U.S. is going to tighten control over bank operations to the maximum block the way of funding international terrorists. As announced on the eve of the government, he prepared the proposal to require U.S. banks to report to the authorities on all transfers of funds abroad and from abroad, regardless of the size of transactions.
According to current rules, like the ITAR-TASS, banks are required to report tax and law enforcement agencies only those transactions that exceed 10 thousand dollars, and store in their own data on transfers in excess of 3 thousand
"The proposed plan seriously help law enforcement agencies in the identification and investigation of transnational organized crime, the multinational drug cartels, terrorist financing and tax evasion" - U.S. Treasury Department spokesman James Frace. According to him, the new proposals will be published in the so-called Federal Register - a collection of official documents of the U.S. government that it was available to the population.
The first reaction of American banks for the Government's initiative has been very cautious. For example, representatives of Bank of America said that the Treasury proposal will be carefully studied and analyzed to determine how they may affect the operation of the bank and its clientele. Meanwhile, social and human rights organizations expressed concern over the fact that the new measures threatens to further encroachment of the state to the private lives of its citizens.
9/28/10
Obama will help ensure that millions of loans of small business owners
President Barack Obama signed into law the Small Business Support. The law provides for the allocation of $ 30 billion for lending to small businesses.
According to the President, the new measures will help ensure that millions of loans of small business owners in the country and create jobs, reports Associated Press.
Note that the official U.S. unemployment rate now stands at 9.7% of the population. However, unemployment in the broad sense (eg, taking into account those people who stopped to look for work, and those who were forced to work part-time) in the U.S. are much higher and, according to some economists, more than 20%.
The law was signed by Obama after the approval of both houses of Congress. Prior to this bill for several months passed by representatives of the Republican Party, which opposed the establishment of the fund, comparing it to aid the financial sector in 2008. According to Republicans, such a move would have pushed banks to make loans to borrowers with a high degree of risk. With the assistance of two Republicans senators resistance was broken, and the bill was approved.
According to the President, the new measures will help ensure that millions of loans of small business owners in the country and create jobs, reports Associated Press.
Note that the official U.S. unemployment rate now stands at 9.7% of the population. However, unemployment in the broad sense (eg, taking into account those people who stopped to look for work, and those who were forced to work part-time) in the U.S. are much higher and, according to some economists, more than 20%.
The law was signed by Obama after the approval of both houses of Congress. Prior to this bill for several months passed by representatives of the Republican Party, which opposed the establishment of the fund, comparing it to aid the financial sector in 2008. According to Republicans, such a move would have pushed banks to make loans to borrowers with a high degree of risk. With the assistance of two Republicans senators resistance was broken, and the bill was approved.
Nobel laureate: U.S. pressure on China to revalue the yuan will result in a catastrophe
Possible adoption of the U.S. legislative measures to encourage China to strengthen the yuan, would have disastrous consequences and would not help reduce the trade deficit between the two countries, says Nobel laureate in economics Robert Mundell (Robert Mundell), which opinion lead agency Bloomberg. "It does not help Americans - Mandell said in an interview televised Bloomberg. - This will not create jobs for Americans. It's just a recipe for disaster. "
As expected, U.S. lawmakers in two days to vote for an initiative that could allow U.S. companies to apply for the introduction of import duties on Chinese goods to offset the effect of the low rate of yuan to the dollar. The Central Bank of China on June 19 this year, announced the rejection of pegging the Yuan to the dollar and increasing the flexibility of formation of the RMB exchange rate, that is, the return mechanism that existed before the global economic crisis. Nevertheless, since the adoption of this decision, the yuan has appreciated against the dollar by only 2%.
This law "cause serious damage to the world economy and stability in Asia, I'm sure the Nobel laureate. "This will affect the stability of international relations - says Mandell. - Never before in economic history has there been such that the country due to legislative initiatives in other parts of the country was forced to revalue its currency against the currency of this country "
As expected, U.S. lawmakers in two days to vote for an initiative that could allow U.S. companies to apply for the introduction of import duties on Chinese goods to offset the effect of the low rate of yuan to the dollar. The Central Bank of China on June 19 this year, announced the rejection of pegging the Yuan to the dollar and increasing the flexibility of formation of the RMB exchange rate, that is, the return mechanism that existed before the global economic crisis. Nevertheless, since the adoption of this decision, the yuan has appreciated against the dollar by only 2%.
This law "cause serious damage to the world economy and stability in Asia, I'm sure the Nobel laureate. "This will affect the stability of international relations - says Mandell. - Never before in economic history has there been such that the country due to legislative initiatives in other parts of the country was forced to revalue its currency against the currency of this country "
Germany supports sanctions against the European Union, unable to control budget deficits
Germany supports the Commission's proposal on the application of sanctions against states - members of the European Union, unable to hold back their debts and budget deficits within the statutory limits. This statement was made by German Finance Minister Wolfgang Schäuble in a letter to his colleagues from EU countries. The main task of such measures - impact on states that fail to control costs and thereby jeopardize the EU as a whole. According to Schäuble, the "strong motivation" to keeping debt and deficits within the permissible limits must take a central place in the economic management of the EU.
The European Commission officially announced its proposals on this matter on September 29. These initiatives are designed to prevent future crises, debt, similar to the Greek, when the fiscal problems of one EU member state questioned the very existence of the single European currency.
According to Eurostat, in 2009 the average budget deficit of the euro area has increased from 2% to 6.3% of GDP, while the norms of the Maastricht Treaty, this figure should not exceed 3% of GDP. Ireland's budget deficit for the year has doubled and now stands at 14,3% in the next UK - 11,5%. The norm of public debt is formally limited to the level of 60% of GDP. However, the debts of some member countries exceed this figure almost doubled. The volume of public debt in Italy is 115.8% of GDP, slightly less than in Greece - 115.1%, the Belgian debt has grown over the year to 96,7% of GDP.
The European Commission officially announced its proposals on this matter on September 29. These initiatives are designed to prevent future crises, debt, similar to the Greek, when the fiscal problems of one EU member state questioned the very existence of the single European currency.
According to Eurostat, in 2009 the average budget deficit of the euro area has increased from 2% to 6.3% of GDP, while the norms of the Maastricht Treaty, this figure should not exceed 3% of GDP. Ireland's budget deficit for the year has doubled and now stands at 14,3% in the next UK - 11,5%. The norm of public debt is formally limited to the level of 60% of GDP. However, the debts of some member countries exceed this figure almost doubled. The volume of public debt in Italy is 115.8% of GDP, slightly less than in Greece - 115.1%, the Belgian debt has grown over the year to 96,7% of GDP.
BBC: Taxpayers in 22 countries unhappy with the way governments spend money
BBC News Agency in conjunction with research firm Globescan and the University of Maryland (USA) conducted a study in 22 countries around the world about how taxpayers are happy with how their government spends tax revenues. Interviewed were more than 22 thousand people. The study found that in most countries, citizens are not completely satisfied with the actions of governments, and would like to see the state take a more active economic position.
Thus, two-thirds of Colombia and Pakistan believe that tax revenues are spent without regard to national interests. In general, none of the countries the share of respondents also were less than one-third. The lowest rate dissatisfied - 34% - in Spain.
The study's authors also note that in most countries, citizens would like a more active government involvement in economic life - in particular, this applies to food subsidies. For subsidies voted 78% of all respondents. Thus, in the Philippines for it acted as more than 95% of respondents in the U.S. - more than half. Against gosdotatsy powered only by residents of Germany, but the number of respondents "against" is only slightly outweighs those who advocate in favor.
With regard to state regulation of the economy as a whole, do not want to only citizens of the United States, Spain, Turkey and Australia.
Another trend - dissatisfaction with the size of government borrowing. More than half of those surveyed were in favor of lowering taxes and reducing the state apparatus. Particularly active in tax cuts favor the people of Brazil, China, France, Germany and Azerbaijan. The exception was Egypt, where the majority of citizens approve a tax policy of the state.
The index of consumer confidence are not very tall. Compared to the year 2009 it grew by only 2% to 28% in the 17 countries that participated in last year's survey.
Poll results reflect the trend towards economic growth in developing countries, while in the richest state of the economy has stagnated (with some exceptions).
Living in China, India, Nigeria and Brazil are optimistic about the future, while the citizens of the United States, Britain and France are pessimistic.
Thus, two-thirds of Colombia and Pakistan believe that tax revenues are spent without regard to national interests. In general, none of the countries the share of respondents also were less than one-third. The lowest rate dissatisfied - 34% - in Spain.
The study's authors also note that in most countries, citizens would like a more active government involvement in economic life - in particular, this applies to food subsidies. For subsidies voted 78% of all respondents. Thus, in the Philippines for it acted as more than 95% of respondents in the U.S. - more than half. Against gosdotatsy powered only by residents of Germany, but the number of respondents "against" is only slightly outweighs those who advocate in favor.
With regard to state regulation of the economy as a whole, do not want to only citizens of the United States, Spain, Turkey and Australia.
Another trend - dissatisfaction with the size of government borrowing. More than half of those surveyed were in favor of lowering taxes and reducing the state apparatus. Particularly active in tax cuts favor the people of Brazil, China, France, Germany and Azerbaijan. The exception was Egypt, where the majority of citizens approve a tax policy of the state.
The index of consumer confidence are not very tall. Compared to the year 2009 it grew by only 2% to 28% in the 17 countries that participated in last year's survey.
Poll results reflect the trend towards economic growth in developing countries, while in the richest state of the economy has stagnated (with some exceptions).
Living in China, India, Nigeria and Brazil are optimistic about the future, while the citizens of the United States, Britain and France are pessimistic.
China will go down in three of the most weighty of votes at the IMF
China on the basis of the forthcoming reform of quotas and votes at the IMF could take a third or even second place in the organization in terms of power after the main "shareholder" of the IMF - the U.S., reports Reuters referring to the working materials fund.
In such a scenario, which has not yet been approved, China will leave behind the "old" economic powers have traditionally been in the fund on the first cast - Germany, France and Britain.
Future redistribution of voting rights in the IMF will take a more prominent position in the fund of many developing countries, including Brazil, Russia, India, South Korea and Turkey, should be of document fund at the disposal of Reuters. The agency said that the developers have prepared four scenarios for reform of the redistribution of votes, three of which suggest that China will move into third place for "weight" in the IMF's current sixth position - more of the voting rights will be only in the U.S. and Japan.
According to one of the options for reform, China bypasses the volume of the voting rights in the IMF Japan and occupies second place behind the United States.
The relative weight in the IMF's other emerging powers will also increase. Thus, India has moved from the 11-th line on the 9 th, and Brazil - from 14 th to 11 th. On what kind of place will be after the redistribution of quotas Russia, the agency does not disclose.
On Tuesday, Russia and China after talks between the two leaders, Dmitry Medvedev and Hu Jintao called on the G20 countries to agree on a specific mechanism of the reform of quotas and votes in the IMF before the next summit of the Twenties, "which will be held in Seoul from November 11-12. «G20 should make sure that the goals of reform IMF quotas set by the summit of Pittsburgh, have been made to hold a summit in Seoul", - said in a joint statement, Medvedev and Hu Jintao.
Summit in Pittsburgh in September last year, the country's "Twenty" agreed on the reallocation of IMF quotas by 5% in favor of developing countries. At the same time, the BRIC countries (Brazil, Russia, India and China) proposed to increase the quotas of developing countries in the IMF by 7%.
In such a scenario, which has not yet been approved, China will leave behind the "old" economic powers have traditionally been in the fund on the first cast - Germany, France and Britain.
Future redistribution of voting rights in the IMF will take a more prominent position in the fund of many developing countries, including Brazil, Russia, India, South Korea and Turkey, should be of document fund at the disposal of Reuters. The agency said that the developers have prepared four scenarios for reform of the redistribution of votes, three of which suggest that China will move into third place for "weight" in the IMF's current sixth position - more of the voting rights will be only in the U.S. and Japan.
According to one of the options for reform, China bypasses the volume of the voting rights in the IMF Japan and occupies second place behind the United States.
The relative weight in the IMF's other emerging powers will also increase. Thus, India has moved from the 11-th line on the 9 th, and Brazil - from 14 th to 11 th. On what kind of place will be after the redistribution of quotas Russia, the agency does not disclose.
On Tuesday, Russia and China after talks between the two leaders, Dmitry Medvedev and Hu Jintao called on the G20 countries to agree on a specific mechanism of the reform of quotas and votes in the IMF before the next summit of the Twenties, "which will be held in Seoul from November 11-12. «G20 should make sure that the goals of reform IMF quotas set by the summit of Pittsburgh, have been made to hold a summit in Seoul", - said in a joint statement, Medvedev and Hu Jintao.
Summit in Pittsburgh in September last year, the country's "Twenty" agreed on the reallocation of IMF quotas by 5% in favor of developing countries. At the same time, the BRIC countries (Brazil, Russia, India and China) proposed to increase the quotas of developing countries in the IMF by 7%.
Europe's stock exchanges were closed in different directions because of fears of debt crisis
Leading European stock indexes finished trading on Tuesday in different directions amid fears over worsening crisis in the debt market in the region and the weak statistical data on consumer confidence in the U.S. economy. This is evidenced by data exchanges. By the close of trading the British FTSE 100 index dipped 0.09% - up to 5 marks 578.44 points. The German DAX fell 0.05% - 6 278.89. The French CAC 40 index on the trading results has lost 0,10% and dropped to 3 762.35.
"We see growing concerns related to the peripheral countries of Europe, which deals with the banking sector - said to Bloomberg managing funds Storebrand ASA Ispen Fernes (Espen Furnes). - Investors have become a little more sensitive, especially after good growth in the market, which had previously been observed in September. "
Pressure on stock indicators Old World had concerns about the economic situation in Ireland. The country's authorities have this week to report the money spent to save the Anglo Irish Bank. According to statements by the authorities, this amounted to 22 billion euros. However, a credit analyst at Standard & Poor's Trevor Cullinan (Trevor Cullinan) believes that it can surpass even the previously predicted 35 billion euros agency that represents 20% of the GDP of Ireland.
On the background of such statements the cost of credit default swaps on the Irish two-year government bonds, which is essentially insurance against default of the country, increased to a maximum value of at least 2003.
Nevertheless, before sale in Europe took place in a weak positive territory on the background information that the European Central Bank (ECB) conducted an operation to buy government bonds from the market of Ireland. This was reported by sources close to the regulator. Earlier Tuesday, the Brussels online newspaper EUobserver reported that the ECB intends to activate a mechanism for emergency financial assistance from the EU to support Ireland.
In addition to the regional news negative impact on the trading floors of Europe has also provided statistics from the ocean. The index of consumer confidence in the U.S. economy in September fell to the lowest since February of this year marks 48.5% from the revised figure for August at 53.2%, while analysts polled by the information-analytical Internet portal dailyFX.com, predicted a decline index over the period only up to 52,1%.
"We see growing concerns related to the peripheral countries of Europe, which deals with the banking sector - said to Bloomberg managing funds Storebrand ASA Ispen Fernes (Espen Furnes). - Investors have become a little more sensitive, especially after good growth in the market, which had previously been observed in September. "
Pressure on stock indicators Old World had concerns about the economic situation in Ireland. The country's authorities have this week to report the money spent to save the Anglo Irish Bank. According to statements by the authorities, this amounted to 22 billion euros. However, a credit analyst at Standard & Poor's Trevor Cullinan (Trevor Cullinan) believes that it can surpass even the previously predicted 35 billion euros agency that represents 20% of the GDP of Ireland.
On the background of such statements the cost of credit default swaps on the Irish two-year government bonds, which is essentially insurance against default of the country, increased to a maximum value of at least 2003.
Nevertheless, before sale in Europe took place in a weak positive territory on the background information that the European Central Bank (ECB) conducted an operation to buy government bonds from the market of Ireland. This was reported by sources close to the regulator. Earlier Tuesday, the Brussels online newspaper EUobserver reported that the ECB intends to activate a mechanism for emergency financial assistance from the EU to support Ireland.
In addition to the regional news negative impact on the trading floors of Europe has also provided statistics from the ocean. The index of consumer confidence in the U.S. economy in September fell to the lowest since February of this year marks 48.5% from the revised figure for August at 53.2%, while analysts polled by the information-analytical Internet portal dailyFX.com, predicted a decline index over the period only up to 52,1%.
Fitch Affirms Moscow at the level «BBB», the forecast - "positive"
International rating agency Fitch on Tuesday confirmed the investment ratings of Moscow took place against the backdrop of the resignation of Mayor Yuri Luzhkov - long-term ratings in foreign and local currency «BBB», and short-term foreign currency rating to «F3», the forecast on long-term ratings of global scale - "positive". This is stated in the report of the agency. Also, Fitch affirmed the long-term rating of Moscow on national scale «AAA (rus)» from "stable" outlook.
According to Fitch, a change of mayor of Moscow will have no material impact on fiscal and debt policies of the city in the short and medium term. Fitch expects that "Moscow will continue to demonstrate strong fiscal performance against the backdrop of economic recovery."
The ratings of Moscow, said in a statement Fitch, reflects the strong economy of the city, good performance of the operating margin, the flexibility of capital expenditure and high rates of secured debt. The ratings also take into account the growing line of duty, and temporary worsening budgetary performance in 2009 due to lower tax revenue due to slower growth of national economy.
According to Fitch, a change of mayor of Moscow will have no material impact on fiscal and debt policies of the city in the short and medium term. Fitch expects that "Moscow will continue to demonstrate strong fiscal performance against the backdrop of economic recovery."
The ratings of Moscow, said in a statement Fitch, reflects the strong economy of the city, good performance of the operating margin, the flexibility of capital expenditure and high rates of secured debt. The ratings also take into account the growing line of duty, and temporary worsening budgetary performance in 2009 due to lower tax revenue due to slower growth of national economy.
Japanese leader potrebkreditovaniya Takefuji declared bankruptcy
The Japanese company Takefuji Corp., Holds leading positions in the national market for consumer credit, declared bankruptcy, as was not able to cover the debt of 433.6 billion yen (5.1 billion dollars). This amount the company owes the borrowers due to the fact that, according to court ruling in 2006, provided funds for an overvalued rate, reports Reuters referring to a message posted on Tuesday, the company.
It is known that the company president Akira Kiyokava and vice president of Tucker Takei, son of the founder Yasuo Takei, resigned. The document also notes that the Takefuji, which failed to enlist the support of any one of the largest Japanese bank, went to court with a request to Tokyo to protect it from creditors, citing including tightening lending rules and strong competition.
Bidding on the company's shares this week were not carried out because of an abundance of applications to sell them. Since the beginning of this year quotations Takefuji declined by 56%.
Competitors Takefuji, mostly smaller companies, are concerned that the bankruptcy of such a large company will force borrowers to doubt their good faith and take preventive legal action. However, according to Japanese analysts, bankruptcy Takefuji not pose a threat to the entire system, because it does not compromise the deposits of individual clients. "Income Takefuji largely accounted for bonds, mostly owned by foreign investors, including hedge funds, so bankruptcy is not able to have a sizeable impact on the entire financial system", - experts believe.
Takefuji, like many other representatives of the consumer finance sector, strive to make to stay afloat after the 2006 Japanese court ruled that the interest rates on loans that they offered were too high, and therefore they should return to its creditors unfairly collected from these funds.
Takefuji company was founded in 1966. Of the credit institution's local value for several decades, the company has become a market leader in consumer lending. In its best years, company had 530 offices throughout Japan and provided loans for 29% per annum. In 2005, the company's founder, Yasuo Takei, who died a year later, won second place in the ranking of the richest people in Japan, according to the magazine Forbes. Then, his fortune was estimated at 5.6 billion dollars. The crisis at the company began long before the global recession, namely in 2004, when Yasuo Takei was convicted of illegal installation of eavesdropping devices, which greatly undermined the reputation of the lender.
It is known that the company president Akira Kiyokava and vice president of Tucker Takei, son of the founder Yasuo Takei, resigned. The document also notes that the Takefuji, which failed to enlist the support of any one of the largest Japanese bank, went to court with a request to Tokyo to protect it from creditors, citing including tightening lending rules and strong competition.
Bidding on the company's shares this week were not carried out because of an abundance of applications to sell them. Since the beginning of this year quotations Takefuji declined by 56%.
Competitors Takefuji, mostly smaller companies, are concerned that the bankruptcy of such a large company will force borrowers to doubt their good faith and take preventive legal action. However, according to Japanese analysts, bankruptcy Takefuji not pose a threat to the entire system, because it does not compromise the deposits of individual clients. "Income Takefuji largely accounted for bonds, mostly owned by foreign investors, including hedge funds, so bankruptcy is not able to have a sizeable impact on the entire financial system", - experts believe.
Takefuji, like many other representatives of the consumer finance sector, strive to make to stay afloat after the 2006 Japanese court ruled that the interest rates on loans that they offered were too high, and therefore they should return to its creditors unfairly collected from these funds.
Takefuji company was founded in 1966. Of the credit institution's local value for several decades, the company has become a market leader in consumer lending. In its best years, company had 530 offices throughout Japan and provided loans for 29% per annum. In 2005, the company's founder, Yasuo Takei, who died a year later, won second place in the ranking of the richest people in Japan, according to the magazine Forbes. Then, his fortune was estimated at 5.6 billion dollars. The crisis at the company began long before the global recession, namely in 2004, when Yasuo Takei was convicted of illegal installation of eavesdropping devices, which greatly undermined the reputation of the lender.
Ukrainian government plans in 2011 to direct the development of the economy 100 billion hryvnia
The Government of Ukraine plans to direct economic development in 2011 of 100 billion hryvnia ($ 1 - 7.9 hryvnia). This was announced on Tuesday the Prime Minister Mykola Azarov during the conference "Ukraine: Reform, competitiveness, investments".
"If we estimate the investment share of about 20-25 billion hryvnia, if you evaluate the possibility of attracting credit resources of 50 billion a year - both internal and external loans in the aggregate - and assess (in total) about 30 billion budget resources, which we can to allocate for development, we get a figure of about 100 billion hryvnia in the year. Here's the real figure, which we expect in the next year "-" Azarov said. However, he noted that given the challenges posed in front of the government, "it's not a very large sum."
According to the head of government, if that amount would be held, the state will receive GDP growth of 10%. "This is a very good indicator, and we are in late 2011 will reach the level of 2007", - Azarov said.
He also noted that all these funds primarily will be sent in an industry where you can get the maximum short-term returns. In particular, he mentioned industries such as agriculture, construction, aviation, shipbuilding, energy-saving technologies.
"If we estimate the investment share of about 20-25 billion hryvnia, if you evaluate the possibility of attracting credit resources of 50 billion a year - both internal and external loans in the aggregate - and assess (in total) about 30 billion budget resources, which we can to allocate for development, we get a figure of about 100 billion hryvnia in the year. Here's the real figure, which we expect in the next year "-" Azarov said. However, he noted that given the challenges posed in front of the government, "it's not a very large sum."
According to the head of government, if that amount would be held, the state will receive GDP growth of 10%. "This is a very good indicator, and we are in late 2011 will reach the level of 2007", - Azarov said.
He also noted that all these funds primarily will be sent in an industry where you can get the maximum short-term returns. In particular, he mentioned industries such as agriculture, construction, aviation, shipbuilding, energy-saving technologies.
Gates supported the idea of additional taxes for the rich
The richest man in the world, Bill Gates endorsed the decision of U.S. authorities to introduce an additional income tax for wealthy people, says The Daily Mail.
Thus, the 54-year-old philanthropist, whose fortune is estimated at 54 billion dollars, has opposed the current Microsoft CEO Steve Ballmer and Amazon.com founder Jeff Bezos and market magnate John Nordstrom. These businessmen are ardent opponents of the additional payments.
Gates said the funds raised through the surcharge, you can invest in need of money, educational institutions. "Everything must be done to help the next generations. We see that the budget cuts threatened the future of children. We must not sit idle, "- said Gates.
He also noted that if every resident of Washington, earning over 200 thousand dollars a year would pay an additional tax, it would bring States 2 billion
On raising taxes for people with high incomes Barack Obama said in May this year. In addition, in early September, he accused Republicans of fiscal irresponsibility, and said that the U.S. can not afford to keep tax breaks for wealthy individuals. He also said that taxes for the middle class in the U.S. may be reduced in September.
Thus, the 54-year-old philanthropist, whose fortune is estimated at 54 billion dollars, has opposed the current Microsoft CEO Steve Ballmer and Amazon.com founder Jeff Bezos and market magnate John Nordstrom. These businessmen are ardent opponents of the additional payments.
Gates said the funds raised through the surcharge, you can invest in need of money, educational institutions. "Everything must be done to help the next generations. We see that the budget cuts threatened the future of children. We must not sit idle, "- said Gates.
He also noted that if every resident of Washington, earning over 200 thousand dollars a year would pay an additional tax, it would bring States 2 billion
On raising taxes for people with high incomes Barack Obama said in May this year. In addition, in early September, he accused Republicans of fiscal irresponsibility, and said that the U.S. can not afford to keep tax breaks for wealthy individuals. He also said that taxes for the middle class in the U.S. may be reduced in September.
9/27/10
Britain's Barclays opens accounts release detainees
Starting in October, the British Barclays will open accounts for prisoners whose sentences of punishment coming to an end. According to the newspaper The Daily Mail, the first major bank in the UK, who introduced a similar service. Starting the project will take place in prisons in eastern England.
In cooperation with the Unlock - National Association for the prisoners - the credit institution will offer assistance to release detainees in the opening of accounts, as well as training on the basics of handling finances. Potential customers will look for volunteers of charitable organizations.
Mark Parsons, head of current accounts by Barclays, commenting on the new project, said: "Quite often, prisoners do not possess even the basics of financial literacy and do not feel confident enough to hike in the bank. Our affiliate program is designed to help them get back on their feet. "
"The bank account - not a luxury but a necessity - highlights, in turn, the head of ongoing projects Unlock Chris Bath. - He needs to start a new life after prison. "
One in five reported crime in the UK, according to the publication, by the former prisoners, and the content of criminals in prisons costing taxpayers 13 billion pounds annually.
To return to the law-abiding life, ex-prisoners have to get a job and find housing, but this requires a bank account. However, according to a study conducted by Unlock, the majority of inmates are difficult to open even the simplest account.
Unlock will bring to their program and other credit organizations, the report said The Daily Mail.
In cooperation with the Unlock - National Association for the prisoners - the credit institution will offer assistance to release detainees in the opening of accounts, as well as training on the basics of handling finances. Potential customers will look for volunteers of charitable organizations.
Mark Parsons, head of current accounts by Barclays, commenting on the new project, said: "Quite often, prisoners do not possess even the basics of financial literacy and do not feel confident enough to hike in the bank. Our affiliate program is designed to help them get back on their feet. "
"The bank account - not a luxury but a necessity - highlights, in turn, the head of ongoing projects Unlock Chris Bath. - He needs to start a new life after prison. "
One in five reported crime in the UK, according to the publication, by the former prisoners, and the content of criminals in prisons costing taxpayers 13 billion pounds annually.
To return to the law-abiding life, ex-prisoners have to get a job and find housing, but this requires a bank account. However, according to a study conducted by Unlock, the majority of inmates are difficult to open even the simplest account.
Unlock will bring to their program and other credit organizations, the report said The Daily Mail.
Economists expect inflation in the euro area
Inflation in the eurozone in September, likely rose against the backdrop of rising prices for food and fuel after the unexpected slowdown in August, according to Dow Jones Newswires.
"We are all more we observe the influence of the recent price shocks in the sector on the price of raw food in the coming months" - note the economists at BNP Paribas in a weekly research note to clients.
Index of confidence in business circles and the final consumer confidence index for September will also be published in the week. It is expected that the index of confidence in the business community will decline. "Given the weak purchasing managers' index of the eurozone, we expect that the index of confidence in the business community in September, slightly below" - economists say HSBC.
Data on unemployment is also expected this week. Germany will publish the September data, and the euro zone published by the August figure. It is expected that these data show stable values compared with the previous month. Data on retail sales in Germany will also be published in the week. According to the forecast, they should show growth in August compared with the previous month after the July decline, economists say.
"We are all more we observe the influence of the recent price shocks in the sector on the price of raw food in the coming months" - note the economists at BNP Paribas in a weekly research note to clients.
Index of confidence in business circles and the final consumer confidence index for September will also be published in the week. It is expected that the index of confidence in the business community will decline. "Given the weak purchasing managers' index of the eurozone, we expect that the index of confidence in the business community in September, slightly below" - economists say HSBC.
Data on unemployment is also expected this week. Germany will publish the September data, and the euro zone published by the August figure. It is expected that these data show stable values compared with the previous month. Data on retail sales in Germany will also be published in the week. According to the forecast, they should show growth in August compared with the previous month after the July decline, economists say.
Berlin allowed to provide Hypo Real Estate more government guarantees up to 40 billion euros
The European Commission has previously allowed the German government to provide investment bank Hypo Real Estate additional government guarantees worth 40 billion euros. The Commission considered that such a measure is consistent with the requirements of the EU. In addition, Brussels authorized the deployment of "toxic" securities Hypo Real Estate worth about 191 billion euros in the so-called "bad bank", reports Deutsche Welle referring to the German media. Earlier, Hypo Real Estate received from the state guarantee for 103.5 billion euros, as well as the capital of $ 7.7 billion
Meanwhile it is reported that European Commission's decision is not final. Currently, experts continue to test the concept of restructuring of Hypo Real Estate. EU Commissioner Joaquin Almunia competition is skeptical about the chances of the bank's rescue. "I still have doubts about the viability of the bank in the long run," - said the Commissioner.
Recall, Hypo Real Estate was among the seven banks that do not cope with the stress tests by the European Committee for Banking Regulation (CEBS). The audit analyzed the financial prospects of companies in the context of global economic turmoil.
Meanwhile it is reported that European Commission's decision is not final. Currently, experts continue to test the concept of restructuring of Hypo Real Estate. EU Commissioner Joaquin Almunia competition is skeptical about the chances of the bank's rescue. "I still have doubts about the viability of the bank in the long run," - said the Commissioner.
Recall, Hypo Real Estate was among the seven banks that do not cope with the stress tests by the European Committee for Banking Regulation (CEBS). The audit analyzed the financial prospects of companies in the context of global economic turmoil.
Bernanke: U.S. economy still needs the help of the Fed
Recovery rates of the U.S. economy after a deep and prolonged recession lower than expected, therefore, the economy is still in need of assistance by the Federal Reserve System, said Fed chief Ben Bernanke.
Despite the fact that the Fed kept key interest rates at record low level for two years, U.S. economic growth is just beginning to gain momentum, and the unemployment rate remains high. "The economy recovered in the order of magnitude slower than we would like" - quoted by Associated Press Bernanke.
Speaking at a conference at Princeton University, where the head of the Federal Reserve taught economics, he noted that the Fed's attempts to rebuild the economy and reduce unemployment to achieve their goals.
The Fed chief also said that the need to establish additional research mechanism aimed at studying the artificial inflation of the so-called "bubbles" in the economy. According to him, the study of such questions will enable authorities in determining financial policy, to avoid steps that would inevitably lead to crisis.
Despite the fact that the Fed kept key interest rates at record low level for two years, U.S. economic growth is just beginning to gain momentum, and the unemployment rate remains high. "The economy recovered in the order of magnitude slower than we would like" - quoted by Associated Press Bernanke.
Speaking at a conference at Princeton University, where the head of the Federal Reserve taught economics, he noted that the Fed's attempts to rebuild the economy and reduce unemployment to achieve their goals.
The Fed chief also said that the need to establish additional research mechanism aimed at studying the artificial inflation of the so-called "bubbles" in the economy. According to him, the study of such questions will enable authorities in determining financial policy, to avoid steps that would inevitably lead to crisis.
SEC refused Chinese Dagong Global Credit Rating in the license for assigning ratings of bonds in the U.S.
Commission on the Securities and Exchange Commission (SEC) has refused Chinese Dagong Global Credit Rating in the license for assigning ratings of bonds in the U.S., wrote on Monday, the newspaper Vedomosti.
The decision was taken because the Chinese control agencies are entitled to limit his correspondence with the SEC and is obliged to remove all "state secrets" from the documents Dagong, before they can be sent to the SEC, told the commission.
This is the first time that SEC denies the agency the status of "nationally recognized statistical-rating organization", the newspaper notes. The fact that Dagong - not an American company, no matter what, says SEC. Dagong were not registered as "currently not possible to keep records, the production process and meet the requirements of inspection in accordance with federal securities laws," notes the SEC. The Commission requires that the rating agencies have kept the details of who pays for the rating, according to records of supervisory requirements and the names of credit analysts.
"As a Chinese credit rating agency Dagong has the right to protect the interests of his country's credit in the U.S. through the rating operations", - said in a response statement Dagong. Chinese agency also reported that the SEC believes the decision and was considering discriminatory application of legal measures.
Beijing Dagong Global Credit Rating, founded in 1994, has more than two dozen offices in China. The agency, which employs more than 500 people, "seeks to create a national brand worldwide." Dagong not disclose the composition of shareholders, but it is known that the agency relies on support from the Chinese government.
The decision was taken because the Chinese control agencies are entitled to limit his correspondence with the SEC and is obliged to remove all "state secrets" from the documents Dagong, before they can be sent to the SEC, told the commission.
This is the first time that SEC denies the agency the status of "nationally recognized statistical-rating organization", the newspaper notes. The fact that Dagong - not an American company, no matter what, says SEC. Dagong were not registered as "currently not possible to keep records, the production process and meet the requirements of inspection in accordance with federal securities laws," notes the SEC. The Commission requires that the rating agencies have kept the details of who pays for the rating, according to records of supervisory requirements and the names of credit analysts.
"As a Chinese credit rating agency Dagong has the right to protect the interests of his country's credit in the U.S. through the rating operations", - said in a response statement Dagong. Chinese agency also reported that the SEC believes the decision and was considering discriminatory application of legal measures.
Beijing Dagong Global Credit Rating, founded in 1994, has more than two dozen offices in China. The agency, which employs more than 500 people, "seeks to create a national brand worldwide." Dagong not disclose the composition of shareholders, but it is known that the agency relies on support from the Chinese government.
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