Wednesday, September 02, 2009
IMF chief sees unemployment rising in 2011
Posted by imdurrani Labels: IMF, world economy, world finance
"We must continue to work hard to ensure that a sustainable recovery comes indeed in the first half of 2010. But, despite the recovery, unemployment will continue to rise in 2010 and perhaps in the more developed economies even in 2011," he said in an interview with the Greek Kathimerini newspaper.
He warned against taking the recovery for granted, saying risk still remained. "The basic short-term risk is for the recovery to stop, something that could be caused by a series of negative developments," he said.
"A possible premature exit from a loose fiscal and monetary policy constitute a risk, if fiscally supported growth is erroneously seen as a sustained recovery." He said another key concern is that higher oil prices could hinder recovery.
Oil price hits 10-month peak at $75
Posted by imdurrani Labels: global economy, Oil prices, world economy, world financeThursday, August 2 7, 2009 LONDON: World oil prices briefly struck 75 dollars per barrel on Tuesday for the first time in ten months, as traders reacted to rebounding consumer confidence in key energy consumer the United States. The rebound in confidence was stronger than the 47.9 reading that most analysts had expected. The index had hit an eight-month peak of 54.8 in May. The August data had a great deal of impact and was probably responsible for the whole move higher, Hart added. Consumer confidence is very closely tied to the US economy — 70 percent of the economy is driven by consumer spending and if the consumer is feeling better then that bodes well for the economy, which is good for energy demand. Crude futures had already powered to 10-month peaks on Monday amid growing hopes for global economic recovery and China s strong oil data. Markets also found a springboard from US Federal Reserve chief Ben Bernanke s positive comments on Friday about the outlook for recovery from global recession. Fed Chairman Ben Bernanke, who was reappointed to a second four-year term on Tuesday, had said last week that prospects for growth appear good despite financial market strains. European Central Bank boss Trichet also predicted last week that the world s economic free fall was over. Oil prices have slumped since striking record highs above 147 dollars in July 2008 as a vicious global recession slashed energy demand. They have since clawed back ground on recovery hopes. The market also got a major boost on Monday from data out of China — the world s second-biggest energy consuming nation after the United States. Chinese demand for oil increased for the fourth consecutive month in July, said analysts at JBC Energy in Vienna. Year-on-year, oil consumption — excluding stock changes — was up by some 3.5 percent, they noted. Traders will switch their focus on Wednesday to the weekly oil inventories report from the US government s Department of Energy. Visit Finance.KalPoint.Com for latest financial stories...
In late afternoon trade here, New York s main contract, light sweet crude for October delivery, spiked to 75.00 dollars exactly — reaching a level last seen in October 2008 before the global recession. However, the contract later pulled back to 73.45 dollars, down 80 cents from Monday s closing level. And London Brent North Sea oil for October fell 42 cents to 73.95 dollars a barrel. It was very much a knee-jerk reaction, said Hanson Westhouse analyst David Hart, adding that there was a lack of buying interest to maintain prices above the key 75-dollar level. The logical conclusion to draw is that prices are going to go higher, Hart added. US consumer confidence rose more than expected in August after two consecutive months of declines, buoyed by a jump in recovery hopes for the coming months, the Conference Board announced on Tuesday. The business research firm said its consumer confidence index climbed to 54.1 in August from an upwardly revised 47.4 in July.
Thursday, August 27 2009
A massive shortage in sugar stocks in India and Pakistan has led to soaring prices and consumer unrest, BBC reported on Tuesday. The Indian govt has introduced strict limits on companies that stockpile sugar to check rising prices. Shortages led Pakistan s government to nearly double sugar prices causing public outrage ahead of the fasting month of Ramadan. The price of raw sugar worldwide has increased to its highest level since 1981, as supply concerns grow.
China still faces challenges to recovery: planner
Posted by imdurrani Labels: Asia, China, global economy, world economy
"The serious fall in external demand is a pronounced problem for China's economy, and our country is still facing great pressure in the employment situation," Zhang told a session of the standing committee of parliament, according to state radio. Presenting a report on the economy's performance, he said domestic demand was still not strong enough a driver of growth, and that housing prices in some cities had risen by too much.
Zhang added the global economy would take a long time to recover from recession, and that improvement over the long run would involve many ups and downs along the way. The government would make efforts to increase domestic demand and stabilise exports, he said, without elaborating.
Germany exits recession, prospects brighten
Posted by imdurrani Labels: Europe, global economy, world economyWednesday, August 26, 2009
The data ended four straight quarters of contraction, and could offer support for Chancellor Angela Merkel's ruling coalition as a federal election approaches on September 27. Having overcome its deepest slump since World War Two, analysts believe the German economy should rally as companies ramp up production and rebuild their depleted stocks.
"The big decline in inventories suggests that these need to be built up again and that production will get a boost," said Juergen Michels, an economist at Citigroup in London. "The recovery has a relatively solid foundation." Government stimulus measures, such as a subsidy for scrapping old cars in exchange for newer, more environmentally friendly models, were seen by many as a key driver of growth in the April-June period.
"Despite today's positive numbers, the German economy is still on a drip, getting infusions from policymakers," said Carsten Brzeski, an analyst at ING Financial Markets. "The coming weeks and months look good but some doubts remain whether the economy can already stand on its own feet." The figures showed that adjusted for working days, German GDP contracted by 5.9 percent on the year in the second quarter, confirming preliminary estimates from August 13.
In the first quarter, it shrank by 6.7 percent. Many analysts believe job losses in Germany will accelerate in the autumn as the effects of government support for the labour market - notably incentives for firms to put workers on shortened hours rather than fire them - wear off.
In a breakdown of the data, the Office said net trade added 1.6 percentage points to GDP as a sharp drop in imports outpaced a decline in exports. Private consumption added 0.4 points and a liquidation in inventories subtracted 1.9 points. Since Germany reunified in 1990, inventories had only once hit GDP harder, an Office spokesman said.
Then, in the last quarter of 2006, the blip was caused by statistical factors, and did not properly reflect the state of the economy at the time, he added. Latest indicators, such as the Ifo institute's gauge of business sentiment, have risen, suggesting the recovery is gaining strength.
World Bank Raises China 2009 Growth Forecast to 7.2%
Posted by imdurrani Labels: China, global economy, International, International business, world economyThursday, June 18, 2009
The World Bank raised its growth forecast for China this year and advised policy makers to delay until 2010 any additional stimulus plan to boost the world’s third-largest economy.
China’s economy will expand 7.2 percent in 2009 from a year earlier, up from a 6.5 percent forecast in March, the Washington-based lender said in a quarterly report released today in Beijing. Stocks gained after the announcement.
The World Bank joins Goldman Sachs Group Inc., Morgan Stanley and UBS AG. in raising growth forecasts this year after a 4 trillion yuan ($585 billion) stimulus package triggered record loans and surging investment. The lender said it’s “too early” to say there is a sustained recovery, citing the economy’s dependence on government spending and echoing a State Council caution yesterday against excessive optimism.
It’s “not necessary, and probably not appropriate” for China to add fiscal stimulus this year, the World Bank said. Consumption is likely to slow, pushing down wages and employment, and the nation should retain room for stimulus in 2010, in case the global economy takes a turn for the worse, the bank said.
The Shanghai Composite Index rose 0.9 percent as of the 11:30 a.m. local time break in trading. Industrial & Commercial Bank of China Ltd. climbed 2 percent.
‘Critical’ Phase
Gross domestic product grew 6.1 percent in the first quarter this year from a year earlier, the least since 1999, as exports slid because of the global recession. The economy is in a “critical” phase, the State Council said yesterday, warning that a recovery is not yet on solid foundations.
“Overall growth prospects have improved somewhat, compared to three months ago, but with little carry-over into 2010,” the World Bank said. “The massive monetary impulse of the first five months will support economic growth in the coming quarters.”
Goldman Sachs forecasts an 8.3 percent expansion this year, Morgan Stanley estimates 7 percent and UBS predicts growth of 7.5 percent.
“I don’t think China will see a V-shaped recovery back to high single-digit growth rates,” said Louis Kuijs, the World Bank’s senior economist for China in Beijing. “The impact of the policy stimulus next year can realistically not be as large as it has been this year.”
(Bloomberg)
Dollar slides after Russian comments
Posted by imdurrani Labels: global economy, International business, US, World Currencies, world economyNEW YORK: The dollar fell across the board on Tuesday, pressured by comments from Russia suggesting a need for a global reserve currency other than the greenback. Safe-haven demand for the dollar also fell after data showed a rebound in US housing starts and an unexpectedly small rise in producer prices.
Investors snapped up higher-yielding currencies such as the Australian dollar. But Russia's dollar-negative comments dominated the market, a day after the country's finance minister backed the greenback's role as the world's reserve currency.
Russian President Dmitry Medvedev said on Tuesday that existing reserve currencies, including the dollar, have not performed their function, and a new supranational currency was in the making. "Clearly the largest holders of US Treasuries are increasingly nervous about the fiscal stability of the US going forward," said Omer Esiner, senior currency analyst at Travelex Global Business Payments in Washington. "That said, I don't think it's to anybody's interest to see a run on the dollar."
In late New York trading, the euro was 0.3 percent higher at $1.3839 on electronic trading platform EBS. The euro had gained after German think-tank ZEW said its economic sentiment index surged to 44.8 in June from 31.1 in May, exceeding expectations for a reading of 35.0 and suggesting market optimism for a recovery this year.
The dollar fell more than 1 percent against the yen to 96.43, its largest one-day fall in more than two weeks. The ICE Futures' dollar index, which tracks the value of the greenback against a basket of currencies, dropped 0.5 percent to 80.737.
The summit of Brazil, Russia, India and China, known as the BRIC group, steered clear of any direct assault on the US dollar's dominance. However, in a joint communique the leaders of the world's biggest emerging economies called for "a stable, predictable and more diversified international monetary system."
A Russian delegation source also told Reuters that BRIC finance ministries and central banks were tasked to work on reserve currencies proposals. Ronald Simpson, managing director of global currency analysis at Action Economics in Tampa, Florida, said the communique appears to "have taken some wind out of the dollar's sails for now."
Despite the lack of direct reference to the dollar's future role as a global reserve currency, Simpson said BRIC's demand for a more diversified currency system is "not exactly a subtle hint about the dollar" and suggests that over time, countries like BRIC may "start to undermine the importance of the dollar's global standing." "It's not in anybody's best interest to bail out of the dollar right now ... but the kind of shift in global thinking has weighed the dollar down," he said.
(Reuters)
WTO chief hopes to conclude Doha round in 2010
Posted by imdurrani Labels: global economy, International, International business, world business, world economyBERLIN: The head of the World Trade Organisation is hopeful long-running trade talks can be wrapped up next year. Trade ministers came close to reaching a deal on the Doha round of talks in July 2008, but they collapsed because of a dispute between Washington and emerging economies, spearheaded by India, over proposals to help farmers in poor nations.
The Cairns Group, 19 nations accounting for more than 25 percent of the world's agricultural exports, said last week that trade officials from the United States, Europe and India had shown fresh resolve to conclude the Doha talks launched in 2001.
"I am optimistic that Doha will be concluded in 2010," Pascal Lamy, the WTO's director general, told Germany's Sueddeutsche Zeitung. "The developing countries are pressing for that. But so far there have only been political declarations of intent. Whether the negotiations really progress depends largely on the US Congress," he added. The Doha deal is estimated to be worth $150 billion for the world economy and considered even more important now that the world faces its worst economic crisis in decades.
(Reuters)
Global economic recovery next year: IMF chief
Posted by imdurrani Labels: global economy, IMF, International, world business, world economyDUSHANBE: The global economy should begin showing signs of recovery by next year, IMF managing director Dominique Strauss-Kahn said on Wednesday during a visit to the Central Asian state of Tajikistan. The fund chief said that although 2009 was likely to continue to bring difficulties, negative global financial trends should begin to retreat by 2010.
"We.... expect that the rate of growth in the global economy will begin to recover in 2010, and with the rate of growth recovering in the world economy, so too will it grow in your country," he told reporters through a translator. Strauss-Kahn made the comments to reporters after meeting with Tajik president Emomali Rakhmon as part of a tour of Central Asian states, many of which have been badly affected by the global financial downturn.
Despite data that the plunge in remittances from Tajik labourers working in Russia and China is straining the economy, Strauss-Kahn said Dushanbe had pursued largely sound anti-crisis measures.
"I think what has been done by the government was correct given the situation in the economy, especially on the monetary side and by letting the currency depreciate," he said. Tajikistan - a mountainous former Soviet republic which borders China and Afghanistan - has struggled to provide even basic services for its citizens in recent years, with blackouts the norm across much of the country last winter. The IMF boss began his regional tour on Monday in Central Asia's economic powerhouse, Kazakhstan, whose resource-driven economy has been battered as the global economic downturn has forced down commodities prices.
The trip comes as China and Russia are both seeking to increase their influence in this strategically vital region, as evidenced by billions in loans, aid and investment from Moscow and Beijing in recent months. Strauss-Kahn is due to arrive in Bishkek later today, where he will meet with Kyrgyz President Kurmanbek Bakiyev before wrapping up his trip in reclusive Uzbekistan on Thursday.
(BRecorder)
Japan's economy has hit bottom: minister
Posted by imdurrani Labels: International, International business, world business, world economyTOKYO: Japan's economy hit bottom in the January-March quarter, Finance Minister Kaoru Yosano said Wednesday, as the central bank also slightly upgraded its views on the economy. "We can firmly presume that the economy hit the bottom," Yosano told reporters, after the government upgraded its monthly economic assessment saying there were signs of recovery.
"But there are things that Japan alone cannot control. Naturally downside risks exist, depending on the trend of the world economy," Yosano said, adding that the first quarter was "clearly the bottom." His comment came as the Cabinet Office lifted its assessment for the second straight month in June, saying the economy was expected to pick up soon as exports and industrial production improve. "While the economy is in a difficult situation, signs of a pickup are seen in some areas," the report said in its Japanese-language edition.
Many private economists have already said the world's number two economy had probably hit the bottom and was slowly climbing out of its worst recession since World War II. The government report also said Tokyo hoped that its stimulus packages as well as improvement overseas would help put Japan on a firmer path to recovery. However, the report also cited risk factors including worsening housing starts, falling capital expenditure and deteriorating employment.
It also said that weak employment and private spending posed difficulties going ahead. The government's view was largely echoed by the Bank of Japan, which also upgraded its evaluation, saying in its June report that the economy had "begun to stop worsening." Bank of Japan governor Masaaki Shirakawa said Tuesday that the Japanese economy was in the process of hitting the bottom thanks to improving exports and production as well as increased public spending. Looking forward, Shirakawa said uncertainty remained but the economy was likely to pick up.
(BRecorder)
US inflation edges up, current account gap narrows
Posted by imdurrani Labels: global economy, International, US, world business, world economyWASHINGTON: US consumer prices edged up in May on higher gasoline prices, but fell over the past 12 months by the most since 1950, in a sign that inflation was no threat for now as the country fights a brutal recession. The Labour Department said on Wednesday its Consumer Price Index edged up 0.1 percent month on month, after being flat in April, below market expectations for a 0.3 percent increase.
-- Consumer prices post largest 12-month drop since 1950
-- Current account deficit smallest since Q4 2001
Compared to the same period last year, however, consumer prices fell 1.3 percent, the largest decline since April 1950. Concerns have grown in recent weeks that inflation could resurface this year, given massive efforts by the US government and the Federal Reserve to pull the economy out of the longest recession since the Great Depression of the 1930s.
"These numbers today and yesterday clearly show that at least for now the immediate concerns over inflation are not justified," said Marc Pado, market strategist at Cantor Fitzgerald & Co in San Francisco. US stock index futures were barely higher, while Treasury debt prices trimmed losses on the data.
A separate report from the Commerce Department showed the US current account deficit shrank in the first quarter to $101.5 billion, the lowest since the fourth quarter of 2001. The CPI data showed that core prices, excluding food and energy, also rose only 0.1 percent, slower than April's 0.3 percent monthly increase, as prices for tobacco and smoking products fell after surging the last two months on the back of a federal excise tax increase.
The rise in the monthly core CPI was the smallest advance since December 2008. The increase came as new vehicle prices rose for a fifth straight month. Shelter and medical costs also contributed to the gain in the core index. Core prices increased 1.8 percent year-over-year after a 1.9 percent 12-month rise in April.
Gasoline prices rose 3.1 percent from April versus a 2.8 percent drop a month earlier. The food index fell 0.2 percent in the month, declining by the same margin for two straight months. Data released on Tuesday showed producer inflation was muted in May, despite higher gasoline prices. Compared to the same period last year, prices paid at the farm and factory gate experienced their steepest fall since 1949.
Investors have been pricing in rising inflation risks in the bond market. Benchmark Treasury debt yields spiked to an eight-month high last week. The yield difference between Treasury Inflation-Protected Securities and Treasuries has grown since the beginning of the year.
But analysts reckon the bond market is getting ahead of itself and argue the economy is more at risk of deflation than inflation, citing excessive slack in productive capacity and huge stocks of unsold goods. According to Fed data on Tuesday, US capacity utilisation dropped to a record low 68.3 percent in May. "The worries that everyone has about inflation, it's something that may occur, and it's certainly not an imminent threat to the economy," said Tim Ghriskey, chief investment officer at Solaris Asset Management in Bedford Hills, New York.
The first-quarter current account deficit equalled 2.9 percent of US gross domestic product, a sharp drop from 4.4 percent in the fourth quarter and the lowest since 2.8 percent in the first quarter of 1999, a Commerce Department official said. The current account is the broadest measure of total US trade with the rest of the world, covering goods, services and income transfers.
US exports and imports both fell in the first quarter as severe world recession hit consumer demand and crimped trade. Exports dropped to $509.6 billion, from $591.7 billion in the previous three months, while imports shrank more steeply, to $581.5 billion from $715.1 billion.
(BRecorder)
U.K. Jobless Less Than Forecast, Slump May Be Easing
Posted by imdurrani Labels: global economy, International, world economy, world stocks
Wednesday, June 17, 2009
U.K. unemployment rose less than economists forecast in May and the Bank of England said the risk of a deeper slump has receded, the latest evidence to indicate the economy is past the worst.
Claims for jobless benefits rose 39,300 to 1.54 million in May, the smallest increase since July last year, the Office for National Statistics said today. Economists predicted a gain of 60,000, the median of 28 forecasts in a Bloomberg News survey shows. Separately, the Bank of England said in London “the risk of a continued sharp contraction” has “receded somewhat.”
Signs are mounting that the U.K. economy is recovering from the worst recession since 1979, with manufacturing output rising for a second month in April and services activity expanding for the first time in a year last month. At the same time, the Bank of England said in minutes of its June 4 policy meeting published today it’s too soon to say that its emergency money- printing program is working.
“While the economy may see positive growth at some point later this year, the risk of relapse is still high,” said James Knightley, an economist at ING Financial Markets in London.
A broader measure of unemployment rose 232,000 to 2.26 million in the three months through April, the highest since November 1996, the statistics office said. The Confederation of British Industry expects unemployment to peak in the second quarter of 2010 at 3.03 million, a rate of 9.6 percent, instead of the 3.25 million forecast in April.
(Bloomberg)
Dollar rises
Posted by imdurrani Labels: global economy, International, World Currencies, world economyWednesday, June 17, 2009
NEW YORK: The US dollar rose broadly on Monday after Russia expressed confidence in the greenback as the world's reserve currency, while concerns about the euro zone economy undermined the euro. The single European currency fell below $1.38 to its lowest level in more than three weeks after the European Central Bank said euro zone banks will probably need to write down another $283 billion.
Speaking on the sidelines of a Group of Eight finance ministers meeting in Italy, Russian Finance Minister Alexei Kudrin said the dollar's role as the world's main reserve currency is unlikely to change in the near future. The comments followed statements from a top Russian central bank official last week that it would cut the share of US Treasuries in its reserves. But Kudrin's comments alleviated concerns that major emerging market countries may be diversifying away from the dollar ahead of a summit of leaders of Brazil, Russia, India and China (BRIC) in Russia on Tuesday.
"Reserve diversification has really come into question given the complete U-turn in the comments from the Russian finance minister," said Kathy Lien, director of currency research at GFT Forex in New York. "We have started the new trading week on a dollar-friendly tone."
The International Monetary Fund on Monday also threw its support behind the US unit, saying the dollar's status as the world's dominant reserve currency is likely to remain. "Markets have been increasingly concerned about the status of the US dollar," said Camilla Sutton, senior currency strategist at Scotia Capital in Toronto. "It's fairly clear to most people there's no alternative."
(BRecorder)
Russia challenges dollar, China offers loans
Posted by imdurrani Labels: International, world economy, world finance
Wednesday, June 17, 2009
YEKATERINBURG: China and Russia sought greater international clout at a summit Tuesday, with China promising a $10 billion loan to Central Asian countries, while Russia challenged the dominance of the US dollar as a global reserve currency. Russia also gave a prominent platform to Iranian President Mahmoud Ahmadinejad amid massive protests in Iran over his bitterly disputed re-election and questions in the West about the vote.
Chinese leader Hu Jintao said China will extend a $10 billion loan to a regional group that also includes Russia and four Central Asian states.
The move adds muscle to China's role in the Shanghai Co-operation Organisation, a six-nation group Russia and China use to counter the Western influence in resource-rich, strategically placed Central Asia. The other members of the organisation Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.
The leaders of Afghanistan, Iran, India and Pakistan were also at the table, underscoring Russia and China's reach for regional clout and global influence. Hu said the loan is intended to shore up the struggling economies of its members amid the global financial crisis.
Meanwhile, President Dmitry Medvedev pushed his call for new global reserve currencies to complement the dollar at the summit. ``No currency system can be successful if we have financial instruments denominated in just one currency,' Medvedev said. ``We must strengthen the international financial system not only by making the dollar strong, but also by creating other reserve currencies.'
(BRecorder)p
Japan’s Recession Easing, Holds Rate at 0.1%
Posted by imdurrani Labels: finance trading, global economy, world business, world economyTuesday, June 16, 2009
The Bank of Japan said the nation’s worst recession since World War II is easing after exports improved and industrial output rose the most in 56 years.
“Japan’s economic conditions, after deteriorating significantly, have begun to stop worsening,” the bank said in a statement in Tokyo today, after leaving the overnight lending rate at 0.1 percent. “In the coming months, Japan’s economy is likely to show clearer evidence of leveling out over time.”
Governor Masaaki Shirakawa may signal later today that it’s too soon to consider unwinding the bank’s policies of buying corporate debt and providing lenders with ample funds because the economy remains fragile. The yen rose, worsening the outlook for exporters, and stocks slumped the most in more than two months on concern a global recovery may be delayed.
“The BOJ is still cautious about the prospects for the economy and is still far away from an exit,” said Masaaki Kanno, chief economist in Tokyo at JPMorgan Chase & Co., who used to work at the central bank.
Japan’s currency gained 1.6 percent to 96.27 per dollar at 3:41 p.m. in Tokyo from 96.84 late yesterday. The Nikkei 225 Stock Average slumped 2.9 percent, the biggest drop since March 30, as a report on New York manufacturing damped optimism for a U.S. recovery.
The central bank said there are “continued high downside risks” facing Japan, citing developments in domestic and global financial conditions and the world economy.
(Bloomberg)
SBP Governor for transparency in governance in corporate sector
Posted by imdurrani Labels: business finance, economy, finance trading, pakistan, world economy
Tuesday June 16, 2009
KARACHI: Governor State Bank of Pakistan (SBP), Syed Salim Raza on Monday urged the corporate sector in the country to introduce more transparency in governance and decision making through greater disclosure of financial and non-financial information to the stakeholders.
He was addressing the 9th Best Corporate Report Awards-2008 ceremony organised by the Joint Committee of the Institute of Chartered Accountants of Pakistan (ICAP) and Institute of Cost Management Accountants of Pakistan (ICMAP) at a hotel here.
Earlier, the Governor SBP presented the awards/certificates to the representatives of the winning companies under seven sectors.
Syed Salim Raza said that there was still a need for fostering a change in the thinking of the corporate sector as the old system of protectionism cannot work in this global challenging environment.
He said that these awards would also assist the country's economy, which, he said needs sizeable investments in fixed capital.
The government's efforts towards structural reforms and recent geo-political developments in South Asian Region have once again put Pakistan in a position to attract foreign investments and these awards would serve as a catalyst in augmenting this progress, he added.
He urged the professional accountants to work with renewed zeal to enhance the prestige of the profession in the present global economic slowdown.
He said that the Best Corporate Award would certainly take us towards greater transparency in disclosure of annual accounts and to strengthen good governance practices in the corporate sector.
These awards would also narrow the credibility gap, which exists between various stakeholders and the management of the companies, he said.
The Governor SBP expressed hope that the level of reliance by all the stakeholders on the corporate reports and annual accounts will significant grow in the years to come.
He said the cross border exposure of the corporate sector, the exposure in new asset forms such as derivatives and accounting for off-balance sheet exposure are all accompaniments of globalization and liberalization and they make new demands for progress in the area of accounting and regulatory discipline.
He said that in order to maximise dividend of the global opportunity, the corporate sector has to improve the corporate governance even in tightly held ownership companies.
He observed that the modern accounting system underpins the continuity and evolution of the joint stock company, which is the base of all developments in the modern economy.
He said that from the simple-double entry book keeping system, the profession of accounting has evolved itself as a qualitative framework of methods and standards that ensure a company's affairs are well understood to all constituencies.
Syed Salim Raza said the accounting profession is one of the cornerstones that have immensely supported and contributed towards the emergence of modern day economic system and its institutions.
"The world is changing at a rapid pace and the accounting profession must come up to the international standards of accounting and good corporate governance", the Governor SBP said.
He congratulated the Chief Executives, Chief Financial Officers and representatives of all those companies, who have participated in the competition and those who have been selected as winners of the Awards/certificates.
These awards will play a major role in promotion of excellence in all forms in the corporate sector and such events should be held on regular basis to pay tributes to those who have contributed towards the profession, he added.
Earlier, the President ICAP Syed Asad Ali Shah and President ICMAP Hasan Bilgrami also spoke.
(APP)
European stocks plunge after G8's shaky economic outlook
Posted by imdurrani Labels: global economy, world economy, world finance, world stocks
Tuesday June 16, 2009
LONDON: European stock markets plunged on Monday after G8 finance ministers over the weekend warned the economic outlook remained risky and uncertain despite some signs of the global crisis bottoming out.
The FTSE 100 index in London lost 2.61 percent, the CAC 40 in Paris fell 3.20 percent and the Dax in Frankfurt plummeted 3.54 percent.
The DJ Euro Stoxx 50 index of leading eurozone shares slid 3.02 percent.
On the foreign exchange market, the European single currency slumped to 1.3786 dollars on Monday from 1.4021 dollars late on Friday on concerns that the 16-nation eurozone economy may take longer to recover.
On Wall Street, the Dow Jones Industrial Average was down 2.16 percent and the tech-heavy Nasdaq index fell 2.72 percent by mid-day. Earlier in Asia, Hong Kong dropped 2.07 percent and Tokyo fell 0.95 percent.
Finance ministers from the G8 leading world economies meeting in Italy over the weekend agreed there were "signs of stabilisation" in the economic situation but also warned the outlook was uncertain and "significant risks" remained.
There were also disagreements over whether Europe should test the capital requirements of its crisis-hit banks and publish the results, and over what to do about rising budget deficits incurred by governments fighting the crisis.
Patrick O'Hare of US market analysis firm Briefing.com said: "This negative disposition is being attributed to reports that Russia made dollar-supportive comments and that G8 ministers discussed how they should prepare to unwind stimulus spending as the economic recovery begins to take root.
"Of course, this could also be a case of participants simply looking for a reason to take some money off the table," O'Hare said, noting the Standard and Poor's 500 index still stands 42 percent above its March 6 low.
Leading the plunge in Europe were mining and energy companies hit by falling commodity prices.
Elsehwere in Europe, Madrid lost 2.01 percent, Geneva 2.20 percent, Brussels 2.96 percent, Amsterdam 2.72 percent and Milan 3.01 percent.
"Miners were the main culprit ... as they took a combined hit from a strong dollar coupled with a fall in commodity prices," said analyst Philip Gillet at financial spread-betting firm IG Index.
Xstrata lost 7.11 percent to 706 pence, Rio Tinto fell 6.93 percent to 2,900 pence while Lonmin plunged 9.78 percent to 1,300 pence.
Gillet added: "Right now, investors seem happy taking any quick wins while they can, waiting to see where the next major movements will come from." Nervous investors were also keeping one eye on the latest swine flu developments after the World Health Organisation last week declared the virus to be a global pandemic, said dealer Matt Buckland at CMC Markets.
Authorities appealed for calm on Monday after Britain confirmed the first swine flu death outside the Americas since it was first reported in Mexico two months ago and the pandemic spread to isolated island communities in Asia.
"We are still some way from this having a tangible economic impact but comments suggest that the spread of a virus like this will be unpredictable in its nature so this could again add to the caution and once again give traders reason not to push the FTSE 100 back above that 4,500 (points) level," Buckland said.
(AFP)
Euro falls sharply on outlook concerns
Posted by imdurrani Labels: global economy, world business, world economy, world stocks
Tuesday June 16, 2009
LONDON: The euro fell sharply against the dollar on Monday, hit by a spike in eurozone job losses and fresh concerns the credit crunch could stifle tentative signs of recovery, dealers said.
Britain's Telegraph newspaper at the weekend quoted a top German industry group official as saying that a deepening credit crunch in Germany was threatening to slam the brakes on an economic recovery there.
Meanwhile EU data showed a record 1.2 million people lost their jobs across the 16 euro countries in the first three months of the year.
The figure, up sharply from 526,000 in the last quarter of 2008, marked the biggest jump on record, raising fears about the regional outlook
Dealers said there was little new in a Group of Eight statement over the weekend but noted that statements of support for the dollar by Russia seemed to have also helped the US unit.
In late Monday London trade, the euro fell to 1.3786 dollars from 1.4021 dollars in New York late on Friday.
Against the Japanese currency, the dollar slipped to 97.98 yen from 98.40 yen on Friday.
The eurozone "data and survey evidence point to serious weakness in eurozone labour markets in the second quarter," said IHS Global Insight analyst Howard Archer.
Following the unemployment figures, investors were braced for Germany's ZEW business sentiment survey out Tuesday, which measures the confidence of financial market players.
Investors were also awaiting Tuesday's meeting of the world's top emerging economies -- Brazil, Russia, India and China -- which will likely discuss reducing the dollar's role as the world's reserve currency.
It comes after a meeting of G8 finance ministers at the weekend that ended in disarray because of differences among the world's richest economies over how best to handle the weak banking sector.
"The G8 statement ... contained few surprises," Barclays Capital analysts wrote in a note.
Amid concerns that some countries -- especially China -- could be seeking to reduce the role of the dollar in the international financial system, the analysts said Tuesday's meeting will be closely watched.
"While there is unlikely to be explicit calls for a shift away from the (dollar) ... discussion of trade finance in local currencies and the purchase of IMF bonds could keep the issue in focus," they said.
In late trade in London, the euro was changing hands at 1.3786 dollars against 1.4021 dollars late on Friday, at 135.67 yen (137.89), 0.8470 pounds (0.8515) and 1.5097 Swiss francs (1.5124).
The dollar stood at 97.98 yen (98.40) and 1.0902 Swiss francs (1.0789).
The pound was at 1.6394 dollars (1.6442).
On the London Bullion Market, the price of gold fell to 932.25 dollars an ounce from 937.25 dollars an ounce late on Friday.
(AFP)
Dollar, yen gain on euro in Asia
Posted by imdurrani Labels: Currency Trends, International business, world business, world economy, world finance
Tuesday, June 16, 2009
TOKYO: The dollar and yen rose against the euro in Asia on Tuesday on renewed risk aversion after weak US and European data raised fresh doubts over the pace of global economic recovery, dealers said.
The euro dropped to 1.3769 dollars in Tokyo morning trade from 1.3793 in New York late Monday, and to 133.93 yen from 134.92. The dollar fell to 97.30 yen from 97.83. The greenback and yen gained ground following the release of data from Western economies which raised "doubts over the speed and timing of the global recovery," NAB Capital strategists wrote in a note.
The dollar and yen have been the preferred safe-haven currencies since last year's market meltdown, although the greenback has recently gained more on hopes America will make a quick exit from its recession.
The euro has meanwhile taken a beating due to weak employment data in the eurozone and worries that the region's crisis-hit banks will suffer bigger-than-expected write-downs, dealers said.
"Risk appetite is retreating. Eurozone risks remain high," Societe Generale forex chief Yuji Saito told Dow Jones Newswires.
The European Central Bank "spooked investors with its estimates of credit crisis related write-downs," wrote NAB Capital analysts.
The ECB estimates lenders' potential write-downs related to toxic assets and soured loans to total 649 billion dollars from the 2007-2010 period, much more than the 366 billion dollars forecast previously.
The International Monetary Fund has forecast the full amount could come to 900 billion euros.
The 16-nation eurozone is in the midst of a recession which is the worst for some members since World War II. Employment in the region fell 1.2 percent in the first quarter of 2009 from a year earlier, data released Monday showed.
Investors will keep a close eye on the release later Tuesday of Germany's ZEW business sentiment survey, which measures the confidence of financial market players.
Meanwhile US data for June undermined recent optimism for "green shoots" of recovery in the world's biggest economy.
The NAHB housing index was below market expectations while factory activity in the New York area fell at a faster pace than in May, according to the Federal Reserve Bank of New York's Empire Manufacturing Survey.
(AFP)
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