bank deposits (including currency) were liquidated in the amount of € 10 billion and bonds were sold (- € 2 billion). Bank deposits (including currency) were eliminated in the amount of € 10 billion, and bonds were sold (- € 2 billion). As a result, financial investment was again negative at - € 12 billion. As a result, financial investments back negative - € 12 billion. The debt of the government sector (which, in the financial accounts, is calculated at current prices) amounted to € 1,863 billion at the end of March 2010 and was thus € 114 billion higher than one year previously. Public sector debt (which, in the financial statements, calculated in current prices) amounted to € 1 863 billion at the end of March 2010 and, thus, € 114 billion more than a year ago.
April Review of bank lending in Germany
The results of the current Bank Lending Survey show, for Germany, that, in the first quarter of 2010, the surveyed institutions tightened their credit standards to varying degrees depending on the line of business. The results of the current bank lending studies show for Germany that, in the first quarter of 2010, the surveyed institutions have tightened their credit standards to varying degrees depending on the direction of the business.
In the case of loans to enterprises, the banks participating in the survey left their credit standards largely unchanged on balance. In the case of loans to enterprises, banks participating in the survey had left their credit standards remained virtually unchanged on the balance sheet. The institutions reported a slight tightening only for long-term loans. Agencies reported a slight tightening only for long-term loans. Sector-specific and firm-specific factors continued to generate more restrictive tendencies, however, as did the general outlook for the economy, albeit to a somewhat lesser extent. Sectoral and firm-specific factors have continued to generate more restrictive tendencies, however, as the general outlook for the economy, although to a lesser extent. Furthermore, the margins for both risk categories were expanded noticeably by the German banks taking part in the BLS. In addition, the field for the risk categories have been expanded considerably through the German banks to participate in the BLS. By contrast, there was a continuation of the trend towards an easing of collateral requirements. On the other hand, it continued trend toward easing collateral requirements. For the first time since 2008, the surveyed bank managers reported a slight decline in demand for loans for enterprises due, among other things, to alternative financing via the capital market. For the first time since 2008, the bank managers interviewed reported a slight decline in demand for loans to enterprises of communication, among other things, using alternative sources of financing in capital markets.
In credit business with households, standards for loans for house purchase were tightened slightly and standards for consumer credit were tightened significantly. In the credit business to households, lending standards for the purchase of homes have been tightened a bit and standards for consumer credit is much tighter. Much as in the previous quarter, the margins for average loans for house purchase were tightened slightly. More than in the previous quarter, the field for an average loans to buy homes have been tightened significantly. By contrast, riskier loans for house purchase and consumer credit in both credit rating categories were again affected by expanded margins. Unlike the risky loans to buy houses and consumer loans in both categories of credit rating again suffered extensive field. At the same time, the surveyed banks were faced with a sharp fall in households' funding requirements. At the same time, surveyed banks faced a sharp decline in household needs funding.
For the second quarter of 2010, the survey participants expect no further adjustments to their standards for lending to enterprises and private residential construction but somewhat tighter standards for lending for consumption purposes. During the second quarter of 2010 survey participants do not expect further changes in their standards for lending to businesses and private housing, but somewhat more stringent lending standards for consumption.
The April survey round again contained additional questions on the impact of the financial crisis on the wholesale funding, capital costs and lending behaviour of the participating banks. Round of surveys in April again contained additional questions about the impact of financial crisis on wholesale funding, capital expenditure and lending behavior of banks-participants. The surveyed responses showed a marked improvement in the opportunities for refinancing in the money and capital markets in the past quarter. Surveyed responses showed greater improvement of opportunities for refinancing in the money and capital markets in the last quarter. As before, however, just under half of the responding institutions observed higher capital costs in the wake of the financial crisis, which also impacted on lending in some areas. As before, however, almost half of the responding institutions of higher capital costs observed by the financial crisis, which also affected the credit in some areas.
In the case of loans to enterprises, the banks participating in the survey left their credit standards largely unchanged on balance. In the case of loans to enterprises, banks participating in the survey had left their credit standards remained virtually unchanged on the balance sheet. The institutions reported a slight tightening only for long-term loans. Agencies reported a slight tightening only for long-term loans. Sector-specific and firm-specific factors continued to generate more restrictive tendencies, however, as did the general outlook for the economy, albeit to a somewhat lesser extent. Sectoral and firm-specific factors have continued to generate more restrictive tendencies, however, as the general outlook for the economy, although to a lesser extent. Furthermore, the margins for both risk categories were expanded noticeably by the German banks taking part in the BLS. In addition, the field for the risk categories have been expanded considerably through the German banks to participate in the BLS. By contrast, there was a continuation of the trend towards an easing of collateral requirements. On the other hand, it continued trend toward easing collateral requirements. For the first time since 2008, the surveyed bank managers reported a slight decline in demand for loans for enterprises due, among other things, to alternative financing via the capital market. For the first time since 2008, the bank managers interviewed reported a slight decline in demand for loans to enterprises of communication, among other things, using alternative sources of financing in capital markets.
In credit business with households, standards for loans for house purchase were tightened slightly and standards for consumer credit were tightened significantly. In the credit business to households, lending standards for the purchase of homes have been tightened a bit and standards for consumer credit is much tighter. Much as in the previous quarter, the margins for average loans for house purchase were tightened slightly. More than in the previous quarter, the field for an average loans to buy homes have been tightened significantly. By contrast, riskier loans for house purchase and consumer credit in both credit rating categories were again affected by expanded margins. Unlike the risky loans to buy houses and consumer loans in both categories of credit rating again suffered extensive field. At the same time, the surveyed banks were faced with a sharp fall in households' funding requirements. At the same time, surveyed banks faced a sharp decline in household needs funding.
For the second quarter of 2010, the survey participants expect no further adjustments to their standards for lending to enterprises and private residential construction but somewhat tighter standards for lending for consumption purposes. During the second quarter of 2010 survey participants do not expect further changes in their standards for lending to businesses and private housing, but somewhat more stringent lending standards for consumption.
The April survey round again contained additional questions on the impact of the financial crisis on the wholesale funding, capital costs and lending behaviour of the participating banks. Round of surveys in April again contained additional questions about the impact of financial crisis on wholesale funding, capital expenditure and lending behavior of banks-participants. The surveyed responses showed a marked improvement in the opportunities for refinancing in the money and capital markets in the past quarter. Surveyed responses showed greater improvement of opportunities for refinancing in the money and capital markets in the last quarter. As before, however, just under half of the responding institutions observed higher capital costs in the wake of the financial crisis, which also impacted on lending in some areas. As before, however, almost half of the responding institutions of higher capital costs observed by the financial crisis, which also affected the credit in some areas.
Lessons from the crisis of monetary policy and financial stability
First I would like to thank you for inviting me and giving me this opportunity to comment on lessons from the crisis. First of all I would like 2 thank you for inviting me and giving me the opportunity to comment Wed two lessons from the crisis.
I will concentrate my talk around three lessons and two questions. Class will be focused around my conversation three lessons and 2 questions. What I am going to highlight is by no means revolutionary, rather it reflects a growing consensus on experiences from the crisis. What I have two stress that is no revolutionary, but rather reflect a growing consensus Wed experience of the crisis. 20 minutes only allows me to briefly touch on the different subjects. 20 minutes allows me to touch briefly on various topics. For a more in depth analysis and discussion of similar issues that I raise here today, I can recommend the Jackson Hole paper by Charles Bean et.al. For more in-depth analysis and discussion of similar issues that I raise here today, I can recommend paper Jackson Hole, Charles Bean et.al.
Chart: Transmission mechanism was affected by the financial crisis Diagram: Transmission mechanism affected by the financial crisis
The first lesson is that monetary policy is more than setting the key policy rate. The first lesson is that monetary policy more than the installation of a key interest rate policy. We also need to monitor the transmission mechanism closely. In addition, we must follow the transmission mechanism closely.
The transmission mechanism was affected by the financial crisis. Transmission mechanism affected by the financial crisis. Constraints on banks' access to funding and a heightened level of perceived risk led to higher lending margins and higher bond spreads. Restrictions Wed access two banks of funding and increased levels of perceived risk injuring two higher lending margins and higher bonds.
The chart shows developments in our key policy rate and banks mortgage lending rates from August 2007 to November 2008. The widening spread between these two interest rates was not unique to Norway, but occurred in several countries. The diagram shows the events in our key policy interest and mortgage rates from the Bank in August 2007 2 November 2008. Widespread projections of these two interest rates was not only in Norway, but occurred in several countries.
Banks also tightened their credit standards in response to the crisis. In addition, banks have tightened their lending standards in response to two crises. In Norway, as in most other countries, this was particularly distinct for credit to enterprises. In Norway, as in most other countries, this is particularly evident on the two loans the company.
Both higher spreads and tighter credit standards can have potentially strong contractionary effects on the economy and needed to be counteracted. Both higher spreads and rigid lending standards could potentially Garden strong deterrent effect on the economy and the need to counter.
Chart: Liquidity and capital support was necessary to restore credit flows Chart: Liquidity and capital support needed two recovery credit flows
The contractionary forces from the financial sector were addressed by providing liquidity and capital to banks, through both regular and unconventional instruments in many countries. Restraining forces from the financial sector, were considered provision of liquidity and capital of two banks, through regular and non-traditional instruments in many countries. Government actions enabled banks to continue to provide credit to households and enterprises. Government actions include banks still 2 2 2 credit provider of households and businesses.
The crisis demonstrated that the transmission mechanism is important for the effectiveness of monetary policy. It also demonstrated that the relationship between price stability and financial stability must be given due attention. The crisis has shown that the mechanism of transmission is essential to ensure the effectiveness of monetary policy. It also showed that the relationship between price stability and financial stability should ask to give due attention.
In Norges Bank there is close integration between the two areas Norges Bank Monetary Policy and Norges Bank Financial Stability. In Norges Bank there is a close integration between these two areas Norges Bank and the monetary policy of the Bank Norges financial stability. Norges Bank Financial Stability participates at all meetings in the monetary policy process. Norges Bank is contributing to financial stability, that all meetings of the monetary policy process. This ensures that sufficient attention is given to developments in the financial system. This ensures that adequate attention is given to 2 Developments in the financial system. It also provided the necessary insight to make well-informed assessments of the transmission mechanism during the crisis. He also provided the necessary understanding of the two to make informed assessments of the transmission mechanism hum crisis.
Chart: Considerable revision of the interest rate forecast during the crisis Chart substantial revision of the forecast of the interest rate rumble crisis
The second lesson is that inflation targeting seems to have survived the test. The second lesson is that inflation targeting seems, two garden survived the test. In my view, increased transparency and the efforts made to improve the communication of monetary policy to the general public have been very valuable. In my view, increased transparency, as well as the efforts of two improved communication of monetary policy 2 general public have been very valuable.
The chart shows the baseline scenario for the key policy rate with fan chart from October 2008 and the baseline scenario for the key policy rate as of December 2008, only two months later. The diagram shows the basic scenario a key interest rate policy with the fan chart in October 2008 and the baseline scenario for a key interest rate policy in December 2008, just two months leave. The large downward shift in the baseline scenario illustrates the size of the shock that hit Norway (and the global economy). Big shift down in the baseline scenario illustrates the size of the shock that hit the Norwegian (and the world economy). Although considerable revisions in the interest rate forecast had to be made during the crisis, this did not lead to any change in the credibility of the central bank. Despite significant changes in interest rates forecast to be Made roar crisis, this is not two Any changes in the credibility of the central bank.
Explicit interest rate forecasts were introduced in Norges Bank in 2005. Explicit forecasts of interest rates were introduced in Norges Bank in 2005. The decision to publish the forecast was the next logical step in developing the Bank's communication. The decision to publish two predictions is the next logical step in the development of the message of the bank. When we started publishing our own interest rate forecasts, we had to make sure that financial market participants, journalists, banks and a broader audience understood the framework. When we began publishing our own forecast of interest rates, we had 2 Ensure that financial market participants, journalists, bank and general public to understand the basics. A key issue was to convey the contingency and the uncertainty in the forecast. One key issue was two conveyor contingency and uncertainty in the forecast. As one of the reasons for publishing the forecast is to improve the general understanding of the Bank's response pattern, it has been important to explain the logic behind the forecast. As one of the reasons for publishing the forecast in February to improve the general response model of the bank, it is of great value to 2 Explain the logic of the forecast. This includes shedding light on the considerations underlying each interest rate forecast and what their objectives and the trade-offs between them are. This includes shed light on the considerations underlying each forecast interest rates and what are their objectives and trade-offs between the limitations.
In general, interest rate forecasting has been effective. In general, the interest rate forecast was effective. As market expectations tend to react to economic news largely in line with the Bank's reaction pattern - there is little doubt that the contingency of the forecasts is well understood. As market expectations lit two React two economic news mainly in accordance with the reaction model of the bank - there is little doubt that the contingency forecasts well understood.
Chart: Transparency eased communication: an account of the factors behind the revision graph: Transparency facilitated communication: the factors behind the revision
In our Monetary Policy Report, the interest rate forecast is accompanied by a separate chart, shown here, that shows the revision since the previous report due to changes in exogenous factors. Our Monetary Policy Report, the forecast of interest rates is accompanied by a separate diagram, shown here, this shows the revision since the previous report two changes in external factors.
By carefully explaining the reasoning behind the revisions of our interest rate forecasts, financial market participants and other interested parties can make their own judgment as to whether the revisions seem justifiable. By care fully explain changes in our forecasts of interest rates, financial market participants and other interested parties can create their own decisions as whether the two changes, seems justified.
In general, interest rate forecasting has worked well. In general, the interest rate cast worked well. As market expectations tend to react to economic news largely in line with the Bank's response pattern, there is little doubt that the contingency of the forecasts is well understood. As market expectations lit two React two economic news mainly in accordance with the reaction model of the bank, there is little doubt that the contingency forecasts well understood.
Chart: Interest rate forecast and exit strategy Chart: Interest rate forecast and exit strategy
Another advantage of publishing our own forecast for interest rates is that the exit strategy is an inherent part of the Bank's communication. Another advantage of publishing our forecast of interest rates is the exit strategy is an integral part of the context of the bank. A key element of any exit strategy is that policymakers must guide expectations. One of the key elements of an exit strategy Delhi, that policy should be guided by expectations. An exit that takes markets by surprise can lead to major reassessments of the yield curve. This requires the output markets by surprise could lead to a reassessment of the basic yield curve. Publishing explicit interest rate forecasts is a very direct way of guiding financial market participants' expectations. Publishing explicit interest rate forecasts is a very direct way guiding expectations of financial market participants.
Chart: Historical perspective I Chart: Historical perspective
The third lesson is the need for multilateral cooperation and collective action. The third lesson is the need for multilateral cooperation and collective action. As the global economic and financial crises unfolded, joint, massive and unprecedented policy responses were put in place around the world so as to avoid another Great Depression. A financial meltdown was averted, economic activity was supported and protectionism was contained. As global economic and financial screams unfolded, joints, massive and unprecedented responses were put in place around the world so as to avoid two of the Great Depression. Financial crisis averted, economic activity has received support and protection provided.
The chart shows the decline in world trade during the Great Depression compared to the much quicker decline in the recent crisis. The diagram shows a decline in world trade the roar of the Great Depression as compared with a much more Quicken Reducing the recent crisis.
Chart: Historical perspective II Figure: Historical Perspective II
But in the 1930's, it took 3-4 years before world trade stopped falling, and the pickup in trade was slow. But in 1930, he caught up with 3-4 years before the World Trade stopped falling, and the pickup in trade has been slow.
This time, a fairly quick rebound of trade has taken place. At this time, quickly overtaken by the revival of trade position. Some two years after the crisis started, world trade was more or less back to the pre-crisis level. Nearly two years after the start of the crisis, world trade was more or less back to pre-crisis level.
Chart: IMF lending Chart IMF loans
Early on, the IMF advocated forceful and coordinated measures that the G20 followed up with broad international efforts to stabilize the global economy. Earlier, the IMF supports the coordinated and vigorous measures that G20 was followed by two broad international efforts to stabilize the world economy. Without such prompt and comprehensive action, the consequences of the crisis would have been far greater. Without such rapid and comprehensive measures, the crisis would have been much greater.
It is in the interest of all that the large and systemically important countries discuss issues of common interest. It is in everyone's interest that the large and systemically important countries to discuss issues of mutual interest. Their successful collaboration benefits not only themselves, but also the rest of the world. Their successful cooperation benefits not only the elves restrictions, but the rest of the world.
Chart: G20, IMF and small countries Chart: G20, IMF and small countries
Among the G20 initiatives were the efforts to strengthen confidence in international financial institutions, the IMF in particular, to permit these institutions to play an effective role in tackling the crisis. Among the initiatives G20 efforts of the two lines just trust in the international financial institutions, the IMF, in particular, allow the two, these two institutions play an effective role in combating the crisis.
Large financial resources were raised by IMF members, many outside the G20. Large financial resources raised by the IMF, many outside the G20. Indeed, the G20 has used the IMF as an instrument of its policy implementation. Indeed, G20 wonderful IMF as an instrument of its policy. And yet, the G20 lacks the legitimacy that has historically been associated with a truly multilateral framework. And yet, G20 lack of legitimacy, which has historically been associated with a truly multilateral basis. Other countries do not participate, directly or indirectly, but are called upon to contribute to efforts that others have agreed. Other countries did not participate, directly or indirectly, but are designed to facilitate the efforts of the garden, 2 +2, that other arrangements. The vast majority of the members of the IMF have no voice or representation in these discussions, including all low-income countries and most emerging economies. Vaste majority of the garden IMF have no voice or representation in these discussions, including all low-income countries and most developing economies.
All in all, multilateral cooperation and collective action functioned reasonably well during the crisis. With the world recovering from the crisis, the G20 should strive for wider acceptance and legitimacy to make sure that the basis for strong multilateral cooperation and collective action is also in place when policies for reform and prevention are implemented. Truly global challenges call for truly global solutions anchored in a multilateral and statutory-based system of representation like the Bretton Wood Institutions. In general, multilateral cooperation and collective action works well enough buzz crisis. In a world reeling from the crisis, G20 island to seek greater legitimacy and acceptance 2 Make sure that the basis for stronger multilateral cooperation and collective action, also plays a role when policy reforms and to avoid execution. A truly global problems require global solutions is really based on a multilateral and regulatory system of representation as the Bretton Woods institutions. All countries, large and small, rich and poor, should be represented, even if only indirectly through constituencies. All countries, big and small, rich and poor, the Hubble request submitted, at least indirectly, through the districts.
Chart: General government balances Chart: The total balance of government
These are some lessons learned from the crisis. Here are some lessons learned from the crisis. Still, several unresolved questions remain. Nevertheless, some issues remain.
The chart shows general government fiscal balances as a percentage of GDP in selected countries. The diagram shows a budget surplus as a percentage of GDP in selected countries. Many countries had negative fiscal balances through the last decade despite moderate to high economic growth. Many countries have a negative financial balance over the last decade, despite the moderate economic growth, high 2. Spain seemed to be in a different position with a positive fiscal balance, though this was mainly due to unsustainable high growth in the construction sector. Spain, as it were in another place with a budget surplus, although this was mainly due to two unstable rapid growth in the construction sector.
This illustrates the first question, which is how to solve time inconsistency in fiscal policy. This illustrates the first question, how to resolve the discrepancy hours in fiscal policy. It is easier to follow the prescriptions of Keynes in bad times than in good times. This asymmetry may lead to an increase in budget deficits and sovereign debt over time, also referred to as the fiscal bias. Put the following two recipe Keynes in bad times than in good times. This asymmetry may lead to two increases the budget deficit and national debt clock, also known as two financial bias. As a result, many countries (PIIGS, UK,) have to tighten policy in a period when the real economy would certainly benefit from further stimulus. As a result, in many countries (PIIGS, UK) Tighten the two garden policy at a time when the real economy, of course take an additional incentive.
The crisis caused fiscal balances to deteriorate by 8-10 percentage points. The crisis caused by the two budget balance deteriorated by 10,8 percentage points. There is an immense difference between encountering a shock of this magnitude from a positive fiscal balance of 4 per cent and encountering it from a negative fiscal balance of 4 per cent. There is a vast difference between meeting the blow of this magnitude with a budget surplus of 4 percent and greeting him with a budget shortfall of 4 per cent. From a negative balance of 4 per cent, fiscal balances end up at a 12 per cent deficit! With a shortfall of 4 per cent, the budget balance in the end by 12 per cent is not enough! Then it is imperative to tighten policy. Then it need 2 tighten policy.
A similar time inconsistency problem, the inflation bias, has been a much debated issue in monetary policy. These inconsistencies hours problems of inflation bias, has been much debated issue in monetary policy. The solution has been central bank independence. So the question is, is there something to be learnt from monetary policy? The decision was an independent central bank. Thus, the question is whether something can be learned from the monetary policy?
Chart: Ragnar Frisch Chart: Ragnar Frisch
The fiscal bias is not a new phenomenon. And a number of possible solutions have been tried. Financial bias is not a new phenomenon. And the number of possible solutions have been tried. As far back as in the early 1930s, the Norwegian economist and Nobel Prize winner Ragnar Frisch had the following suggestion: In the early 1930's, Norwegian economist, Nobel laureate Ragnar Frisch, the following suggestions:
"It might be an idea to establish a cyclical council to make such decisions, a council that could operate with an independent status similar to that of the Supreme Court. "This may be an idea to install two cyclic Board 2 comrades such decisions of the Council who could work with an independent status, such that two of the Supreme Court. The council should comprise members who do not represent a political party, but a particular field of expertise : business, banking or economics. "COMP island council members whom growth is not representing political parties, but the particular field of expertise: business, banking and economics."
One example of an existing body of this type is the Swedish Fiscal Policy Council, which was established in 2007 as an agency under the government. One example of the existing body of this type of Swedish Fiscal Policy Council, which was established in 2007 as an agency of the Government.
I will concentrate my talk around three lessons and two questions. Class will be focused around my conversation three lessons and 2 questions. What I am going to highlight is by no means revolutionary, rather it reflects a growing consensus on experiences from the crisis. What I have two stress that is no revolutionary, but rather reflect a growing consensus Wed experience of the crisis. 20 minutes only allows me to briefly touch on the different subjects. 20 minutes allows me to touch briefly on various topics. For a more in depth analysis and discussion of similar issues that I raise here today, I can recommend the Jackson Hole paper by Charles Bean et.al. For more in-depth analysis and discussion of similar issues that I raise here today, I can recommend paper Jackson Hole, Charles Bean et.al.
Chart: Transmission mechanism was affected by the financial crisis Diagram: Transmission mechanism affected by the financial crisis
The first lesson is that monetary policy is more than setting the key policy rate. The first lesson is that monetary policy more than the installation of a key interest rate policy. We also need to monitor the transmission mechanism closely. In addition, we must follow the transmission mechanism closely.
The transmission mechanism was affected by the financial crisis. Transmission mechanism affected by the financial crisis. Constraints on banks' access to funding and a heightened level of perceived risk led to higher lending margins and higher bond spreads. Restrictions Wed access two banks of funding and increased levels of perceived risk injuring two higher lending margins and higher bonds.
The chart shows developments in our key policy rate and banks mortgage lending rates from August 2007 to November 2008. The widening spread between these two interest rates was not unique to Norway, but occurred in several countries. The diagram shows the events in our key policy interest and mortgage rates from the Bank in August 2007 2 November 2008. Widespread projections of these two interest rates was not only in Norway, but occurred in several countries.
Banks also tightened their credit standards in response to the crisis. In addition, banks have tightened their lending standards in response to two crises. In Norway, as in most other countries, this was particularly distinct for credit to enterprises. In Norway, as in most other countries, this is particularly evident on the two loans the company.
Both higher spreads and tighter credit standards can have potentially strong contractionary effects on the economy and needed to be counteracted. Both higher spreads and rigid lending standards could potentially Garden strong deterrent effect on the economy and the need to counter.
Chart: Liquidity and capital support was necessary to restore credit flows Chart: Liquidity and capital support needed two recovery credit flows
The contractionary forces from the financial sector were addressed by providing liquidity and capital to banks, through both regular and unconventional instruments in many countries. Restraining forces from the financial sector, were considered provision of liquidity and capital of two banks, through regular and non-traditional instruments in many countries. Government actions enabled banks to continue to provide credit to households and enterprises. Government actions include banks still 2 2 2 credit provider of households and businesses.
The crisis demonstrated that the transmission mechanism is important for the effectiveness of monetary policy. It also demonstrated that the relationship between price stability and financial stability must be given due attention. The crisis has shown that the mechanism of transmission is essential to ensure the effectiveness of monetary policy. It also showed that the relationship between price stability and financial stability should ask to give due attention.
In Norges Bank there is close integration between the two areas Norges Bank Monetary Policy and Norges Bank Financial Stability. In Norges Bank there is a close integration between these two areas Norges Bank and the monetary policy of the Bank Norges financial stability. Norges Bank Financial Stability participates at all meetings in the monetary policy process. Norges Bank is contributing to financial stability, that all meetings of the monetary policy process. This ensures that sufficient attention is given to developments in the financial system. This ensures that adequate attention is given to 2 Developments in the financial system. It also provided the necessary insight to make well-informed assessments of the transmission mechanism during the crisis. He also provided the necessary understanding of the two to make informed assessments of the transmission mechanism hum crisis.
Chart: Considerable revision of the interest rate forecast during the crisis Chart substantial revision of the forecast of the interest rate rumble crisis
The second lesson is that inflation targeting seems to have survived the test. The second lesson is that inflation targeting seems, two garden survived the test. In my view, increased transparency and the efforts made to improve the communication of monetary policy to the general public have been very valuable. In my view, increased transparency, as well as the efforts of two improved communication of monetary policy 2 general public have been very valuable.
The chart shows the baseline scenario for the key policy rate with fan chart from October 2008 and the baseline scenario for the key policy rate as of December 2008, only two months later. The diagram shows the basic scenario a key interest rate policy with the fan chart in October 2008 and the baseline scenario for a key interest rate policy in December 2008, just two months leave. The large downward shift in the baseline scenario illustrates the size of the shock that hit Norway (and the global economy). Big shift down in the baseline scenario illustrates the size of the shock that hit the Norwegian (and the world economy). Although considerable revisions in the interest rate forecast had to be made during the crisis, this did not lead to any change in the credibility of the central bank. Despite significant changes in interest rates forecast to be Made roar crisis, this is not two Any changes in the credibility of the central bank.
Explicit interest rate forecasts were introduced in Norges Bank in 2005. Explicit forecasts of interest rates were introduced in Norges Bank in 2005. The decision to publish the forecast was the next logical step in developing the Bank's communication. The decision to publish two predictions is the next logical step in the development of the message of the bank. When we started publishing our own interest rate forecasts, we had to make sure that financial market participants, journalists, banks and a broader audience understood the framework. When we began publishing our own forecast of interest rates, we had 2 Ensure that financial market participants, journalists, bank and general public to understand the basics. A key issue was to convey the contingency and the uncertainty in the forecast. One key issue was two conveyor contingency and uncertainty in the forecast. As one of the reasons for publishing the forecast is to improve the general understanding of the Bank's response pattern, it has been important to explain the logic behind the forecast. As one of the reasons for publishing the forecast in February to improve the general response model of the bank, it is of great value to 2 Explain the logic of the forecast. This includes shedding light on the considerations underlying each interest rate forecast and what their objectives and the trade-offs between them are. This includes shed light on the considerations underlying each forecast interest rates and what are their objectives and trade-offs between the limitations.
In general, interest rate forecasting has been effective. In general, the interest rate forecast was effective. As market expectations tend to react to economic news largely in line with the Bank's reaction pattern - there is little doubt that the contingency of the forecasts is well understood. As market expectations lit two React two economic news mainly in accordance with the reaction model of the bank - there is little doubt that the contingency forecasts well understood.
Chart: Transparency eased communication: an account of the factors behind the revision graph: Transparency facilitated communication: the factors behind the revision
In our Monetary Policy Report, the interest rate forecast is accompanied by a separate chart, shown here, that shows the revision since the previous report due to changes in exogenous factors. Our Monetary Policy Report, the forecast of interest rates is accompanied by a separate diagram, shown here, this shows the revision since the previous report two changes in external factors.
By carefully explaining the reasoning behind the revisions of our interest rate forecasts, financial market participants and other interested parties can make their own judgment as to whether the revisions seem justifiable. By care fully explain changes in our forecasts of interest rates, financial market participants and other interested parties can create their own decisions as whether the two changes, seems justified.
In general, interest rate forecasting has worked well. In general, the interest rate cast worked well. As market expectations tend to react to economic news largely in line with the Bank's response pattern, there is little doubt that the contingency of the forecasts is well understood. As market expectations lit two React two economic news mainly in accordance with the reaction model of the bank, there is little doubt that the contingency forecasts well understood.
Chart: Interest rate forecast and exit strategy Chart: Interest rate forecast and exit strategy
Another advantage of publishing our own forecast for interest rates is that the exit strategy is an inherent part of the Bank's communication. Another advantage of publishing our forecast of interest rates is the exit strategy is an integral part of the context of the bank. A key element of any exit strategy is that policymakers must guide expectations. One of the key elements of an exit strategy Delhi, that policy should be guided by expectations. An exit that takes markets by surprise can lead to major reassessments of the yield curve. This requires the output markets by surprise could lead to a reassessment of the basic yield curve. Publishing explicit interest rate forecasts is a very direct way of guiding financial market participants' expectations. Publishing explicit interest rate forecasts is a very direct way guiding expectations of financial market participants.
Chart: Historical perspective I Chart: Historical perspective
The third lesson is the need for multilateral cooperation and collective action. The third lesson is the need for multilateral cooperation and collective action. As the global economic and financial crises unfolded, joint, massive and unprecedented policy responses were put in place around the world so as to avoid another Great Depression. A financial meltdown was averted, economic activity was supported and protectionism was contained. As global economic and financial screams unfolded, joints, massive and unprecedented responses were put in place around the world so as to avoid two of the Great Depression. Financial crisis averted, economic activity has received support and protection provided.
The chart shows the decline in world trade during the Great Depression compared to the much quicker decline in the recent crisis. The diagram shows a decline in world trade the roar of the Great Depression as compared with a much more Quicken Reducing the recent crisis.
Chart: Historical perspective II Figure: Historical Perspective II
But in the 1930's, it took 3-4 years before world trade stopped falling, and the pickup in trade was slow. But in 1930, he caught up with 3-4 years before the World Trade stopped falling, and the pickup in trade has been slow.
This time, a fairly quick rebound of trade has taken place. At this time, quickly overtaken by the revival of trade position. Some two years after the crisis started, world trade was more or less back to the pre-crisis level. Nearly two years after the start of the crisis, world trade was more or less back to pre-crisis level.
Chart: IMF lending Chart IMF loans
Early on, the IMF advocated forceful and coordinated measures that the G20 followed up with broad international efforts to stabilize the global economy. Earlier, the IMF supports the coordinated and vigorous measures that G20 was followed by two broad international efforts to stabilize the world economy. Without such prompt and comprehensive action, the consequences of the crisis would have been far greater. Without such rapid and comprehensive measures, the crisis would have been much greater.
It is in the interest of all that the large and systemically important countries discuss issues of common interest. It is in everyone's interest that the large and systemically important countries to discuss issues of mutual interest. Their successful collaboration benefits not only themselves, but also the rest of the world. Their successful cooperation benefits not only the elves restrictions, but the rest of the world.
Chart: G20, IMF and small countries Chart: G20, IMF and small countries
Among the G20 initiatives were the efforts to strengthen confidence in international financial institutions, the IMF in particular, to permit these institutions to play an effective role in tackling the crisis. Among the initiatives G20 efforts of the two lines just trust in the international financial institutions, the IMF, in particular, allow the two, these two institutions play an effective role in combating the crisis.
Large financial resources were raised by IMF members, many outside the G20. Large financial resources raised by the IMF, many outside the G20. Indeed, the G20 has used the IMF as an instrument of its policy implementation. Indeed, G20 wonderful IMF as an instrument of its policy. And yet, the G20 lacks the legitimacy that has historically been associated with a truly multilateral framework. And yet, G20 lack of legitimacy, which has historically been associated with a truly multilateral basis. Other countries do not participate, directly or indirectly, but are called upon to contribute to efforts that others have agreed. Other countries did not participate, directly or indirectly, but are designed to facilitate the efforts of the garden, 2 +2, that other arrangements. The vast majority of the members of the IMF have no voice or representation in these discussions, including all low-income countries and most emerging economies. Vaste majority of the garden IMF have no voice or representation in these discussions, including all low-income countries and most developing economies.
All in all, multilateral cooperation and collective action functioned reasonably well during the crisis. With the world recovering from the crisis, the G20 should strive for wider acceptance and legitimacy to make sure that the basis for strong multilateral cooperation and collective action is also in place when policies for reform and prevention are implemented. Truly global challenges call for truly global solutions anchored in a multilateral and statutory-based system of representation like the Bretton Wood Institutions. In general, multilateral cooperation and collective action works well enough buzz crisis. In a world reeling from the crisis, G20 island to seek greater legitimacy and acceptance 2 Make sure that the basis for stronger multilateral cooperation and collective action, also plays a role when policy reforms and to avoid execution. A truly global problems require global solutions is really based on a multilateral and regulatory system of representation as the Bretton Woods institutions. All countries, large and small, rich and poor, should be represented, even if only indirectly through constituencies. All countries, big and small, rich and poor, the Hubble request submitted, at least indirectly, through the districts.
Chart: General government balances Chart: The total balance of government
These are some lessons learned from the crisis. Here are some lessons learned from the crisis. Still, several unresolved questions remain. Nevertheless, some issues remain.
The chart shows general government fiscal balances as a percentage of GDP in selected countries. The diagram shows a budget surplus as a percentage of GDP in selected countries. Many countries had negative fiscal balances through the last decade despite moderate to high economic growth. Many countries have a negative financial balance over the last decade, despite the moderate economic growth, high 2. Spain seemed to be in a different position with a positive fiscal balance, though this was mainly due to unsustainable high growth in the construction sector. Spain, as it were in another place with a budget surplus, although this was mainly due to two unstable rapid growth in the construction sector.
This illustrates the first question, which is how to solve time inconsistency in fiscal policy. This illustrates the first question, how to resolve the discrepancy hours in fiscal policy. It is easier to follow the prescriptions of Keynes in bad times than in good times. This asymmetry may lead to an increase in budget deficits and sovereign debt over time, also referred to as the fiscal bias. Put the following two recipe Keynes in bad times than in good times. This asymmetry may lead to two increases the budget deficit and national debt clock, also known as two financial bias. As a result, many countries (PIIGS, UK,) have to tighten policy in a period when the real economy would certainly benefit from further stimulus. As a result, in many countries (PIIGS, UK) Tighten the two garden policy at a time when the real economy, of course take an additional incentive.
The crisis caused fiscal balances to deteriorate by 8-10 percentage points. The crisis caused by the two budget balance deteriorated by 10,8 percentage points. There is an immense difference between encountering a shock of this magnitude from a positive fiscal balance of 4 per cent and encountering it from a negative fiscal balance of 4 per cent. There is a vast difference between meeting the blow of this magnitude with a budget surplus of 4 percent and greeting him with a budget shortfall of 4 per cent. From a negative balance of 4 per cent, fiscal balances end up at a 12 per cent deficit! With a shortfall of 4 per cent, the budget balance in the end by 12 per cent is not enough! Then it is imperative to tighten policy. Then it need 2 tighten policy.
A similar time inconsistency problem, the inflation bias, has been a much debated issue in monetary policy. These inconsistencies hours problems of inflation bias, has been much debated issue in monetary policy. The solution has been central bank independence. So the question is, is there something to be learnt from monetary policy? The decision was an independent central bank. Thus, the question is whether something can be learned from the monetary policy?
Chart: Ragnar Frisch Chart: Ragnar Frisch
The fiscal bias is not a new phenomenon. And a number of possible solutions have been tried. Financial bias is not a new phenomenon. And the number of possible solutions have been tried. As far back as in the early 1930s, the Norwegian economist and Nobel Prize winner Ragnar Frisch had the following suggestion: In the early 1930's, Norwegian economist, Nobel laureate Ragnar Frisch, the following suggestions:
"It might be an idea to establish a cyclical council to make such decisions, a council that could operate with an independent status similar to that of the Supreme Court. "This may be an idea to install two cyclic Board 2 comrades such decisions of the Council who could work with an independent status, such that two of the Supreme Court. The council should comprise members who do not represent a political party, but a particular field of expertise : business, banking or economics. "COMP island council members whom growth is not representing political parties, but the particular field of expertise: business, banking and economics."
One example of an existing body of this type is the Swedish Fiscal Policy Council, which was established in 2007 as an agency under the government. One example of the existing body of this type of Swedish Fiscal Policy Council, which was established in 2007 as an agency of the Government.
Restructuring of a state enterprise
The bank has reduced the number of employees working with central bank activity from 1200 to barely 300 people. It cost probably 1.2 billion dollars, calculated in current prices, to operate the bank in 1998. Now it costs 700 million, ie 500 million or good 40% less.
The business has been transferred to others, including NOKAS and the Norwegian Mint. The operation is streamlined, activities are outsourced and activity is closed.
Many people came with other companies that have taken over the business from the bank. Several have reached retirement age. Some hundred former employees are granted ventelønn for shorter or longer period of time. Today we have nine employees who have received ventelønn from 2001 when we put down four regional branches and a box office. Most of these are employed so that ventelønn are truncated.
There is strong employment in the public sector. A business that Norges Bank can not show a lack of economic carrying capacity when we transition. It is therefore necessary to have tools that ventelønn and early retirement available.
The business has been transferred to others, including NOKAS and the Norwegian Mint. The operation is streamlined, activities are outsourced and activity is closed.
Many people came with other companies that have taken over the business from the bank. Several have reached retirement age. Some hundred former employees are granted ventelønn for shorter or longer period of time. Today we have nine employees who have received ventelønn from 2001 when we put down four regional branches and a box office. Most of these are employed so that ventelønn are truncated.
There is strong employment in the public sector. A business that Norges Bank can not show a lack of economic carrying capacity when we transition. It is therefore necessary to have tools that ventelønn and early retirement available.
Better regulation of banks
It is now well over a year since the financial crisis fully erupted. In Norway there was an immediate liquidity crisis in the banking system. Our money market stopped working the day after Lehman Brothers went down. During the fourteen days, it was great unrest in Norwegian banks because of the failure of the financing. The measures that were implemented to solve the liquidity crisis, it has worked. In Norway, there has so far not had to evolve into a solvency crisis in the banking system. It reflects that we have not received a full real economic crisis. We went from a strong expansion to a period of decline in the activity. But so far there has been a mild recession at home.
Yet it is important to learn from our and other countries' experiences.
One lesson is that extensive short-term financing is risky. Even if the Norwegian banks were solid when the crisis started, it was the liquidity crisis because they were too dependent on short-term market funding. Banks should increasingly fund themselves with deposits and long-term loans. It must be a requirement that banks have enough liquid assets to handle long periods of failure in the markets. Banks should adapt so that they can do without the support of the Central Bank if the financing from the markets would stay away a month or two.
Another lesson from other countries is that the requirements for banks' solvency should be changed so that banks hold more capital against unexpected losses. It can be done in several ways. Stricter requirements for what is accepted as core capital will increase banks' ability to bear losses. A minimum equity in relation to total capital will reduce banks' debt financing and how much risk they choose to take. Regulations should also be designed so that the banks will be less heated by selling loans in an upturn. Then they will not need to tighten as much in a downturn.
The regulation should not only seek to limit risk in each bank, but also risk in the entire financial system.
The regulation of banks and financial markets will be changed at home and abroad. The work done by the so-called Basel Committee on Banking Supervision and of the FSB (Financial Stability Board) with a mandate from the G20 countries. New legislation - with the minimum standards - coming to Norway via the European Union and the EEA Agreement. There will be a force on the Nordic countries could cooperate better if the rules beyond minimum standards, as we largely have a common banking system.
Yet it is important to learn from our and other countries' experiences.
One lesson is that extensive short-term financing is risky. Even if the Norwegian banks were solid when the crisis started, it was the liquidity crisis because they were too dependent on short-term market funding. Banks should increasingly fund themselves with deposits and long-term loans. It must be a requirement that banks have enough liquid assets to handle long periods of failure in the markets. Banks should adapt so that they can do without the support of the Central Bank if the financing from the markets would stay away a month or two.
Another lesson from other countries is that the requirements for banks' solvency should be changed so that banks hold more capital against unexpected losses. It can be done in several ways. Stricter requirements for what is accepted as core capital will increase banks' ability to bear losses. A minimum equity in relation to total capital will reduce banks' debt financing and how much risk they choose to take. Regulations should also be designed so that the banks will be less heated by selling loans in an upturn. Then they will not need to tighten as much in a downturn.
The regulation should not only seek to limit risk in each bank, but also risk in the entire financial system.
The regulation of banks and financial markets will be changed at home and abroad. The work done by the so-called Basel Committee on Banking Supervision and of the FSB (Financial Stability Board) with a mandate from the G20 countries. New legislation - with the minimum standards - coming to Norway via the European Union and the EEA Agreement. There will be a force on the Nordic countries could cooperate better if the rules beyond minimum standards, as we largely have a common banking system.
For children - of children?
Article in Aftenposten 22 December 2009 by Magdalena Kettis, Head of Social and Environmental Issues, Ownership Strategies, Norges Bank Investment Management (NBIM).
Children all over the world will receive new toys and games for Christmas. Unfortunately, the chances of that happening at the expense of other children's rights.
A review of 29 toy and game manufacturers in the portfolio for the Government Pension abroad shows that very few companies have taken steps to prevent children involved in the production of toys. Only five of the companies report that they have policies against child labor, and only one has a system to verify whether the activity violates the rights of children. Five of the companies report that they constantly analyze the risk of child labor in its operations, while six say they have introduced the control of the supply chain, according to the survey conducted in November by the fund manager, Norges Bank Investment Management (NBIM).
The companies surveyed produce well-known and popular brands that probably is on many Christmas wish lists. They have a total market value of about 1100 billion. Just over half are located in Japan and other Asian countries, while about ten are from the USA. The survey is based on publicly available information.
The risk of children involved in the production of toys is thus barely under control, and the toy sector must obviously be monitored going forward. NBIM is, which manages the Government Pension abroad, well-positioned to do this through an active corporate governance. With a market capitalization of 2,549 billion Norwegian kroner at the end of the third quarter and investments in more than 8000 companies worldwide, the "oil fund" the largest endowment fund. NBIM has appointed children's rights as one of its priority areas of corporate governance.
About 150 million children aged five to 14 years will today participate in child labor, according to a UN report from November. NBIM analyze annually the sectors and companies in the portfolio where the rights of children are most vulnerable. The analysis is based on guidelines in NBIM Investor Expectations Wed Children's Rights, a document that explains the expectations we have for the companies' handling of child rights and child labor. Toy sector is new this year. We are planning additional five reports early next year in the sectors of steel, textiles, cocoa, technological equipment and the mining industry.
NBIM user ownership actively to ensure the Fund's long-term financial interests and show responsibility with regard to social and environmental issues. One of the most important tools in this work is direct dialogue between investors and companies. In some cases, achieved the best results when the dialogue be conducted with several companies in the same sector at the same time so you can have impact on the industry level. Dialogue NBIM has led multi-national companies in the seed industry of child labor in bomullsfrøproduksjonen in India is an example of this. The dialogue resulted this year in an industry standard for child labor and a shared commitment from the companies to try to eliminate child labor in production. To gain the sector level, not just in individual companies, will become increasingly important.
Many companies have inadequate reporting on social and environmental issues and could lead to a valuation problem. Liability companies take environmental and social issues that affect how their long-term value is perceived. It affects investors 'long-term decisions and the companies' ability to attract capital. Investing in a company that does not provide the social and environmental cost of the company's operations may in the long run be bad shop.
Children all over the world will receive new toys and games for Christmas. Unfortunately, the chances of that happening at the expense of other children's rights.
A review of 29 toy and game manufacturers in the portfolio for the Government Pension abroad shows that very few companies have taken steps to prevent children involved in the production of toys. Only five of the companies report that they have policies against child labor, and only one has a system to verify whether the activity violates the rights of children. Five of the companies report that they constantly analyze the risk of child labor in its operations, while six say they have introduced the control of the supply chain, according to the survey conducted in November by the fund manager, Norges Bank Investment Management (NBIM).
The companies surveyed produce well-known and popular brands that probably is on many Christmas wish lists. They have a total market value of about 1100 billion. Just over half are located in Japan and other Asian countries, while about ten are from the USA. The survey is based on publicly available information.
The risk of children involved in the production of toys is thus barely under control, and the toy sector must obviously be monitored going forward. NBIM is, which manages the Government Pension abroad, well-positioned to do this through an active corporate governance. With a market capitalization of 2,549 billion Norwegian kroner at the end of the third quarter and investments in more than 8000 companies worldwide, the "oil fund" the largest endowment fund. NBIM has appointed children's rights as one of its priority areas of corporate governance.
About 150 million children aged five to 14 years will today participate in child labor, according to a UN report from November. NBIM analyze annually the sectors and companies in the portfolio where the rights of children are most vulnerable. The analysis is based on guidelines in NBIM Investor Expectations Wed Children's Rights, a document that explains the expectations we have for the companies' handling of child rights and child labor. Toy sector is new this year. We are planning additional five reports early next year in the sectors of steel, textiles, cocoa, technological equipment and the mining industry.
NBIM user ownership actively to ensure the Fund's long-term financial interests and show responsibility with regard to social and environmental issues. One of the most important tools in this work is direct dialogue between investors and companies. In some cases, achieved the best results when the dialogue be conducted with several companies in the same sector at the same time so you can have impact on the industry level. Dialogue NBIM has led multi-national companies in the seed industry of child labor in bomullsfrøproduksjonen in India is an example of this. The dialogue resulted this year in an industry standard for child labor and a shared commitment from the companies to try to eliminate child labor in production. To gain the sector level, not just in individual companies, will become increasingly important.
Many companies have inadequate reporting on social and environmental issues and could lead to a valuation problem. Liability companies take environmental and social issues that affect how their long-term value is perceived. It affects investors 'long-term decisions and the companies' ability to attract capital. Investing in a company that does not provide the social and environmental cost of the company's operations may in the long run be bad shop.
If the oil fund performance is measured in dollars or the currency?
Norway as a nation do not have foreign exchange risk against the Norwegian krone. It is therefore most appropriate to measure the oil fund's performance in international currency.
The statements of the Government Pension abroad, known as the Petroleum Fund, the values recorded in Norwegian kroner. Measured in Norwegian kroner, the result is a positive return of 70 billion, over 2008 and 2009 combined. The percentage poll of the fund's returns, however, in foreign currency. Measured this way, the fund had a negative return of 20 billion over two years.
Currency risk is a classic example of the difference between enterprise and economics. All Norwegian companies that have assets or liabilities in foreign currency, will be aware of currency risk. If the exchange rate appreciates or depreciates unexpectedly and much, could affect the company be or not be.
How currency risk is not a danger either to the Norwegian State or Norway as a nation. Neither the state or the nation will be richer or poorer, if the price of Norwegian kroner will be written up or written down. Norway does not have foreign exchange risk against their own currency.
This is also true for the oil fund. If the exchange rate suddenly depreciates by 20 percent, the immediate increase in value in the oil fund of well over 500 billion. But we have not become richer, even if there is a higher number in the oil fund balance. The fund is not increased purchasing power of a Norwegian devaluation, in the same way that the nation will not be richer by it.
Experiences with devaluations throughout 1970 - and 80-figure also shows this. Reduction of the crown only resulted in prices and wages rose accordingly. We received a lower monetary value, but not better competitiveness or changed purchasing power.
Oil Fund's assets are by law invested in foreign currency. The reason is that we must avoid a strong effort and large impact on the cost or the real exchange rate for the Norwegian krone as the state's petroleum revenues in a few decades are high and strongly fluctuating.
Therefore, the return in foreign currency target for the results of the Fund's investments in stocks and bonds. The return on both the benchmark index that the Ministry of Finance and on the actual portfolio is measured in foreign currency. The most important measure of the performance of Norges Bank's managers is the excess return measured in foreign currency.
Since the fund's size, measured in Norwegian kroner, the basis for the use of oil money over the state budget, the exchange rate, however, not without significance. This mechanism has a small element of automatic stabilization, since the exchange rate will typically force and capital fund measured in Norwegian kroner fall when the Norwegian economy is going well.
Since 1998, the krone strengthened. It has contributed to the fund's value is 150 billion lower than if the crown had been fixed. The guidelines for fiscal policy is that the state will use the expected real return, or 4 percent of the fund in the annual average over the business cycle. The impact of the appreciation of the state's use of oil money can thus be estimated at 6 billion. This corresponds to half a billion per year in those years with strong economic conditions in the Norwegian economy.
The statements of the Government Pension abroad, known as the Petroleum Fund, the values recorded in Norwegian kroner. Measured in Norwegian kroner, the result is a positive return of 70 billion, over 2008 and 2009 combined. The percentage poll of the fund's returns, however, in foreign currency. Measured this way, the fund had a negative return of 20 billion over two years.
Currency risk is a classic example of the difference between enterprise and economics. All Norwegian companies that have assets or liabilities in foreign currency, will be aware of currency risk. If the exchange rate appreciates or depreciates unexpectedly and much, could affect the company be or not be.
How currency risk is not a danger either to the Norwegian State or Norway as a nation. Neither the state or the nation will be richer or poorer, if the price of Norwegian kroner will be written up or written down. Norway does not have foreign exchange risk against their own currency.
This is also true for the oil fund. If the exchange rate suddenly depreciates by 20 percent, the immediate increase in value in the oil fund of well over 500 billion. But we have not become richer, even if there is a higher number in the oil fund balance. The fund is not increased purchasing power of a Norwegian devaluation, in the same way that the nation will not be richer by it.
Experiences with devaluations throughout 1970 - and 80-figure also shows this. Reduction of the crown only resulted in prices and wages rose accordingly. We received a lower monetary value, but not better competitiveness or changed purchasing power.
Oil Fund's assets are by law invested in foreign currency. The reason is that we must avoid a strong effort and large impact on the cost or the real exchange rate for the Norwegian krone as the state's petroleum revenues in a few decades are high and strongly fluctuating.
Therefore, the return in foreign currency target for the results of the Fund's investments in stocks and bonds. The return on both the benchmark index that the Ministry of Finance and on the actual portfolio is measured in foreign currency. The most important measure of the performance of Norges Bank's managers is the excess return measured in foreign currency.
Since the fund's size, measured in Norwegian kroner, the basis for the use of oil money over the state budget, the exchange rate, however, not without significance. This mechanism has a small element of automatic stabilization, since the exchange rate will typically force and capital fund measured in Norwegian kroner fall when the Norwegian economy is going well.
Since 1998, the krone strengthened. It has contributed to the fund's value is 150 billion lower than if the crown had been fixed. The guidelines for fiscal policy is that the state will use the expected real return, or 4 percent of the fund in the annual average over the business cycle. The impact of the appreciation of the state's use of oil money can thus be estimated at 6 billion. This corresponds to half a billion per year in those years with strong economic conditions in the Norwegian economy.
Welfare for many generations
Op-ed by Governor Svein Gjedrem in Morgenbladet 19 March 2010.
Oil Fund's losses in 2008 is largely won back.
A wise man from Trøndelag characterized developments in the Fund over the last two years with a maritime picture. The water does not disappear even if it is low tide, he said. In 2008, there was strong ebb in global financial markets. A year ago the Government Pension abroad - often referred to as the oil fund - just put forward its worst results ever. During 2008 the fund lost over 23 percent of its value measured in international currency. The losses were due to two main factors: the weak developments in global equity markets since the 1930s, and that the fund had an in conditions not suited holdings of bonds. The large losses contributed to an engaged debate about the fund's investment strategy.
State authorities were, however, stuck on the strategy and failed to make a little over-weighted decisions during the crisis.
Capital markets have now reversed, and the results in 2009 were the best ever. The return was over 25 percent, and most of the losses in 2008 were won back last year. Each year the fund was invested in the same international business community. The bond fund owned by the last turn of the year, matched to a large extent with the portfolio a year earlier. Market conditions are the main reason for recycling.
Autumn 2008 was marked by fears that global financial markets and payment systems would collapse, with dire consequences for the development of production and value creation. The probability that this would happen was hardly great, but still a risk. It helped to push down the prices of stocks and bonds that the fund owned.
The market for many of the fund's interest-bearing securities ceased to function during the most critical phases of the financial crisis in autumn 2008. This market is organized in a different way than most stock exchanges where investors trade with each other. Rather's trade for many types of bonds directly with the major investment banks.
In autumn and winter of 2008 had more of these banks enough to keep my head above water. Thus disappeared the markets for several types of bonds. Much of the small turnover still took place, was due to investors who were forced to sell their securities. The turnover can be likened to a fire damage sale.
Fund had not had any fire. We appreciated, however, the bonds that the value of them corresponded to sales price of similar securities that were actually acted.
In the spring of 2009 began the markets for bonds issued by other than nation-states slowly working again, and during the summer and autumn, the more effective. The value of many of the fund's investments in bonds could thus written considerably.
Savings Plan
The international financial markets has improved faster than we dared hope a year ago. Developments over the last two years, however, illustrates an important feature of the Fund, namely the long-term public.
The state uses the fund to convert assets on the shelf to the ownership of shares and bonds, which are entitled to a share of future value creation in the world. From the first oil was taken up from the Norwegian continental shelf in the early 1970s, it took approximately one generation to the first deposit was made on the Fund in 1996. As it now seems, the state will regularly add money through the approximately one generation.
With a lot of money in the bank to the Norwegian economy is a good piece on the way protect from the effects of the great financial crisis in 2008 and 2009.
The structure of the Fund is also about to make Norway a major source of financing of public expenditure in the decades to come. How important are disclosed in this calculation exercise: In ten years the fund equal to two times the annual value added (GDP) in Norway. Public expenditure is just under half of GDP. Withdrawals from the fund equal to the real return that is estimated at 4 percent can thus finance 15-20 per cent of government expenditure in ten years. It can be sustained without the fund's capital is reduced. Fund will lead to cuts in welfare state arrangements are clearly less than they would be without the Fund, as the elderly population is evident in public budgets.
Here are the prospects in many other industrialized countries much worse, since they must use a substantial portion of its government revenues to cover interest on government debt.
Does not inhibit investment in Norway
The State may choose composition, required rate of return and risk profile of their investments without squint to finance the needs of Norwegian companies. Norwegian companies in turn can choose loan and equity structure, independent of the government's financial investments. Between the state as investor and corporate capital is a capital market. State savings plans out there do not affect the availability of funds and the demand for the return of Norwegian companies must provide to their investments.
Profitability in state investments are calculated on the basis of a kalkulasjonsrente of 4 percent. It provides the same required return as the state, even after the weak returns in the crisis year 2008, can expect to achieve in the oil fund over time. A question is still whether there is a queue of good and profitable projects that will have to wait because of a too tight line in state budgets.
It is difficult to find evidence. In the National Transport Plan 2010-19, which we might assume is representative of government spending, are drawn up plans for investments in the road for around 140 billion. For approximately two thirds of the projects are accounted for profitability. The calculations captures saved time and reduced costs of accidents and the environment. Investment costs and future operating expenses deducted. Projects show an overall loss of 20 billion.
Community Economic returns, as calculated here, can not be the only criterion for selection of projects. On the other hand, when projects can not be expected to increase future income in society, it is important that the financing of current government revenues and within the long-term framework that is sustainable. Alternatively, they can be paid by the users which are enough. A road, old asphalt and infrastructure can provide the benefit and enjoyment over time, but they're not very liquid and do not provide a continuous cash flow in return that can be used. If the investment comes at the expense of savings plan, pension fund, it will go out of future generations.
Oil Fund's losses in 2008 is largely won back.
A wise man from Trøndelag characterized developments in the Fund over the last two years with a maritime picture. The water does not disappear even if it is low tide, he said. In 2008, there was strong ebb in global financial markets. A year ago the Government Pension abroad - often referred to as the oil fund - just put forward its worst results ever. During 2008 the fund lost over 23 percent of its value measured in international currency. The losses were due to two main factors: the weak developments in global equity markets since the 1930s, and that the fund had an in conditions not suited holdings of bonds. The large losses contributed to an engaged debate about the fund's investment strategy.
State authorities were, however, stuck on the strategy and failed to make a little over-weighted decisions during the crisis.
Capital markets have now reversed, and the results in 2009 were the best ever. The return was over 25 percent, and most of the losses in 2008 were won back last year. Each year the fund was invested in the same international business community. The bond fund owned by the last turn of the year, matched to a large extent with the portfolio a year earlier. Market conditions are the main reason for recycling.
Autumn 2008 was marked by fears that global financial markets and payment systems would collapse, with dire consequences for the development of production and value creation. The probability that this would happen was hardly great, but still a risk. It helped to push down the prices of stocks and bonds that the fund owned.
The market for many of the fund's interest-bearing securities ceased to function during the most critical phases of the financial crisis in autumn 2008. This market is organized in a different way than most stock exchanges where investors trade with each other. Rather's trade for many types of bonds directly with the major investment banks.
In autumn and winter of 2008 had more of these banks enough to keep my head above water. Thus disappeared the markets for several types of bonds. Much of the small turnover still took place, was due to investors who were forced to sell their securities. The turnover can be likened to a fire damage sale.
Fund had not had any fire. We appreciated, however, the bonds that the value of them corresponded to sales price of similar securities that were actually acted.
In the spring of 2009 began the markets for bonds issued by other than nation-states slowly working again, and during the summer and autumn, the more effective. The value of many of the fund's investments in bonds could thus written considerably.
Savings Plan
The international financial markets has improved faster than we dared hope a year ago. Developments over the last two years, however, illustrates an important feature of the Fund, namely the long-term public.
The state uses the fund to convert assets on the shelf to the ownership of shares and bonds, which are entitled to a share of future value creation in the world. From the first oil was taken up from the Norwegian continental shelf in the early 1970s, it took approximately one generation to the first deposit was made on the Fund in 1996. As it now seems, the state will regularly add money through the approximately one generation.
With a lot of money in the bank to the Norwegian economy is a good piece on the way protect from the effects of the great financial crisis in 2008 and 2009.
The structure of the Fund is also about to make Norway a major source of financing of public expenditure in the decades to come. How important are disclosed in this calculation exercise: In ten years the fund equal to two times the annual value added (GDP) in Norway. Public expenditure is just under half of GDP. Withdrawals from the fund equal to the real return that is estimated at 4 percent can thus finance 15-20 per cent of government expenditure in ten years. It can be sustained without the fund's capital is reduced. Fund will lead to cuts in welfare state arrangements are clearly less than they would be without the Fund, as the elderly population is evident in public budgets.
Here are the prospects in many other industrialized countries much worse, since they must use a substantial portion of its government revenues to cover interest on government debt.
Does not inhibit investment in Norway
The State may choose composition, required rate of return and risk profile of their investments without squint to finance the needs of Norwegian companies. Norwegian companies in turn can choose loan and equity structure, independent of the government's financial investments. Between the state as investor and corporate capital is a capital market. State savings plans out there do not affect the availability of funds and the demand for the return of Norwegian companies must provide to their investments.
Profitability in state investments are calculated on the basis of a kalkulasjonsrente of 4 percent. It provides the same required return as the state, even after the weak returns in the crisis year 2008, can expect to achieve in the oil fund over time. A question is still whether there is a queue of good and profitable projects that will have to wait because of a too tight line in state budgets.
It is difficult to find evidence. In the National Transport Plan 2010-19, which we might assume is representative of government spending, are drawn up plans for investments in the road for around 140 billion. For approximately two thirds of the projects are accounted for profitability. The calculations captures saved time and reduced costs of accidents and the environment. Investment costs and future operating expenses deducted. Projects show an overall loss of 20 billion.
Community Economic returns, as calculated here, can not be the only criterion for selection of projects. On the other hand, when projects can not be expected to increase future income in society, it is important that the financing of current government revenues and within the long-term framework that is sustainable. Alternatively, they can be paid by the users which are enough. A road, old asphalt and infrastructure can provide the benefit and enjoyment over time, but they're not very liquid and do not provide a continuous cash flow in return that can be used. If the investment comes at the expense of savings plan, pension fund, it will go out of future generations.
Subscribe to:
Posts (Atom)