Tag Archives: government bonds

Greece needs immediate rescheduling

BERLIN. The President of the Federation of German Industries (BDI), Hans-Peter Keitel is calling for an immediate rescheduling program for Greece in order to reassure the financial markets. "Greece is to relieve only by a rescheduling of the debt crisis. The restructuring program would have to start today rather than tomorrow," BDI President Keitel said in an interview with Handelsblatt (Friday edition). The debt burden is already high and will continue to grow oppressive.

The euro-zone countries now have to provide clarity. "It is counterproductive to aggravate the situation by 2013 artificially and then take a cut debts," Keitel said. The creditors know the Greek government bonds and debts had already been priced in, argued the BDI President.

Fierce criticism Keitel practiced at the finance ministers of the euro countries. "The harm daily utterances of individual finance ministers about the pros and cons of individual measures. Let the financial markets only with actions, not calm, with speeches," said Keitel. Therefore, the countries of the Euro-zone hire expertise as quickly as possible tools to present that could be implemented immediately. "Otherwise, the financial markets to force solutions," the BDI President said.

Portugal will pay record interest rates

HB DÜSSELDORF. The highly indebted and underdeveloped Portugal needs for its debt fall deeper and deeper into their pockets. Despite the recently passed by Parliament in Lisbon austerity budget, the euro country on Wednesday to get interest rates to record levels of fresh funds. Overall, the capital market government bonds placed with a value of 1.242 billion euros.

As the Portuguese Debt Agency (IGCP) announced that a bond has a term until June 2020 successfully placed with a volume of 686 million euros. The yield but increased compared to September from 6.242 to 6.806 per cent significantly.

In addition, a bond was placed with a term to October 2016 with a volume of 556 million euros. The yield climbed still higher, from 4.371 percent to 6.156 percent in late August. The issue has been more than two times oversubscribed, it said. Because the funding target has been put out of 750 and a maximum of 1.25 billion, should this be the last Portuguese paper issue in the current year.

The auction was considered a test atmosphere. Finally, the risk premiums on financial instruments weak euro countries have tightened considerably. On Wednesday, they legteb despite the successful issue to continue: ten-year government bonds yielded 23 basis points higher, at 6.8 percent, which is developing counter price of the bond fell to 86.17 percent. Even Irish government bonds came under further pressure. The yield on ten-year note climbed 22 basis points to 7.964 percent and was only slightly below the 8 percent mark.

Portuguese Finance Minister Fernando Teixeira dos Santos had recently explained, once effective interest rates were reached at the seven percent of the time will have come to go to the International Monetary Fund (IMF). After criticism from the media and the opposition, but he qualified: "We have no fixed boundaries."

The national debt of Portugal-end 2009 at 109 percent of gross domestic product. The budget deficit in 2009 reached a record 9.4 percent. With unprecedented cost-cutting measures, the deficit this year and next, down to 7.3 to 4.3 percent.

Positive signals from the labor market

HB WASHINGTON. That the Labor Department said on Friday in Washington. From Reuters poll of analysts had expected only 60 000 new jobs. In particular, employers in the private sector increased their workforces on strong. That made a reduction of 8,000 jobs in the public service more than necessary.

At the same time, the Ministry revised the data for the past few months upwards. There were now but fewer jobs lost than previously thought. The unemployment rate in October but already the third consecutive month at 9.6 percent.

The U.S. Federal Reserve on Wednesday had fired up the money press and announced the purchase of government bonds worth 600 billion dollars. They justified this with the difficult situation on the labor market. The persistently high unemployment also cost the Democratic Party of President Barack Obama on Tuesday, the majority in Congress.

Strong economic data to U.S. economic hope

HB WASHINGTON. Shortly before the expected cash injection by the U.S. Federal Reserve to strengthen the economy, the economic sky has cleared up a bit: The U.S. private sector expanded in October, a surprising number of new jobs in services such as on Wednesday published collection of private employment agency ADP showed. Accordingly, the number of jobs rose in the private sector by 43 000th This was the job of building more than twice as strong as expected by Reuters had consulted experts.

At the same time improved the order book of U.S. industry in September surprisingly well. The orders went to the previous month by 2.1 percent. Experts had expected only 1.6 percent.

The shops of the U.S. service run better: The very respected in the financial services index of the Institute for Supply Management (ISM), in October by 1.1 to 54.3 points. Readings above 50 indicate growth in this sector, which contributes about 70 percent of economic output.

Despite all these signs of hope, the disappointing economic development and have been directed especially to the plight of the job Democrats of President Barack Obama the biggest defeat in congressional elections in decades. Now face a political stalemate, as the authorities could block each other.

The Federal Reserve is expected in this context the view of observers in the evening (19.15 GMT Clock) set an example and take the lame economy with a pillar of the economy under his arms. In conversation, the purchase of government bonds with a volume of several hundred billion dollars. Even in the crisis, the Fed in a program totaling 1.75 trillion dollar had opened.

Nevertheless, the central bank of the economy is not quite a helping hand, as in the third quarter, only a mixed growth jumped out of projected annualized 2.0 percent. Now the Fed wants to stoking the economy and make legs. Some experts expect, however, after recent signs of hope from the economic monetary policy no fireworks, "The Fed-program should be moderate," says U.S. economist David Keator.

Obama must, however, after the defeat in the congressional elections reinvent. Polling stations across the country had not yet closed, as were the "new Obama" a first smoke signals. He was willing to cooperate with the Republicans. We must find common ground. This is about America.

The statement by the White House is just three thin lines long – but what they proclaimed, is nothing other than the end of the reform era of the first black president in U.S. history. Million Americans are asking themselves: What now? No doubt Obama has fallen deep. Experts calculate that it was the largest defeat in the House of Representatives since 1948.

Although the Democrats succeeded in keeping the majority in the Senate almost – but basically, the worst fears have occurred. After election night, Obama is not who he was. The "Change" (change) is placed first in the files.

Rarely, the U.S. has experienced a presidential election after such a rapid and so profound change of mood: almost to the day two years ago – it was on 4 November – seemed the whole country in a frenzy: The first black president, a "new Kennedy", everything seemed possible. "Yes we can."

But it took less than twelve months, since the wind had turned thoroughly. Sluggish economy, lack of jobs – and then the hard-hitting populist and fundamentalist opposition to the Tea Party movement caused the President seem strange pale and ineffectual. "The president went through the meat grinder of Washington," says John Zogby, the pollster. The aggressive and "super-heated political climate," Obama was simply wiped out. The Wall Street Journal, which recently pressed a little different: once again will show "that America can not be ruled by the Sun".

And now? Long will the White House for the scenarios played out "day after". The commitment to collaboration is the first step of "Obama II". Even expert Zogby speaks of "the olive branch of the president," others point to the "Clinton model".

Bill Clinton had been run by its first two years in the White house in 1994 also a hefty defeat. He responded promptly went to move closer to the Republicans, the bit back further major reforms – and two years later re-elected as president.

But if the "Clinton model" is questionable again this time caught. Instead of cooperation between the camps, many fear more gridlock – not exactly reassuring prospects for a world power.

First full-bodied statements from radical Tea Party-elected, which will "bring back our country," can imagine no good, would even suggest that because fundamental opposition to compromise. Leading Republicans are already making clear that they have only one aim: that Obama is a "one-term president" is – a president who is only a term in the White House.

"I’m skeptical that there will be real cooperation," says political expert John Fortier. Too strong polarization between the parties was already well advanced. In addition to already draw from the start of the presidential campaign. Bad signs for a detente between the fronts.

After the election is a choice: Even Obama is now comprised predominantly of 2012 in the eye. Already it is clear that already eliminated at the beginning of his closest advisers David Axelrod from the White House. prepare for Obama’s re-election in two years: Axelrod’s task. First experts fear a marathon election campaign – the willingness to cooperate and compromise, thereby threatening to sink soon.

Investors flee Irish government bonds

FRANKFURT. Investors in bond markets Ireland distrust as clearly as never before since the introduction of the euro. The courses of Irish government bonds fell on Tuesday again significantly and in turn, yields. The yield on the ten-year Irish government bond climbed to 7.3 percent, its highest level since the introduction of the euro. After Greece, which depends on refinancing dropping since the spring of the other euro countries and the International Monetary Fund (IMF), Ireland is the view of investors as the weakest borrowers in the euro area.

The yield premium of ten years of Irish government bonds compared to the ten-year bond climbed to 4.75 percentage points and was also as high as ever. In the market for credit default insurance, the premium rose to five-year protection against failure of Irish government bonds to a record high of 5.26 percent of the insured sum.

Trigger for the growing turmoil, according to traders were still statements of the Irish Defence Minister Tony Killeen. He had said on Monday that the Irish budget was 2011 a series of crucial tests. And the "most likely" investors is to persuade Ireland to trust money through bonds. But Ireland still has a grace period. The government has issued bonds earlier this year to just under 19 billion euros, which covered their refinancing needs until mid-2011.

Increased concerns about Ireland’s ability to make payments to investors since the beginning of September. Trigger for the renewed escalation of the crisis was the ailing banking system of the island. The rescue of the banks could cost the government claims to end up to € 50 billion – that would be more than 30 percent of Irish economic performance.

Whether the situation improves next year is uncertain. expected for 2011 and 2012, the budgetary situation in Ireland are reluctant to relax, according to a study of DZ Bank. Due to the weak domestic demand, tax revenues be significantly lower than initially expected.