Deutsche Bank: credit crisis has almost ended
Written on 19 May 2008 by adminEnd of credit crisis comes and US real estate market should be restored in second half of year. Such information has been declared by chapter Deutsche Bank Joseph Akkermann.
According to his words the end of financial crisis has come. It has not come to the end yet, but signals from the USA encourage. He has also told that the pragmatic approach of the USA to the sanction of crisis will soon improve the situation. The expert has declared that they should feel results in the second half-year and see powerful restoration of the American real estate market. So, it is high time for the banks to start drawing conclusions from current crisis.
Russia needs diversification
Written on 17 May 2008 by adminIts’ rating of competitiveness has decreased. Despite of credit crisis, the USA remain the most competitive country the world though in following the American economy can concede year in the leading position. Experts of Swiss business school IMD annually measure a competitive climate in 55 states of the world. As well as one year ago, the first three of leaders, where Singapore and Hong Kong also appear, has remained without changes. Russia because of insufficient economy diversification has moved from 43rd on 47th place.
Authors of IMD World Competitiveness Yearbook 2008 mark, that at work above research «for cleanliness of experiment» they tried to not consider influence of hypothec crisis, which has begun in second half of last year. Thus, leaves, that according to 331 criterion US authorities have for almost 15 years managed to support optimum conditions for business development inside of the country. The largest economy of the world still surpasses the others on scales of investments; volumes of the tenders in the share market, and also on export of commercial services (see the table). It is easier to place the capital in the USA; the country also dominates over the technological plan, for example, by quantity of the personal computers, used in various spheres.
Index of world competitiveness
|
Country |
2007 |
2008 |
|
|
1 |
1 |
|
|
2 |
2 |
|
|
3 |
3 |
|
|
4 |
6 |
|
|
5 |
4 |
|
|
6 |
5 |
|
|
7 |
12 |
|
|
8 |
10 |
|
|
9 |
9 |
|
|
10 |
8 |
Source: IMD WCY 2008
Net profit of Societe Generale has decreased up to € 1,1 billion
Written on 13 May 2008 by adminNet profit of Societe Generale has decreased up to € 1,1 billion
During the first quarter of 2008 net profit of French bank Societe Generale S.A. has decreased on 23,4 % - up to 1,1 billion euro in comparison with 1,43 billion euro, received for the similar period year earlier. Such data has been published in the financial report of bank.
The proceeds of bank for the specified period have decreased on 6,1 % and have made 5,68 billion euro against 6,05 billion euro year earlier. The operational profit for accounting quarter has made 1,18 billion euro, that is on 45,5 % less than a similar parameter for I quarter 2007, fixed on a level of 2,16 billion euro.
Societe Generale connects decrease in net profit for the accounting period with falling profitableness of banking division investment and investments’ management.
It is worth of mentioning that in 2007 net profit of bank has decreased on 81,9 % - up to 947 million euro in comparison with 5,22 billion euro, received year earlier. Proceeds of bank have decreased on 2,2 % and have made 21,92 billion euro against 22,42 billion euro year earlier. Operational profit has made 6,71 billion euro, that is on 16,5 % less than a similar parameter in 2006, fixed on a level of 8,04 billion euro.
MasterCard doubles profit
Written on 12 May 2008 by adminOwing to growing popularity of plastic cards one of the world’s largest plastic cards operators, American company MasterCard Inc., has sharply increased profit in the first quarter of 2008. It has informed on doubling results on the background of global financial crisis that speaks about fast growth of popularity of “plastic” among consumers. MasterCard’s net profit has grown up to 446,9 million dollars, and the increase in payments is fixed in the USA, and also in the countries with growing economy.
MasterCard has come to the stock exchange in May, 2006, and since then it pleases analysts with good financial results, which quarterly appear above every possible forecasts. From last report MasterCard follows, that year earlier the profit of the company was twice less and made 214,9 million dollars. Doubling has provoked record for the last half a year growth of cost of its shares: at the exchange tenders the shares of the operator have instantly risen in price on 13 %, up to 31,4 dollars per share. Experts mark that plastic cards’ operators, among which leader of branch Visa Inc. and also American Express Co. and Discover Financial Services LLC are, use gradual global increase in incomes of the population, and it pushes their growth.
Substantial growth of profit MasterCard has occurred owing to transboundary transactions. The company has diversified international plan more, than its competitor Visa and consequently, it is less dependent on US crisis. Today American MasterCard takes half of profit from granting services abroad, and Visa makes two thirds of operations inside of the USA.
US hypothec brokers are suspected of swindle
Written on 6 May 2008 by adminThe federal Office of Public Prosecutor of the USA finds out, whether swindle disappeared behind falling of the hypothec tools prices.
Public prosecutors from East district of New York are engaged in investigation. The working group, which structure includes representatives of federal and local supervising bodies, and also regulators of staffs, has been created.
According to the public prosecutor of district Benton Campbell, the purpose of investigation is to reveal possible infringements in hypothec brokers work, and also to find the inside transactions and accounts’ frauds.
Public prosecutors will study hypothec brokers’ reporting and will search for the possible infringements deforming a financial position of the company, and also quality of hypothec credits. Regulators will also find out, whether cases, when brokers embellished the information on credit loaners’ history, took place.
Public prosecutors are also going to find out, whether hypothec brokers deceived Wall Street banks, which financed them. Authorities also suspect brokers of investors’ deceit, who were not informed, that maintenance of tools is carried out by high-risk hypothec credits.
Great Britain: the number of the approved hypothec credits has sharply decreased
Written on 4 May 2008 by adminThe bank of England has informed, that the number of the approved hypothec credits in the Great Britain has decreased to a record minimum in March, 2008.
The quantity of the approved credits has decreased up to 64 thousand from 72 thousand month earlier (despite of the analysts’ forecast in 65 thousand)
The volume of all consumer credits has grown in March on 1,237 billion pounds sterling after growth on 2,347 billion pounds month earlier. Analysts expected a gain of 1,2 billion pounds sterling.
The volume of hypothec crediting has grown on 6,93 billion pounds against growth on 7,276 billion and at the forecast in 7,2 billion pounds sterling.
In March rates of monetary weight growth have made on 11,9 % in annual calculation against 12,3 % month earlier.
Fitch: crisis continues to reduce banks’ ratings
Written on 27 April 2008 by adminAgency Fitch Ratings has declared, that preservation of crisis of liquidity in the world financial markets continues to put pressure upon banks’ ratings.
In the 1st quarter of 2008 excess of quantity of “negative” forecasts on ratings above quantity of “positive” forecasts has proceeded, and the number of the lead negative rating actions for a quarter remains at rather high level.
A number of the largest banks of the USA have suffered especially strongly. Though the measures, taken by US Federal reserve system, have improved a situation with short-term accumulating, on ratings of several largest commercial and investment banks of the USA the forecast “negative” or rating watch “negative” has been appropriated.
Though the quantity of negative rating actions in the developed markets has reduced up to 41 in 1st quarter of 2008 against 48 in 4th quarter of 2007, downturns of ratings have remained at historically high level. These downturns have been lead in the developed countries of the American continent and Europe.
At the same time banks from developing markets show more favorable parameters, despite of a number of exceptions.
The role of insurance companies in the hypothec market
Written on 20 April 2008 by adminOn a background of insignificant delay of rates of a gain of macroeconomic parameters in 2005, during 2000-2006 Ukraine has been showing stable economic growth and real incomes of the population have the positive tendency to increase. Volumes of housing construction have the precise tendency to growth, but they make only 40 % from level, reached in 1987. The average price for one square meter in Kiev in 2007 has reached $2800-2900; therefore the question of maintenance of the population of Ukraine habitation remains extremely urgent.
Under standards of the minimal living conditions of the United Nations (30 square meters per person), in Ukraine average security of the population habitation does not exceed 22-23 square meter per one person, that is 2-2,5 times less, than in the countries with the developed economy.
Concerning other factors, which assist development of the market of inhabited hypothec crediting in Ukraine, there is a relative stability of national currency, growth of incomes of the population and formation of middle class (by estimations of experts, the middle class in Ukraine makes 8-10 % of the population), increase in a share of urgent deposits in structure of banks’ obligations (in 2006 urgent deposits made 66,1 % in a depositary portfolio of banks, and in 1 m quarter 2007 - 66,9 %), the generated and liquid market of the inhabited real estate and presence of acute problem of maintenance of the habitation for population, the generated legal basis of hypothec crediting.
Mirax prepares for release of credit notes for the sum of $150 million
Written on 15 April 2008 by adminMirax Group prepares for release of credit notes (CLN) for the sum of nearby $150 million.
As it has become known, release will last for 2 years. Its’ organizers do not exclude that accommodation will be held up to the end of April.
In the end of February Mirax Group has extinguished debut CLN release for the sum of $100 million.
Now in circulation there are credit notes for the sum of $180 million, which were arranged on March, 13th, 2007. Term of the reference of release makes 4 years. It has also become known that “MDM-bank” has acted as the organizer of accommodation.
New adjusting body for banks will be created in USA
Written on 11 April 2008 by adminNext week US Finance Minister Henry Polson will meet with senators and management of financial companies Fannie Mae and Freddie Mac for discussing with the bill of creation of new adjusting body for the control over bank system.
Freddie Mac and Fannie Mae’s managers will, accordingly, meet a management of Exchequer and two senators, leading work above the new bill on bank regulation.
Fannie Mae and Freddie Mac have faced problems because of hypothec crisis, and existing adjusting bodies in the end of March agreed to help them. They have lowered a level of necessary capitalization for the hypothec diggings, sponsored by the state, having allowed them to invest up to $200 billion into the hypothec market.
Management on federal supervision of US housing sector has lowered volume of the additional capital, which the companies should reserve after problems with the accounting reporting, from 30 % up to 20 %. The regulator has also promised to lead the further downturn of demanded level.
Now the Ministry of Finance is going to strengthen adjusting bodies.
