Global Economic Report: March 2011

Sunday, March 27, 2011

Chile's Government announced the new economic measures 57 billion

According to the Latin American media, in the 57 million, $ 4 billion will come from Chile social and economic foundation, 17 million by issuing bonds on the local market. The new economic measures in addition to compensate for the decrease in revenues, as well as the economic crisis in Chile to help families and businesses.

In January of this year, the Government announced the launch of Chile with a total of 41 billion economic stimulus plan, announced in March and another in support of SMEs. And the latest economic measures is in Chile's Government recently announced this year's economy appears after 0.75% decline.

Chile social and economic foundation was founded in March 2007, start with 25.8 billion capital. The Fund is primarily used to stimulate the national economy development, avoid Government borrowing.

Japan September unemployment rate rising domestic consumption

Japan general provincial and Ministry of health, labour and 30, published a series of statistics, the unemployment rate in September, Japan declined slightly, household consumption expenditure increased by a slight increase, continued to show Japan employment and consumption is improved, the economy is gradually out of the most difficult period.

General, data show, after seasonal adjustment, Japan's unemployment rate in September this year as 5.3%, a decline than August 0.2% decline for two consecutive months, but still at a high level. That day, the Ministry published data that September, Japan display job easy of effective asking rate increase than last month 0.01 percentage to 0.43, 28 months for the first time.

According to the General report of the province, after deduction of the residence, buy cars, gifts and upbringing, and other factors, the September Japan National more than 2 people mean consumption expenditure of households is 27.7110 million yen (approximately US $ 91 Yen-1), an increase of 1% for 2 months-on-year increase. But at the same time, the data show that in September, Japan 2 or more actual salary family income dropped by 0.1% year-on-year to 42.2120 million yen, down for 2 months.

In addition, the General provincial data also show that removal of the price change in the larger fresh foods, the month of September this year, Japan's core consumer price index rose by 0.1% ring, year-over-year decline 2.3% 100.2. Since last year, energy prices, Japan core consumer price index has decreased over 7 months, 9 months drop slightly shrink.

Mexico tax increases the start of the programme

"What is expensive!" which is the majority of people coming for the new year, Mexico's initial feelings. January 4, 2010, Mexico fully raised a number of taxes and services charges levied.

In November last year, Mexico Congress passed the President Calderon proposed tax increase, decided in January 4, the consumption tax from 15% to 16% of personal income tax rate from 28% to 30%. At the same time, cash savings tax threshold from 2.5 million pesos (about us $ 1923) reduced to 1.5 million pesos, while taxes ranging from 2% to 3%.

In addition, apart from the Internet and telephone services in rural areas, the Mexico national telecom industry began collecting a 3% service tax; beer consumption since 25% rise to 26.5%; lottery, betting tax ranging from 20% to 30%.

Affected not just consumers. 2010-1-4 days, all enterprises to pay income tax arrears to the period from 10 years to five years, large enterprises in the year must be paid in arrears of income tax payment of 25%, the remaining part of the payment has been completed in four years.

The Government of Mexico stated that the financial crisis, flu, international market prices of crude oil and other harmful factors on Mexico economy resulted in heavy combat, government tax revenues dropped. In 2009, Mexico's public deficit reached 3 billion pesos (about $ 2301).

U.S. Federal Reserve meeting to suppress the gold price of crude oil and other commodities lower short-term.

Federal Reserve (FED) Beijing Time on Thursday (January 28) announced interest rate decision 03:16, at the same time, the Fed gives a slightly optimistic about the U.S. interpretation of the economic outlook, the Fed announced its benchmark interest rates still at 0 .a historical low of -0.25% to support the moderate economic recovery. . Fed rate decision will begin later - Economy: The Federal Open Market Committee (FOMC) has been obtained from the December meeting of the information that the U.S. economic activity continued to strengthen, weaken labor market deterioration. . Fed rate decision will begin later - Inflation: Because a lot of surplus resources is likely to dampen cost pressures, and long-term stability of inflation expectations, the Committee expects inflation to remain for some time at a low level. ..

A spectrum of economic and trade cooperation in the "Silk Road" a new chapter.

Than 2000-year-old "Silk Road" was to far away China and the Arab world together, and the exchanges between the two ancient civilizations have greatly promoted the progress of human society. .Today, fruitful economic and trade cooperation in Afghanistan, as the "Silk Road" and then New Chapter. .13 will be opened in Tianjin, China-Arab Cooperation Forum, the Fourth Ministerial Conference of the bilateral economic and trade cooperation will add new vitality. . pragmatic cooperation exchanges between China and the Arab world, began in economic and trade exchanges. .In the new situation, China-Arab Cooperation Forum was established in 2004, has now become the two sides mutually beneficial economic and trade cooperation platform. .Chinese President Hu Jintao, the early days of the forum, said the two sides have common development goals should be, close economic and trade exchanges. .Arab League Secretary General Amr Moussa that the Arab economic and trade cooperation enjoys huge potential that this cooperation should be given more meaning. . China and Arab countries in the energy, market and technology have strongly complementary. .Arab countries have the geographical advantage and abundant resources, and abundant capital, and Chinese enterprises with proven technology and industry support. .Further promote mutually beneficial economic and trade cooperation and Arab-Arab Cooperation Forum as an important part, for the two sides established a business conference, seminars and special economic and trade cooperation in the General Assembly and other important energy cooperation mechanism. . -Arab Business Conference held every two years by the Chinese and Arab countries take turns hosting, held three times so far. .Participants in the current situation and prospects of Arab economic and trade cooperation and how to facilitate trade and investment issues such as depth, enhanced mutual understanding between the business community. . data show that before the establishment of Sino-Arab Cooperation Forum in 2003, the trade volume was 25.43 billion U.S. dollars, O, 36.7 billion U.S. dollars in 2004, 2008, soared to 132.89 billion U.S. dollars, ahead of schedule in 2010 .The bilateral trade volume increased to 1,000 billion target. . In addition, two-way investment between China and Arab countries continued to grow. .In 2003, China's direct investment in Arab countries is only $ 17,260,000, more than 182 million U.S. dollars in 2004. .As of 2008, the Arab countries total actual investment in China reached 15 billion U.S. dollars, China's total investment in Arab countries, $ 2,650,000,000. .Argentina in project contracting and labor export has also made great progress. . to overcome difficulties 2008 年 9 月 outbreak of the international financial crisis to the world economy brought a "cold," China and Arab countries are subject to more serious economic impact. .Arab Federation of Chambers of Commerce Xikasaer April 2009 at the Dubai International Financial Conference, said that Arab countries in foreign investment losses of 2.5 trillion dollars. .Moreover, as international oil prices plummeted and the country's financial market downturn, the Arab countries lost more than 600 billion U.S. dollars. . face of the international financial crisis, the two sides have expressed their determination to overcome the difficulties. .February 2009, Chinese President Hu Jintao visit to Saudi Arabia called on Arab countries to strengthen China and the Gulf Cooperation Council member countries in the financial sector coordination and cooperation, encourage mutual investment, in response to the challenges of the international financial crisis. .Two months later, the third China-Arab Cooperation Forum held in Hangzhou, China Business Conference, the participants stressed the need to work together to address challenges and seek common development. . work together, the two sides have effectively stopped the declining trend in trade and investment, and establish closer economic and trade ties. .Data, by the international financial crisis, bilateral trade volume in the A decline in 2009, but still close to 110 billion U.S. dollars. .China and Arab countries although not completely out of the current financial crisis, but has embarked on the road to recovery. . chief China economist at Royal Bank of Scotland, Simpfendorfer 2009, the author of the "New Silk Road", which sought to resolve the new situation in relations between Arab countries and China. .Wrote: "Trade and the rapid development of bilateral relations has become the main driving force, a new Silk Road to China and Arab countries are more closely linked." There is no doubt that the upcoming Sino-Arab Cooperation Forum .fourth Ministerial Conference of Sino-Arab trade and economic cooperation will inject new impetus to international observers will also examine the Sino-Arab relations provide a unique opportunity. ..

G20 outbreak of US-European differences in the United States put pressure on China's shift the focus from the European Union.

European economic and financial crisis - the economic claims, will become the focal point of Toronto G20 summit, the United States at the meeting of the key focus and pressure will also be directed against China and turn against the EU. . RMB exchange rate issue is not the focus Group of Twenty (G20) summit meeting will be the fourth time June 26 to 27 major cities in Canada, the first being held in Toronto .International, local media and observers once thought that the RMB exchange rate issue will be the focus of the summit debate. . but the June 19 People's Bank of China announced "further promote the reform of RMB exchange rate formation mechanism, strengthen the RMB exchange rate flexibility," the decision, the RMB appreciation against the U.S. dollar to regain the pace. .22, 1 U.S. dollar psychological barrier of 6.80 yuan a breakthrough, but also the highest since July 2005 the RMB exchange reform since the highest level. .As a result, the US-led Western countries in the G20 summit lost criticized China's excuse for squeezing. .Published in Europe, the United States, "International Herald Tribune," has pointed out that the focus of this summit is likely to move to Europe. . now, the European Union summit in this idea of G20 and the multiple differences with the United States, is forming the focus of both parties and third parties. . European Union has finalized three ideas the leaders of the 27 EU member states in Brussels on June 17 will be held Xia Jifeng. .G20 summit in Toronto to determine the EU common position on one of the topics is the focus of the meeting. . been fully discussed, the main heads of 27 3-point consensus reached: First, the requirements of G20 members in their efforts to promote global financial reform, strengthening supervision of financial institutions, increase transparency in the operation of financial institutions; II requirements .G20 member states to implement an exit strategy as soon as possible, to stop the implementation of large-scale implementation of the financial crisis stimulus. .Countries to implement the exit strategy can have the order, but must take concerted action; three members of the G20 requires financial institutions to impose financial transactions tax. . the first point, Europe is essentially little difference. .But for the remaining two points, their differences are more apparent. . United States and Europe in the summit clash has started 17 EU summit urged to tighten fiscal spending G20 members of the implementation of the exit strategy, 18 the White House announced that President Obama tit for tat .Ma a letter from the head caused by G20 members. . Obama stressed that the current turmoil in the economy or not the loss of growth momentum, countries must work together to support policies conducive to economic growth. .If the slowdown in economic growth, countries should also be prepared, if necessary, to make swift and strong response again. . This means that the real U.S. economy strong recovery, Obama does not want other countries to stimulate the economy out of the plan; the contrary, if necessary, should be added stimulus. . the pressure for Obama, the EU does not show weakness. .German Chancellor Angela Merkel on 19 videos in the government's official website address, urging countries to implement the exit strategy. . Merkel said: "European views of the participants are: the rapid withdrawal of fiscal stimulus plan is to avoid recurrence of similar crises in the future the urgent need." day, this G20 summit .Canada to host the open position, and is standing on the EU side. . Canadian Prime Minister Stephen Harper had 19 open letter addressed to heads of G20 member countries, the developed the proposed members of the G20 member countries to halve by 2013 the fiscal deficit and stabilize the level of government debt, thereby .eliminate the uncertainty of economic growth and financial instability risks. . Western media pointed out that the consistent position of the European Union and Canada, will continue related to the G20 summit on the dispute, and may even make the summit results greatly reduced. . difficult to be consistent with the financial transaction tax support EU summit statement also said the meeting adopted, G20 member countries should explore the implementation of the possibility of global financial transactions tax, and methods. .European Commission President Rompuy said that if the G20 countries do not support the proposal of Europe, Europe will separate. . financial transactions tax is levied on the spot foreign exchange transactions worldwide harmonization of tax, its main purpose is to ease international capital flows, particularly short-term speculative capital flows caused by the rapid expansion of the scale of exchange rate instability. .This tax is a U.S. economist, 1981 Nobel laureate in economics James Tobin, 1972 speech at Princeton University was first proposed. .He then proposed "to the rapid operation of the international financial markets throw some sand in the wheels." .Thus, financial transactions tax, also known as the "Tobin tax." . 2009 年 9 months, when the then British Prime Minister Gordon Brown has proposed tax on bank transactions. .However, this position was the U.S. veto. . local media that the EU initiative to impose financial transaction tax is almost impossible to obtain the unanimous support of G20 members. ..

G20 consensus fiscal tightening could become very critical attitude toward the United States.

Although the United Kingdom, Japan and the euro area have recently proposed a large-scale multi-national fiscal austerity plan, but it is to be held this weekend the leaders of the Toronto Summit of the Group of Twenty Finance reached a consensus probably is not easy to tighten. . accept the China Economic Times reporter interviewed the experts believe that fiscal tightening if the summit will be the focus of discussion in Toronto, but countries in the orientation of fiscal policy, there are still significant differences, the European countries .has begun to tighten fiscal, while the U.S. still call on all countries to maintain a certain degree of fiscal stimulus, given the G20 in the United States in the absolute position and firm attitude in the G20 finance summit to tighten the hard to reach consensus. . past two years, in response to financial crisis, the world began a massive fiscal expansion policy, which is to stabilize the world economy play an important role in recovery. .But at the same time, extremely expansionary fiscal stimulus plan, but also to a loss in the private sector transfers to the government crisis, debt crisis threatening the world economic recovery has become the new "devil." . data from the World Economic Forum, the Group of Twenty members of the current fiscal deficit to GDP ratio of nearly 8% on average. .This data has been seriously out of "Maastricht Treaty" in 3% of the standard. . present, in order to prevent the spread of the debt crisis and to ensure financial sustainability, not only the depths of the core euro-zone European countries the debt crisis, frequent introduction of fiscal austerity measures, the United Kingdom, Japan, Canada also intends to tighten .finances. . British Chancellor of the Exchequer announced Osborne June 22, 2015 fiscal year, the United Kingdom to basically eliminate the "structural" budget deficits, GDP, the deficit down to 1.1%. .UK's current deficit hit a record share of around 11% in the Group of Seven in the top of the list. .This year the UK's public debt will reach 149 billion pounds, Osborne said fiscal year 2011, this figure must be reduced to 116 billion pounds, will have the next four fiscal years was reduced to 89 billion, 600 billion, 37 billion .and 200 million pounds. . in the day, the Japanese government announced a fiscal tightening plan. .According to the Japanese cabinet meeting the government announced the "Decade of the financial strategy", the Japanese authorities prior to fiscal year 2020 plan, based on the national and local revenue and expenditure surplus. .In the 2015 fiscal year, the basic fiscal deficit to GDP ratio of less than half of the fiscal year 2010, achieving a surplus in fiscal year 2020; in the 2021 fiscal year, the Japanese national and local public debt in the total balance of the gross domestic product .The ratios will steadily decline. .In addition, fiscal 2011 to fiscal year 2013, the state financial expenditure based on fiscal year 2010 shall not exceed the level of local expenditure and fiscal year 2010, considerable. . Ye Tian Jiayan Japanese Finance Minister said that the occasion of the upcoming G20 summit, he will try to win the trust of all parties, so that other members believe the markets and G20, the Japanese government introduced a new fiscal reform program will be able to .improve Japan's fiscal position. . addition, the Canadian Prime Minister Stephen Harper on June 19 letter also said that G20 members, to stimulate economic growth, but also the implementation of fiscal reform in the next year; he suggested, G20 in the developed economies .body members to halve the deficit by 2013, and stabilize the government debt to GDP ratio, thereby eliminating the uncertainty of economic growth and financial instability risks. . "Although there are many countries to tighten fiscal, but the rapid withdrawal of fiscal stimulus plan will not become a mainstream trend." Academy of Social Sciences Research Office, the U.S. economy in the accepted red Wang Zi-China Economic Times said the interview .At present, the developed countries want to tighten fiscal is still a big differences, especially the practice of these countries with the largest developed country in the world, the idea of the United States vary widely. . According to "The Wall Street Journal," said Obama worried about the world economy as the United States when it was 30 years of last century into the second recession, it plans to G20 meeting in Toronto this week its economic partners Shi .pressure, called for global economic recovery still uncertain, States should be more cautious on fiscal austerity. .Obama will urge him to continue the implementation of the economic partnership, "extent" of the fiscal stimulus policies to maintain economic growth. . Wang Zi Hong believe that the U.S. attitude is very important, the current situation, States United States does not want to exit the fiscal stimulus, because the tightening of financial market will lead to reduced demand, not conducive to the goals of U.S. exports, and employment status .for the better. . the U.S. Treasury Department website, as of June 17, 2010, the federal government's debt over 13 trillion U.S. dollars, 90% of U.S. GDP. .Although the large size of the debt the United States, but Wang Zi-hong that the country's debt relative to European countries is much lighter. .He said the severity of the debt amount is not entirely dependent on the size, is mainly dependent on the debt arrangements, the quality of the U.S. debt is still possible, and the dollar also generate a strong credit support, liquidity is relatively strong .The. .So the current United States will not tighten fiscal. . Shanghai Institute for International Research Fellow, Charles Xiaogang, the world economy in an interview with China Economic Times reporter also expressed the same view, "the U.S. will not follow the trend of tightening finances, do not want to fiscal .tightening of the country take their ride, it is hoped that a better financial position to continue to maintain the state fiscal stimulus. " the wishful thinking of the United States did not receive support. .In addition to its stance in recent days the United Kingdom, Japan, Canada, the European relatively good financial situation of Germany, France and other countries have joined the ranks of fiscal tightening. .German Chancellor Angela Merkel said the June 19 European countries in the G20 summit called for rapid exit of governments fiscal stimulus plan. .She said, "European views of the participants, the rapid withdrawal of fiscal stimulus plan is to avoid the recurrence of similar crises in the future the urgent need." "any withdrawal of fiscal stimulus, will become a hot topic in the G20 summit in Toronto .. "But the investigation Xiaogang believe the rally will urge the summit more serious fiscal problems the state has adopted prudent fiscal policies, fiscal tightening and will not reach a consensus, the world will not enter the period of fiscal austerity. . In addition, Wang Zi Hong believe, G20 summit is just a platform, rather than the organization has a strong binding, countries can at the meeting agreed to withdraw the policy is not very important. . Chinese Academy of Social Sciences Research Center of the U.S. economy in Xiao Lian interviewed said that although the G20 is a platform, but the U.S. is the leader behind the scenes, the right to speak mainly in the United States, the summit .which eventually reached a consensus on the role of the United States great. . search Xiaogang said that the main role is to coordinate the summit of Toronto, for the direction of fiscal policy, countries should not just from their own interests, but should be coordinated, and to maintain growth, build market confidence as the main .goals, developed in consultation with the rhythm of the exit program. .In his view, financially capable of countries to implement the proactive fiscal policy; and financial problems of the country, the need for sound financial planning, restore investor confidence, but in the process, countries should fully open business, trade ., investment, and not in the implementation of fiscal austerity, it is also engaged in trade protectionism. ..

China's investment in the U.S. experienced the United States "hidden rules".

7 月 30 news, to consider the acquisition of sensitive U.S. government agencies working on how to deal with Huawei Technologies (Huawei) debate, the U.S. government security experts, these Chinese software and telecommunications equipment manufacturers serious doubts. . the Financial Times quoted informed sources as saying last week, although higher than the rival bid Huawei, Huawei bid for U.S. private broadband Internet software provider 2Wire's efforts are narrowly lost .2Wire is the UK's Pace to 475 million purchase. .This month, Huawei, Motorola mobile network infrastructure department of the acquisition are not successful, this business was 1.2 billion Nokia Siemens to buy. . according to people familiar with in these two transactions, the relevant Huawei can win regulatory approval of the serious problems, both in the bidding process play a role, forcing Huawei proposed a higher premium. .Both of these transactions must be approved by CFIUS, which is a point of view of national security, to consider inter-departmental group of foreign acquisitions. . reported that the Foreign Investment Committee's deliberations are highly confidential, and for the future of Huawei in the United States, the U.S. government refused to disclose their ideas. .But people familiar with the process, said Huawei has been given of intention to expand their business in the United States, government agencies are under preparation for consideration for future expansion of the company. . reports that the U.S. government there are two schools of opinion. .Pragmatic point of view, the Foreign Investment Committee shall be approved by a future transaction, as this would enable the Government to negotiate the so-called "detente agreement", that is, a set of strict conditions and security requirements, it is possible to make the inner workings of the United States Fang Duihua to get there .the value of insight. .Some claim that Huawei's close ties with the Chinese military, Huawei denied the claim. . those who believe that the future shall release a transaction involving Huawei officials pointed out that the company has customers using the Motorola brand to the United States sold about 800 million U.S. dollars of products. .Huawei and Motorola had long-term business relationship, this relationship has recently broken. . Foreign Investment Committee and other non-American companies - such as Alcatel-Lucent - to ease negotiated agreement, including screening of employees and third-party audit requirements. .Any negotiations with Huawei agreements may be made to ease more stringent requirements, such as forcing the Chinese company to the United States to give his source code, which is expected to make the United States to insight into China's telecommunications network. . But others strongly oppose this attempt to force Huawei abide by the rules of practice. .Familiar with the Foreign Investment Committee, a former official of the program, said George. W. Bush in power, the government of the U.S. technology group Huawei 3Com joint bid was launched during the period has also launched a similar debate. . reported that Huawei finally forced to give up the bid, because the situation became clear: The company will be the United States on national security grounds, to prevent the acquisition. ."At that time, most of the conclusions of the national security agencies are, even if the government get the source code, so that we could not have enough insight into the usefulness of Huawei's window, and it is difficult to make enough to ensure the safety of the procedure," the former official said. . While the U.S. government has not fully prevent the Huawei into the U.S. market, but most experts agree that the Government has successfully prevented large U.S. telecommunications companies - such as the American Telephone and Telegraph Company and Verizon - to purchase Huawei's equipment. .Even if the U.S. government in such a device, and no formal negotiations say, but it is well known Huawei's close attention, the government is also a large number of large telecommunications company customers, which makes the purchase decisions in business very .influential. ..

Waimei: United States preparing for the G20 Summit will once again create difficulties for RMB

In RMB, the United States is a big stick and the carrot, radish, so that the back and forth.

Recently, the United States Treasury Department once again postpone publication "exchange rate report", but this is not to say that the United States gave up the pressure on to RMB.

According to waimei this morning (10.18) reported that the United States is interested in moving to a group of twenty (G20) Summit meeting, launch once again.

Waimei on G20 Summit difficult hopes

India economic times this morning (10.18) reported that United States National Economic Council President Larry Summers · said that China's exchange rate policy is facing increasing "attack", and in the upcoming G20 Summit, this issue will be on the agenda for "high suspended".

Summers said, after the financial crisis, in most countries, particularly in Western countries tried to promote economic growth, it is difficult to accept this massive shift of demand.

United States and other countries want is, China allows the appreciation of the Renminbi. This can reduce China's exports, thereby contributing to the global economic balance again.

In addition, summers sermon for the global economy and national contribution and balance, is his understanding of the United States Obama in Seoul to discuss G20 Summit hope.

However, China has repeatedly stressed that the RMB is not to be a US domestic issues of the "fall guy" and "lightning".

August 11th, 12th, G20 Summit will be held in Seoul. However, the media seems doesn't think much of this Summit, the United Kingdom in respect of the financial times said that the G20 Seoul Summit difficult hopes.

The report said, as the global "currency war" began, they can only be in Seoul that reinforced cement of the jungle, a mess of a quarrel, but unable to establish a new Bretton Woods system.

Background news

IMF annual meeting failed to reach a consensus

The International Monetary Fund (IMF) and World Bank annual meetings in plenary session, held in Washington, d.c. in early this month.

According to reports, the United States Waimei Treasury Secretary Geithner called IMF is RMB behave "more active", but the IMF refused to put pressure on China RMB issues, the meeting was unable to reach a consensus.

United States New York Times reports that on 9 June, the annual meeting of the IMF, the world finance ministers fail to agree on how to control the problem of monetary disputes escalate.

Reported that, in addition to "speak out" United States, the EU, Japan and other countries of the "silent" called on the IMF Annual Conference, was unable to because of the appreciation of the renminbi and the proposal to put pressure on China to make a difference, this topic will be postponed for further discussion.

Recently, the United States continued to RMB to put pressure on China, and even tried to place the issues of internationalization.

Geithner previously issued to the IMF, the Bourne Ultimatum threatened if the IMF is not in the Renminbi exchange rate issues "more effective position" may lose the United States in a range of topics on the Organization's support.

Therefore, Korea's Central Bank Governor Kim Chung-soo said he hopes the Group of 20 countries in November Seoul Summit prior to the currency problem to find solutions.

Construction of the World Bank called for a new gold standard of gold and silver high Qi.

World Bank President Robert Zoellick wrote 8 in the foreign media, called for major economies to consider the reintroduction of the improved gold standard monetary system, to provide guidance for the exchange rate changes. .Asian trading day, spot gold prices once again refresh the record highs and silver prices to follow suit and hit a 30-year high. . "Bretton Woods II" should be replaced Zoellick, wrote in the foreign media, since the Bretton Woods fixed exchange rate system since the collapse in 1971, has been implemented so-called "Bray .Bretton Woods System II "floating exchange rate system, the need for a successor. .He said the existing system in the formation of a new monetary system will take time, but it is time to start building such a system has. . according to Zoellick's initiative, the new system "may need to include the U.S. dollar, euro, yen, pound sterling, and internationalization, and then open the capital account of the RMB." .In addition, Zoellick also said the system should also consider gold as an inflation, deflation and market expectations of future monetary value of the global reference point. ."Although the textbook may be the gold called 'old coin,' but today's market it as an alternative monetary asset." He said, restoring the currency was pegged to gold, "practical, feasible, and not extreme." . Thursday, the summit of the Group of Twenty, and the APEC summit will be convened, the foreign media expected the exchange rate will be the leaders of conflict the focus of one of the topics. .Previously, the United States requests the current account target countries signed the plan has met widespread opposition. . Zoellick proposed that the major economies should agree to give up the exchange rate intervention, except in rare cases to obtain the consent of other countries to intervene. .These actions will help the emerging economies through the adoption of flexible exchange rates and independent monetary policy to respond to the recovery does not balance. . However, some analysts have expressed different views. .Overseas media reported that, although from time to time someone called for a monetary value of gold as the benchmark, but most policy makers and economists believe that this approach may lead to excessive tightening of monetary policy, and to the economic impact of growth and unemployment .effects. . "Bretton Woods system" refers to the U.S. dollar after World War II as the center of the international monetary system. .The implementation of the system directly linked to the dollar and gold and fixed exchange rate system. .In 1971, the U.S. dollar and gold-linked system failure, followed the collapse of the Bretton Woods system, which also announced a floating exchange rate era. . gold record high Zoellick favored for gold is not unreasonable. .Spot gold hit 8 Asian trading record of $ 1,398.35 an ounce, a new high, silver prices rose to follow suit, hitting $ 26.98 an ounce, a 30-year high. . the Fed's 600 billion U.S. dollars last week announced plans to buy treasury bonds, and held in Seoul this week, the Group of Twenty nations summit currency imbalances may be expected to start debate, so that safe-haven appeal of gold is reflected .. . according to Thomson Reuters released a survey, the gold record high this wave of frequent gains expected to last at least 6 months, which also happens to cover the Fed's monetary stimulus plan implementation period. .Two-thirds of the respondents thought that the medium term, gold will be between 1400-1500 U.S. dollars per ounce peak. .RBC Asset Management's chief institutional strategist Myles Cibu Locke this view, the price of gold rose to within three years may be $ 3,800 an ounce. . "quantitative easing, the dollar depreciated, so the gold and almost all goods will benefit, as people began to shift from financial assets, goods, that with the continued printing money, goods will be more practical and reliable asset." Standard & Poor's .stocks and metals analyst Leo Larkin said. ..

Friday, March 18, 2011

The Bank then sends pessimistic expectations: the global economy will shrink 2.9% this year

The last few months has been on the world economy to sing "white face" of the World Bank Monday recurrence pessimistic expectations. According to the latest in a row, the global economic contraction increases this year will be further reduced to 2.9%, previously expected 1.7%. The World Bank, international capital flows to fall as a result, factors such as the emerging economies, the growth rate will decline sharply, however, excluding China and India.

At 22, published the 2009 global development finance: global recovery roadmap report, the World Bank released a more pessimistic expectations. Report is expected this year, the global GDP will shrink 2.9%, compared with March, the expected negative 1.7% lowered further. Which, over the past two years for outstanding emerging economies will fire the collective "dumb", is expected to only grow 1.2%.

The Bank warned that the world is entering a period of slow growth, which would require States to the financial system more stringent and more effective regulation. The report pointed out in particular that the global recession and financial crisis, the emerging economies, a heavy blow. World Bank data, last year net private capital flows to developing countries has been removed from the 2007 1.2 trillion high sharply down to $ 7070, 2009 that figure is expected to decline further to 3630 million.

Affected by factors such as capital inflows declined as a result, the World Bank estimates that this year in developing economies of economic growth will substantially below last year's 5.9% and 8.1% in 2007. Report is expected, if not including China and India, this year's developing economy will drop 1.6%, unemployment and poverty will increase further.

For developed economies, the Bank believes that Korea is expected to become the fastest in the OECD recovery. World Bank Vice President and Chief Economist, Lin yifu 22 in Seoul that benefited from Korea solid macro-economic structure and close economic and trade relations between China and Korea's economic growth will be negative this year from 3% to 3.5%, but with the gradual warming of the world economy, the strong upturn in Korea, the economy is expected to 2011 to reach its economic growth rate of 4% to 5%.

By contrast, the IMF continued to play the role of the "red". In a meeting last week, the IMF "in charge" Lipski implied that the organization may further increase on global economic growth is expected.

For 2010, the Bank expects the world economy will gradually recovering, the 2010 global GDP is expected to grow by 2%, 2011 will 3.2 percent. Which, in developing economies rebound faster, its economic growth rate in 2010 will reach 4.4%, 2011 will rise to 5.7%.

Although global forecasts have relatively large differences, but for the Chinese economy is expected but coincidentally bias optimistic.

Last week, the World Bank released ahead of the Chinese economy. Of these, the Bank will China GDP growth forecasts for 2009 to 7.2%, while the previous report, the World Bank forecast 2009 GDP will grow by 6.5%. In addition, the Bank will also have its 2010 growth expected from 7.5% to 7.7%.

For India, the World Bank also increases the country this year and next year's growth is expected. The latest forecast growth this year, the previously expected 5.1 4.0%; India's growth next year is expected to 8.0%, previously 7.0%.

Nomura international publish Asia Wirtschaftswoche yesterday to announce on the growth of China's 2010 is expected to increase sharply from 8.5% to 10%, while maintaining the growth of 8% this year is expected to remain unchanged.

EU and eurozone economies to achieve growth next year

The European Commission 3, autumn forecast that this year the European Union and the euro-zone gross domestic product (GDP) will appear 4.1% and a negative growth of 4.0%, in 2010 the EU and euro area economy will grow by 0.7%.

Report predicts that in view of the Member States to adopt economic stimulus plan and loose monetary policy, the EU and euro area economy will achieve growth by 2010. In addition, 2011 EU and euro area economy is expected to grow 1.6% respectively and 1.5%.

The report shows that the employment situation in the euro area continues to be optimistic about. According to forecasts, the euro area unemployment rate in 2010 will be 9.5% to 10.7%, 2011 will further increase to 10.9%.

In September, the European Central Bank's forecast that this year the euro area economy will appear 4.4% to 3.8% negative growth, economic growth in 2010 will remain at negative growth 0.5% and growth 0.9%.

Argentina's President dissolved ' central bank functions

Argentina's President Cristina, 7, lifted the Central Bank Governors red Pilate.

According to the Argentina of the national newspaper, Christina day with "misconduct and Government officials are not as", issued lifting the Red of the Presidential Decree of Radovan duties. It is learnt that Christina also expressed will file charges against Red Pilate.

Previously, Christina had called red Pilate use of foreign currency reserves of the Central Bank of Argentina this year due to repay the debt, but red Pilate to central bankers on the grounds of the Parliament rejected this request. Christina in 6, request the resignation, but Reid Pilate Argentina central banks publish 7 day notice that red Pilate won't resign, but willing to government debt plans to help.

Argentina December last year, the Government announced that $ Central Bank 65.69 million foreign exchange reserves on the establishment of a debt and stabilization fund, dedicated to the reimbursement of part of the external debt this year expires. But red Pilate has consistently refused to be the Central Bank's foreign reserves transferred to other government departments.

The euro fell to low of the year 7 months or up to 16.2% depreciation rate.

Euro against the dollar hit on Friday following a seven month low of $ 1.3863, the 1 st Asian market, the euro against the dollar to continue to test a low, hovering around $ 1.3860 and the 7-month low near. . Recently, the euro zone debt crisis came frequently, making the central banks and market participants are held on a more negative attitude towards the euro. .The data from the central banks can be seen, the euro continued to fall with the recent holdings of the euro foreign exchange reserves, central banks have the factors that can not get away. .After the outbreak of the global financial crisis, the euro was once regarded as the next reserve currency, but if things go on, the euro replace the dollar as the main reserve currency in hopes of moving towards "broken." . statistics from the Bloomberg data show that central banks in the second quarter last year, about 60 billion U.S. dollars to buy euros, a new record. .Although at the time the bid has triggered strong speculation that central banks in the choice of foreign exchange reserves will continue to shift with the withdrawal of U.S. strategy for the euro and other currencies, such as Barclays Capital, an investment institutions also once thought that the euro has replaced the more dollars there .posture. .But soon after the buying by central banks will gradually start to decrease. . the third quarter of last year, central banks, only 15% of new foreign exchange reserves into euros of assets, the proportion is the lowest since early 2008. .At the same time, central banks last year, the new foreign exchange reserves in the third quarter, there are 45% of U.S. dollar assets, much higher than the previous quarter's 36%. . buying by central banks to reduce the euro, has also led investors to follow the trend of euro assets to lighten up. .Last November, foreign stocks and bonds, selling over 3.9 billion euros euro securities for the first time since last July to sell super. .Oversold market usually higher than the number of securities sold under sale fundamental analysis derived from a reasonable number. .In addition, the measure of the performance of the euro zone blue-chip Dow Jones 50 Index in Europe so far this year one of the worst performing index, the index has fallen this year to about 9.4%, a decrease of about U.S. S & P 500 Index 2 times. .Also there is news that the local investors in Europe are also to remit funds abroad to buy securities in other regions. . selling by central banks in addition to experience, the Greek debt crisis has made investors gradually lost confidence in the European market, the euro continued to sell-off of assets. .November 25 last year hit a 14-month high of 1.5144, the euro has depreciated against the dollar of about 8.4%. . analysts VTB Capital analyst Neil McKinnon 1, said in an interview, the market will remain shrouded in the haze of sovereign default risk, this wave of credit crisis by the Greek .induced selling will not disappear soon, the euro will be further devalued. .He also predicted that the euro depreciated against the dollar to $ 1.20 the lowest possible, but he did not give a clear timetable. . this analysis by Bloomberg, said that if the euro this year, McKinnon predicted to close at the level of annual depreciation rate of the euro will be as high as 16.2%, this will be the euro since 1999, the biggest annual decline since. ..

Goldman Sachs has been investigating eight Wall Street banks are Citigroup, Morgan Stanley, in which.

"Financial Times" columnist recent survey by the U.S. government in case of mortgage bonds which Goldman Sachs when the only thorough investigation of the record straight, it can sound a little corpuscles their grievances: the New York State Attorney General Andrew - Como (AndrewCuomo) will .eight big banks began to mislead the mortgage on their ever bond rating agencies regarding the investigation. .There also will be surveyed banks colluded with the unspoken rules of Wall Street rating agencies. . Central University of Finance and Banking Research Center of China, said Guo Tian Yong, banking and rating agency collusion, if true, that nature is its worst, global financial markets may therefore be a new round of instability, because the investment .will doubt their own hands, the risk of financial products in the end geometry, the value of geometry. . Wall Street by the Census 13, according to The New York Times reported that New York State Attorney General Cuomo began to eight banks for its ever misled regarding the mortgage bond rating agencies to investigate .. ."The New York Times" on its Web site citing two people familiar with statements that the office late Wednesday Cuomo sent subpoenas to these banks to inform their under investigation. .The focus of this investigation is no longer the bank misled investors to buy previously backed securities, but rather banks misled bond rating institutions. . According to the report, survey, including Goldman Sachs, Morgan Stanley, UBS, Citigroup, Credit Suisse, Deutsche Bank, Credit Agricole, and has been Bank of America acquired Merrill Lynch. . It is reported that a survey conducted Como, that he thought the rating agencies are likely to be the subject of investigation in one or more deceived. .Morgan Stanley, Credit Suisse and Deutsche Bank spokesman declined comment. .Other banks did not immediately respond to inquiries. .Involved in the investigation in the case of rating agencies Standard & Poor's, Fitch and Moody's Investors Service. . Guo Tian Yong says the credibility of credit rating has been widely suspected, if true that this large-scale survey ratings agencies colluded with the beautification of the banking credit products, investors will doubt the hands of the financial products that .on the global market will likely have a great shock. . officers suspected of rating agencies to draw According to informed sources, the Como is also concerned about the mortgage business bank rating agencies employ staff to help beautify their mortgage transactions over the behavior of ratings. .It is being sold because a large number of high-risk mortgage bonds to be known as the high credit ratings, it attracted a large number of investors to buy. . Goldman Sachs are responding to the Securities and Exchange Commission's civil fraud charges. .Litigation known as the core is a high secured debt warrants 2007-AC1 (CDO) products. .This product is the first rating agency Fitch employee Tang Chuanxin (phonetic) in the design. .You Chuan joined Goldman in 2005. . reported that the fire in the mortgage stage, Goldman Sachs and other financial institutions and others provided to the Youchuan million annual salary, to attract them to pay a much lower from the rating agencies switched to their own banner. .Fitch Yukawa before leaving, his department three Fitch analysts also left to join Deutsche Bank and other financial institutions. .In general, from the rating agencies who successfully switched to the bank, will reach agreement with their former colleagues. .The autumn of 2007, financial institutions face mortgage transactions to achieve greater pressure to deal with Goldman Sachs, a Fitch analyst transaction is Yukawa's friend. . under a U.S. Senate subcommittee last month that Wall Street rating agency employees involved in the process. .According to the Commission published a series of e-mail content, the S & P Goldman Sachs had tried to persuade analysts to question a transaction for the green light. . Samuel Robinson, a spokesman for Goldman Sachs said last month that: "any improper influence on Goldman Sachs rating agencies say are unsubstantiated. We rely on an independent rating agencies and their procedures are given .rating. " after the Financial Times columnist, San Diego State University's law and finance professor Frank Patrick F Illinois, suspected in a few years ago banks control the market, why .Government only for the Goldman Sachs? .Goldman Sachs huge loss to investors of mortgage bonds Aba-cus2007-AC1 was too much blame, but its no basis but few people question the 3A rating. . ProPublica according to a recent report released by Magnetar hedge fund trading in the 26 cases, both involved in the CDO also bet short. .(Magnetar said the deals perfectly legal.) These transactions by Citigroup, Deutsche Bank, Lehman Brothers, Merrill Lynch, UBS, etc. (not Goldman) arrangement. .Goldman Sachs did not participate in the hundreds of CDO transactions, but those transactions have not been investigated. ..

France's dismal exit Buffett Kuangzhuan 30,000,000.

1998 World Cup champions France were hosts South Africa out sweeping and allows no small Buffett won a bet. .Because, according to an insurance policy sold, and if the current French team win a Berkshire Hathaway insurance customers will pay $ 30,000,000. .The customer, the media speculation may be Carrefour. . this year in March, Buffett said on CNBC reporter that if the French team won the championship, the Company will pay a $ 30,000,000 insurance customers. .Buffett did not disclose the identity of the insurance customers, but according to Bloomberg, an American finance professor, said the insurance customers may be any of the gambling companies win the French team, and the company's spending will be close with the French team to win .related. .The same article reports that Carrefour has unveiled a Web site marketing plan, if the French team to win, buy flat screen TVs will be refunded to consumers compensation. ..

Control the export of western and exclaimed rare earth "by the Chinese to wear the shackles".

More than six months, the rare earth suddenly became a new confrontation between the U.S. point, the U.S. media and trade officials had been fixed, the Chinese Rare Earth hold reserves and management policies. ."Middle East oil, China has a rare earth," the Chinese rare earth resources, production, exports are the first in the world, but China has long-term control of others, the number of rare-earth price buyers have the final say, once sold for the price of pork .. .From the early 70s of last century now, oil prices have gone up three or four times, which were Americans, "determines the fate of its defense," the earth, the price rose in the last 30 only 20%. .As China prepared to make rare earth business at reasonable prices, Western and exclaimed, "by the Chinese put on chains." ."Global Times" reporter has to "Rare Earth Capital" header and the world's largest rare earth mine Bayan Obo ore interview, only to see the earth being sold at times left "traces", also felt the future of China rare earth industry .Production and applications have confidence. . Bayan Obo in the hotel had a "Middle East oil, China has a rare earth" in Baotou Rare Earth park entrance, there are rows of embossed walls, embossed on one side there is .Therefore, a portrait of Deng Xiaoping, and engraved in 1992 when he said "Middle East oil, China has a rare earth." .This formulation has been talked about China's rare earth sector, in fact, Deng Xiaoping in the back of this sentence --- There are clear instructions, "must take the good things of rare earth, to exploit the advantages of China's rare-earth! ."" Middle East oil, China has a rare earth, "such words, journalists are still under the jurisdiction of Baotou Bayan Obo iron ore and the hotel lobby to see before. . rare earth resources in China to become the first big country, began in the Bayan Obo iron ore discovery. .Starting from the header press, drive north for about 3 hours later arrived in the Bayan Obo. .Bayan Obo in the Mongolian language in the "sacred mountain rich" means, but the locals jokingly call themselves "post-Hermit," because here in the north of Yin. .Bayan Obo area in one of the main street stands a statue of a geologist Ding Daoheng the last century, 20 years, he discovered the Bayan Obo is a large iron ore, then, there is only one black peak, because the lack of water, both .is not a grazing point, not a few households around the Mongolian herdsmen come here, almost all of a famous mountain in order to worship the gods obo. .Found after 7 years for mining, mineralogist He Zuolin in the Bayan Obo iron ore to find the two rare-earth minerals. .Because REE content and variety of the world's largest Bayan Obo rare earth ore. . first arrived in Bayan Obo, many locals say is the most worth a visit on the two huge mining pit. .Mine entrance clad security personnel guarded, there is no strict procedure for persons and vehicles into the mine will be turned away. .Reporters came to the height of the main mine in a small purpose-built viewing platform, see a depth of about 200 meters, the short diameter of 1 km to the promise of a long diameter of about 1.5 km to the oval-shaped pit. .Accompanying industry source said, where the viewing platform halfway up the mountain as before, the above did not dig early half of the mountain, originally the famous obo, Mongolia in the Bayan Obo ore mining before the masses will migrate to other places. .Large open pit is dug down layer by layer mining, open floor to blast once again blasting the amount equivalent to four earthquakes, Bayan Obo said they have been accustomed to level 4 earthquake. . workshop materials are Baotou Bayan Obo ore mined over the years is mainly iron ore, rare earth mineral is associated mined, not by a huge amount of exploitation of rare earth or with the tailings slurry is ranked .into the dam, or also accumulate in the Bayan Obo ore dumping around the venue. . origin in the earth some small villages were also relocated because of any mineral exploitation inevitably leads to environmental pollution. .In Baotou, the reporter saw about 11 square kilometers in an area the size of the tailings dam, which is actually a "lake", a number of sub-channels from the ring dam pipe of one's clothes into his lake. .Boarded the ring about 4 meters high dam, could see a lot of water in and around a number of rare earth tailings effluent is discharged into the giant lake. .The dam has a name called "Rare Earth Lake", data, date, approximately 160 million tons of tailings into the lake, while the tailings of the rare earth content of 5% or more, a sense .The whole earth is a rich mine tailings. .But the problem is, this lake on the surrounding environment of rare earth is a threat to the heavenly stems and strong wind when the radioactive dust, the lake has caused water leakage around the land salinization. .Met a reporter at the dam next to the informed passers-by, he told reporters two years ago, the government simply all of the surrounding eight villages moved out. .In fact, there are some rare-earth experts had also suggested that this should be far away from the Yellow River, also in a geological fault zone on the dry lake deep earth, both to prevent pollution of the Yellow River geological disasters, and secure protection for the rare earth resources .. . application level is not high for the price of rare earth in China for many years to eat a loss rare earth is lanthanum, cerium, praseodymium, neodymium and other 17 kinds of metal elements referred to in the Baotou National Rare Earth Hi-tech .Technology Industry Development Zone, each staff member talking about the elements of these rare but hard to pronounce names are in verse, might sound under the reporter also said that they are Japanese. .According to a senior engineer Li Zhenhong MC introduced the role of these 17 elements can be described as extraordinary, rare earth of human understanding of time, but 200 years to succeed, to identify all these elements and find out all it took 100 years, really began to study the characteristics of rare earth elements .and used in industry was 60 years or so, especially in the past 20 years, new materials and application technology of rare earth high-tech sector can be described by leaps and bounds, due to the electronic structure of rare earth elements is very special and has a very rich optical, electrical, magnetic and thermal properties .Almost Every 3 to 5 years will find a new use of rare earth, averaging four a high-tech inventions have associated with the earth. .In a variety of new rare earth materials, rare earth elements are usually small and the increase of the amount of the function of large, therefore, has often been compared to "industrial vitamins" or "new materials, vitamins." .12 .

Three international oil prices exceeded $ 82 个月来首次.

The New York Mercantile Exchange (NYMEX) crude oil futures extended gains 3, May for the first time above $ 82 a barrel, they ignored a series of disappointing U.S. economic data, while the other markets but have .the impact of the data laid down soft. . NYMEX September futures contract, light sweet crude settled up $ 1.21 to $ 82.55 a barrel, or 1.5%, the highest since May 4 the highest settlement price level. .ICE Brent crude futures contract settled up $ 1.86 to $ 82.68 a barrel, or 2.3%. . bring a weaker dollar to rally support for oil prices, in addition, the market is expected to visit the Gulf of Mexico in July tropical storm will result in reduced supply of crude oil, which is also expected to boost oil prices. . the U.S. housing market and manufacturing data from the U.S. economic slowdown, but not much impact to the crude oil market, however, the U.S. stock market and the price of copper and other commodities but in this morning .weaker after the data release. . National Association of Realtors (NationalAssociationofRealtors) announced that the U.S. June pending home sales index fell 2.6% to 75.7, by the federal government's cancellation of a subsidy for the purchase policy; and the market generally .The data is expected in June and May was flat. . addition, the U.S. June factory orders fell 1.2%, the market is expected to decline 0.5%, which again indicates that U.S. economic growth may be slowing. . September front-month RBOB gasoline futures contract settled up 2.5 cents to $ 2.1935 a gallon, or 1.2%. .September heating oil futures contract settled up 4.62 cents to $ 2.2000 a gallon, or 2.2%. ..

Intervention in the foreign exchange markets in emerging economies "powerless"

South Africa Finance Minister Pravin · Gordan recently said, the Government of South Africa alone by unilateral action, insufficient to curb currency appreciation of South Africa RAND, only a global solution to effectively address the current emerging economies are facing money problems. While South Africa Finance Director-Gan Maniago, although South Africa is not like other emerging countries have adequate foreign exchange reserves on the foreign exchange market intervention, but this does not mean that South Africa would do nothing.

From developed economies the impact Super relaxed monetary policy, the Rand exchange rate against the dollar since the beginning of 2009 is about 39% of cumulative appreciation. 14, RAND dollar reached 6.76: 1 level, two and a half years. As at 18-20, Beijing time, RAND dollar reported 6.87: 1.

At the same time, foreign exchange market intervention Brazil faces continued inflows of foreign investment in the "troubles". According to reports, pengboshe 18, Brazil will be sold in international markets Brazil currency real international bonds, to relieve the international portion of the assets of the country, and this is Brazil over the past three years from the first sale of such bonds.

South Africa "purse not drum"

Gordan in South Africa media interview, warned that the world economy is at a critical moment, once the "currency war" broke out, will have on South Africa's economic. immeasurable South Africa should be combined with other emerging market countries, the study on global solutions to address the immediate crisis. Previously, Goldin and South Africa's Central Bank Governor of Marcus repeatedly emphasized, as developed economies continue to cut interest rates, international speculative capital flows interest rates are relatively high in emerging economies, including RAND, emerging economies continued appreciation of the currency.

Coombe Maniago said that many countries now global currency devaluation of competition have been formed, which in the final analysis, is a "national purse" competition, but South Africa's "purse" and not drum. He also said, "we will continue to focus on multilateral consultations, but we also need to consider other measures can be implemented. "He pointed out that Brazil on the taxation of foreign investment inflows also enough to suppress Brazil currency real fast rally, this implies that South Africa does not exclude taking similar measures on the Rand exchange rate intervention.

Latest data show that South Africa at the end of September the foreign exchange reserves, representing $ 360.25 8 month 354.64 billion slightly increased. Standard Chartered Bank Research Department in the African region, said that regardless of whether South Africa's Central Bank has accelerated the pace of its announced reserves of foreign exchange reserves data is a bad news because RAND continued appreciation, this allows the original monetary policy is weak South Africa more easily in the international currency war at a disadvantage. Marcus also pointed out that the same other emerging market countries have very different, South Africa's own savings, rely on the capital account of the inflow to cover the deficit of current account. Therefore, South Africa has not taken on capital inflows radical measures such as taxation. The Government should seek other ways rather than through intervention currency exchange to promote economic and employment growth.

Brazil assets purchased by coax

According to the latest data show pengboshe, since Brazil Government announced on 4 October on the country's local currency bonds of foreign investors the implementation rate doubled, real guagouxing (real-linked) international bonds were foreign capital buying, 2016 due over the same period in the international bond and bond yields poor in China has been extended to July high of 372 basis points, namely 3.72%. A huge market demand that Brazil Government considering selling real international bonds, Brazil's Central Bank under the jurisdiction of the State Treasury Secretary augstine has 14, said that the country will before the end of the year sale real international bonds.

BNP Paribas Latin American policy analyst Diego · Donadio said, this is Brazil's Government to sell bonds a good time, because for overseas investors, bond rates doubled so that investment is costly Brazil, China and Brazil assets and attractive. Citigroup Latin American currency and interest rate analyst Ramachandran said that investors demand global bonds, if Brazil will issue international bonds, market appetite will open.

Prior to this, the international impact of huge hot money inflow, Brazil's Central Bank has approved the purchase of US dollars and sell real ways, directly into the city on real appreciation trend. Meanwhile, Brazil Ministry of Finance also improves the bonds of the foreign investors and to contain the actual rates of inflow of foreign capital. But these measures are difficult to douse international investors on share Brazil's economic growth cake enthusiasm. Under Brazil's Central Bank published figures for the month of September this year, a total of nearly 17 million into Brazil, Brazil's Central Bank is the 1982 since the statistics, the highest monthly inflow. In this regard, Brazil's President Lula has stressed that Brazil does not welcome those short-term international capital arbitrage.

Effect of the case in favor of fasteners: EU should impose a single low tax rate.

"For many years the European Union on China to take measures unilaterally, the Chinese accepted. Now, this situation changed." China v. EU Anti-Dumping Measures in favor of fasteners, the long-term follow anti-dumping measures, Research Fellow, Department of Political Science, University of Antwerp .JappeEckhardt told this reporter. . fastener case 10 years since China's WTO accession is the first time the EU's trade dispute with the resort to the World Trade Organization (WTO). .December 3, WTO Panel on "China v. EU Anti-Dumping Measures on fasteners," the report released ruling, clearly ruled that the European Union on China fasteners violation of anti-dumping measures taken by WTO rules, and further noted that the EU's "anti-dumping basic regulations" relating to " .individual tax rate "is inconsistent with WTO rules. . This means that Chinese companies automatically get a separate tax rate, without special application to obtain, while the EU imposed last year on the unity of Chinese enterprises with high tax rates will automatically lapse. . previous anti-dumping investigation procedures in the European Union, Chinese enterprises can only apply for and obtain a separate tax rate approved treatment, and vice versa was conscripted to unify all the anti-dumping duties. . precedent with the case of fasteners, WTO Panel is likely to make the same conclusions similar to sue. .According to report, China v. the EU anti-dumping footwear, also referred to "separate rate" problem. . the case of China Fasteners attorney PhilippeDeBaere interview with this reporter, said that China's victory in the case of anti-dumping system throughout the EU has an important influence, "This is a huge victory, which means that the EU will be more .Chinese exporters hard on anti-dumping duties imposed are too high. " . EU WTO rules violate provisions of a separate tax rate the case of fasteners, China concentrated firepower to the "single tax" provisions of the attack. . EU anti-dumping rules in the "single tax" provisions, not granted market economy treatment to Chinese enterprises must comply with the terms set standards in order to separate the use of corporate tax rate of export prices, or will be charged .higher flat rate. . PhilippeDeBaere explained that the European Union in the past all the Chinese exporters as a whole, finds its full control by the Chinese government. .According to the definition of the European Union, once the business from non-market economy country, is part of a collective, it can only have a unified tax rate. .In early 2009, the EU's decision on the fasteners, Chinese enterprises were unified collection of up to 87% of the anti-dumping duty for a period of 5 years. . WTO Panel finds that the European Union on a separate special tax provisions inconsistent with WTO rules. .WTO Anti-Dumping Agreement requires cooperation of all companies surveyed, a separate calculation of the dumping margin. .The enterprise is the market economy status from the state, does not affect their access to individual tax rates. .China's accession to the WTO agreement did not agree with this special treatment. . under the WTO ruling, the EU anti-dumping investigations in the future, we should charge for each separate tax rate of Chinese exporters, without a separate application for individual business tax treatment. .This will significantly reduce the overall average tax rate for China. . "If the EU to make changes in accordance with the WTO ruling, the EU imposed on Chinese enterprises in the future too much like anti-dumping duties would be much more difficult", PhilippeDeBaere said. . In addition, a flat tax does not apply to Brazil, the United States and other market economy countries, this also means that the WTO ruling will affect the EU in Vietnam, Cuba and other non-market economy country's anti-dumping investigations. . EU or appeal Chinese Ministry of Commerce of the WTO Panel's ruling, responded that a long time, the EU has been urging China's export enterprises in the anti-dumping in the proof of the EU's so-called "separate .tax rate "requirements, anti-dumping on Chinese companies a serious burden and unfair treatment. . In fact, the EU importers and retailers on the European Commission also asked the Chinese enterprises to apply the provisions of a separate treatment dissatisfaction. ."It's the uncertainty of their means, they do not know which Chinese companies can get lower rates." .JappeEckhardt told reporters. . but there are still large PhilippeDeBaere EU may be expected to appeal a decision on this, "because it is the EU anti-dumping system is an important challenge, of course, require the EU to defend." .In addition, the Lisbon Treaty enters into force, to change the basic anti-dumping regulations means that need to be approved by the European Parliament, "the Council may use this opportunity to go beyond the technical issues of anti-dumping, other trade issues to the European Commission pressure." . under the WTO dispute settlement procedures, the two sides in the report of your findings within 60 days after the appeal. .Members of EU trade spokesman JohnClancy De Gucht said: "It is worth noting that this is only an intermediate process, because the EU or China can decide whether to appeal. So now unable to determine the impact of the award." </ .P> footwear case will be affected China and the EU is more common in the field of anti-dumping dispute is how to calculate the normal price. .In the anti-dumping investigations, a country export price lower than the normal price difference is known as dumping. .Normal price usually refers to conditions in the general trade exports than domestic sales prices of similar products. .But the EU did not grant China market economy status, so they have to replace the country export prices of similar products to confirm the normal price. . PhilippeDeBaere told reporters in the case of fasteners, made in China, the EU has not recognized in the prosecution of the normal price of the issue, "We want to go step by step, and a separate tax rate is a more fundamental issue." . the pace has begun. .October 2008, the EU anti-dumping measures on China shoes will launch the occasion of the expiry of the final review, and in December 22, 2009 decision to extend anti-dumping measures in 15 months. .February 4, 2010, the Chinese side to propose in the WTO dispute settlement mechanism under the request for consultations. . According to report, mainly in the case of China proposed the "single tax" and the "normal price" on two issues. .In the case of fasteners under the precedents, WTO Panel is likely the case with shoes, in a separate tax issue reached the same conclusion. . JappeEckhardt told reporters that China has become more positive and confident use of the multilateral trading system to protect their own interests, rather than in the past, Europe and America all the passive acceptance of trade remedy measures. .1999 to 2009, China had been 445 anti-dumping measures, for all WTO member countries initiated anti-dumping measures the sum of 24%. ..

Wednesday, March 9, 2011

Korea over Russia as the world's eleventh largest exporter

11 may provide the Government of Korea, the first quarter of this year, Korea over Russia, the world's eleventh largest exporter. When a quarter of the world top three export countries are Germany, the United States and China.

Hanlianshe day invoked Korea digital knowledge economy, the first quarter, Korea exports reached US $ 747, paragraph 11 of the highest in the world. Germany, by virtue of that quarter, 2595 billion in exports was ranked first in the world, then followed by the United States (2487 billion), China (2456 billion) and Japan (1193 billion).

First quarter, due to the oil and gas exports decline, Russia exports of $ 579 million, up sharply 47.4 per cent, in the global ranking from last year's first nine-to 13. Hanguodang quarter exports up also fallen 24.9 per cent, but because of the relatively slow rate of decline, the rank eventually rise.

Korea Government estimates that, if current trends continue, most likely in Korea for the first time this year become one of the top ten exporters in the world.

This year's first quarter global foreign direct investment has dropped significantly

United Nations Conference on trade and development (UNCTAD) in Geneva on 24 may, in the first quarter of 2009, the global foreign direct investment and the significant decline compared to the same period last year, the situation is expected for the full year is not optimistic.

UNCTAD noted that according to the total global FDI inflows of 60% of the 57 countries providing data, the first quarter of this year, the country's foreign direct investment inflows compared with 54% on average, including China, Brazil and Russia, and other major investment absorption power, 43 countries of investment inflows have emerged. In the first quarter of this year, foreign direct investment in the main form – cross-border mergers and acquisitions on a year-on-year decline in 77% compared to the previous quarter fell by 62%.

According to the total global FDI outflow of 60% of the 47 national statistics, the first quarter of this year, the country's foreign direct investment and the overall decline compared with 57%, the United States, France, Germany, Japan and other major foreign investment countries foreign investment decline occurred.

UNCTAD said that if the first quarter trends continue, it is expected that in 2009 the global foreign direct investment inflows will reduce by half than last year.

UNCTAD noted that developed countries 2009 foreign direct investment (FDI) is expected to decline 60%, is the leading global foreign direct investment. However, and in 2008, this year, developing countries and transition economies to foreign direct investment will also appear from 25% to 40% drop.

HP 27 billion acquisition of 3 com

Meiguohuipugongsi 11, indicated that the billion acquisition of 3Com network equipment manufacturers, the dealer has acquired two companies approved by the Board of Directors, which is expected to be completed in the first half of 2010. On the same day, HP announced fourth quarter and preliminary results exceeded Wall Street expectations.

HP's acquisition of 3 COM transaction is expected to be slightly weaken the 2010 financial year adjusted earnings. The company indicated that the valuation of the 3Com is 7.90 u.s. dollars per share, representing the unit Wednesday closing price premium of $ 5.69 39%.

Data show that HP's fourth quarter earnings per share for 99 cents, a year-on-year earnings per share is 84 cents; does not include restructuring and acquisition-related expenditures, the company's fourth quarter earnings per share is estimated at $ 1.14, higher than the year-on-year from $ 1.03. HP Chairman and Chief Executive Officer Hart said, performance's strong showing from China market business growth.

The European Central Bank this year will be gradually "exit"

As the global financial crisis is over, 16 countries in the euro area's financial system is gradually returning to normal operation. Economists generally agree that the 2010 European Central Bank will gradually implement the exit in the second half of the projected measures will start rate hike cycle, so that the financial system liquidity gradually returning to normal levels.

The European Central Bank will be held on 14 April 2010 for the first time, the interest rate decision. Although unanimously of the view that the European Central Bank also does not change the current 1% of the benchmark interest rate level, but in general it is expected that the ECB President Trichet will perform exit policy more firmly. According to a recent pengboshe survey, most experts expect the European Central Bank in the third quarter of 2010 will be maintained until 1% benchmark interest rate, by the end of the interest rate will be increased to 1.5% and two quarter 2011 further raising it to 1.75% and 2%.

While in the third quarter of this year benchmark interest rates before may remain unchanged, but the ECB in the financial crisis period a large number of injecting liquidity measures will in the next few months gradually expire, when the European Central Bank may stop the implementation of these measures, which will cause a large number of bank system liquidity.

Economic circles in general it is expected that the European Central Bank in the first half of 2010 the stimulation phase out measures for the second half will start after the start of a new round of rate hike cycle, achieving economic began to recover.

In fact, to date, the European Central Bank's exit measures has gradually started to commercial bank loan than a crisis has significantly shrunk. According to statistics, as of the end of 2009, the European Central Bank's local currency lending to banks amounted to more than 13% decline in the beginning of the year.

Franco-German cooperation between the two countries will draw the roadmap for the next ten years.

3 issued a statement on the French presidential palace, said French President Nicolas Sarkozy and German Chancellor Angela Merkel will be held in Paris on 4th Ministerial Conference meeting between the two countries. .The Franco-German Council of Ministers will propose the cooperation between the two countries over the next decade the prospect of planning. . Reportedly, during the Franco-German Council of Ministers in September last year, re-elected German Chancellor Angela Merkel and form a new government after the two governments first plenary meeting of key personnel. . 3, announced the French presidential palace, French and German leaders reiterated that strengthening bilateral cooperation to address the challenges facing Europe. .The Franco-German Council of Ministers for the next decade of cooperation between the two countries to draw the "road map." .The two countries will be discussed in the Council of Ministers adopted the new policy, including a package of 80 cooperation agreements. .EU co-operation include the promotion of economic recovery, strengthening scientific and technological cooperation and the political and diplomatic cooperation in education and other fields. . Agence France-Presse reported that the Copenhagen summit for how international cooperation to reduce greenhouse gas emissions issues, France and Germany hope to discuss plans for an international emissions reduction agreement. .Under the plan, creation of a unified Europe will test electric vehicles; in science and technology, Germany and France will participate in 6 of the new Ariane rocket research and development, and for the prevention of terrorist attacks in the European airline passenger database research project .. . on the strengthening of institutional cooperation, the French and German ministers will be in the other country in the next ministerial meeting to discuss the present right to speak on important issues. .But the French presidential office also confirmed to give Prior to the establishment of "Franco-German affairs minister" of a job plan. ..

Experts: Commodity stabilized interest rates came to be.

Interest rate expectations continued to improve recently, the generally positive U.S. economic data, economic recovery continues to increase, and the strong intervention of the Fed, Treasury market was basically stable, however, to quantify in the EU .easing the pressure caused by imported inflation, the U.S. inflation on the rise, this rise again, or will prompt the Federal Reserve discount rate, or even pre-start raising interest rates to stabilize prices, then the dollar continues to remain strong, commodity microscopic .the light of day. . At the same time, China's economy overheating of the early clues, the central bank interest rate expectations continued to improve, for three reasons: First, the high CPI, PPI is the most obvious of the central bank to raise interest rates precursor, and second, quantitative .monetary policy is limited, third, increased inflow of hot money, imported inflation pressure, the Federal Reserve to raise interest rates soon to open a "Pandora's Box", my interest is not without reason. . visible, at home and abroad is expected to continue to increase interest rates, money market, or will replace the capital market as the main bearer of economic development, and the face of the overhead of the "Damocles" sword of interest rates, capital market .bound to make significant concessions, like short term commodities bottomed out and talk about He Qinan ah! . bullish market return to fundamentals In fact, raising interest rates once the dust settles, the market will be relieved panic, the commodity market will return to bullish fundamentals of supply and demand (the former .interest rates several times the effect is very obvious), and the view from the disk, already oversold commodities, especially copper, thread and other industrial products, the product attribute negative financial attributes have been significantly weakened at the same time, I believe that the central bank increases .interest rates, the market will gradually highlight product attributes, of the bull market is expected to regain confidence, reflected in three aspects: First of all, the domestic central bank to raise interest rates would not be significant. .For four reasons: First, on May 10 the central bank has just raised the deposit reserve ratio; followed by the number of early-type monetary policy has achieved good results; once again the real estate monitoring and control policies such as regulation and control of excess capacity at this time is .value of the critical period; Finally, appreciation of the renminbi is expected to continue to increase, increase hot money inflows, strong pressure of international public opinion. . I believe that a small interest rate increase will not only make the market fully ease the panic, but also to advance the bearish market is expected to become profitable "anti-return" of the city, goods will be partially compensated for the financial attributes ., jointly with the Commercial Property market to pick up a better picture to emerge. . Second, the effect of the Forced hedge interest rate expectations. .In the euro, the pound behind the push up the dollar, yen, gold funds are also sought after by the market, I believe that although the high capital risk aversion, but the flows already appears divided, and the Federal Reserve to raise interest rates to stimulate "panic" will be gold, at .element completely out of money on long after the dollar rally was to be slowing down, then, was expected to return home and pick up the commodity market trends. . again, prices are down on serious interest from the more traditional shopping season of the fundamental support. .Currently, the bulk of goods are not only inverted, but some of the prices of goods and even fell below the cost price, which will drive commodity commodity attribute is gradually emerging, once interest rates, commodity markets will certainly paid off. . sum up, the panic of funds as interest rate expectations will continue to strengthen and continue to upgrade the current weak trend in commodity futures markets will continue to run, is expected to near the ideal state is the commodity market .low within a narrow range (less likely), the probability of continued sharp decline in larger operations, suggest that investors are still bearish near the main thought, should not buy the dips. . addition, with the point interest rate increase approaching, commodities commodity attribute is bound to increasingly prominent space will narrow down until the rate hike, "boots" after landing long before funds Admission ., I believe that the domestic central bank to raise interest rates still need some buffer time, is expected in the second quarter, likely the beginning of the third quarter. ..

U.S. Congress passed the most severe sanctions in the history of the proposal.

To the United States Congress voted overwhelmingly Thursday to date the most severe sanctions on Iran program to further isolate Iran to abandon its nuclear weapons program. . the U.S. House of Representatives by 408 votes to 8, resulted in the adoption of sanctions proposal. .Under the sanctions program, who do business with Iran offshore financial and energy companies will face serious consequences. . the Senate on Thursday voted unanimously earlier in the proposal. .This means that the sanctions motion, the White House has been submitted, to wait for President Barack Obama (BarackObama) of the signature. ..

G20 attention deficit reduction is not currency

The Group of 20 (G20) in rich countries are agreed commitments to 2013 deficit level cut half in three years, the debt burden must begin to decline. The international market and domestic political audience to signal that these countries will soon begin to weaken the irritation.

G20 from industrialized countries and developing countries. The Summit of the main topics of the debate, is in the global economy was uncertain road ahead, how fast reduction of government expenditure. United States had warned that if you reduce too fast, while private demand will not be able to fill the vacancy, the global recession is likely to recur. If the action, it is possible that analyses the produce unsustainable debt burdens, and thus likely to push up interest rates, or even risk of sovereign debt defaults. Earlier this year, Greece had walked to the edge of the breach.

This commitment was first put forward by Canada, the United States, Japan and the European countries. A draft declaration put forward G20 commitments to reduce the debt of speed "is good for growth." This means that the last statement should be demonstrated willingness to reduce the deficit, but did not give a rapid slowdown in spending Outlook.

Declaration of an early version of say, G20 affair with a nurturing and enhancing recovery, as well as a strong, sustainable and balanced growth Foundation, including strengthening our financial system for the prevention of risks.

The Obama administration has pledged to cut the deficit in accordance with the above, but has urged G20 attention irritation.

Will become Canada's Central Bank in July (BankofCanada) Senior Vice President and senior financial officials McCallum (TiffMacklem) recognized the G20 countries face a double risk as aforesaid. He said that there is a risk that, if not clear, credible financial plan commitment, communication and action, you may damage recovery; there is also a risk that if the G20 countries at the same time a lot very quickly for fiscal austerity, the recovery is likely to be adversely affected.

Germany uses this field to a weekend meeting criticized the United States, sought to show themselves in deficit and debt issues tough reputation. Germany's Finance Minister Schaeuble (WolfgangSchauble) accept France Monde (LeMonde) interview on the United States had complained, saying Obama's huge irritant expenditures on the United States is higher than 9% of the basic unemployment rate has no effect. To Sunday, Germany Merkel (AngelaMerkel) has announced that the United States and other countries to unite. She said, should be developed industrialised countries in 2013 will be reduced by half its budget deficit and start from 2016 to reduce debt levels, this point is clear-Canada leaders also here provides great support-we are very pleased about this.

G20 countries spread in the middle of the file shows that the United States, Germany and France, the United Kingdom and Canada, are prepared in a similar manner be halved the deficit; G20 Summit to put these commitments speak more clearly.

United States estimated that by 2013, the deficit in the proportion of GDP will be from the current 10.1% drop to 4.2%, Germany expected 2013 of deficit ratio from 2010 5.5% down to 3%. But the United States reached the goal more than Germany depends on economic growth, and the United States of economic growth is expected to be slower than Germany.

Representation in the Obama administration is now Petersen, Institute for International Economics (PetersonInstituteofInternationalEconomics) economists Truman (TedTruman) said that, from the past, the Summit's commitment will help countries do, after all, or they want to do. He said that in the 1990s, the United States in international fora reduction of budget deficits, is widely regarded as the maintenance of a strong position, although in the 1980s when similar pressures did not play a role.

Toronto Summit in many ways. First it was the Seattle World Trade Organization since 1999 riot against international economic summit, the largest demonstrations.

Protests have about 500 people were arrested, began as trade unions and social justice organizations led peace marches, but in the end becomes a small unit of violent youth. Some news briefing because of the violence has been disturbed, but conflict away from leaders held a meeting place, but not like Seattle that interrupt the consultations.

This G20 Summit did not focus on China, India and Brazil, etc. larger emerging markets. In 2009, 9 years Pittsburgh G20 Summit, people want to own the trade surplus countries, especially China committed to adjust the policy to reduce export, increase domestic consumption. But I hope that those who have a large trade deficit in the country, especially the United States to the contrary. Toronto Summit only briefly reviewed the State of commitments.

For China and India, the largest ever be of significance lies they attended the World Summit. Taking into account if they fail to make adjustments to the Summit in Toronto, they embarrassed the meeting as the deadline for policy adjustment.

Regarding China, the United States Government officials and the Chinese Central Bank officials have access to the G20 Summit is an opportunity to convince the Chinese Government agreed to let the RMB appreciation. United States Treasury Secretary Geithner (TimothyGeithner) has made it clear that the United States hoped that the RMB exchange rate mechanism in the 6 months prior to the G20 Summit to April he postponed publishing Ministry twice a year to report on international currency. The report may have accused Beijing manipulation of the RMB exchange rate to obtain the advantage in international trade.

Cornell University economist Prasad (EswarPrasad) was the International Monetary Fund (IMF) Chief Chinese officials, he said that the G20 upcoming this fact helped those who wish to exchange more

Flexibility of China's Central Bank officials so that they stay in and wished the RMB exchange rate underestimated trade officials engaged in the upper hand.

Is India, the Government Friday before the Summit that will significantly reduce gasoline and kerosene of consumer subsidies, and this will reduce government spending and increase energy efficiency, in line with the G20 on reducing energy subsidies. IMF former officials SA Bo Raman-(ArvindSubramanian) said that India and China's actions show international factors play a role. At present he is the Peterson Institute for International Economics (PetersonInstituteforInternationalEconomics) researchers.

At the end of the consultations, the members wish to consolidate G-20 on financial rules for the adjustment of the expected, including strengthening of capital and leverage standards.

They also make continue to oppose protectionism, this commitment does not terminate the creation of barriers to trade, but in the global recession allowing barrier at the level of control.

The majority of financial matters be deferred to the next consultation, held in Seoul, the G20 Summit expected to agree to new States.

G20 countries in Bank tax issues still disagreements, United States, Germany, United Kingdom and France supported the relief funds taxation, but include Canada, Brazil and India, countries did not provide for bank capital reorganization of public funds, therefore they opposed this view.

Obama to Seoul Summit increased the issues, consultations with Korea, he expressed the hope that modify the Korea free trade agreement (KoreanFreeTradeAgreement) part, and the Seoul Summit reached an agreement before.

Korea presidential adviser said, leaving Seoul HyunSongShin session? everything. Korea is also G20 meeting, summarized, Seoul, G20 Summit will focus on development issues, and to countries in need of emergency loans. After a stimulating programme is a joint effort with the IMF.

Basel second edition of "Dead Before their dreams".

Recently, one of the major highlights is the international Basel II came out the third edition of the draft. .July 26, the Basel Committee on Banking Supervision announced that 26 members of the central bank and banking regulators in the financial crisis, set to strengthen bank capital and liquidity risk management to reach a broad reform program. .The specific content of the program include: the definition of capital, counterparty credit risk management, debt capital leverage, assets, liabilities, liquidity standards. .There are also issues to be negotiated are: how to improve the capital ratios, and how to impose counter-cyclical buffer mechanism. .This large area of the reform program, known as the third edition of the Basel agreement. . the Basel Committee on Banking Supervision is an international financial organization, subordinate to "the central bank's bank" Bank for International Settlements in Basel, Switzerland. .Basel Committee on Banking Supervision is mainly engaged in the coordination and development of international banking supervision policy, international exchange and provide a platform for consultation. .It is the most important results of the first edition of the Basel Protocol, Second Edition, and now the third edition. . the third edition came out with the Basel Accord, a natural question is the second edition go? .In the U.S., the original dynamic of the Basel Accord have not seen the second edition of its debut, did not enter the agenda of major banks, has been replaced, and how is this going? . talking about the second edition of the Basel Agreement, may be traced back to the first edition. .Basel II was born in 1988, first edition, it is the initiative of its national jurisdiction of the bank regulatory agencies to implement the minimum capital reserve requirements in order to guard against risk, to ensure the safety and soundness of bank runs. .This guide policy because of its simple, capital and risk-linked, not only by the ten member states was adopted by the Basel, also adopted by other non-member countries. .Basel Basel Committee created the first version of a unified international standards, coordination of regulatory policy precedent, opened a major international financial regulatory scene. . blink of an eye over the past decade, ever-changing financial market, for those international banks, Basel II begin to show the first edition of its limitations. .The agreement provided for the risk of type too small, the line is too thick, making the capital and risk not linked closely enough and efficient capital allocation, resulting in banks there have been many capital arbitrage. .In addition, reasonable and effective to calculate the real risk, we must rely on a combination of advanced theory, diversification of assets and hedge between the properties are taken into account. .At that time, many big banks have been successfully used in their internal model portfolio risk management, pricing and capital allocation. . call in the banking sector's lobbying, the New York Federal Reserve began the first edition of the work of the Basel II reforms, has done a lot of sample collection, the survey summed up, meeting coordination, with the Basel Committee, various .dealing with regulatory agencies and lobby groups work. .The first edition from 1998 Basel reform horn sounded, Basel 2006, the second edition of the dust has settled, the four U.S. banking regulators (Federal Reserve, currency control department, the Federal Deposit Insurance Corporation, savings and loan .will monitor the Department) beginning to end, go all out to actively participate in and treat it as top priority. .Finally, the second edition of the implementation of the Basel Accord very large and complex for different banks, the capital of three different calculation methods: the standard method, the IRB, senior law. .Among them, the standard method similar to the first edition of the Basel Agreement, only slightly more complicated; higher law, although high, did not achieve the combination of theoretical models using the height and mind. .In other words, Basel II selected for the second edition of a compromise between the first and between the combination of the three paragraphs of theoretical models. . the state-owned banks in Europe before 2008, must complete the deployment of Basel II and implementation of the second edition. .Banking system is also step by step, establish a good system, configured personnel, have started reporting the new capital adequacy ratio under the agreement. . but in the U.S., although the initiator of the second edition of the Basel Agreement, to the implementation of the implementation phase is delayed, hesitant. .Small and medium banks that no substantive change to the agreement, and adoption of new agreement to pay a considerable number of human material and financial resources, more harm than good, complete a regulatory burden. .The big banks did not respond positively, because they can not meet the requirements of the use of portfolio theory model. . Finally, under international pressure, the four U.S. banking regulators in July 2008 reached a compromise to require large U.S. banks to implement Basel II version of the Higher Law; and the United States .small and medium banks can choose whether to adopt the Basel II standardized approach for the second edition. .Compromise also provides for several hours old and the new calculation method of the transfer, each transfer period is at least one year. . exactly in 2008 is the world's banks are in precarious financial crisis, which also spare some time to Basel. .After the storm, which naturally this regulatory rules he's too short also. .Sure enough, the United States with the financial reform bill, the Basel Committee released the third edition of the agreement, strengthened its capital requirements. . second edition from the Basel Accord died in the United States, we can see the limitations of international financial agreements. .First slowly, in dozens of countries the rationale for each side, each with different accounting systems and operational guidelines, is difficult to reach a consensus; the second is not enforceable, the Basel Committee is a no executive powers, no legal effect .international agencies, it only provides guidelines for the agreement, each country must finally decide whether to adopt their own. . I hope the third edition of the Basel Protocol will not repeat the mistakes of the second edition - "the body die before their dreams." ..

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