Thursday, August 23, 2012

Financial leaders warn of spending-to-noise


The economy is doing well, gushing government revenues. This raises new demands. But the housekeeper of the Coalition warn expensive new projects. And Germany should be in reducing the budget deficit model in Europe.

Berlin - The housekeepers know the game. Little bubble and government revenue and social security, new desires are awakened. The ministers, the deputies themselves at both government and opposition.

Everyone wants to implement plans and projects. And as things are looking good. In the first half of 2012, federal, state, local government and social security measures, according to preliminary calculations, a € 8.3 billion more than they spent. The good news for German Finance Minister Wolfgang Schäuble (CDU) has its negative side.
For the FDP politician budget in parliament, Otto Fricke, is already clear: "Many wishes edition will also come from our own ranks." This will prevent the householder in the face of seemingly positive recent data. Because they are at first sight so beautiful that some might hineinphantasieren into an output noise. But the impression that the money on the federal side only bubbles so - the gross domestic product (GDP) growth of 0.6 percent was achieved - sometimes deceptive refer primarily was winning the social insurance of 11.6 billion euros. This was offset by a deficit in the budgets of federal, state and local authorities of 3.3 billion euros.

Especially the good situation in the labor market brought the state more money. Such revenue rose from the personal income tax in the first half by 6.3 percent to 109.1 billion euros. From social contributions by 2.8 percent to 217.9 billion euros Government spending had risen in the same period with an increase of 0.8 percent only moderately, the Federal Statistical Office.

Householders warned

Because no one can predict whether the current revenue also continued during the year, as opposed to the householder too big jumps. The chief steward of the Union faction in the Bundestag, Norbert Barthle, said: "The news of the increased revenue may sound pleasing but this should not cause anything to pass on to the government.".

Barthle refers to several risks that Germany - and hence the federal budget - has to shoulder in the euro crisis:

Due to the decision at the last EU summit in Brussels capital from the European Investment Bank (EIB) to € 10 billion in Germany accounts for a contribution of around 2.7 billion euros.
If the ESM permanent bailout actually enter into force on the federal budget would add more costs. The German ESM total of 21.7 billion should be later this year, the first two installments of € 8.7 billion will be paid.
In addition, there are the uncertainties in the skyrocketing costs of major airport Berlin-Brandenburg. "It may well be that the federal government must help out there with hundreds of millions of euros," predicts the chief steward of the CDU / CSU.
Desires could also be raised again at the health insurance contributions. Because more employees are covered by social security in jobs, there's been a long time again to a plus. But the health insurance contributions will lower the coalition, the current pads are used up very quickly, "We should all the contribution rate, as it is now, let us stand and thus exposure to changes in the future prepare," said Barthle.

A test of the coalition is a major project from the house of the Federal Labour Minister Ursula von der Leyen. The CDU minister wants to introduce the pension contribution, with the long-standing workers according to specific criteria to receive a minimum pension. The project is controversial in the Union and the FDP. Von der Leyen has but - indirectly - linked their fate in the cabinet to the enforcement of this project. The cost, according to its Ministry: 2014, € 380 million in 2030, however, already 3.8 billion euros - ie a tenfold increase.

Closed meeting next week

DISPLAY

For Fricke is given the latest figures but the principle. "The biggest mistakes are always made in the budget in good times" The FDP has long been a desire pushes ahead of him: the abolition of the practice fee. With the cash you take per year around two billion euros. Quite possible that it falls when von der Leyen wants to enforce their pension contribution. About their project to be spoken in the fall in the coalition committee.
Next week will meet first the householder the black-yellow coalition for common exam. There will advise the other course, the budget of the Federal 2013. Here, except for the work and ministry of health, in all departments increases provided. The FDP politician Fricke guesses what triggered the recent data are warned, however: "We have no more money in the pot, but should continue to reduce our debt."

That, as the Liberals had, absolutely necessary for two reasons: "First, we should set an example in Europe in reducing the budget deficit." And on the other "come back to us time in which it is economically worse off." Fricke himself does not believe that the numbers in the second half be even as good as now. You are an exception. The increase of 0.6 percent of gross domestic product in the first half came as a surprise even for the coalition. Even 2011, there had been a deficit of one percent of gross domestic product. And even in the first quarter of 2012, the state had spent more than 33 billion euros taken.

Monday, August 20, 2012

GBP/EUR - After Euro wobbles now the British pound


Great Britain is the next Greece? Unsound public finances have let the pound slide to its lowest level in ten months. Because the situation is not much better than in Greece. And it threatens to further trouble. Britain is the good credit risk.

Since late 2009 the euro to slip came, Europeans from the City of London next to well-meaning advice also must listen to some nasty remark about their currency. But now it is the British pound, which is more and more concern, and occasionally ridicule upon themselves. Beginning of the week the sterling fell below the 1.50 dollar, it was the lowest in ten months. Within five trading days of the British currency has lost about four percent to the greenback. Analysts predict a new phase weak pound.



While the Greek public finances this year were subjected to a real autopsy, Britain needs were pushed into the background. A series of bad news has investors last but caused the instability of London today: "Retail sales, wage and employment data mortgage market development - all this was weak in," said Chris Turner, analyst at ING. But inflation was higher than predicted: A negative combination that suggests close to stagflation as a healthy economic recovery.

GBP/USD Exchange
GBP/USD Exchange Rate
GBP/USD Graph Chart
GBP/USD Performance
GBP/USD Appreciation
GBP/USD Depreciation
GBP/USD Investment Calculator
GBP/USD Metal Prices

The Canadian research firm BCA comes in an investigation concluded that England is behind Iceland, Greece, Portugal, Ireland, Spain and Italy are the most financially vulnerable country. The British state budget is in a similar condition as the desolate Greek. The European Commission estimates the budget gap to 12.9 percent of economic output, compared with a Greek deficit of just over twelve percent.

Also, the total debt of the Kingdom is not conducive to calm the minds of investors. Already this year the island nation should be 80 percent of gross domestic product in the Cretaceous. So oppressive the interest and repayment burden has never been since the end of World War II. Here, the loans and companies are not even counted. Extrapolating this with one, the Brits are at 460 percent of its economic power in the Cretaceous. The ratio is only slightly behind the record level of 485 percent, bringing it to the debt champions Japan.

Thursday, August 16, 2012

USD / EUR exchange rate news, calculator and Performance


Switzerland is a small but proud country. The Alpine Republic is a democratic basis and fortified and was always proud of his neutrality. However, before turmoil in the financial markets do not protect even the highest mountains.

With the coupling of the Swiss franc to the euro exchange rate in Switzerland has made some of their financial sovereignty and neutrality. But in the end, the number of alternatives was manageable. In the debt crisis, euro and dollar rub together. Investors who wanted to take this short-term fluctuations have not perceived the franc as a safe haven, and driven the price of foreign exchange at unprecedented heights. The results are overwhelming. Tourists shun become unaffordable for many destinations, and Swiss exports of the machine to the Clock to be either dead stock or abroad can only be the object of the profit margin will be sold off. If the share price went so on, the Confederates would have been plunged into recession.



Whether it is possible to stabilize the economy of Switzerland is an open question. Even the retracted from the Swiss National Bank's upper limit of 1.20 francs per euro is historically high. In addition, such interventions have always tried out currency speculators.

USD/EUR Exchange Table
USD/EUR Graph Chart
USD/EUR Performance
USD/EUR Appreciation
USD/EUR Depreciation
USD/EUR Investment Calculator
USD/EUR Metal Prices

The Swiss experiment marks the way, would go to Germany, too, would prevail in the euro-skeptics. A rapidly gaining strength D-Mark would affect the export business difficult, if not even bring to a halt. Coupled with low interest rates (German bonds were in demand as a safe harbor) could lead to a similar paralysis of Japan has been suffering for years. The only advantage would be that the German finance minister would be easier because of the exchange rate advantage in debt to pay back € made.
The bottom line shows, Switzerland is also the German view, little desirable scenario. In addition, the coupling of the Swiss franc, the yields on German bonds is still under pressure. The number of safe havens has become smaller.

Monday, July 16, 2012

GBP / PHP Exchange - UK supplies banks with money


The Bank of England wants the economy and financial system of the United Kingdom prior to the aggravation protect the euro crisis. These are the banks of the country get easy money - provided they pass it on to businesses and consumers.

Britain is bracing itself for the impact of the euro crisis. The government in London wants the banks of the country put money on favorable terms available to stimulate the economy. Banks should be supplied with cheap loans in order to give themselves more money, announced Finance Minister George Osborne and Central Bank chief Mervyn King.

"We are not powerless in the face of the mountain of debt of the euro zone. Together we can provide enough resources to defend our economy against the crisis on our doorstep. We make loans for families available who want to buy their own home, and for companies whose businesses want to expand. We give the banks liquidity, "said Osborne.



Money should be spent

It's about 80 billion pounds, almost 100 billion euros, the banks are to receive low-interest, ie at a rate that is below market rates. You get the funds but only if they demonstrate that they themselves sufficient to lend to businesses and consumers.

Flow is the money in the coming weeks. Central Bank chief King described the situation as seriously: "A black cloud has the mood deteriorated, shall be so prepared that businesses and households that are ahead of them storms The result is that lower consumption leads to lower incomes, and this leads to. poorer prospects for growth. "

GBP/PHP Exchange Rate
GBP/PHP Graph Chart
GBP/PHP Performance
GBP/PHP Appreciation
GBP/PHP Depreciation
GBP/PHP Investment Calculator
GBP/PHP Metal Prices

 
The UK banks are to receive in an emergency short-term loans.
King also pointed out that the economic outlook has deteriorated in other major countries, as the examples he cited China and Brazil. The central bank will provide the company with short-term low-interest loans when collateral to be deposited.

Assistance only for their own country

The British government has in recent weeks repeatedly called on the countries of the Euro-zone, and finally address the problems to solve. London, but refuses to contribute financially to relief efforts for at-risk countries.

Britain is suffering even in a recession, but this leads back to the problems of the Euro-zone. To help the ailing since the 2008 financial crisis the banking sector, the Bank of England has its key rate already some time ago to a record low of 0.5 percent cut. In addition, it has been bought bonds worth 325 billion pounds in order to help the banks to liquidity.


The head of the Bank of England was now aggressively, "We can in the United Kingdom and are coming around But it would be naive to pretend as if any of us now knows when the storm from overseas going past and the economic sky. again, cheers. " The British, so expect that they will not suffer for a while by the crisis in the euro zone.