Forex by Lucky Room

Telefonica buys Portugal Telecom Shares in Vivo

Shay Greenberg — Wed, 28 Jul 2010 22:26:54 +0000

Telefonica agreed to the acquisition of the shares of Portugal Telecom in Vivo Participacoes, the largest mobile phone company in Brazil at the price over 7.5 billion Euros (9.8 billion dollars). As announced today, the Spanish company will initially pay 4.5 billion in cash and one billion by the end of the year the remainder will be settled in 2011. The two companies jointly own Vivo through an investment vehicle under the name Brasilcel, which controls 60% of the Brazilian company. Last month, Telefonica had announced that it abandons its plans to acquire control of the leading mobile phone company in Brazil, as the negotiations with Portugal Telecom were unsuccessful.

In its Communication, the Spanish telecommunications company said that it was withdrawing its bid for shares worth 7.15 billion Euros in Vivo for the period for which it had given the board of the Portuguese company for its acceptance. Although Portugal Telecoms shareholders had voted in favor of accepting the offer, the Portuguese government blocked the agreement by invoking rights under the regime of so-called “golden” shares. The European Court ruled the rule illegal by referring to it as an unwarranted restriction on free movement of capital.

Daimler Announces Forecasted Growth in Revenue

Shay Greenberg — Tue, 27 Jul 2010 14:26:51 +0000

6 billion Euros (7.8 billion Dollars) is revised forecast figures announced by Daimler for earnings before interest and taxes in 2010, citing the positive business developments in all units and favorable exchange rates. On the 16th of July, the German carmaker said earnings before interest and taxes (EBIT) were EUR 2.1 Billion for the second quarter of this year. Revenue grew 28% to 25.1 billion Euros. Today, Daimler’s management has forecasted significant revenue growth for 2010. The recovery in car markets around the world, is a strong growth key in the international car markets and commercial vehicles, with an attractive portfolio of products which can benefit from improvements in efficiency with a very positive impact, said company representatives in a statement. As a result of positive business developments in all units and in combination with the favourable development in major exchange rates, the Daimler Group returned again to predict profitability.

Serbia Signs for a 200 Million Euro Loan by the EU

David Majors — Tue, 27 Jul 2010 13:27:16 +0000

The deputy prime minister and responsible for European integration of Serbia, Mr. Bozidar Djelic and the Economic and Monetary Policy of the European Union Mr Olli Rehn signed an agreement to provide credit assistance to Serbia, totaling to 200 million Euros. The repayment period of the loan is 8 years at an annual rate of about 1%, as noted in his statement, Mr Djelic adding that if Serbia went to a loan from a free capital market the cost would be higher by 30 million Euro. The loan funds will be allocated to Serbia in two equal installments, the first of which in the summer or September and the second by the end of the year. The basic prerequisites for obtaining the loan will have to be approved by the Serbian government by the end of July and include the Law on fiscal responsibility, of which implementation aims to reduce the budget deficit. The agreement for the loan is proof of political and financial support provided by the European Union to Serbia, said Mr Rehn.

US Dollar Exchange: The US Economy is Proving Cloudy

Shay Greenberg — Tue, 27 Jul 2010 13:21:23 +0000

While in Europe rays of optimism are rising, clouds are being gathered again over the U.S. economy. The scene has been reversed completely once again in a period of only two months, when concerns about the high debt of European countries triggered grinding internationally. The latest figures are revealing. In the largest EU economy, Germany, the business climate record is improving dramatically, while the U.S. consumer climate indicator is on a free fall pace. And while the British economy grew in the second quarter to the fastest pace of the last four years, analysts constantly review downward trends in the outlook of the U.S. economy.

It is difficult now to argue that Europe is the “weakest link “in the global recovery, which is reflected in currency markets. The euro slipped after several months, but has now recovered with significant ground against the dollar. U.S. banks Goldman Sachs and Wells Fargo reviewed and elaborated their ratings on the state of the common European currency, following similar moves by the British HSBC and the German Deutsche Bank. Analysts and investors appear instead increasingly anxious about the state of the U.S. currency, which has fallen by 8% from its four year high back in June of this year.
Improving prospects for the European economy and the simultaneous emergence of concerns about the U.S. are back in the spotlight and the transatlantic debate as to when and to what extent should governments cut public spending.

The U.S. considers that the austerity measures endanger the global recovery. However, the Europeans believe it is time to tighten their belts, even noting that the biggest risk to growth is the financial derailment. The latest figures show that the tightening has not yet managed to hit growth. Nevertheless, analysts warn that it is too early to evaluate negative or positive effects of a restrictive fiscal policy.

Nikkei Limits Rising by 0.8%

Shay Greenberg — Mon, 26 Jul 2010 12:17:43 +0000

With a final rising adding up only 0.8% was the ending figure today from the Nikkei stock exchange in Tokyo, with the tendency to make profits and the reluctance of investors awaiting the opening of European stock exchanges reducing the gains recorded earlier.

Rising markets have hopes for strong financial results from a number of companies such as Sony Corp., the Toyota Motor Corp. and some large banks. The Japanese benchmark increased by 72.70 points to close at 9503.66 points, while the expanded Topix index closed with a rise of 0.6% to 845.88 points.

Euro Vs Dollar: Trading Has Been Limited

Shay Greenberg — Mon, 26 Jul 2010 12:12:55 +0000

Limited gains are being recorded from the euro against the dollar, with investors reluctant to trade after the initial positive reaction to publication from results of testing the strength of European banks. The appetite for risk is simply shrinking therefore sending European markets to a negative territory. According to figures disclosed Friday, only seven of the 91 banks that went rhough the endurance test failed, including five in Spain, one in Germany and one in Greece, showing a deficit of funds of 3.5 billion. “Negative shocks have been prevented because of the generally reassuring findings from the test resistance …», commented an analyst from Credit Agricole CIB. At 14:10 GMT, the Euro / Dollar rate was modulated at $ 1.2904 and the Dollar / Yen at 87.08 yen.

European Stock Markets on Growth

Shay Greenberg — Mon, 26 Jul 2010 07:51:18 +0000

European stock markets opened on a rising pace after gains recorded on Wall Street and Asia. Banks are the centre of attention today as the vast majority of them passed the endurance test last week making them talk of the town today between investors and speculators trading, investing or trading currencies. As announced Friday, the so-called stress tests minted “five Spanish banks, one German and one Greek”. At 10:05 (GMT), the pan-European FTSEurofirst 300 index rising 0.3 % noted at 1047.36 points, having closed Friday at highest since July 14th. Among banks, shares of BNP Paribas Barclays and Societe Generale strengthened from 2.2 % to 3.2 %. An increase of 2.8 % was noted on the title of BP after reports of the imminent resignation of CEO Tony Hayward

One out of Five Americans Have Sustained Losses in 2009

Shay Greenberg — Fri, 23 Jul 2010 11:26:16 +0000

Significant economic losses were sustained last year by 20% of Americans which is the highest in the last 25 years, according to the index of Economic Security which examines three factors: loss of income, medical expenses and debt. The index, which monitors such data since 1985 indicates that economic insecurity has increased in all groups and not only among families of low and Americans are not very educated. The specific ratio characterizes a person as economically insecure when conditions meet two criteria: first when in a year they have lost 25% or more of gross disposable income and secondly when they do not have enough liquid stocks to catch up with.

At the same time applications for unemployment benefits in the U.S. rose much more than was expected during the last week, an indication that the labor market is difficult to recover. Nevertheless, analysts predict that spending on luxury goods by wealthy Americans will increase by 28 billion dollars in 2010.

A Great Day For European Banks?

David Majors — Fri, 23 Jul 2010 11:18:59 +0000

Is today a great day for European banks or is it not. The results of the endurance test incurred by most European banks will be announced as scheduled, but it is doubtful whether anything will change in the European banking market after it. The political leadership of European countries is facing the tests as a necessary evil which they must suffer, but state that it is good to get through quickly enough without individual losses. However, political factors are not the only one who will influence the shaping of the outcome. On the other side of the tunnel of the markets some people are looking for victims.
In practice, this means that those involved in the functioning of the market are not merely posed to accept the response which will be served by the cooks, in regards to how everything is going well in the European banking system. The markets have registered with the attitude that one effect will smooth out the differences and will give no dividing lines which are likely to negate the wider acceptance of the results and would not allow benchmarking waiting.

The question that arises is whether domestic banking will be affected from this game. There is no doubt that Greek banks are healthy. They managed to stay intact during the crisis in the global banking system to avoid any exposure to ‘toxic ‘ financial products. Furthermore, they have made moves to adjustments, restructurings and expansions within and outside Greece.

Nexus is Officially Paused from Production and Retail

Shay Greenberg — Fri, 23 Jul 2010 11:06:42 +0000

The phone seen by many as the device that would bring the iPhone down from the top of the preference of users is officially paused from being sold to consumers, following a decision by Google. The smartphone launched in January 2010 and within the first 74 days of placing failed to reach sales of 135,000 units.

Unfortunately, circumstances did not help Google as its operating problems and which were many (most notably the inability to contact consumers for technical support issues) forced people to turn to other solutions. As the company is known, the device will continue to be available only to developers.