Hong Kong Still Stuck Global Financial Crisis
Finance December 30th, 2009
HONG KONG – The impact of economic slowdown due to global crisis that was engulfing the world, making Hong Kong can still be exposed to unpredictable effects. Despite the recovery of economic stability was rumored since the far-distant day.
“No doubt we could be affected by the global economic crisis due to the financial tsunami. Although statistics show that the economy will be stable, there are many other factors that make the global market imbalances,” said Hong Kong Chief Executive Donald Tsang, was quoted as saying by the AFP, Monday (29/6/2009).
Tsang added, is a major challenge to be faced now untul this country, where the crisis hit the financial industry and exports are highly exposed.
He added that the Asian Financial Crisis in 1997 stated that Hong Kong will not be sunk by their financial systems. In fact, Tsang claimed when the last crisis is possible to make the country’s financial fundamentals become stronger.
The government also limits the six sectors in the country to continue to focus on the education and the overall industry environment. On the other hand, Tsang rejected the accusation that he rejected the principle of free market economy in Hong Kong.
“Hong Kong is very open to open markets. This is required and will continue,” he said.
For information, Hong Kong finally enter into the economic recession in the third quarter-2008. In May, the government estimates that the growth slowed until the end of the year. Where the economy will contract 5,5-5,6 percent in 2009 from the previous estimate of 2-3 percent.
Wall Street Closed Flat Influenced Greek Debt Concerns
Stock Report December 24th, 2009
NEW YORK – Stocks on Wall Street closed flat even coming soared in early trading. Not excited U.S. auction securities as well as concerns about the global debt crisis, negative investor sentiment encouraged.
In early trading, Wall Street racing with the Dow and S & P back through the highest point in the last 18 months. But most of those gains disappeared after the U.S. auction securities bertenor seven years and comments from European Central Bank President Jean-Claude Trichet about the issues surrounding the Greek debt.
Trichet told the French Public Television Senate that if the IMF or other agencies responsible for replacement of the Eurogroup or not the government is a very bad idea.
“It’s obviously very, very bad. We lost profits from shares because the threat of increased U.S. and the weakening of the euro,” said Tom Sowanick, chief investment officer as Omnivest Group told Reuters on Friday (26/3/2010) ..
Strengthening the price of stocks that occurred in early trading profits triggered by an exciting outlook from Qualcomm and Best Buy. While Bank of America shares rose 1 percent, Citigroup gained 2.9 percent after Bloomberg reported the U.S. Treasury Department will melincurkan sales plan shares in the bank.
Dow Jones Industrial Average (. DJI) rose 5.06 points, or 0.05 percent, to end at 10,841.21. But the Standard & Poor’s 500 Index (. SPX) fell 1.99 points, or 0.17 percent, at 1,165.73. And the Nasdaq Composite Index (. IXIC) fell 1.35 points, or 0.06 percent, at 2,397.41
U.S. Cancel Afghanistan Debt
Economy December 24th, 2009
WASHINGTON – United States welcomed the decision of the Paris Club creditors to cancel Afghanistan debt to its members as an “important step” toward economic sustainability on Wednesday (17/3/2010) local time.
As quoted by AFP on Thursday (18/3/2010), Ministry of Foreign Affairs said in a statement, step 19-member club is a “major achievement” for Afghanistan and show how the world recognizes that
Afghanistan has taken “significant steps” to strengthen its economy.
“Appointment of the debt burden inherited by the government of Afghanistan marks an important step on the path of economic sustainability of Afghanistan,” he added.
“The agreement reached today would apply the treatment completion point under Afghanistan` the Enhanced Heavily-Indebted Poor Countries Initiative `,” the statement said.
“The agreement also recognizes Afghanistan’s performance under the program International Monetary Fund (IMF) and progress in adopting and implementing economic reforms in a very challenging environment,” the statement said.
Informal group of industrialized countries said in a statement it was clear USD585 million and voluntary bilateral debt after the Afghan government promised to allocate the freed resources to fight poverty.
Paris Club said, also decided to cancel an additional USD441 million representing the share of the club in the initiative the IMF and World Bank that provides low-interest loans to the poorest countries of the world.
A number of USD1, 026 billion in debt forgiven by Paris Club, representing about half of the external public debt in Afghanistan in March 2009, or $ 2, 104 billion
GM Assets Corporation for sale to NGMCO Inc.
Portfolio December 18th, 2009
JAKARTA – Bankruptcy Court Southern District of New York approved the sale of all assets to the General Motors Corporation NGMCO Inc., an institution established by the U.S. Treasury Department.
This is expressed as the GM AutoWorld Indonesia in the written description okezone accepted, in Jakarta, Monday (6/7/2009).
In connection with the closing of the sale transaction, Inc. NGMCO will be renamed the General Motors Company and continue to operate under the corporation. This approval marks a step forward towards the launch of a new GM who is more independent.
The new company will be acquiring the strongest GM operations. This includes units GM business outside the United States, including the Asia Pacific region that will continue to grow, without any interruption.
New GM will have a financial structure more competitive, as a result of agreements with the United Auto Workers (UAW) and the Canadian Auto Workers (CAW).
In addition, New GM will have a debt to capital ratio is low and a stronger balance sheet when combined with the break-even lower, would allow GM to reduce risk, making a profit at a lower volume, and re-investment business in the area -key areas such as future technology and product development.
New shares of GM itself will be owned by United States Treasury Department by 60.8 percent, pension and health funds for 17.5 percent of the UAW, the Canadian and Ontario governments for 11.7 percent, and Old GM by 10 percent.
In addition, Old GM and Pensions & Health UAW will have the right to sell shares that can be used to obtain 15 per cent and 2.5 per cent interest in New GM.
On the other hand, the UAW and the Canadian government can nominate each a member of the board of directors of New GM. UAW also has raised an automotive industry expert Stephen Girsky.
In addition, six members of the GM board has now chosen to continue the leadership in New GM. They are Erroll Davis, Neville Isdell, Kent Kresa, Philip Laskawy, Kathryn Marinello, and Fritz Henderson. While representatives of the governments of Canada and four from the United States Treasury Department will be announced later.
Judge Robert E Gerber who fell on this decision to give four days before the finalization of the sale can occur. However, GM is hoping the sale will be completed in a short time.
New GM alone is expected to be operational soon and become a fully competitive company, with new products of interest, product portfolio, but less focused, and rationalize the sales network well. GM employees will be offered today to join the New GM.
In connection with the closing of the sale, General Motors Corporation will be renamed Motors Company Liquidation.
Assets owned by these companies will be sold or transferred. New board of directors will oversee the process and the liquidation of the company under the supervision of the bankruptcy court
Watch Black Gold flush!
Gold Investing December 12th, 2009
Crude oil (crude oil) is an excellent source of world energy. These fossil fuels provide the largest contribution in moving the pulse of life and the people of the world economy.
According to the International Energy Agency data in 2005, world oil consumption reached 3767.1 million tons, equivalent barrels of 36.7 percent of total global energy consumption. After that, followed by coal and natural gas that contributes the second largest energy demand and the third. Dominance of petroleum energy sources also occurred in Indonesia. Each year the state oil we consume an average of more than 310 million barrels, or nearly 1 million barrels of oil each day.
Department of Energy and Mineral Resources said data, crude oil consumption tends to increase every year. In 2001 the amount of crude oil consumption of 328 million barrels and continue to increase until 2004 to 354 million barrels. Rehabilitation post-crisis Asian economic growth is a factor that triggers high demand for petroleum energy.
In that period, crude oil is needed to spur economic growth in Indonesia is increasing quite rapidly with an average rate of 5-6 percent per year. The 2005 to 2008 into a high dependence on crude oil began to decline due to global oil price hikes. In 2005 crude oil consumption of Indonesia reached 338.3 million barrels, and continued to decline to the lowest point at 312.1 million barrels in 2008.
In addition to international factors, the decline in crude oil consumption is also due to domestic factors of success of the diversification policy and energy conversion. Switch energy sources from oil to coal and natural gas. Based on the data, consumption trends, black Äùemas, Au declining trend inversely proportional to the consumption of coal and natural gas which was rising (see graphic). How projections oil resistance in 2010?
International Configuration
Director General Reforminer Institute Rakhmanto Pri said, oil resistance in 2010 is difficult to predict because many factors influenced, especially related to international dynamics. Two fundamental factors that influence the condition of oil country. The first is the international oil price fluctuations and the second is the U.S. dollar exchange rate (SI, 28.12.2009).
In 2008 the world oil price increases that could penetrate the numbers $ 120 per barrel has made Indonesia a loss. Turmoil was triggered by crude oil production cuts as many as 4 million barrels per day by the association of oil producing countries (OPEC). As a result, the government adjusts one way to raise fuel prices because the burden of increasingly bloated subsidies.
In addition, the government also conducts programs of oil to gas conversion to reduce dependence on, black Äùemas, Au. Fortunately, the turbulence in world oil prices quickly passed and bring a fresh breeze for Indonesia. After a fall to levels below $ 50 per barrel late 2008, the government re-adjust by lowering subsidized fuel prices.
If there are no unusual events such as cutting oil production by OPEC, later predicted there would be no fluctuations in world oil prices which means. However, one thing you should watch out for is the potential for increased energy demand from countries new economic powers like China or India.
Two countries recorded a growth of global energy consumption is quite rapid after the United States. Meanwhile, the fluctuations in the dollar against the domestic currency was also influential, especially in the process of calculating the price of fuel economies. U.S. dollar exchange rate against the domestic currency is an indicator of price calculation versions economics means of Platt Singapore (MOPS) used Indonesia.
The stronger U.S. dollar exchange rate, the higher the potential for economies of fuel price increases. In addition to the international configuration, security-related issues of energy sources other petroleum and challenges facing this nation forward is possible that Indonesia could return to the glory era of oil as in the 1980s. During the so-called oil boom era, Indonesian crude oil production was much higher than domestic consumption so that Indonesia was known as one of the oil exporters.
Hikes in international oil prices and high demand of Western countries will increase profit petroleum Indonesia’s position. However, that era has long passed. Industrial development in the 1980s is not for now. Increased energy demand from industry to Indonesia stopped exporting oil, and even forced to import due to the energy deficit. Our country is also out of OPEC membership.
Analysis of BP Statistical Review says, the use of oil in Indonesia today subsistens aliases tend to be limited to domestic needs. This is because the total production and total consumption of petroleum is relatively balanced approximately 1 million barrels per day. It was not yet calculated the depreciation value of crude oil before it is processed into oil products so that its deficit had to be imported from other countries.
That way, hard to go back to Indonesia exporter of crude oil as long as no remaining margin between production and consumption. Because the rate of the industry can not be suppressed, how that can be taken to restore the glory era, black Äùemas, Au is to find the oil fields of new or savings and diversification
