posted by admin on 7th, 2008
D.R. Horton Inc. (DHI), one of the largest house- building companies in the United States, reported a big loss statement on the outcome of the II fiscal quarter due to recession in the housing market and mortgage crisis. This was reported in the company’s quarterly report, published on May 6.
The company reported damages of $ 1.3 billion, or $ 4.14 per share. A year earlier the company received profits of $ 51.7 million, or $ 0.16 per share. Revenues in the company last quarter fell by 38%, to $ 1.62 billion against $ 2.62 billion a year earlier. Analysts who participated in the survey Thomson Financial, had expected losses of $ 0.39 per share, with revenue $ 1.36 billion
posted by admin on 6th, 2008
The largest U.S. mortgage lender Fannie Mae announced today that its losses for I quarter amounted to $ 2.2 billion (in IV quarter of 2007 it was $ 3.6 billion), and cancellation of $ 3.1 billion. In this regard, the company will try to attract additional capital amounting to $ 6 billion
After this message shares of the company in morning at the U.S. bid over the counter market fell by 9.9%.
Fannie Mae and its smaller brother-competitor Freddie Mac, according to the Financial Times Deutschland, now are in need of at least $ 15 billion to avoid bankruptcy. Over the past year, shares of both parastatal companies lost more than half the price.
posted by admin on 13th, 2008
It is not the news that the United States is going through a difficult period in the economy. Any messages received from the North American continent, overnight change the quotations on the Russian market. But let us suggest that the problem of the American market may in fact not be the problems. There is a natural process of reducing the temperature of “overheated body.”
Many analysts believe that the cheap dollar is profitable for the U.S. Government. This means only one thing: the market is available for domestic consumers and for the foreign investor. The questions is how long the fall of American money will last, and whether it is time to buy real estate in the United States which became cheaper, the experts responded FGD “AL”.
posted by admin on 6th, 2008
Financial companies may lose at least $600 billion as a result of the crisis provoked by hypothecary problems. To such conclusion the analysts of UBS AG (UBS) have come.
Experts of UBS consider, that only banks and brokers can lose about $350 billion. The burst crisis already has struck strong blow to the largest financial institutions.
American International Group Inc. (AIG), the largest insurance company in the world, has reported about the largest losses for the 89-year-old history because of writing off $11,1 billion in connection with work with derivatives, which large part has appeared to be hypothecary papers. London company Peloton Partners LLP on Thursday, February, 28th has declared that it is compelled to liquidate a hedge fund with assets of $1,8 billion because of toughening of standards of crediting. In general, financial structures declared losses at a rate of $160 billion
Bank UBS had significant losses as a result of crisis – it had to write off $19 billion. For stabilization of situation the bank has accepted the plan of sale of convertible bonds for $12 billion to Singapore investment fund Government of Singapore Investment Corp, and to not named Mid-Eastern investor.
“We should recognize the risk that economic losses can appear above our expectations”, - Geraud Charpin, the head of the European department of credit strategy of bank UBS has declared.
Officials also recognize growth of problems. The head of Federal Reserve System Ben Bernanke has the day before predicted crash to small banks and has declared that the rate of unemployment in the USA can grow. Thereby, he has strengthened fears of investors concerning possibility of recession.
posted by admin on 5th, 2008
posted by admin on 4th, 2008
On Thursday dollar has fallen in relation to euro on the negative statistics which has strengthened fears of recession in the USA, reports Bloomberg. During the auctions on Thursday the dollar exchange rate to euro fell to $1,4838 - minimum index since February, 4th - against $1,4714 on Wednesday. By 8:41 MOSCOW TIME on Friday it has made $1,4804. The index of industrial activity expected by the Federal reserve bank of Philadelphia, in February has unexpectedly decreased to a minus 24 items in comparison with minus 20,9 items a month before, whereas the economists expected increase in an indicator up to minus 10 items.
According to data since 1968, falling of the indicator to a minus 24 and more always coincides with recession in the USA. Besides, the index of advancing economic indicators of the USA, expected by research organization Conference Board, in January has decreased on 0,1 %. Thus, the indicator decreases the fourth month successively. “I do not see anything that could change the tendency of dollar decrease”, - dealer of Okasan Securities Tsutomu Soma speaks. In his opinion, dollar can fall in price to euro to $1,4950 during two weeks. Trade in futures for the base interest rate shows, that traders evaluate probability of its decrease at March meeting of Federal reserve system on 0,5 of percentage item of 88 %. Chances for reduction of 0,75 percentage items are evaluated in 12 %. “FRS will try to stimulate economy, - considers Card Forcheski from Societe Generale. Is gives to” bulls “the bases for euro purchase”.
posted by admin on 3rd, 2008
posted by admin on 2nd, 2008
According to the Ministry of Labor of the USA, the price index of manufacturers, PPI, being the inflation indicator in wholesale sphere, in January has sharply grown because of heavy prices for energy carriers and foodstuff.
The index in January has flied up on 1 % in comparison with December. The prices for energy carriers have increased by 1,5 %. Wholesale prices for foodstuff in January have grown on 1,7 %.
The basic component of index PPI which does not include the prices subject to significant changes for energy carriers and foodstuff, in January has grown on 0,4 % in comparison with December because of increase in the prices for medicines and cars. The prices for cars have increased by 0,3 %, and medicines have risen in price for 1,5 %.
Last year index PPI has flied up on 7,4 %. It is the considerable increase since 1981. The basic component of an index for a year has increased by 2,3 %.
posted by admin on 1st, 2008
posted by admin on 31st, 2008
The new 5-dollar notes, having additional elements of protection are entered into the USA. Denominations of the old sample will be withdrawn in process of deterioration.
New notes save the former size, on them there is an image of Abraham Lincoln, and from a back the memorial of this American president is represented, the picture became larger. Among additional elements of protection paint changing color and new watermarks are. But the most appreciable change in design of new money became occurrence of light-violet color in the centre of the note, gradually passing in grey closer to edges.
According to the experts, the new money issued in the circulation is more difficult to forging and easier for checking up for authenticity. It is planned to produce them for the sum of 1,5 billion dollars. In the nearest future US authorities intend to update hundred-dollar notes.
