Wed, 05 Oct 2011 15:54:00 +0400
Exchange news. The issue of possible default in Greece is extremely topical. Last weekend Athens officially claimed that the country cannot cut its expenditures, as required by the agreements. This, in its turn, casts doubt on the possibility of Greece to receive mutual assistance credit from European Central Bank.
This discouraging claim was followed by a less shocking claim from the European Union management. To be more specific, this claim concerned a temporary suspension with deciding to provide another money tranche to Athens. It had been expected that the decision of providing financial aid would be announced during a special meeting on October 13, but it has just been revealed that there will be no meeting. The decision of providing money trance is expected to be announced during the summit of European Union leaders on October 17.
Unfortunately, this proves that this year Greece is unable to change budget deficit according to the requirements. However, Athens keep worsening their condition by discussing economy measures with ECB, as their main target is to receive 8 mln. Euro from the credit that was confirmed in 2010. Another wave of recession is likely to start because of complicated and lasting negotiations between ECB and Greece. Quotations of Brent and WTI oil futures have immediately reacted to this by a more than 1 dollar decline.
Perspectives of economic growth influence oil price. At this point, signals about countries’ negative development are many. It concerns countries in Europe, the USA, and developing countries, such as China, which eased the loss of world economy in 2008.
Brent grade oil prices are currently checking the support of 101 dollar per barrel, as explained by the analytics of Forex Academy and Masterforex-V Futures Trade and Stock Exchange. This is the fourth attempt for 5 months. Passing the level will make it possible to reach the target of 90 dollars per barrel.
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It is reported that the Fed’s FOMC members are still at odds over the idea of increasing the interest rates as promised. We remind you that the FOMC meeting is going to take place just in a few days (less than a week).
Dow Jones, the U.S. stock index embracing the USA’s 30 biggest companies, has rallied fro he first time since August 19th. At this point, it is up by 619 points or 3,95% (16185,51 points). By the way, this is the biggest daily gain since 2001, Masterforex-V Academy reports.
According to John Kerry, United States Secretary of State, the U.S. Dollar may eventually stop being the world’s reserve currency in case the USA rejects the agreement with Iran and goes back to the policy of endless sanctions. This is what he told during his speech in the New-York office of Reuters.
Not so long ago, Ukraine got the right to export its goods to the USA, while doing it duty free. Most likely, the overall amount of such exports is going to be limited and inconsiderable. The thing is that this program is tailored only to those Ukrainian manufacturers capable of producing premium-quality goods. At this point, Ukrainian may start exporting its household chemical goods to the USA.
Emergency meetings follow each other. Eurozone nations are trying to save Greece. At the same time, experts have raised the alarm - Italy seems to be the next Greece. Yet, this time, if that’s the case, the Greek crisis will seem nothing compared to the Italian one.
On July 21st, Standard & Poor's, a well known international rating agency headquartered in the USA, upgraded Greece’s credit ratings – both in national and foreign currencies. The ratings went 2 steps up from CCC- up to CCC+, with a stable forecast, Market Leader reports.
Since today, July 20th, Greece has finally reopened its banks. This happened after the banks were close for 3 weeks. At the same time, the VAT and consumer prices are expected to be increased.