Ireland to get IMF and EU loan. by Milota Sidorova

Ireland took the place that was so long expected to be taken by Spain or Portugal. After few weeks of denials and doubts it came out clearly, however, being honest, not surprisingly. Ireland with a deficiti summing somewhere around 26 percent has finally asked for „help“ or a loan from International Monetary Fund and EU save fund. Although Irish government tried to avoid of this situation, quoting the loan could come in the Spring, the breaking point came after just few days. And EU reply didn't take that long. Ireland got generous „yes“ to multibillion loan from Eurozone and Sweeden and Great Britain that keep their own currencies. So far the final ! amount of money hasn't been agreed but Irish representatives suggested it wouldn't be more than 100 billion euro. The loan will be divided into several payments during three years and this should be also the period in which it should be repaid. As most crucial reasons for the crash, however havent been benevolent taxing and social policies, but banks. Ireland has put beyong 50 billion of euro to its banks to insure them against all losses. Despite of this step paid by taxpayers, banks couldn't keep the pace and now they seem to be the fate of Ireland. Ireland has to borrow, yet, the conditions of the bailout are in the process of negotiations. IMF and EU suggested they wouldn't imply orders on Irish tax policies, but said they would be comfortable if Ireland cut enough of public spending. For Irish people it means certain tax increase and limit of „unnecessary“ spendings. But now it is 100 percent clear they are not paying for their own mistakes, but for inabili! ty of financial institutions. And EU must help, if it wants to! remain as it is.

related story (sgx18632): http://news.yahoo.com/s/ap/eu_ireland_financial_crisis;_ylt=...

by Milota Sidorova for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of enterta! inment at the tip of your fingers.

Asian inflation and Europe debt crisis push stocks down by Zuzana Zelenakova

Stocks have been falling down after Chinese Prime Minister Wen Jiabao announced that China has to come up with some measures to battle inflation. Markets also fell after South Korea´s central bank raised interest rates to restrict growing inflation. "The fact that China is taking actions to tighten things up over there is having a big ripple effect here," said Bruce Simon, the chief investment officer at Ballentine Partners. Meanwhile, Ireland is still negotiating with European Union and International Monetary Fund financial aid package for its debt laden banks. “The market is not going to react very well because things are going to get worse before they get bet! ter,” said Sung Won Sohn, an economics professor at California State University- Channel Islands in Camarillo, California. “The sovereign financial crisis has not disappeared: it’s been postponed.” “At the request of the Irish authorities, an IMF team will participate in a short and focused consultation, together with the European Commission, and the ECB, in order to determine the best way to provide any necessary support to address market risks,” the Washington-based International Monetary Fund said in an e-mailed statement. Although European finance ministers have not agreed on bailing out Irish banks, they are definitely making steps to support financial system in Ireland and help it to recover. Even though Ireland´s situation is not the same as it was in case of Greece, which had to be bailed out by European countries and the IMF it has similar effects on markets. Both factors, inflation in Asia and debt crisis in Europe, have ca! used stocks to fell for a fourth day Tuesday. The Dow Jones in! dustrial average recorded its biggest one-day loss in three months. It fell 178.47, or 1.6 percent, to 11,023.50. The Standard & Poor's 500 index fell 19.41, or 1.6 percent, to 1,178.34. The Nasdaq composite index fell 43.98, or 1.8 percent, to 2,469.84.

related story (sgx18620): http://news.yahoo.com/s/ap/us_wall_street;_ylt=Ar_ODul2DKxrD...

by Zuzana Zelenakova for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with tel! ecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.

Wall Street bounces on weak dollar by Magdalena Rosova

A fall of the dollar encouraged buying in industrial and commodity-linked shares, which has significantly changed a current situation on Wall Street. The Federal Reserve's new policy of very low interest rate caused that many investors are now more confident in buying riskier assets like stocks and commodities. Market strategist Quincy Krosby suggests that the correlation had come back because of the Fed and its promise of asset purchases. In the last month the euro and the economic index S&P E-mini futures contract have tacked each other. In the past sessions they have had a correlation coefficient of 0.8, which means they have a strong relationship. The Dow Jones industri! al average gained 129.35 points, which represents 1.18 percent. Other industrial indexes are very positive as well. The Dow Jones industrial average (.DJI) gained 129.35 points, or 1.18 percent, and grew to 11,107.97. The Standard & Poor's 500 Index (.SPX) rose 12.27 points, or 1.05 percent, to 1,178.17. The Nasdaq Composite Index (.IXIC) added 20.44 points, or 0.84 percent, to 2,457.39. Thanks to the material shares the broad market also got higher. Freeport-McMoRan Copper & Gold grew 2.8 percent and S&P materials index rose 2. percent. Commodities gained thanks to the drop of the U.S. dollar to a near 15 year low against the yen. The Dow Jones index grew mainly thanks to the Boeing Company that reported a quarterly profit that was higher than all expectations and raised its full-year forecast. The company's growth was caused by a recovery in the commercial airplane market.

related story (sgx18456): http://onl! ine.wsj. com/article/SB1000142405274870329800457445...

by Magdalena Rosova for Cantell TV (http://cantell.tv)

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Investors waiting for Fed to print more money. by Milota Sidorova

I bet there is nobody who will argue the fact the value of money is completely artificial. Its power, market results and long-term economy consequences are backed not by some physical value such as gold or some products, but by their amount. The amount of money makes strong or weak markets. And there are just several institutions in this world that have the right to print more money or on the other hand to decrease their amount. One of them is private Fed. And this institution is currently on focus, since markets or better said investors have put a faith in what's called another money flow input. Fed is expected to prolong the period of favorable business conditions and &#! 8222;pour“ more money into the economy. Recent market results only prove this kind of expectation – Dow Jones index ended above 11,000 points last Friday and it was for the first time since May. Investors are expecting Fed will decide for „quantitative easing“ on its next meeting that is scheduled on November 3rd. The reports from job market that is another market shaping factor remain the same – the unemployment holds around 9.6 percent and although President Obama signed announced to release $30 billion and some tax reductions for small and middle businessmen it would take longer period to be reflected in job market. World markets ended up with slight growth, British shares rose 14.79 points, or 0.3 percent, at 5,672.40. Germany's DAX gained 17.84 points, or 0.3 percent, to 6,309.51. The CAC-40 in France got 5.31 points, or 0.1 percent, higher at 3,768.49. Dollar was down against euro last days and euro seemed to gain at least temporal ! growth after months of decrease. But other currencies remain s! peculati ve – many countries tend to lower the value of their currencies just to fix (mean increase) export incomes and sales to keep the image of growing GDP.

related story (sgx18383): http://news.yahoo.com/s/ap/20101011/ap_on_bi_ge/world_market...

by Milota Sidorova for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital c! ontent through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.

Currency – a new policy tool? by Barbora Misakova

In such difficult times like these, there is no surprise people are doing what they can to make money. Economy crisis hit us all and not very kindly, so efforts to start old business up again are more than understandable. The question is: where are the limits? Timothy Geithner, U.S. Treasury Secretary, has been pointing out the risk of a round of destructive competitive currency devaluations. Semi-annual meetings of the International Monetary Fund and World Bank which will take place this weekend, in all probability will be also trying to solve this problem as it is serious and it has global importance. As Geithner pointed, global institutions have to make coordinated push ! to persuade as big countries as China to let their currencies’ vale rise. If they don’t do that, it will endanger the global economy as a whole. “This is a problem because when large economies with undervalued exchange rates act to keep the currency from appreciating, that encourages other countries to do the same.” he said at the Brookings Institution. According to him, Obama administration has ample backing for its efforts to get Beijing to move toward market-oriented exchange rates, even though he was not that optimistic about its speed. “China will be less likely to move to allow its currency to rise more rapidly if it is not confident other countries will move with it.” Geithner said. As America is slowly bringing on its feet again, other countries overly reliant on exports try to abuse it. But as Geithner said: “Countries overly reliant on exports to us for their own growth will need to change their policies, or else global gr! owth will slow and all of us will be worse off.”
related story (sgx18348): http://news.yahoo.com/s/nm/20101006/bs_nm/us_currencies_geit...

by Barbora Misakova for Cantell TV (http://cantell.tv)

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by Zivka Deleva

by Zivka Deleva for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.

Mena – nový politický nástroj? by Barbora Misakova

V takých ťažkých časoch, ako sú tieto, sa niet čomu čudovať, ak sa ľudia snažia zarobiť nejaké peniaze. Ekonomická kríza nás zasiahla všetkých a nie veľmi vľúdne, takže snahy opätovne rozbehnúť staré obchody sú viac ako pochopiteľné. Otázkou zostáva: kde majú tieto snahy svoje hranice? Timothy Geithner, americký minister financií, poukazuje na riziko menovej vojny, v ktorej pôjde o deštruktívne devalváciu zahraničných mien. Polročné zasadnutie Medzinárodného! menového fondu a Svetovej banky, ktoré sa má uskutočniť tento víkend, bude s najväčšou pravdepodobnosťou riešiť aj tento problém, nakoľko má celosvetovú dôležitosť. Ako Geithner zdôraznil, globálne inštitúcie musia koordinovane tlačiť na veľké a prosperujúce krajiny akou je napr. Čína a presviedčať ich o potrebe zvyšovania hodnoty ich meny. Ak to neurobia, môže to ohroziť svetovú ekonomiku ako celok. „Je to problém, pretože keď veľké ekonomiky s podhodnotenými výmennými kurzami nedovoľujú zhodnocovanie meny, povzbudzuje to ostatné krajiny k tomu, aby robili to isté.“ povedal v Brookings Institution. Podľa neho, administratíva súčasného prezidenta Baracka Obamu má pre tieto snahy dostatoč! ;nú podporu, avšak nebol už natoľko optimi! stick 53;, čo sa týkalo rýchlosti ich reálneho presadenia. „Je len malá pravdepodobnosť, že Čína dovolí, aby jej mena rástla rýchlejšie, kým tak neučinia aj ostatné krajiny.“ povedal Geithner. Keďže sa Amerika pomaly dostáva opäť na nohy, ostatné krajiny závislé na exporte sa to budú snažiť využiť. Ako však Geithner povedal: „Krajiny, ktoré sa pri svojom raste príliš spoliehajú na export k nám, budú musieť svoju politiku zmeniť, inak sa spomalí globálny rasť a všetci na tom budeme horšie.“

related story (sgx18354): http! ://news.yahoo.com/s/nm/20101006/bs_nm/us_currencies_geit...

by Barbora Misakova for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.