Business & Financial News

To sell the credit - means to survive. So some hypothec companies of the USA are now acting. In experts’ opinion, creditors in many respects are guilty in a crisis situation in the market. Delivery of money to the citizens, unable to provide the duty - is a way to a precipice. Rescue is seen on sale of loans to stronger in the financial status companies.
Credits have already been resold for the two billions dollars sum. Thus the hypothec companies try to save up cash means in order to avoid bankrupting.

Antimonopoly bodies of Portugal have approved prospective purchase of Italian Banco BPI by the Portuguese Millennium BCP bank for 4, 3 billion euro. In such way the authorities have confirmed the preliminary, decision accepted in the beginning of March 2007.
The agreement, representing hostile absorption, can be arranged at observance of some “terms and obligations”. So, BCP bank should sell 60 branches, and both BCP and BPI are to get rid of the shares in the company - the emitter of credit cards Unicre - after end of merge. Besides the incorporated bank which is to become the largest one in Portugal, should sell fine and the average sized firms a portfolio of credits in cost 450 million euro. Neither Millennium nor BPI makes comments on the decision of the Portuguese authorities.
Millennium BCP offers 5, 7 euros per each BPI’s share; however analysts consider that the transaction hardly will take place at such price. According to the preliminary expectations, that Millennium will increase the sum of the offer after the official registration, BPI’s shares have up to record 6, 82 euros grown this week.
Millennium’s offer has been rejected by basic BPI’s shareholders, among which Spanish La Caixa (25 %), Brazilian Itau bank (about 25 %) and German insurer Allianz (8, 8 %) are represented.
It is worth of mentioning that up to 2006 the foreign investors had no access to the Italian bank system because of the Italian protectionist policy. Recently, the situation has changed for the better- and in the past to year the Dutch bank ABN Amro has merged Banca Antonveneta and French BNP Paribas has merged Banca Nationale del Lavoro.

From now the Iranians have an opportunity to join the national nuclear program. The Central Bank of Republic has entered into the reference a new banknote with a symbol of atomic engineering.
The symbol is placed on a denomination in fifty thousand rials - the largest one in Iran, though in recalculation it is only five and a half of US dollars. The Iranian official mass-media informs that the 50 thousand rials (nearby $5) denomination has the image of a card of Iran, which includes well-known planetary model of atom - a kernel around of which electrons move. Besides the bank note also contains prophet Mohammed’s saying, that the Iranians will reach scientific knowledge even if it is as far as the constellation of Galaxies is.
New the new issuing money in Iran has reached six millions, and the Central Bank promises to print as much again. However, the western analysts consider, that occurrence of a five-ten-thousand banknote does not need to be regarded as a patriotic step. It is most likely that the Iranian authorities try to cope with growing inflation.
Let’s remind that Iran refuses to execute the requirement of the international community about cessation of work on enrichment of uranium. In December 2006 the EU Security Council has approved the resolution which has entered sanctions concerning Teheran. Now the question on acceptance of new UN Security Council’s resolution on Iran can provide introduction of additional sanctions to force Teheran to stop the nuclear program.

The jury of southern federal district of New York has recognized the former high-ranking United Nations’ employee Vladimir Kuznetsov guilty in arrangement to the purpose of money-laundering. The verdict has been announced after almost hour meeting of jurymen.
As the judge has informed the verdict about concrete prison term will be announced on June, 25th, 2007.
In January, 2003 the United Nations Council has elected him as chairman of UN Committee on administrative and budgetary questions. On September, 1st, 2005 Kuznetsov has been arrested in New York by FBI agents and he has been indicted in plot with the purpose of money-laundering.
The ex-UN General Secretary (Kofi Annan) has removed diplomatic immunity from the official under the request of US authorities.
The Russian has not recognized his fault and has been released info $1, 5 million security which was brought for him by the Russian Federation’s government. Now Kuznetsov is in New York under the house arrest. The constant round-the-clock supervision by means of the electronic gauge-bracelet fixed at it on a leg is conducted over him.
According to the investigation’s materials, Kuznetsov “during approximately since 2000 till June, 2005 inclusive laundered hundred thousand dollars received by other conspirator ( the arrested UN ex-employee of purchases department Alexander Yakovlev, who admitted that he illegally received compensations from the companies for assistance in a prize of competitions on deliveries within the limits of various UN programs)”.

On February, 27th the world stock markets have tested significant correction, and the basic impact was taken up by developing markets. The reason of a panic was the maximal for last 10 years a collapse of the Chinese stock indexes. Shanghai and Shenzhen 300 Index has fallen to 9, 2 % on a background of expectations of toughening of regulation of the financial markets and monetary policy of the country.
The Chinese government has approved the creation of the special commission on struggle against illegal investments into actions against the purpose of prevention of market overheat. The analysts consider that the danger of financial bubble has logically appeared: for the last half a year the Chinese stock indexes have flied up twice, the attitude of capitalization to profit (P/E) has exceeded 30. In 2006 US 11, 2 billion dollars or 50 % of pure inflow of the global investors in funds of actions of developing markets capital, has been concentrated in China.
Recently, the chief of Federal service on the financial markets, making comments on attraction of means of the population on the share market, has warned against “the Chinese syndrome” - when people sold apartments, removed money from deposits and got into debts to buy stocks. Besides the national bank of China since February, 25th, 2007 in fifth time since July of the last year has raised the rate of deductions in fund of obligatory reserves (FOR) - up to 10 %, and a number of experts predicts still triple increase of the specification of reservation up to the end 2007 the Country leaders tries to avoid an overheat of economy, however while rates of growth of gross national product of China exceed 10 % and in 2007 the World bank predicts stagnation up to 9,6 %.
The situation in the Chinese economy and in the stock market is reflected in the global financial markets. Actually, the stagnation of Chinese economy can reduce demand for the raw goods that threatens with decrease in the world prices for oil and metals. The second risk factor consists in the general deterioration of the attitude of investors to risks of developing markets, as owing to sharp falling of the Chinese stock market (China and Russia were recently considered by many global investors within the limits of the common BRIC brand), and because of increase of geopolitical risks (many investors prefer to wait such periods in the most conservative financial tools). However this can be an ordinary correction of the Chinese stock market after excessive growth and a measure on of overheat restriction, undertaken by the government, should improve the present situation.

The situation in the urgent market of precious metals is characterized by essential increase of the gold prices. So, at the Commodity exchange of New York (COMEX) the gold prices for the first time for nine months have exceeded a mark US 680 per ounce.
The ounce of gold at COMEX has raised US 23, 0 dollars (+3, 5 %) in price for a day.
The rise in gold prices on has been caused by active purchases of future contracts by large investment funds. Purchases of gold have been caused by the high prices for oil which have reached a record level from the beginning of 2007.
Purchases of gold were also promoted by the strengthened influence of the geopolitical factor. The market expects strain of relations between Iran and the USA on a nuclear problem. From the beginning of the year, the USA has expanded the military presence in the Persian Gulf region.
Purchases of gold are also promoted by fears for inflationary processes in US economy. In January 2007 consumer prices in the USA have grown on 0,2 % in comparison with the last month, and in comparison with January, 2006 the rise in prices has made 2,1 %, that is above the forecast.
The prospective range of gold prices can make: the nearest prospect will be US 659, 0-686, 5 /ounce; intermediate term prospect will be US 646, 5-690, 0 per ounce.

On the preliminary data, the economic growth in China made 10, 5 % in 2006.This information was published by the National commission on development and reforms of China.

According to the commission, the gross in the national product of China in the last to year has exceeded 20 billion yuanes (2, 6 billion US dollars). The published data have coincided with forecasts of the experts.

The highest rates of economic growth of China were fixed in the 2nd quarter of 2006, - then growth of gross national product of the country has made 11, 3 %. However, in rates of growth of economy have lowered up to 10, 4 % the 3rd quarter of 2006.

During the period of 2007-2012 the government of China expects the economic growth on the average rate of 7, 5 %. If the forecasts of Chinese “governmental plan” will be justified, that rates of the gross national product will continue to increase, keeping a risk of an overheat in Chinese economy.

Experts also predict that in the nearest years the cost of the Chinese export will exceed cost of the import. At the same time, the experts mark, that the proceeding growth of trading proficiency causes a serious concern of the China’s government. Such concerns are explained by the fact that the economists match the translation multinational manufactures as the main reason of increase in active balance of trading balance of China.

The world prices for oil are continuing to fall. The price of oil of the Brent mark at the London International oil stock exchange made $53,28 for barrel, what is more than on 40 cents less than the price of Wednesday which has made $53,69. The prices for oil in the USA are shoving the same tendency.
The decrease in the world prices for hydro carbonic raw materials is connected with a warm winter and a growth of oil stocks in storehouses of the largest world consumer of oil - the USA.
Besides, in opinion of experts, the decrease of the pressure in the oil market could be affected by the resolution of the conflict between Russia and Belarus around the deliveries of oil to the Western Europe by oil pipeline ″Friendship″.
Now the prices for oil have reached the minimum for last 19 months, since June, 2005.

It is obvious that Gazprom’s latest moves on international markets have demonstrated that the Russian gas monopoly is raising its positions and becoming integrated into the global market. Russia is becoming a perspective partner for more and more countries.
Due to it bountiful and unexhausted resources Russia becomes a natural energy monopoly and a highly demanded business partner. For example, Gazprom CEO Alexei Miller and Gaz de France President Jean-Francois Cirelli have recently signed an agreement to expand contracts for Russian gas supplies until 2030. The prolongation of contracts has also been signed with Italy and Austria. However, German E.ON-Ruhrgas refused to give the Russian gas company access to its sector of the German market, preferring to continue their joint work in building the Nord Stream pipeline under the Baltic Sea.
The duty on oil exports from Russia from February 1, 2007 will be $179.7 per metric ton, down $1 from the same figure set December 1, 2006, while forming the price Russia takes into consideration the price of Russian Urals crude on European markets.
Gazprom’s access to end consumers in France and other European countries demonstrates that Russia is determined to build a balanced system of gas cooperation with Europe that would guarantee the energy security of both parties. Gazprom’s giant resources make it possible to conclude that in the nearest future Russia will get its acquisition of European gas transportation, storage and distribution assets.