Corporation News

Economic growth in Australia was delayed by up to 0.1 percent during the third financial quarter to the end of September as a slow its pace of eight years, shows official data published today, quoted by AP.

Annual growth of gross domestic product (GDP) recorded 6-year minimum of 1.9 percent, which reinforces fears of falling of the Australian economy into recession.

The official government forecast for economic growth for 2008 is 2 percent.

The reported data is bad news for the economy of Australia to unprecedented 17 years enjoyed economic growth largely due to strong demand for Australian mining and steel resources in China and other rapidly developing countries.

Yesterday the central bank lowered the country’s main interest rate by 1 percentage point to 4.25 percent in an attempt to cope with delays caused by the global financial crisis.

Reserve Bank of Australia took another decision for aggressive reduction in interest rates, weigh it with full percentage point to 4.25 percent. At present level of the indicator is the lowest for the past six years, a series of reductions is the strongest since the last recession in 1991 here.

Bank Governor Glenn Stevens announced the fourth reduction in interest rates over the last several months early this morning in Melbourne. Analysts were surprised by this move, most forecast drop of 0.75 basis points.

According to Stevens monetary policy becomes expansion to be able to restore the confidence of businesses and consumers. It suffered a stinger because collapse of the major index in the country by 44 percent since the beginning of the year and the biggest drop in housing prices over the last 20 years.

Calculations of the central bank show that the reduction by three percentage points of major interest from September until now save each household with a loan of 250 thousand Australian dollars 500 dollars each month, reported Bloomberg.

So far, the decision of the central bank does not have significant pressure on the Australian currency. After the decision before the Australian traded on course 0,6374 AUD / USD, then this morning the U.S. dollar compared to 0,6346 AUD / USD.

Prime Minister of Australia Kevin Rud announced plan to boost the economy. Pacific country became so serious that adopts measures to combat the crisis that threatens the world economy with recession.

Provided package amounted to 15.1 billion Australian dollars (9.9 billion U.S. dollars), the basic directions in which the targeted measures are health and education. It is expected to help the plan to make 133 thousand jobs.

Funds to implement planned measures to be provided by planned for the current year budget surplus, acting on its implementation in practice will begin in early 2009.

These 15.1 billion dollars additional funds for different regions of the country will create jobs and stimulate the economy. They will lead to reform in health, education.

The program is expected to result in a budget deficit next year. Such trends were observed in other developed countries like the U.S. deficit could reach 1 trillion dollars. Negative balance in the budget of the United Kingdom do will increase to 118 billion liras in fiscal 2009, which begins on April 1, transmit Bloomberg.

The last case in Australia was no deficit was observed between June 2001 and June 2002. Analyst forecasts the central bank for growth in the country for growth of 1.5 percent this year, well below the earlier expected 2 per cent.

In order to stimulate credit markets the central bank lowered interest rate by 2 percentage points to 5.25 percent from September until now. However, the country’s economic performance continued to deteriorate and economic confidence fell more and more.

From September until now the Australian dollar has lost 21 percent of its value against its U.S. namesake. This is an expression of declining risk appetite among investors and significantly lowered the volume of carry-trade trade. Last week completed a course at 0.6553 U.S. dollars for one Australian.

Several types of sites are attracting greater interest of Internet users last month. If judged by the increase in visits to various types of categories of sites monitored by Nielsen Online media are related to tourism and travel, cars and information on the financial crisis.

Upcoming holidays - December 8 series and long holidays around Christmas and New year - increased interest in sites offering information on travel and holidays.

For example, among the Bulgarian sites as a whole recorded the highest growth in visits in October from the previous month home has more than twice the monthly average to around 4700 per day. They have generated an average 26 thousand impressions daily, monthly data show.

According to the company’s sites to visit travel mainly people aged between 18 and 34 years, forming 70.7 percent of all visitors. Following a large group of people who regularly seek information about cruises in the network, users are between 35 and 54 years. The figures refer only to users in the country entering the sites for travel companies to monitor Nielsen home.

The automotive category is another that has attracted more new users in October. Seeking information on cars, which are mainly men (62.8%) and were aged 18-34 years (67%) have increased by 42 percent. The site is attracting on average in 6709 people per day that day generated by over 37 thousand impressions.

Increasing interest of the audience to business and finance news-related disturbances in the financial world.

New U.S. president Barak Obama outlined the contours of a plan to revitalize the U.S. economy over the next few years forward AP.

By building roads, bridges, modernizing schools, development of alternative energy sources and produce more efficient cars, Obama said that by 2011 will be created 2.5 million jobs.

The measures are not intended only to the removal of the current economic crisis, but they are long-term investment in our economic future, which was ignored quite a long time, Obama said.

He called the plan sufficiently large to meet the challenges we face and said the fast will create jobs, but also plan will establish the basis of a strong and growing economy.

Obama also said it requested the plan to Congress to approve another next week to sign it immediately after taking official presidential post.

If you do not react quickly and boldly, most experts considered it would lose millions of jobs next year, added Obama.

Member countries of the oil exporting countries have lost about 700 billion dollars because of falling oil prices, said in an interview the organization’s president Chakib Kelly, cited by the BBC.

The price of oil fell by 60 percent from its peak to 147 dollars for barrel, which breeds speculation that the member countries of the Organization of petroleum exporting countries will reduce production to raise prices.

In an interview Newspaper El Khabar, however, Kelly says it is unlikely the member countries of the Organization of petroleum exporting countries to decide this month.

In his words the next meeting Dec. 17 will be most important because the cartel will have the necessary data that will show whether earlier cuts in production of the states of the oil exporting countries were members of its

Last month the organization that controls 40 percent of global oil, agreed to reduce the yield by 1.5 million barrels per day.

Meeting in Cairo on November 29 is perceived as an internal debate, while that in Oran on December 17 will be more important in the sense that until we have more information on market trends for oil, citing Kelly Algerian edition.

Inflation in Europe, which is now officially in recession, is its lowest level for October of nine months since it appears from Eurostat data.

The increase of consumer prices was 3.2 percent for October on an annual basis (after 3.6 percent growth in September and 3.8 percent in August). This is the lowest level of January 2008

Registered rates of 4 percent for June and July represented a record of the creation of the euro in 1999

Slowing inflation should “maintain consumer spending after the euro fell in recession for the first time in its history”, says Ben May, analyst at Capital Economics.

Continuing delay in the growth of consumer prices is explained by lower oil prices, while the appreciation of food has less effect.

The increase in prices of energy products only amounted to 9.6 percent in October on an annual basis to 13.5 percent in September. Food, alcohol and tobacco products are more expensive to 4.4 percent in the last month with a growth of 5.2 percent for the previous.

At present the euro is exchanged for 1.2700 dollars, from the morning is traded in relatively narrow range between 1.2720 and 1.2660.

Europe in recession

Europe is in recession, finally became clear today. Eurostat data show that gross domestic product of countries of the euro decreased for the second consecutive quarter. According to preliminary results decreased for the third quarter amounted to 0.2 percent after the previous period statistics reported decline in same size.

Annual euro zone economy grew by 0.7 percent. This is a significant delay to the measured three months at the earlier 1.4 percent.

Eurostat data show that the European Union as a whole also addresses the recession. Preliminary estimates show a decline in GDP of the EU-27 by 0.2 percent for the third quarter after economic growth was sluggish in the second quarter. For the last year economic growth in the EU amounted to 0.8 percent.

Recession is the first for Europe for the past 15 years and is caused by the credit crisis that began Mortgage sector of the U.S. and grew into a global collapse of the exchanges.

The results are not surprising, since yesterday it became clear that Germany is in its most serious recession for the past 12 years. Today disappointing news came from other leading economies of the euro - Italy and Spain.

The gross domestic product of Italy has svil with 0.5 percent for the previous quarter and annual decreased the economy of 0.9 percent. Yet the Spanish economy experienced negative growth of 0.2 percent. However, the Iberian country is in technical recession, as in the second quarter experienced growth. For the last year economic growth of Spain was 3.7 percent.

Relatively positive news came from France, where it became clear that for now the economy avoids recession. After the fall of the past quarter and now account statistics minimal growth of 0.14 percent, which surprised analysts.

Registrations of new cars in Europe in October fell by 14.5 percent on an annual basis after falls of 8.2 percent in September and 15.7 percent in August. It cited by AFP showed evidence of the European Association of Automobile Manufacturers.

Over the last month of the Old Continent sold a total of 1134 million cars. Statistics is formed by information received from the member countries of the European Union (excluding Cyprus and Malta) from Iceland, Norway and Switzerland.

For the period from the beginning of the year by the end of October, sales of new cars decreased by 5.4 percent over the same period of 2007 to 12.85 million units.

The impact of the financial and economic crisis is expressed in six consecutive monthly declines, particularly drastic in the summer here, discussed by the association.

Among major markets in Western Europe is strongly affected the market in Spain. Sales in the country decreased by 40 percent targets in October to 77 600 vehicles - the lowest level since 1995

Strong reductions in the UK has (-23% to 128 352 units) and Italy (-18.9% to 167 940 units).

In Germany, the biggest European market, also decline, which amounted to 8.2 per cent to 258 814 units. France reported a decrease of 7.4 percent to 174 939 units.

According to the Association of Automobile Manufacturers and their authorized representatives in Bulgaria for October on the Bulgarian market sold a total of 4672 new passenger cars and light vehicles, for the period January - October - 45 838. This represents an increase of 14 percent compared to January-October 2007, however, growth slowed to previous reporting periods.

How things stand for a producer?

The leader Volkswagen (brands Volkswagen, Audi, Seat, Skoda) a general decline in sales for the month from 7.6 percent to 249 948 cars.

Company Number 2 in the sector - French PSA Peugeot Citroën - has decreased 16.3 percent to 145 493 units. Renault do (brands Renault, Dacia) has even greater decline - 19.1 percent to 101 644 units.

Sales of General Motors (Opel, Vauxhall, Saab, Chevrolet) go even higher - over 25 percent to 94 479 units. The other big American producers - Ford (Ford, Volvo) - compared with 11.9 percent to 111 971 cars sold in October.

For Toyota situation is not good. The Japanese company has sold a 23.6 percent fewer cars in Europe over the past month to that of 2007 - a total of 54 612 units.

The decrease in the Italian group Fiat (Fiat, Lancia, Alfa Romeo) was 7.9 percent up to 93 952 units, a German Daimler and BMW registered decreases of 16.6 percent and from 10.4 percent respectively to 61 754 and 66 242 cars sold.

World Bank plans to provide USD 100 billion dollars in the form of aid to developing countries since some of the poorest countries face a serious test for the global financial crisis, says Financial Times. During the international meeting this weekend of President Robert institution Zelik said it would be a historic mistake to ignore the interests of the developing world.

Due to the fact that the World Bank to address the increasing number of requests for assistance Zelik predicted that the institution headed by him would grant loans of 100 billion dollars over the next three years. This could be done through the International Bank for Reconstruction and Development.

In the words of Zelik IBRD will increase lending to developing countries to over 35 billion dollars this year, given that only a few months before the plans were for loans amounting to 16 billion dollars. Throughout 2007 the institution has granted a total of 13.5 billion dollars loans.

See countries that had very good quality macroeconomic programs - Mexico, Indonesia, currently in a situation in which no financial risks, but it makes you worry about securing funding, says Zelik.

Zelik has said that world trade is expected to shrink next year that will happen for the first time since 1982 at the same time, growth in developing countries, which is expected to reach 6.4 percent in 2009 . Now be assessed on 4.5 percent.

By World Bank estimates each percentage point decline in the growth of developing countries vow new 20 million poverty. This is why the institution to declare readiness for infusion of the other 42 billion dollars in the poorest countries in the world.

Officials from 20 industrialized economies (G-20) are gathered this weekend in Sao Paulo to discuss a plan to revitalize the growth of world economy.

G-20 includes the 19 largest economies in the world, plus the European Union in its entirety. Economies of the G-20 cover 90 percent of global gross national product (GNP), 80 percent of world trade and 75 percent of world population.

In the words of the president of the Central Bank of Brazil Enrique Mirelez, the overall plan will include tax incentives to help the return to economic growth.

While the U.S., UK and rapidly developing economies such as Brazil, Russia and China are of the opinion that the most appropriate solution to problems is coordinated intervention of the G-20 representatives to the European Union prefer macroeconomic discipline and macroeconomic policies that is sustainable and oriented more stability.

According to analysts, implementing any coordinated fiscal incentives will add up to 50 percent more growth than the implementation of individual measures.

The new U.S. president who will take over one of the hottest positions in the world, must fight a number of problems. The credit crisis, collapse of Mortgage Market stabilization of the financial crisis, huge budget deficit and weakening labor market are only part of the emerging themes that are already out of control of U.S. authorities and showed interest worldwide.

This is the reason immediately before the upcoming elections tomorrow CNN readers to submit their simultaneous analysis of the plans of two men who will fall on huge capacity - Republican John Makeyn and Democrats Barak Obama. Summary of the platforms of candidates for president on some key issues affecting the capital market and currency trading.

Budget deficits - the government measures, which took the U.S. government in recent months exceed 1 trln. dollars. What happens and what the candidates plan to stabilize the state budget and the financial system?

Barak Obama

• introduction of budget rules that require any new spending be offset by reducing payments for another program or new revenue;
• reducing the cost of minor public programs to levels no higher than 2001 and increasing transparency in these costs;
• support payments under the new programs by drawing troops from Iraq, increasing taxes on the richest and eliminate some loopholes in corporate accountability.

John McCann

• originally announced that the budget will become balanced by 2013, but his advisers now acknowledge that it may take more time;
• slowing the growth of spending on programs of social security and Medicare medical care and Medicaid;
• eliminate the cost of projects related to pets and animals to be used by the name of the minor programs;
• offset losses for the budget decreased from taxes by creating new jobs in the energy sector and develop new technologies to support economic growth

Measures against economic crisis - the problems of the financial sector now move on the real economy, which puts all companies on trial in the United States. The main problem however is that the threat is not only overhang on America and on the world

Barak Obama

• temporary permission to withdraw up to 15 percent of individual pension plans, but not more than 10 thousand dollars;
• suspension of a rule that Americans over 70 years receive regular annual payment of pension accounts;
• providing a tax credit of 3 thousand dollars in 2009 and 2010 companies for each new employee full-time;
• Suspension of taxes on benefits received unemployment;
• introducing the requirement that financial institutions receiving funds from the Rescue plan to introduce 90-day moratorium on outstanding mortgages a fair borrowers;
• authorizing the government to borrow funds in the U.S. state and municipal authorities to help balance their budgets, which are expected to suffer a serious blow because of the credit crisis.

John Makeyn

• introduction of tax from 10 percent to withdraw funds up to 50 thousand dollars in 2008 and 2009;
• suspension of a rule that Americans over 70 years receive regular annual payment of pension accounts;
• lower profit tax from 15 to 7.5 percent for two years;
• increasing the amount of capital losses that can be deducted from the profits of 3 thousand, 15 thousand dollars in 2008 and 2009;
• suspension of taxes on benefits received unemployment;
• buying bad mortgages and renegotiating terms of the loans in accordance with the current price of housing;
• convert bad mortgages in low-loans insured by the Federal Housing Association.

Wall Street - all know what happened on stock exchanges last year. That makes two candidates to unite around the requirements for greater transparency and introduce new rules for capital adequacy of financial institutions

Barak Obama

• introduction of requirements for capital and liquidity of investment banks;
• reorganization of the regulatory framework for the financial institutions;
• establishment of a supervisory committee to make advice to the president, Congress and regulatory frameworks on health risks of financial markets;
• provision of the Federal Reserve Supervision rules to any bank, which took funds from him.

John McCann

• increased capital requirements for financial institutions.
• Elimination of certain regulatory, accounting and tax requirements to raise capital.
• Study methods and practices of banks and other companies for evaluation of assets for which it was to the credit crisis.
• increasing transparency of complex financial instruments.

The labor market - unemployment in the U.S. is growing continuously since the beginning of the year and has already reached alarming proportions. Companies restrict the hiring of new employees, leading to increased social tension. The new president will be serious testing

Barak Obama

• finance training programs and focus on those training to the introduction of “green technologies”;
• increasing the minimum payment of 9.50 dollars per hour by 2001 and linking with the growth indicators of inflation;
• a doubling of funds to research programs and make the cost of scientific research tax credit permanent;
• Creation of Investment Bank to support public infrastructure spending, which has a capital of 60 billion dollars. Other 25 billion dollars must be brought in to fund job creation and contributing to economic growth;
• providing tax credits to companies that maintain or increase the number of employed full-time appointments to the U.S. export markets;
• providing a tax credit of 3 thousand dollars in 2009 and 2010 companies for each new employee full-time
• Suspension of taxes on benefits received unemployment

John McCann

• promote economy and increasing jobs through lower corporate tax temporarily and reduction of rates for capital gains and dividend;
• Drop the minimum payment at a level of 7.25 dollars an hour, as is to happen by 2009. Furthermore, McCann is opposed linking salaries to inflation rates;
• introducing a tax credit amounting to 10 percent of earnings, invested in research;
• Merger of federal employment programs and modify training programs for unemployed;
• Suspension of taxes on benefits received unemployment.