Avafx Bonus

  Central bank of Australia sees scope to cut interest rates.

>> Thursday, June 4, 2009

On Thursday Australia's top central banker stated that he saw possibility to cut interest rates more to make sure a long-lasting economic influence and warned about declining business investment and consumer spending.

Thursday’s Government data sought to strike a chord to the investors about downside risks to the economy with exports falling 11% in April from March. Australian dollar fell down to $0.8014 from around $0.8040 beforehand.

As a result of a droop in exports, Australia suffered its first trade deficit since July last year, just a day after 1st quarter GDP showed the country moved away a recession, helped by its best trade performance in 48 years.

Reserve Bank of Australia Governor Glenn Stevens said that it is likely that activity has remained subdued in the June quarter, the quick downfall in business investment is more or less undoubtedly continuing. While consumer expenditure has held up quite well so far, it may be weaker over the next few months, as the one-off government payments pass and rising unemployment starts to weigh.

Stevens also said that the joint effect of the large fiscal and monetary incentive has played a role in mitigating Australia from the worst global downturn in decades and that monetary policy intended to cut borrowing costs and support demand but the central bank would be careful not to encourage shaky debts.

Read more...

  General Motors Corp. got the court approval to auction its assets.

>> Tuesday, June 2, 2009

General motors Corp. filed the bankruptcy and won the court approval to auction its assets with the highest bid coming from the U.S. reserves and aimed at closing the sale in July to create a restructured Automaker.

Yesterday Judge Robert Gerber in Manhattan gave the permission to borrow $15 billion of a planned $33.3 billion bankruptcy loan from U.S. Bankruptcy. According to a court filing yesterday the U.S. government will expand $50 billion in loans to the 100-year-old automaker and its strategy is to convert that into a 60 % stake in the restructured organization.

General motors Corp. the largest carmaker until its 77-year sovereignty ended last year, had beaten Chrysler LLC as the largest manufacturer to file for bankruptcy. Detroit-based GM plans to commence a new company in 60 to 90 days, equipped with vehicles from its Cadillac, Chevrolet, Buick and GMC units for the U.S. market.

The court will administer the sale or liquidation of unprofitable brands, such as Saturn and Hummer, and at least 11 unwanted factories. General motors Corp stated in its bankruptcy filings yesterday that it has more than 100,000 creditors, and they will recover some assets in the restructuring. Company operations outside the U.S. were not included in the petition.

Read more...

  General Motors prepares to Declare Bankruptcy Yen rose vs. Dollar

>> Monday, June 1, 2009

According to the latest Forex updates - After the declaration of U.S. government that General Motors Corp. will file for insolvency today, the Yen climbed up for a 2nd day against the Dollar and the Euro, impelling demand for Yen as a protection from the financial crisis.

The Yen became sophisticated versus 13 of the 16 most-traded currencies after the U.S. government said GM is planning to close 11 factories, accumulating to signs the U.S. recession is far from over. The Euro fell against the Pound on alarm that European Central Bank policy makers will signal this week they plan further steps to keep down borrowing costs, wetting the request of the 16-nation currency. After a Chinese report that shows manufacturing expansion led to the increase of Taiwan Dollar the most in a month.

The Yen became stronger to 95.14 per Dollar as of 1:29 p.m. in Tokyo, from 95.34 in New York last week, when it completed a 3.5 % monthly gain. The Yen increased to 134.58 per Euro from 134.96. The Euro traded at $1.4147 from $1.4158, after gaining 7 % last month, its major forward move since December. Europe’s currency fell to 87.13 pence from 87.46 last week. Sumitomo Mitsui’s Uno said that the Dollar may weaken to as low as 94.25 Yen today.

Read more...

About This Blog

Lorem Ipsum

  © Blogger templates Palm by Ourblogtemplates.com 2008

Back to TOP