THE WEEKLY GLOBAL INVESTOR: 15/02/2009

samedi, février 21, 2009

US CONGRESSMEN CLASH OVER NATIONALIZING BANKS!

Bloomberg.com:
Worldwide: "U.S. Lawmakers Clash Over Nationalizing Banks to Stem Declines"

WORLD CRISIS: -- WEEKLY WRAP-UP -- 2009/Feb/21

MY SNAPSHOT, PLAIN-LANGUAGE ASSESSMENT OF LAST WEEK’S OUTSTANDING ECONOMIC EVENTS SHAPING OUR WORLD:

——-
——-

SUMMARY (Update 1 of 3)! —- AWFUL—-AWFUL—-AWFUL ——

——-

GLOBAL ECONOMY:

Obama signed $787 b stimulus package to save 3.5m jobs. Also a $75 b homeowners bail-out plan.US Housing starts: -16.8% annual in Jan. -56.2% than 2008. New homes 466,000, record low. FED “longer term” inflation projections for employment, price stability. Inflation targeting next?
Ukraine to reject IMF bail-out, default? Poland zloty vs home loans. Russia -2.2% 2009. Rouble fell .
Japan 4th q GDP -3.3% or 12.7% annualised. Taiwan 4th q -8.4%. Singapore Jan. Exports -34%
Japan GDP -3.3% 4th q. Euro area -1.5%. OECD -1.5%,biggest drop since records started in 1960.
Mexico output 6.7% lower Dec than 2007’s.

GLOBAL FINANCIAL SYSTEM:

SEC charged Sir Allen Stanford, a billionaire, with $8 b fraud. Stanford International Bank.
UBS to tell US of 250 clients over taxes. A 1st for Swiss regulators. UBS to pay $780m to end case.
Moody’s cut Lloyds AAA rating. Its HBOS, annual -$14.4 b. To be fully nationalised? (now 43% UK’s).

GLOBAL AUTO-INDUSTRY:

GM, Chrysler submitted survival plans, for the $17.4 b bail-out. GM wants $16.6 b., Chrysler $5 b.
Daimler 4th q $2.1 b net loss, over stake in Chrysler. Annual profit -65%, hurt by Mercedes.
Mexican Car production -51% in Jan.Cars 1/5 of manufactures.

GEOPOLITICS & NATURE:

Venezuela’s Chávez, won his referendum to abolish term limits.

Conclussion:

Sorry, this weeks balance was still extremely negative. The fact that the markets didn’t react positively to the US stimulus packages underlined everything. The outlook is pessimistic to the nations, industries and last but not least to us, the people.

LAST WEEK’S SUMMARY:

Global Economy:

US Congress approved Obama’s stimulus package.
China’s exports fell 17.5% in January, year on year, imports -43%. Taiwan, Japan, S.Korea exports did much worse than china.
US jobless rate up from 7.2% to 7.6% in January. Canada’s Jobless from 6.6% to 7.2%. Britain’s from 5.9% to 6.3% 4th q, 2008.
Europe output slumps. Germany -12%, France -11,Italy’s -14.3%, UK -9.3% year to Dec.
Spain’s GDP -1% 4th quarter from 3th, worst in 15 years. Russia’s Growth (GDP) +1.1% year to 4th, from 6.2% in 3th. Latvia is the worst performing economy in the European Union as its GDP fell -10.5% in the 4th quarter 2008.
Sweden cut rate from 2% to 1%, and this economy is expected to shrink by 1.6% in 2009.S. Korea cut rate to 2%, a record low, to aid the plunging economy.

Global Financial System:

US Geithner’s announced a $2.5 trillion broad rescue package for the financial system. It includes more FED’s lending, and helping investors to buy toxic assets.
UK, US Bankers faced tough hearings in Congress and Parliament.
UBS from Switzerland lost $18.2 b, the biggest-ever.
BNP Paribas’s takeover of Fortis is in doubt on angry Fortis shareholders.

Global Auto Industry:

France to help Renault, PSA Peugeot-Citroën to stay in that country. Protectionism?
Nissan forecast a big annual loss. GM cut 14% or 10,000 salaried employees.

Geo-Politics and Nature:

China experiences its worst drought in 50 years. Six provinces affected and more than 40% of country’s wheat land.
Israel’s centrist Kadima party, Tzipi Livni Led and seemed to have won the most seats in general election.
Tsvangirai, the leader of Zimbabwe’s main opposition party, sworn in as PM.

PREVIOUS WEEKS:

—-The “Euro” warning signs are multiplying. Last week they came from two respectable sources, one was the International Monetary Fund and the other from Mr. Soros (who in foreign exchange has an extraordinary reputation, if sometimes a very controversial one. This week another one, that of Mr. Sarkozy (French President) is added to this anxious chorus. Let’s keep ourselves alert to monitor the unfolding of events regarding this currency, which being world’s 2nd most important, the risk implication (do we need more?) to global financial stability is notorious.– ( And you may wish to read the respective articles posted on this same “blog”, thank you. J CNN) –

Spain jobless rate rose to 14.4% and Ireland to 9.2%, highest for over a decade.
Ruble under attack -30% since August. Russia says there won’t be budget deficit?
Britain hit by strikes over foreign workers.
Brazil vs crisis to increase spending on infrastructure this year by 28%. Help poor with martgages.
N. Korea scrapping agreements with S. Korea to prevent hostilities. test its longest-range missile?
Iran’s satellite into orbit on 30th year of Islamic revolution. US viewed it with “great concern”.
Elections in 14 of Iraq’s 18 provinces. Relatively peaceful. Turnout was low.
UK reduced rates 1/2 % point, to 1%.
Japan’s Jobless: Panasonic -15,000 employees, NEC -20,000, Hitachi -7,000 to go. On spending & yen.
Motorola global mobile market 6.5%, from 23% some years ago.
US Jan car sales worst in decades. GM-49% Jan 2008, Ford -40%, Chrysler -55%. Toyota -32%.
US car-parts suppliers asked for $25.5 b in aid.
US GDP - 3.8% annual in 4th q, 2008, largest since 1982 but for inventories rise, over 5%. Better this quarter? Pending Home sales, Manufacturing and services barely picked up.
Euro area inflation fell from 1.6% to 1.1% in January, Manufacturing and services edged up in Jan from a record low. Spain jobless rose to 3.3m, + than 1 m higher than in 2008. Ireland, 8.3% to 9.2%.
Australia cut rate 1% p. 3.25%, lowest 45 y. Norway 1/2%p to 2.5%. Indonesia 1/2% to 8.25%.

####################################################################################

US House approved Obama’s $819 b stimulus package. No Republicans voted for it. Now the Senate’s turn.
Iran’s Ahmadinejad, responded to Mr Obama extending hand by angrily calling for an apology.
World Economic Forum began in Davos Switzerland in a, Depressing global crisis environment. Russia and China attacked the West, particularly the US for all the trouble.
Iceland’s government became the first to fall as a result of the financial crash. Early election in May.
Russia won’t deploy any missiles in Kaliningrad! Hopes Obama to delay missiles in Poland, Czech Rep.
Bolivia backed a new (President Morales’) polemic constitution but the majority in 4 rich “autonomous” departments rejected it. Political conflict will continue!
The International Labor Organization 2009 forecast considered the unemployed higher by 18m than in 2007, “worst-case scenario” 50m more.
IMF-2009 world growth forecast says it will be the worst since 1945. GDP 0.5%, from 2.2% last Nov. US -1.6%, Euro -2%, Japan -2.6%.UK-2.8%.
Banking System troubles continued: Bank of America to ask for more government aid. Nomura’s quarterly loss of $3.7 b is the biggest since 2001 on absorbing Lehman’s Europe, Asia operations, Iceland banking crisis and Madoff’s scheme. Santander to recompense with $1.8 b. First to offer on Maddoff. ING’s CEO resigned on quarterly loss gov aid.
FED kept rates at 0-0.25%. Will buy long-term government bonds if necessary.
US Bad economic news continued: January Consumer Confidence fell to 37.7, new low since 1967. House Prices also fell -18.2% year-to-Nov, Existing Home Sales+6.5% Dec. (Good News?).
Britain’s Growth fell by 1.5% 4th quarter of 2008, preliminary estimate. It was 1.8% lower than a year earlier.
United States Growth fell and Japan’s Industrial Production slumped.

To know more about these subjects please refer to the corresponding articles posted on this “blog”

The purpose of this basic report is simply to reassert the relevance of what you have already witnessed during the last 5 days and to inform you of anything that you could have missed. Of course, I’ll be always grateful for letting me know of those crisis-related happenings I failed to notice myself.

###########################################################################

USA 44th President swore in!
Israel, Hamas ceasefire held up!
China growth rate fell to 6.8% in the year to the 4th quarter,after attaining 9% in the 3th q. It was the slowest GDP growth in 7 years. It grew 9% 2008 and 13% in 2007 when it became the 3th largest world economy. Some say China is already in recession. Big risk of workers protests getting out of control!
Spain, Portugal ratings were downgraded by S&P’s as previously was Greece’s.
Brazil, Canada and Hungary were the latest to join the club of interest rate cutting nations to fight their economic slowdowns.
Banking troubles continued, with Bank of America (1st quarterly loss in 17 years), Citigroup (4th quarter net loss of 8.3 b), UK Banking System to get more aid from Government. RBS falling 67% on losses. Denmark and Irish Banks problems continued.
The Dow Jones Industrial Average closed below the 8,000 point for the first time since last November.
US Consumer Inflation -0.7% Dec, -1.7% Nov. Annual +0.1%. Core was still +1.8%.
The European Commission 2009 Economic forecasts: Euro Zone; -1.9%. Germany -2.3%, France -1.8%, Spain & Italy -2%. Ireland. -5%. Euro Budget Deficit to be 4% of GDP. Unemployment Rate to get to 10% in 2010.
United Kingdom Unemployment Rate was 6.1% in the 3 mths to Nov, the previous 3 months 5.7%. Unemployment benefit claims were the highest since 1991. Consumer Inflation slowed down from 4.1% to 3.1% in December.

CONCLUSSION:

It was an awful week which continued to reflect the severity of this Global Crisis. China’s depressing GDP economic data (worse than expected) may mean It is already in a recession (please read this blog’s corresponding article). In our globalised world, we can expect a very negative economic feedback to many, many countries as a side-effect of this nation’s slowdown. Last but not least, the sad welcome to Barack Obama from the financial markets (the inauguration day) does not show any approaching general confidence. The US stocks slumped dramatically that session and the DJIA closed below the 8,000 points for the 1st time since late November.

US WANTS UBS TO BREAK SWISS LAW!...REALLY?

Bloomberg.com:
Worldwide: "U.S. Wants UBS to Break Swiss Law By Naming Clients, Bank Says"

AHEAD OF THE CURVE!
(UPCOMING EVENTS):
THIS WEEK:
(Feb 16 - Feb 20, 2009)---Outstanding Events That May Move Global Financial Markets:
WORLD MARKETS----Dollar Recovery, Possible?, ----Oil, Gasoline and Food Prices---NORTH AMÉRICA: ***United States: Empire Manufacturing (17); Total Net TIC Flows (17); Housing Market Index (17); FED's Bullard Speaks (17); ABC Consumer Confidence (17);Mortgage Applications (18); Imports Inflation (18); Housing Starts (18); Industrial Production (18); Capacity Utilization (18); FED's Bernanke Speaks (18); FED's Evans Speaks (18); FED's FOMC Minutes Rate Decision (18); Producer Inflation (19); Philadelphia Fed (19); Leading Indicators (19);Inflation (20); ; México: Actividad Industrial (17); Indicadores Compuestos; Coincidente y Adelantado (18); PIB (20); Política Monetaria (20); Canada: Leading Indicators (19); Inflation (20); ; -----EUROPE;; Britain: Rightmove House Prices (16); Inflation (17); DCLG House Prices (17); Public Finances (19); Retail Sales (20); ; Switzerland: Retail Sales (17);Bank of England Minutes (18); Trade Balance (19); ; Euro-Zone:Economic Sentiment (17); Trade Balance (17); PMI Manufacturing (20); PMI Services ( Saturday 21); PMI Composite (Saturday 21); ; France: Business Confidence (20); ; Germany: Wholesale Inflation (16); Economic Sentiment (17); Current Situation (17); ; Italy: Current Account (17); Trade Balance (19); ;---ASIA, PACIFIC: ---Japan: GDP (15); Tokyo Condominium Sales (16); Industrial Production (16); Department Store Sales (16); Services Sector (16); Bank of Japan Rate Decision (18); Leading & Coincident Index (18); Net Bonds & Stocks Buying (18); All Industry Activity Index (19); Supermarket Sales (20); Bank of Japan Monthly Report (20); ;Australia; RBA Board Minutes (17); Leading Index (17); RBA Gov. Glenn Stevens Speaks (19); ; -- New Zealand: Services Sector (15); ; ----: ;----

---------º---------

AHEAD OF THE CURVE: POLITICS AND ECONOMY: ---OUTSTANDING---

DURING THE WEEK:

Secretary of State Hillari Clinton tours Asia (Japan, South Korea & China). She will deal with World Crisis, Environmental and Human Rights Issues.

SUNDAY:

Venezuela: Chávez Referendum on a new constitution to help him look for reelection indefinately (Today's limit is two 6-year term)

Japan: Growth Rate (GDP). Additional stimulus required to the $132 billion previously announced?

MONDAY:

Japan: Industrial Production; Services

TUESDAY:

United States: GM, Chrysler face US Congress with their survival plan to win its approval; Total Net TIC Flows.

Euro-Area: Economic Sentiment; Trade Balance;

Germany; Economic Sentiment.

México: Actividad Industrial

WEDNESDAY:

United States: Industrial Production; FED's Bernanke Speaks; FED Evans Speaks

Japan: Rate Decision; Leading & Coincident Index.

México: Indicadores Compuestos: Coincidente y Adelantado

THURSDAY:

United States: Producer Inflation; Leading Indicators; President Obama visits Canada (1st abroad)

FRIDAY:

United States: Consumer Inflation

Euro-Area: PMI Manufacturing

México: Rate Decision (Política Monetaria); Crecimiento---Growth Rate (GDP)

SATURDAY:

Euro-Area: Services; PMI Composite

SUNDAY:

Germany, United Kingdom, France, Italy Meet to Organise an April G-20 Leaders Summit in London to Fight the Global Financial (Economic) Crisis. (Avoiding Future Crises and Surviving This One)

---------º---------

samedi, février 21, 2009

vendredi, février 20, 2009

jeudi, février 19, 2009

mercredi, février 18, 2009

mardi, février 17, 2009

lundi, février 16, 2009

FOLLOW ME ON TWITTER

Analyses Back-up: Check: PESO, EURO; JAPAN, YEN; CHINA, YUAN; STERLING, U.K.; DOLLAR, UNITED STATES

Les plus consultés

NOMBRE DE PAGES VUES

----- A N A L Y S I S -----

r = p + 0.5y + 0.5 (p - 2) + 2

BONJOUR! ..ET BONNE ANNÉE 2014!

"CONSUMER SOVEREIGNTY"

MY NEWS SELECTION THIS WEEK: (Historic Archive & Economic Fundamentals Trend Analysis)

DISCLAIMER