World News Hammer Markets, confidence
Cars, planes, retailing, engineering, food and gatherings around the world reduced their revenue forecasts, production or employment on Friday in one of the darkest days of the year to date earnings reports and the stock market sentiment. And more of the same week (see below). The ads in Australia, Brazil, Japan, North America and Europe, clear signs of impending recession, banking crisis is not the result of 40% or more of current levels, according to equity strategist at Citigroup in London. The Australian dollar was on Friday, hammered, falling more than 12% reduction in value against the yen and 8% against the dollar in the biggest single contribution to a day when the float back in 1983. There was no apparent reason. Team Citigroup in a note to global clients last week that “History teaches us the seriousness of the coming economic downturn should be greater than normal. Recessions after previous periods of financial crises have lasted twice as normal. The loss of economic output is even greater. “The earnings recession – More severe economic weakness is likely to drive deeper and more prolonged global recession in corporate earnings.” We believe it is the last in the early stages of a recession, the income of a minimum of 2 years and could diminish the rules of engagement to 8% and EPS decreased by 40-50%. “Global equity valuations suggest investors have already discounted most of the expected decline in revenues. Recent revisions have returned to the slowdown of 1970 average. ” Economic growth in emerging economies as well. In the Asia Pacific region economists believe the GDP growth throughout 2009 will be the slowest in eight years. “Given the current financial crisis is not easily accessible to your place this time, growth must have the depth during the Asian crisis. The outlook is dim for other emerging economies more dependent on capital flows. “Currencies lost ground against the dollar and the yen, the Australian dollar fell 8% to 12% or more against both currencies respectively on Friday. Copper, oil and other commodities fell over. Only nickel rose in the back of production cuts by the Group of Brazilian giant Vale, the second largest producer. There was no evidence of hedge funds accounted for some of the riots on Friday. They are forced to sell their stocks, bonds and other instruments to pay off their investors and lenders. Beyond that investors increasingly convinced that the world economy is headed for a long and painful recession. The Citadel hedge fund group reassured investors at the weekend that there is enough liquidity and the Fed inspectors are not talking to you. But nerves are taut in the hedge fund industry as investors withdraw their funds, billions of dollars in investments are sold, and the stability of the more and more questions (about $ US200 billion was wiped off the value of the Fund cut in recent months and several hundred different types of funds are bankrupt business or were liquidated, in which player not significant). The flight to safety is hurting once strong currencies like the British pound. On Friday, worries about the financial crisis could affect the economy Great Britain caused the pound to 8c down against the dollar, falling $ 1 53. On Wall Street, the Dow Jones Industrial Average sank 312 30 points or 3 6% 8378th 95 in a volatile session that saw the blue index of leading shares rose 500% in a given time. The bag Australia wiped 30 billion U.S. dollars of its value at the end of the week fell to its lowest level in nearly four years as the Ordinaries All 107th 7 points, or 2 73%. That was a loss of 3% during the week was the strongest relative compared to the sharp fall on Wall Street, Tokyo and London. The Australian dollar fell heavily on Friday to close almost 6% during the week of 62 20 USC. The South African rand fell 11%. Even on 1 not cut 5 million barrels per day of production from OPEC, oil prices fall view of the fears of inflammation a deep global recession to stop. In New York, the Standard &; Poor’s 500 dropped to 3 5% and the Nasdaq shed 3 2%. They cut falls most pronounced in the morning session. But there was a sharp decline in Market Square, in the end, as funds sold again hit prices. For the week, the Dow lost 5 3%, the S & P 500 lost 6 8% and the Nasdaq fell 9 3 %. so far this month, the Dow is off 22nd 8%, the S & P 500 is 24 7% and Nasdaq by 25 8%, on track for worst month since the October 1987 crash. The S & P is the case, they could until late October the worst month in history in the post-World War II. The trio is more than 40% since the Dow and the S & P 500, the highs a year ago and the Nasdaq hit a bull-market high. The Australian SPI 200 Future was 37 points lower in 3840, which begins to sink in a day. In the U.S. the bad news on the banks is more: the authorities in the state of Georgia has closed a non-S-Bank of Atlanta. The Georgia Department of Banking and Finance closed the two branches of Alpha Bank and Trust in Alpharetta on Friday 16th U.S. Bank . UU. this year to fail. The Icelandic government said it had asked for $ US2 billion in support of the International Monetary Fund, the first Western country to do so since 1976, Belarus (plus Russia) joined Iceland, Pakistan, Hungary Ukraine and the application of at least U.S. $ 20 billion in emergency loans from the International Monetary Fund to pay debts. The IMF agreement with Ukraine on a $ US16. 5 billion loan will help the country’s financial system to the turbulence in global credit markets and recession concerns cloud the Eastern European country. The two-year stand-by loan will be parliamentary approval of legislation to support banks in the country. Ukraine will also need to address the budget and deficit account. Argentina, struggling to avoid default second in a decade, strives for the nationalization of funds of $ US29 billion of assets of private pension funds, a move that has sparked Alarm in Spain where the country’s biggest banks have huge loans and investments to increase in Argentina (and Brazil and Mexico, where the market fell and Monetary Affairs). The IMF said this weekend that it had agreed tentatively to Iceland a loan and announced it had set aside hundreds of billions of dollars to save the peoples concerned. (Article in The Economist and the Financial Times weekend could fund up to $ US250 billion or more, in the form of Reserve loans and credits.) “The IMF has over 200 million U.S. dollars in loans and may in attracting additional resources through two standing borrowing arrangements with groups of IMF member countries, “the organization said in its website. The fund is discussing plans to offer so-called hard currency loans of three six months in a multiple of the rate in the country for up to five times larger. At that time, suggested several US4, the share of South Korea IMF of U.S. $. 4 billion, this means I could get more than $ US21. 8 million from the program. Mexico could benefit from $ US23. 5 billion, with $ US22. 6 billion for Brazil and $ 10 million for Poland. Sunday Iceland became the first western nation to seek help from IMF since the UK in 1976.’s economy will be reduced by up to 10%. It is part of a multi-group financing, which could more than $ US6 million total. China, Japan and 11 Asian countries agreed to fight a $ US80 billion to finance the credit crisis, the Bank of Japan is one of the central banks will help finance the bailout of Iceland, according to press reports last week, along with central banks in Scandinavia. More than 40 Asian and European leaders called for a review of World War II-era banking rules. The leaders “pledged an effective and comprehensive reform of the international monetary and financial systems,” according to a statement issued after their meeting in Beijing on the weekend. Bloomberg quoted Chinese Premier Wen Jiabao, saying “we need more financial regulation to ensure financial safety.” The U. S. Treasury Department announced that 20 new capital injections into banks scheduled for Friday, but will allow banks to help reveal the offer. PNC received $ US7 billion in the acquisition of a regional bank in Ohio. The Treasury Department also reported to examine how it could help the bond and mortgage insurance companies under the services of $ US700 million U.S. dollars give financial rescue package. And while General Motors has intense negotiations to buy Chrysler’s auto operations, the reports say U.S. now plans to avoid state support for all. More news from the automotive industry, we have terrible on Friday: truck giant Volvo reported a more than 1,500 employees dismissal occurred after the third quarter to 115 orders of more than 41,000 announced in the same quarter of 2007. We have already cut more than a thousand employees. Chrysler Friday that 5,000 of the 32,000 employees in the U.S. and Europe fired when he reported the attempts of their parents, Cerberus, a comfortable merger agreement with General Motors to do. Daimler was the German press yesterday to consider trying for a month’s vacation in all vehicle production plants for Christmas, and populations of Cut unwanted cars do not start laying off employees. The production stoppage beginning on 11 December and runs until Jan. 12, according to reports. Daimler, the first car manufacturer to present its quarterly results, unveiled big falls in profits on Thursday and announced a profit warning for 2009 due to the global financial crisis has led to Germany and the large U.S. market is very difficult. “The financial crisis becomes an economic crisis,” Daimler chairman Dieter Zetsche told a telephone news conference on Thursday, and had provoked “in recent weeks a dramatic decline in our core markets. Volkswagen says make more cars this year, but 2009 is looking bleak, so that no higher court than 750 employees in Germany, the contract renewed contracts for the remainder of the year. Volkswagen reports its latest financial results this Thursday night our time. Giant French automaker PSA Peugeot-Citroen and Renault ordered major production cuts, while Japan’s hi-tech giant Sony Corp. and Europe’s biggest airline Air France-KLM profit warning. Renault has ordered, and almost every French plants closed for at least a week and short stops in Turkey, Russia and Slovenia. PSA Peugeot-Citroen chairman Christian Strieff said he had ordered “massive” production cuts that the group foresees a 17% fall in car sales in Western Europe in the fourth quarter (after an 8% lower in September). Shares of Air France-KLM fell 9% in the airline not only said “very difficult” to one billion euros of trickle down to goal, but also unveiled plans to reduce costs by up to 1. hacken 2 billion euros, which can only mean job losses. Toyota confirmed it sold fewer cars in the fourth quarter compared to last year, the first quarterly decline since 2003. Japanese car manufacturers start reporting the first half and second quarter of this week with the Honda for the publication of its figures tomorrow night and Toyota a week Wednesday. Toyota said global auto sales 4 back to 3% in the fourth quarter compared to last year, the first decline since 2001. The stock fell 6 4%. It is over 40% this year and Tokyo as a whole is more than 50%. Vale of Brazil said that one of the best in the world, three miners, Chinese demand for metals fell sharply, but not willing to ship iron ore without pay according to a 12% increase on prices of Australian rival. But it is also reducing the production of nickel in China and the delay in start-ups with new mines in Brazil and New Caledonia, and the review of mining. In Britain, official figures confirmed the country was to give on a recession, with growth in the third quarter, contracting by a 0 Sharp 50%. Official figures on Friday supported forecasts earlier this week of a recession in the Bank of England head Mervyn King and Prime Minister, Gordon Brown. Japan’s Nikkei fell 9% on Friday 60 and below 8,000 points for the first time in over five years. The closure was 7649th For 08 does not, a point since April 2003 and only 41 points its lowest level since 1982. In Asia and Japan’s largest building materials group, Taiheiyo Cement Corp. said it incurred in first-half loss because of falling demand in Japan. The loss was more than double previous estimates. Hong Kong fell 8 3%. Index South Korea Kospi rose 11% on Friday to its lowest level since May 2005. 20th The index fell 5% last week, the worst drop since 1987, while livestock plummeted. India’s Sensitive index plunged 11% on Friday, the biggest drop in 16 years after the Reserve Bank said it will continue to strengthen the fight against inflation, reducing the possibility of providing loans to grow. The central bank surprised a week ago with a 1% interest rate, but appeared to leave little doubt that on Friday. European shares lost up to 10% in early trading Friday at a repetition of the terrible Friday, two weeks earlier. French shares fell 8 0% at the start and end a five-year lows, before 3 of 5% at the end. Frankfurt’s DAX 30 Index and the FTSE 100 in London were approximately 5%. From Sony, a leading Japanese companies, saw its shares drop 14% Friday after launching a lower profit forecasts on Thursday night. Sony has released a board meeting in Tokyo this week for cuts. ArcelorMittal, the largest steelmaker in the world, shut smelting furnaces on a temporary basis in France, Germany and Belgium, according to union chiefs who met with management. It is reported that the review expansion of its global $ US35 million. U.S. figures show that 19 of the 25 steel blast furnaces, the country will close or be closed by the time shorter or longer, so great was the fall in demand in the past two months were mainly in the automotive industry. Timken, the world’s largest maker of ball bearings, has cut output and profit forecasts because of falling demand from the automotive and construction (Caterpillar ). Timken fault cut fourth-quarter profit guidance on the timetable “to recover the costs of certain raw materials and lower demand from the automotive industry. In other words, the weakening of demand is now so fast that is not to raise prices and the exploitation of the earlier rise in steel costs during the year can be placed. Spain, the unemployment rate rose to 11 was 33%, a record in four years as the collapse of the housing and construction sector throws more people out of work. Concerns about Brazil and Argentina in particular, take their toll on the formerly solid banking sector in Spain. Meanwhile, new figures showed the British economy contracted by 0 5% in the three months to September compared with the previous quarter, marking the first decline since 1992. The British economy has reached a stalemate in the second quarter with zero growth and accelerates the fall in the red as a rose, unemployment, housing sales, construction, industrial production and retail trade declined and the inflation increased. IMPORTANT: AIR reports about financial markets and investment products in the widest sense possible. The AIR website and all its contents is prepared for general information and as such specific needs with investment objectives or financial situation of a particular user have not been taken into account. Therefore people should talk with your financial advisor or an advisor before making any investment decision.