GM and Chrysler LLC may need more than $21.6 billion aid from the Government

March 20, The auto adviser of US Treasury- Steven Rattner said, Chrysler LLC and General Motors may need more financial aid from the Government than they previously asked for. Earlier the companies requested for a financial aid worth of $21.6 billion from the Government which is appearing not enough. According to Rattner, the amount needed by these companies might be significantly higher than the previous assumption.

US Home price may drop significantly in the coming year

March 20, A significant drop in the home prices may hit the real state sector of US according to a recent survey that was released on Friday. According a survey on US homeowners, the value of their homes might fall 2.2 percent next year which is the biggest anticipated fall in the last few years. The predicted decline for the month of March was steeper than the average fall for February which was 1.9 percent.

The US dollar gain followed by the fall of gold price in New York

March 20, Price of gold fell after USD rebounded reducing the safe heaven impression of the yellow metal in the market. However, silver have seen rise. The US dollar rebounded for the first time in nine sessions against the major currencies. Gold have seen a gain of 8.4 percent this year before Friday while dollar gained 2.2 percent.

Oil falls from four month high

March 20, Oil price dropped from four month high on Friday due to a weaker Dollar. The drop was also boosted by the doubt about the positive outcome of US Federal Reserve’s financial package worth of $1 Trillion to help the shrinking US economy. However yesterday, oil price reached $51.61 per barrel- the highest since November 28.

Euro drops sharply against USD due to weaker global equities

March 20, Euro has lost the momentum of a three day straight gains against dollar due to moderately weak global equities. EUR/USD passed relatively a quiet Asian trading session. However, the European session have seen a modest rally as Euro touched the 1.3726 USD point. But Euro dropped significantly just before the North American session where it was trading for mid 1.35 USD.

US stocks slides as concerns grow about Federal Reserve plan to buy bonds

March 19, The drop in the financial shares for the first time in three days has led to a downfall in the US stock market amid growing concerns that the Federal Reserve plan of buying bonds will not restore the US economy. Goldman Sachs Group and JPMorgan Chase & Co. have lost 3.6 percent while Prudential Financial Inc. – one of the leading life insurers in US had a loss of 17 percent.

$5 billion US aid to be sanctioned for the auto suppliers

March 19, The US auto suppliers will be receiving $5 billion of treasury aid to survive from a collapse which might have a huge impact on the US domestic industry. The suppliers will be provided with the guarantee that the money that they are suppose to receive for the products will be paid to them no matter what situation the car companies may face.

UK mortgage lending fell for eight year lows

March 19, The Council of Mortgage Lenders said that the rate of UK mortgage lending has fell to eight year lows as recession forced the banks to stop investing in the property sector. The gross value of loan dropped to 9.9 billion pounds last month from its previous position at 11.7 billion pound in the month of January.

Canadian inflation rose unexpectedly due to the higher gasoline price

March 19, The Canadian inflation rate rose unexpectedly last month due to a high gasoline price. According to statistics Canada, the annual inflation rate has increased to 1.4 percent from 1.1 percent in January while the consumer price index rose 0.7 percent – an increase for the first time in five months.

IMF downgrades its global growth forecast

March 19, A warning was sent to the world economy as the International Monetary Fund (IMF) has downgraded the global economic growth which might be a sign of a deepening recession. IMF is now predicting the global economic growth to reduce 0.5 percentage points for 2009 on an average annual basis.

US stock market passes a mixed day with White House concerns

March 18, As the White House considers buying toxic assets from the banks offsetting the previous concerns that Federal Reserve’s statement won’t be able to improve the economy, the US stock market have seen significant ups and downs. A 15% gain was observed by Bank of America Corp. while Sun Inc. had and increase of 76 percent. However, the drop in oil price led to a 1.6 percent lost for Exxon Mobil Corp.

US consumer price index rises 0.4 percent- more than anticipated

March 18, US cost of living have increased more than what was anticipated. The consumer price index had a 0.4 percent rise in last month, while in January it increased 0.3 percent. According to labor Department, the core inflation rate (excluding fuel and food) went up to 1.8 percent.

Government report leads to a drop in the oil price

March 18, The price of oil tumbled as the Government report on Wednesday reveled excess inventory of crude oil and gasoline are bulging with a surplus supply. The benchmark of crude oil for the month of April fell $1.21 a barrel taking the price to $47.95 during the NY Mercantile Exchange. In the ICE Futures Exchange in London the Brent price dropped $1.00 to 47.24 a barrel.

USD grows stronger against Pound with the worse UK jobless claim figures

March 18, USD went up against Pound on Wednesday after the jobless claim figure of UK was reveled to be worse than expected. US dollar advanced to 1.3850 against Pound in the early hours 2 percent higher than Tuesday’s level. The numberof people claiming jobless benefits increased 138,400 month on month in UK for February hitting 1.39 million.

German economy is set to shrink 2.2 percent in first three months

March 17, The German economy- the biggest of Europe is set to go for a 2.2 percent shrink in the first 3 months of the year due to the severe global financial crisis which hammered the country’s export sector. The overall production in the industrial sector (excluding building industries) might experience an 8.5 percent decline in the quarter.

Severe recession advances towards the Swiss economy

March 17, According to the announcement made by the State Secretariat for Economic Affairs on Tuesday, the Swiss economy is heading towards a severe recession this year as the global crisis continues to advance. A 2.2 percent decline in the economy is forecasted for the year 2009. The household growth of consumption was reduced to 0.6% from the previous point at 1.2%. The equipment investment has also dropped 10%.

EURO rebounds to 11 weeks high against Yen

March 17, EURO have surged significantly against Yen reaching at a 11 week high against the Japanese currency after the German economic report was released showing an unexpected improvement in March. However, the German economy is still under significant pressure due to the recession. Earlier in the European trading session on Tuesday the EURO went for a loss against USD and Yen due to a weak European share market.

Unexpected gain in homebuilding leads to a fluctuation in the US stock market

March 17, The US stock market had a confused day with gains and losses after the prediction of Meredith Whitney that the banks might fail to meet their targeted earnings and the dividend cut by Alcoa Inc. was offset by an unexpected gain in the US homebuilding sector. The Dow Industrial Average had a drop less than 0.1 percent while Russell Index gained 0.1 percent. S&P 500 Index also slipped 0.1 percent.

The improved US housing starts data leads to a drop in the gold price for the second consecutive day

March 17, The price of the yellow metal have dropped below $920 an ounce after the US housing data revealed an unexpected improvement in the housing starts that have seen a 22% rise last month improving the sentiment of the investors regarding the stock market and over all economy leading to a reduction in demand for gold as a safe heaven.

US industrial production fell more than expected

March 16, US industrial production fell more than what was expected for the month of February. According to recent statistics, the production in utilities, factories and mines have fallen for 1.4 percent which is the fourth consecutive month for the US economy to observe such a fall in the industrial production sector.

Global stocks climb for the fifth consecutive day

March 16, The upward movement of the global stocks have continued for the fifth consecutive day as the G20 expressed their determination to clean up the toxic assets. The third largest bank of UK Barclays has seen a 17 percent gain while Bank of America and Citigroup have also gained as they claimed that the companies were profitable during January and February.

AIG under pressure to reveal its cash flow

March 16, American International Group Inc. (AIG) is facing serious pressure to reveal its cash flow regarding the expenditure of the taxpayer funds that it spent after the September bailout. According to AIG $105 billion was flowed to different banks and US states.

OPEC to stick with its current production quotas

March 16, OPEC- the supplier of around forty percent of world’s crude oil have decided to stick with its present production quotas amid the growing concern that a new production cut might push up the oil price creating significant threat over the economy which is already in a vulnerable condition due to global financial crisis.

Unemployment rate crosses 10 percent as recession continues to advance

March 13, The unemployment rate in US have crossed 10 percent since the recession started at the end of 2007 claiming hundreds of thousands of jobs. According to some interviews people with high expertise and years of experience are also finding it difficult to secure their jobs as companies continue to lay off amid a drastic drop in demand. The unemployment in US has seen a rise in all states excluding Louisiana in the month of January. The unemployment rate passed 10 percent in Michigan where it is currently standing at 11.6 percent, at California 10.1 percent and in South Carolina at 10.4 percent.

Swiss Franc to hit record low against EURO

March 13, The Switzerland currency slides down sharply against Euro heading for its record low since 1999. The fall was boosted by recent interest cut by the Swiss central bank which has also started to sell the currency. The Swiss Franc was also traded near the lowest level against dollar in three months.

Unemployment rate hits 7.7 percent in Canada

March 13, Around 82,600 Canadians have lost their jobs on February taking the country’s unemployment rate to 7.7 percent. The largest job cuts took place in Ontario where around 35,000 people lost their jobs. Canada is going through a difficult time lately as the global financial crisis keeps advancing over the economy.

Japanese Prime Minister Vows for new financial package

March 13, Taro Aso- the Prime Minister of Japan has called for a new stimulus package on Friday to save the world’s second largest economy from shrinking. According to some recent survey, it was revealed that the Japanese economy shrank 12.1 percent in the October-December quarter which is lower than the previous assumption. The Prime Minister’s announcement had an immediate impact on the market with the Nikkei 225 Index gaining 5.2 percent.

Unexpected rise in US retail sales during the month of February

March 12, Recent data has revealed an unexpected growth in the retail sales during the month of February in US market which may be interpreted as a positive sign for the market condition. However, markets still remained uneasy with the doubt in people’s mind about the information as the great recession continues to heat the economy with more people losing jobs.

General Electric loses its top rating for the first time since 1956

March 12, The AAA rating held by General Electric Co. and its finance arm for about 53 years in the S&P was lost as the company was severely hit by the global financial crisis. General Electric was downgraded to AA+ which might affect the long term debt. The down rating is a contradiction of the statement made by General Electric CEO Jeffrey Immlet who previously clamed that the company is generating enough earnings to hold the rating.

Berkshire to sell more derivative contracts

March 12, Warren Buffet have announced that Berkshire will go for more derivative sales which many investors are fearing will cause billions of dollars of losses to the insurer. The Berkshire stocks were plunged this year after it was assumed that Buffet may bet on Derivatives.

Oil price may hit $60 on the year 2010

March 12, According to Total- the French oil giant, the price of oil may rise significantly in the coming years where it might hit $60 in the year of 2010 and can reach $80 on 2011. The oil price significantly fell since 2008 after the recession broke out which lead to a reduction of the demand of oil.

Industrial production in Germany hits record low since 1990

March 12, Further trouble for the German economy was signaled as the recent data revealed the significant fall in the German industrial production which went for a record low in the month of January- the lowest since the two Germanys reunified in 1990. The industrial production fell for 7.5 percent month-on-month in January where it was previously assumed to fall for 3 percent. However, the Federal Ministry of Economics and technology of the country revised the Industrial production fall for December to 3.9 percent from the previous point at 4.6 percent.

US stocks continues to rebound

March 11, The US stock market has seen a second straight day of rebound from where it left yesterday at a 6.4 percent gain in the S&P 500 Index. The European and Asian stock markets have also seen improvement. The recent developments have occurred based on the speculation that the worst crisis regarding the banking sector is maybe over. Bank of America and Citigroup Inc. have seen a 9.2 percent gain after Treasury Secretary Timothy Geithner announced that the Government may inject more money in the economy so that the lenders can go for selling troubled securities.

The largest bank of Switzerland posts $18 loss

March 11, UBS- the largest bank of Switzerland posted a loss of $18 billion (20.9 Billion Swiss Franc) in the year of 2008 which exceeded the number that was previously reported. The recently posted loss is 1.9 Billion francs higher than what was reported in the last month.

Global confidence slides on March amid recession

March 11, The recession has caused further drop in the global confidence on March more than what was previously anticipated. According to some recent survey it was revealed that the US and European markets are still under severe pressure. Comparing with these two regions the Asian market is still in a less vulnerable condition. According to the last report, the US banking stocks are 25 percent down despite Government’s initiatives to give a boost to this sector.

Russia still stable amid global recession

March 11, Some market analysts have claimed Russia to be at a better position amid the severe global financial crisis. According to Moody’s rates, Russia is at Baa1 which is three levels above the non-investment grades and a level higher that the ratings of S&P and Fitch. The Russian currency has gained 2.7 percent against USD since the beginning of this year. The investor confidence is also at an upward movement as Russia’s key export earner oil gained 1 percent in 2009.

New Zealand dollar gains against major currencies

March 11, The New Zealand dollar has gained against the major currencies on Wednesday during the early European trading period. NZD went for a loss against US dollar and Yen during the late Asian trading hours where it dropped to 0.4981 and 49.05 against USD and yen respectively. But later it took stance for 0.5036 against US dollar and 49.72 against Yen. The AUD/NZD is currently quoted at 1.2808 where it was at 1.2853 during the New York session on Tuesday.

US stock market hangs between gain and loss after Buffet comments

March 9, US stock market is experiencing significant fluctuations as Bank of America gains along with a two month high in oil price which was offset by Warren Buffet after he made a statement that the economy has fallen from a cliff. Earlier Bank of America gained 11 percent and the oil price pushed to $48.83 per barrel- a major development in the market. However the equity fell right after Buffet’s statement which raised new concerns for the US economy.

Marc Faber expects to see an improved stock market after Government steps

March 9, Investor Marc Faber has expected the US stock market to improve after the Government initiatives. He said Government steps will be followed by significant gains in the S&P 500 index which fell 56 percent since October 2007. However, he also mentioned that the Government plans might not be able to improve the overall national economy.

McDonald to take office as CEO of P&G

March 9, Robert McDonald is set to take the CEO post of P&G- the biggest consumer product producer of world after Alan Lafley retires. Susan Arnold- another top contender for CEO is retiring from the organization which made way for McDonald to get the high profile post. Alan Lafley will face mandatory retirement in less than four years. However, Susan Arnold will work for a special assignment for the company who has been with P&G for the last 29 years.

Sentix Investor Confidence of the Eurozone fell on March

March 9, The recent data has revealed that Eurozone Sintix Investor confidence dropped to -42.7 in this month from February’s -36.13. Current situation index dropped to -59.75 from its previous position at -52.25. The expectations index also fell to -23.50 this month from February’s -18.25.

Pound drops against USD, EURO and Swiss Franc

March 9, Pound fell for a new low against US dollar, EURO and Swiss Franc on Monday. Pound’s value fell to $1.3941 from its earlier position at $1.4082 in the last week’s close. Pound has also fallen significantly against EURO at 0.9037 and 1.6215 against Swiss Franc. During the Friday’s close pound stayed at 0.8980 against EURO and 1.6338 against Swiss Franc.

The unemployment rate in US rose further in the month of February

March 6, The unemployment rate of US has reached 8.1 percent on February which is the highest in more than a quarter century. Employers were forced to go for mass layoffs for the third straight month eliminating 651,000 jobs due to the financial crisis. The experts fear that the rise of unemployment may lead to more US citizens getting bankrupted and the consumer spending might see significant drop.

Australian companies have provided satisfactory result though recession continues to advance

March 6, The listed Australian companies have reported of marginally negative performance according to recent news release which is considered as a positive sign for the country’s economy and indicating that the Australian economy is still at a stronger position. However, analysts warned that the scenario can get changed eventually and the overall company performance can deteriorate as the recession continues to deepen.

US dollar weakens against EURO and Yen right before Government report

March 6, US dollar dropped against Yen and EURO just before the US Government report regarding the present unemployment condition of the country. The report is likely to reveal the alarming fact that the in the month of February highest number of Americans have lost their jobs in 60 years. The news release from the Labor Department indicated that the unemployment rate has gone to a 25 year high.

Inflation in the Swiss economy went up with increase in food price

March 6, The annual inflation in the Swiss economy unexpectedly went up last month influenced by a rise in the food price and rent cost which countered the impact of a dropping oil price. The statistics shows that the consumer price index has gone up for 0.2 percent year on year and in a monthly basis for the month of February.

The UK job cuts could be over by the Easter

March 6, According to some latest study, experts are assuming that the UK job cuts will be reduced after the Easter. The prediction was made on the basis of a comparison between the US and UK job market scenario. UK is considered to be one of those European countries that are going through the worst time due to the global financial crisis comparing with some other countries in the Euro Zone. Thousands of people have lost their jobs in past months in UK and the number is still growing.