Thursday, February 26, 2015
Friday, November 29, 2013
Beware of the Anglo-Saxons barbarians - how they destroyed a Christian civilization - they will distroy today's Europe just the same
See also : http://www.economist.com/blogs/graphicdetail
Monday, February 25, 2013
Monday, February 18, 2013
Tuesday, August 28, 2012
Friday, May 13, 2011
Friday, February 25, 2011
In the calculation of this index, ZF chose one brand from each category of products, a brand that is well positioned in terms of market share, produced by one of the top-five players in the category. Therefore, one kilo of Băneasa flour costs 2.8 lei in February, 41.4% more than in July 2010. 1 Kilo of Lemarco sugar now costs 4.295 lei, compared with 3.28 lei, an increase of 30.9%. Similarly, the price of Floriol vegetable oil (1 litre) rose over 35%, from 5.11 lei to 6.91 lei. Data from the National Statistics Institute (INS) point to a 10.2% price increase for flour in the July 2010 - January 2011 period. Similarly, the increase amounted to 8.1% for sugar. The only products whose prices fell, of those analysed by ZF, were beer, mineral water, apples, with the decline amounting to 6.1%, 0.1% and 12.4% respectively.
Wednesday, February 23, 2011
Sunday, February 20, 2011
FRANKFURT - Emergency borrowing from the European Central Bank remained exceptionally elevated for a second straight day on Friday, intensifying speculation that one or more euro zone bank might be facing new funding problems. ECB figures showed banks borrowed more than 16 billion euros in high-cost emergency overnight funding, the highest amount since June 2009 and well above the 1.2 billion euros which banks were taking before the figure first jumped on Thursday. The ECB gives no breakdown of the borrowing figures and declined to comment on Friday when asked for an explanation for the jump. Traders remained unsure whether the spike was due to a serious funding issue or whether a bank had simply made an error earlier in the week by not borrowing enough at the ECB's regular weekly funding handout. If a bank, or number of banks, did not get enough funding, and were unable to make up the difference in open markets, they would be forced to use the ECB's emergency facility until the next ECB tender came around. The next ECB offering is on Tuesday, banks get the money on Wednesday, meaning any change would evident in figures published early on Thursday. "As no bank or banking group from any euro zone country is aggressively seeking money in the interbank market at the moment, it is likely that something went wrong at the main refinancing operation," said one euro zone money market trader. "The bank or banking group needs to tap the ECB for the money whether they like it or not, or they are doing that so as not to appear active on the money market and to thereby be stigmatized," he added
European bank shares were down 1 percent by 1100 GMT while the euro fell against the dollar and other major currencies for much of the morning. Money markets showed little reaction, however. Key euro bank-to-bank lending prices remained on a downward trajectory, a direction traditionally at odds with rising tensions. The theory that the spike was due to human error appeared to be supported by data from the ECB's latest weekly funding operation. Banks borrowed the lowest amount since June at the tender, 19 billion euros less than the previous week and well below expected demand of around 160 billion euros.
However, a monetary source in Italy, speaking on condition of anonymity, told Reuters that the increase in borrowing was not a technical problem and was a sign that money markets were still not functioning correctly and geographically split in the wake of the global financial crisis. The source said the Italian banking system continued to have good access to money markets, while high-level Spanish financial source said the jump was not down to Spanish banks. The borrowing jump added extra complexity to the question of whether the ECB will scale back, or extend, its money market support measures at its next meeting on March 3.
ECB President Jean-Claude Trichet said in a recent interview that the health of money markets had improved, although Belgium's Guy Quaden said this week liquidity support remained necessary. "If the increased use of the marginal borrowing facility is due to new problems in the banking system this would call for an extension of the ECB's liquidity support," said UniCredit analyst Luca Cazzulani. "The ECB knows exactly who is borrowing the money and why they are doing it. If it is due to a mistake then it should not influence their thinking at all." The extra 0.75 percent which banks have to pay for overnight funding from the ECB normally means it is used only as a last resort. The last time before this week that overnight borrowing exceeded 10 billion euros was on June 24, 2009, when it was 28.7 billion euros, the highest ever. This year, emergency overnight borrowing has been above 1 billion euros only twice. Traders said while mistyping the required amount or missing the ECB's tender altogether would be an unlikely mistake, it could happen. "It would be a huge oversight and pretty unlikely but it is possible if a lot of things conspired against you," said one London-based money market trader. "If it is a mistake then someone's boss is not going to be very happy." A number of banks, mainly from the euro zone's most debt-strained countries but also troubled banks in core countries, remain barred from open money markets and almost completely dependent on the ECB for funding.
Wednesday, February 16, 2011
The Romanian economy rose by 0.1% in the last three months of 2010 against the preceding quarter, contrary to most analysts' expectations of a decline. Analysts, however, say that the figure was very close to zero and could be later revised, with the "plus" or "minus" sign being less relevant. "This positive figure can be explained by revisions of past data. The -1.2% decline can only be explained if historical series were revised. There could be major revisions both for 2010 and for 2009. One cannot rule out the possibility that the minus of the first quarter has been turned into a plus. If 2009 data have not been revised, one could only come up with 1.2% if first-quarter economic growth were positive," commented Nicolaie Chideşciuc, chief-economist of ING Bank. He says considering that the 2010 economic decline was lower than expected, there is a big chance this year's economic growth could exceed 0.2%. The austerity measures adopted by the authorities, the VAT hike and the 25% public sector wages cut, were reflected in the GDP dynamics. After the economy's feeble return to positive territory in the second quarter, the seasonally-adjusted GDP dipped back into negative territory in the third quarter. The GDP fell 2.5% in the third quarter against the corresponding period of 2009, after a decline of just 0.5% in April-June of 2010 (z.f.)
Monday, February 14, 2011
"The growth rate of the public debt is significant. And its level has neared 40% of GDP. The situation is made worse by the fact that the debt structure has a big short-term component, which is more volatile. A problem we will have to solve is modification of the debt structure by extending loan deadlines," comments Aurelian Dochia. Can Romania function without further boosting its public debt? "The public debt is expected to stabilise. Now it is not small at all. We are nearing the maximum bearable limit. The important thing is to think why we are taking this debt on. If we boost the debt to finance wage and pension spending, the markets can become nervous. If we build motorways, it is not a tragedy," believes Ionuţ Dumitru, chief economist of Raiffeisen Bank. The Finance Ministry has managed to slightly reduce the budget deficit last year, but the fast rate of growth of the public debt and the weak prospects of economic growth remain the main vulnerabilities.(Z.F.)
Monday, February 7, 2011
The main risks now have to do with the international trend of making food and fuels more expensive, which has already been felt on the Romanian market. Last year consumer prices climbed nearly 8%, although the official inflation target was 3.5%. The shock of the VAT hike from 19% to 24% in the summer, as well as the food price increases that occurred in autumn overturned the downward trend of inflation.
Thursday, February 3, 2011
Wednesday, February 2, 2011
The political change in Egypt, which has now reached a population of 80 million, is a "Lehman Brothers" of the Arab world, says professor Daniel Dăianu.
"This is a very difficult situation, a Lehman Brothers of the Arab world, it is a much too hot potato for everybody. It is an event with a major political impact, the most important one since the fall of the Berlin Wall, it could mark this decade," says economist Daniel Dăianu. The collapse of American bank Lehman Brothers is the biggest bankruptcy in the history of the United States and the trigger of the international economic crisis.
Daniel Dăianu believes the political unrest in Northern Africa and the Middle East comes at a time when all countries have had to make spending cuts as a result of the world economic crisis, with the very viability of the welfare state being questioned. (Z.F.)
Monday, January 31, 2011
"The number of policies covering treatment abroad rose visibly last year, but the market has not reached maturity, yet. We can see demand increasing for these products owing to the frequent cases of malpraxis in Romania or of hospitals lacking medical products," comments Cristian Fugaciu, general manager of Marsh insurance broker.
The price of insurance on the basis of which a client has access to treatment abroad starts from 700 euros per year and can reach 2,000-3,000 euros per year on average in the case of complex products. There are however policies without restrictions for insured sums or treatment location that can top 8,000 euros per year.BCE, Citigroup, Comisia Europeana, FMI, Federal Reserve, Germania, Grecia, Irlanda, Marea Britanie, PIB, Rusia, SUA, Spania, Standard and Poor's, Ungaria, Uniunea Europeana, economie, obligatiuni, zona euro
Sunday, January 30, 2011
Who is to blame and who will pay for this?
The situation could see allocations change because the EU is preparing to reallocate amounts for the 2007-2013 period, with some of the unspent money potentially to be redistributed to other countries. The same people have been at the helm of the Transportation Ministry for years - Radu Berceanu (PDL, transportation minister twice in 2006-2007 and 2009-2010), Gheorghe Dobre (PDL, transportation minister between 2004 and 2006, currently secretary general of the Transport Ministry), Ludovic Orban (PNL, minister between 2007 and 2008), Anca Boagiu (PDL, currently transport minister, who also held this position in 2000, when she succeeded Traian Băsescu), and the results are showing today: the infrastructure is extremely poor, and the "free" money for building roads and motorways is stuck because of the Ministry's inaction. ( Z.F.)
Friday, January 28, 2011
"We have been eyeing Romania over the past five or six years, but it is now that we decided to open a local office. This is a decision that proves the domestic market has reached a certain maturity. We are in the right place at the right moment. Romania is the most promising country in Eastern Europe," says Hans Jorn Rieks, chairman for Central Europe with Vestas.
The best-known wind farms due to be equipped by Vestas are the ones being built by Energias de Portugal in two towns of Dobrogea, Pe[tera and Cernavod`.
According to Rieks, the big concern as regards the Romanian market is legislation. "The existence of clear legislation will open the market to several players as banks are always looking at something tangible and are not willing to take on risks," he says. (Z.F)
Thursday, January 27, 2011
Earlier this month, the European Commission also raised 5 billion euros for Ireland through its first bond issuance under the European Financial Stabilization Mechanism (EFSM), which is guaranteed by the EU's budget. Markets snapped up the bond within one hour.
Tuesday, January 25, 2011
So far, the authorities have only paid interest on the nearly 20 billion-euro record-high loan sealed with the IMF, the European Commission and the World Bank nearly two years ago.
The first principal payment will be made on August 6th 2012 and will amount to 546 million special drawing rights (SDR), i.e. over 600 million euros at the current SDR value.
"The repayment of the loan is done in instalments. There is no major pressure involved. Under no circumstances is the Government unable to repay the loan unless it sells holdings in state-held companies. The sale is a solution that can be considered. The Government's intention to sell stakes on the stock exchange has been previously announced. It is not unexpected. But I don't think the Government is forced to do this amid pressure to repay the loan," said analyst Aurelian Dochia.
On another note, as part of the new precautionary arrangement with the IMF, the state-run companies will be much better monitored, considering the high level of arrears, and the Fund believes the resources derived from privatising viable companies could provide cheaper financing of the budget deficit, sources close to the negotiations say.
On the other hand, while the arrangement with the IMF will continue in some form or another, the continuation of the agreement with foreign banks on maintaining exposure to Romania is not ironclad, and may be dropped, as parent banks maintain exposure voluntarily, sources close to the talks say. (Z.F.)