Subprime crisis is favorable to the consulting companies
Written on 30 May 2008 by webmasterAlmost already a year has passed after in the world markets crisis of credits of a level subprime, which has created threat of world financial system collapse has burst and has put US economy to recession. Till now the majority of the companies cannot recover from losses and continue to incur losses.
Consulting industry is the only branch, which has gained from August crash, - more often different companies address for advice to professionals, who help them to avoid bankruptcy and to dispose their means profitably.
Because of crisis of credits the consulting companies receive huge profit. And it is quite obvious that this industry will continue to develop in the nearest months record-breaking fast rates. Really, shares of the majority of the consulting companies have significantly risen in price for the last half a year. It has appeared considerably above forecasts and has already involved a stream of investments into this unattractive sector. Now, such consulting companies as FTI Consulting, rating agency Duff and Phelps, KPMG, Deloitte and Touche, Ernst and Young are among the leaders.
Expensive oil strengthens political instability
Written on 29 May 2008 by webmasterThe world prices for oil continue to update the records. The large countries - oil-manufacturers are quite satisfied: incomes from oil export have surpassed their most courageous expectations.
However, finer oil exporters are frightened, as the poor countries with huge stocks of oil more often simply are not able to dispose of such huge incomes. Moreover, this profit does not always goes on the good purposes.
For example, UCLA representatives prove that the developed countries usually know what to do with such profit. Large oil exporters start to postpone this money for the future, or put them in new projects. There is nothing to say about poor countries: usually they either are not able, or do not wish to spend correctly such huge means. Recently appeared oil exporters are simply not ready to such inflow of the capital. There is a huge probability of that they will simply waste their petrodollars.
In particular, analytics name such poor oil exporters as Equatorial Guinea, Chad and Sudan. For example, Equatorial Guinea due to oil deposits, recently put into operation, has sharply increased the incomes. Thus parameters of population development are very low, and there are bases to suspect, that the most part of money settles in pockets of government officials. So, according to the international organization on struggle against corruption Transparency International, on a level of corruption the country takes the tenth place from 180 countries.
EU has eliminated obstacles for the beginning negotiations with Russia
Written on 26 May 2008 by webmasterMinisters for Foreign Affairs of the European Union (EU) have approved the mandate on the beginning of negotiations under the new cooperation agreement with Russia. Such information has been proved by representatives of Slovenia presiding in EU.
Agreement upon this question, actually opening a way to discussion of the new contract between Bruxelles and Moscow, has been finally reached. We shall remind that on May, 21st the mandate on the beginning of negotiations has been approved at the countries - members of EU ambassadors’ meeting.
Meanwhile all way to this contract already took several years. In 2006 Russia has offered to update cooperation agreement with the European Union. However, then Poland, which was dissatisfied with embargo on import meat production to Russia, has acted against it.
Until recently Lithuania acted against negotiations.
Brewers get prepared for the largest in history merge
Written on 24 May 2008 by webmasterOn informal data, Belgian brewing company InBev plans to get Anheuser Busch for 46 billion dollars.
It is informed, that the Belgian company will offer 65 dollars for each Anheuser Busch’s share. At the moment official sources have not confirmed the given information.
Belgian InBev - is the largest on size in the world brewing company. The company produces beer under brands Stella Artois, Beck’s and Brahma. In Russia the corporation owns “DIGNITY InBew”. The Aggregate number of employees makes 86 thousand people.
In I quarter of 2008 net profit of InBev has reduced on 11 % - up to 580 million dollars. Company connects it with falling of consumption of beer in Russia on 11 % in comparison with similar quarter of the last year.
Anheuser Busch - the second in the world on size and the largest in the USA brewing company, which is owns 12 American beer factories and has branches in other countries of the world. The company makes more than 60 kinds of beer and other alcoholic production; including the well-known Czech mark Budweiser.
Eurocommission has startted investigation against Gaz de France
Written on 22 May 2008 by webmasterEuropean Commission has begun detailed check of activity of French state power company Gaz de France for conformity to the antimonopoly law. It is spoken in widespread today, on May, 22nd, message of Eurocommission.
According to the Commission’s application, the degree of domination Gaz de France in the power market of France causes serious concern. Check will rely in studying the facts of possible infringement by the company of free competition principles. In particular, Gaz de France is suspected of restriction of gas importing to France.
According to the EU representatives, new investigation is not, any way, connected with the checks of the company, carried out in July, 2006. Gaz de France was suspected of arranging differentiation of spheres of influence in home markets of the countries with German E.On AG.
Gaz de France - is the leading European state fuel and energy company. The basic field of activity of the company relies in natural gas transportation and realization.
Citigroup can sell bank division in Germany
Written on 18 May 2008 by webmasterThe largest bank in USA Citigroup Inc. considers an opportunity of sale one of its divisions on rendering retail bank services in Germany Citibank Privatkunden AG and Co. KgaA.
Nevertheless, no decision on the further destiny of division has been accepted yet.
The sources close to Citigroup, prove, that the Deutsche Bank is considered by management Citigroup as the strategic active, however, the variant of its sale has arisen after a number of the companies have expressed interest in purchase Citibank Privatkunden.
Last week new Citigroup chapter has informed that the bank is measured to leave the nearest years not profile actives at the rate of 400 - 500 billion dollars for returning to profitableness. Citigroup’s cumulative actives make 2,2 billion dollars.
Citigroup’s financial stability has seriously suffered from world credit and financial crisis. In IV quarter of 2007 the bank has fixed losses at the rate of 9,8 billion dollars, in I quarter of 2008 Citigroup’ pure loss has made 5,1 billion dollars
High inflation forces Europeans to cut down expenses
Written on 16 May 2008 by webmasterThe European Union has for a long time been considered as commonwealth of 27 stably developing states with a good parameter of gross national product and low rate of inflation. From year to year salaries of Europeans grew, and their purchasing capacity grew in this connection.
However now, on a background of a sharp rise in prices on the foodstuffs and power resources Europeans are compelled to cut down the charges and to save. The situation is aggravated also with that fact, that many manufacturers raise the prices for the goods because of growth of production costs.
Large food stuffs and household chemical goods manufacturers, such as Nestle and Unilever, have already raised the prices for production, trying though somehow to compensate prompt growth of production costs. However, experts mark, that consumers will eternally not suffer this rise in price, and finally can simply start to buy production of other, less known, companies.
Anyway, so sharp rise in prices has already led to the fact that Europeans have started to cut down the expenses - in UBS economists’ opinion, this year net profits of citizens of the European Union will be reduced for the first time for the long period of time. And Germany, Italy and Spain will suffer more than the other EU countries. Statistics confirms this point of view: on preliminary data of European statistical agency Eurostat, volume of retail trade in Eurozone of the reference of uniform European currency in March, 2008, has decreased on 0,4 %.
HP and EDS: merge will urge consolidation in IT-sector
Written on 13 May 2008 by webmasterWorld’s largest personal computers’ manufacturer - American company Hewlett-Packard - will get Electronic Data Systems (EDS) for 13,9 billion dollars. Such information has been represented in the press release of the company.
Experts assure that this transaction will urge consolidation in IT-sector, as after occurrence of the incorporated company small firms become simply noncompetitive, and transactions of merges and acquisitions (mergers and acquisitions, M&A) will become the only opportunity for them to survive in the market.
It is impossible to forget about the decrease in rates of economic growth as many buyers start to cut down their expenses that affects the companies of this sector now not in the best image.
It is necessary to note, that HP has not lost, having agreed on this transaction as the IT-branch is famous for rather stable income and high profit even in terms of economic recession. So, in 2007 the total proceeds of the companies, rendering computer services, have grown on 10,5 % and have made 748 billion dollars. IBM remain the market leader - its share in the market made 7,2 %. EDS’ share makes 3 % of the market and the company takes the second place, and HP occupies the fifth place and possesses 2,2 % of the market share.
Venezuela and China will make oil in Orinoco
Written on 11 May 2008 by webmasterVenezuela and China have signed the agreement on creation of joint venture on an oil recovery in the river basin of Orinoco.
The joint venture Venezuelan Petroleos de Venezuela SA (PDVSA) and Chinese China National Petroleum Corp. will deliver the extracted oil on the future oil refining factory in China, construction of which has been also agreed by Venezuela and China at the ceremony in Caracas.
The future oil refinery will process 400 thousand Barr. of oil every day. Thus, the president of Venezuela expects to realize the ambitions, according to which his country would every day deliver 1 million Barr. of oil to China till 2011.
Now China every day receives nearby with 300 thousand Barr. of crude oil and mineral oil from Venezuela.
It is worth of mentioning that Hugo Chavez supports the Chinese government. So, today he has accused the USA of attempts to break carrying out Olympic Games in Peking. The Venezuelan leader has condemned the proTibetan protest actions worldwide and has supported China in struggle for territorial integrity preservation.
Brazil became attractive investment object due to good coffee
Written on 6 May 2008 by webmasterOn the eve of May holidays the international rating agency Standard and Poor’s (S&P) has raised a sovereign credit rating of Brazil on one item - from “ВВ +” up to the “BBB-” level .
Increase of S&P rating has entered Brazil into club of the countries with a sovereign investment category rating. And the first role in this increase, in analysts’ opinion, was played by successful sales abroad of various Brazilian raw materials.
In Brazil real exchange carnival, with a champagne, congratulation of all Brazilians on behalf of the President and rise of leading exchange index Bovespa at once on 5 % has begun.
Making comments concerning increase of country’s rating, S&P analytics have emphasizes essential decrease in external duty, strengthening of the Brazilian institutes, and also the improved tendencies to growth. However, the main reason of increase of a rating relies in growth of trading balance proficiency and accumulation at his expense a huge reserve by Brazilian Central Bank.
Trading proficiency, in turn, increases due to sale of the well-known Brazilian coffee and hardly less well-known orange juice, and also grain, meat, ethanol, ore, metals, oil and gas. The proceeds from them make about two thirds of proceeds of the country.
Notwithstanding the fact that after increase of S&P rating the rate of the Brazilian real to dollar has become stronger more than on 3 %, export of the Brazilian raw material will not suffer from it: competitiveness is kept owing to a rise in prices on the specified raw material abroad.
