Tag: finance

June 18, 2013 0

Brazilian Currency Touches Four-Year Low Prompting Intervention; Currency Intervention Madness Displayed in Chart Form

By News Desk

The Financial Times reports Brazil declares new ‘currency war’ Brazil has declared a fresh “currency war†on the US and Europe, extending a tax on foreign borrowings and threatening further capital controls in an effort to protect the country’s struggling manufacturers. Guido Mantega, the finance minister who was the first to use the controversial term in 2010, said the government would not “sit by passively†as developed nations continue to pursue expansionary monetary policies at the expense of Brazil.“When the real appreciates, it reduces our competitiveness

March 20, 2013 0

EU Blinks Already? Staged Vote? Cyprus Finance Minister Proposes Deal with Russia; Will That Fly?

By News Desk

Staged Vote? In spite of the 1-Not Present, 36-No, 19-abstentions vote in the Cypriot parliament, one really has to wonder if this was a staged vote to show solidarity with Cypriot citizens, with some sort of face-saving deal already approved for tomorrow (in which the Cypriot parliament votes yes by a slim majority in return for minor concessions from the ECB and Germany). In short, it is unclear if we really know what is happening in the Cypriot parliament.

February 8, 2013 0

Japan Posts Second Consecutive Current Account Deficit; 2012 Account Surplus Lowest on Record

By News Desk

Reuters reports Record low current account surplus shows Japan’s challenges Japan posted its smallest annual current account surplus on record in 2012 as exports weakened and energy imports grew, a signal to Prime Minister Shinzo Abe that economic revival needs more than just a weaker yen and extra spending. The current account surplus is likely to continue shrinking as energy imports rise due to the closure of nuclear power plants and as Japanese exporters lose out to more competitive Asian rivals, economists say. Japan’s current account surplus was 4.7 trillion yen ($50.4 billion) in 2012, Ministry of Finance data showed, a figure that seems impressive.

January 25, 2013 0

Much More Beneath the Surface of the Italian Bank Scandal; How Big Are the Derivative Losses?

By News Desk

While pondering what Dragi knew or didn’t, let’s turn our focus on actual losses. Reuters reports Monte Paschi Shares Plunge on Derivative Loss Fears Shares in Banca Monte dei Paschi di Siena, Italy’s third-biggest lender, fell more than 5 percent for the second day in a row on Wednesday on worries of mounting losses on some financial derivative positions which it took in 2008 and 2009

January 25, 2013 0

Much More Beneath the Surface of the Italian Bank Scandal; How Big Are the Derivative Losses?

By News Desk

While pondering what Dragi knew or didn’t, let’s turn our focus on actual losses. Reuters reports Monte Paschi Shares Plunge on Derivative Loss Fears Shares in Banca Monte dei Paschi di Siena, Italy’s third-biggest lender, fell more than 5 percent for the second day in a row on Wednesday on worries of mounting losses on some financial derivative positions which it took in 2008 and 2009