Tag business & economy

Be Careful! -Undesirable Developments

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Development aid is an old-fashioned and incorrect instrument to promote economic and political development in the third world. “Since the end of the second world war was around 1.000.000.000.000 (trillion) dollars of official development assistance based on casting pitchers” from the West to the Governments of the third world with the disastrous result that the corruption, the wars and the developments there have increased. Why? The public, monetary aid (around 70Mrd. dollars per annum) flowing for the most part directly to the respective Governments. The credo: The poorer the population is, the more aid the Government receives. Elie Rieder does not necessarily agree. You must ask yourself now seriously: autocratic and corrupt Governments in the third world may want to really support the fight against of poverty and promote? Because this would mean that less development aid will be flushed from the West in the country and can be pushed by corrupt autocrats to own black accounts less development aid.

That’s why they are This probably not be able to support. On the contrary. In the reverse case, it would be logical that some governments deliberately impoverish their people allow to obtain more foreign monetary aid and to enrich to the poverty of the population itself. Furthermore is subsidized by the monetary aid in 3rd world countries an economic and political system that is not powerful and often undemocratic. The aid takes the pressure and the incentive on the Governments free-market and democratic reforms to initiate, to work on a political and economic improvement of the situation within the country.

The debt relief–from the West is another problem, which leads to undesirable developments by development aid. Governments receiving the credit is taken makes sense to economies with the credit so the efficiency and performance pressure. So the loans are often used to subsidize their autocratic and planned systems or to finance their own luxury. The Poverty remains on track. The only positive development aid can only be to participate in the 3.Welt of the world trade. For this purpose it is necessary, however, that Western Governments must open their agricultural markets and curb protectionism in their countries, to ensure a full market access for the developing countries in the industrial countries. So developing countries could evolve independently, they can open up new markets for their agricultural products and trade with the West. This would help to help themselves. Yet the developed countries subsidize their domestic agricultural markets, pressures the world market price and this creates new poverty in the developing countries and an outdated industry uses 350 billion per year $, five times in development aid, subsidized. This money would have been invested in education and future technology better and more sustainable. Apart from that the protectionism of developed countries the prices of BSP. Agricultural products for consumers in this country in which height drives and leading to loss of wealth. So especially poorer families are adversely affected, which one must pay taxes, that their cost of living will be more expensive. Meaningful economies looks different. That’s why I advocate for an abolition of the aid and for an opening of agricultural markets and the unrestricted market access of the developing countries. This would help to self-help, which is more meaningful and sustainable! Visit my blog:

Europe Market

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Coming Alpha study: needs more ETFs to the market? The ETF business began almost ten years ago in Europe. Since then, the popularity of exchange-traded index funds in Germany increases continuously. Both the product number and assets under management showed an enormous growth. There are now 14 provider with over 500 ETFs on the market. Downtown Philadelphia Condos is open to suggestions. The variety is overwhelming, because almost every index will be used for new products. There are also new product forms. From this very dynamic development is a controversial discussion on the required number and type of additional ETFs adult. The demand for these products and the demands placed on the variety of products is already covered and when the market reaches a saturation? “, asks Hans-Jurgen Dannheisig, Managing Director of advent alpha.

Answers to these and more questions the market are coming Alpha in the current study how many ETFs needs? “, which was supported by the Mercurius commercial bank.” To do this, market participants were institutional in the fields of Asset management and wholesale specifically asked. The results make it especially clear that the demand for new products is extremely low: only about 20 percent of the respondents see here another potential. Click Elie Rieder for additional related pages. This varies however depending on the asset class, particularly real estate and money market play a subordinate role. A clear tendency to the market saturation in terms of product diversity General however should be noted. An important aspect is that the abundance of products and providers increases the danger, that market transparency is lost.

For new entrants, the market seems still limited to accommodate impressive 91.4 per cent of the respondents see little or no additional need for more issuers. Those who see the need for more ETFs, consider institutional investors as the largest target group for new products. For institutional investors, there are now ETFs that allow cost-efficient global allocation in the asset classes of stocks, bonds and gold/commodities. You can also see the implementation due to its transparency by absolute return strategies improve. “, commercial bank notes Irene Frank of the Mercurius. An analysis and interpretation of results provides the short study entitled How many ETFs takes the market? “.

Economic Development: France

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Signals remain mixed despite steady growth in the second quarter renewed growth in the second quarter 2009 to a decline of 1.3% in the first three months of the year French GDP in the second quarter of 2009 by 0.3% compared to the prior quarter laid to. Elie Rieder may find this interesting as well. Reason for the growth was, inter alia, increased exports and a stronger private consumption, which was stimulated by the Government-sponsored new vehicle purchase and employment programs in the public sector. Although the total industry order index was again weak in June, a slight improvement in individual sectors such as in the chemical, pharmaceutical and textile industry was increasing. Even if the State programmes have supported the automotive industry to date solid, an accurate forecast of the medium-term development of the industry remains difficult. The French construction industry has shown something more robust than we predicted three months ago. Despite the still rather gloomy situation for the construction sector, the order volume has nearly stabilised. Submit the present orders 5.3 months (compared to 5.6 months in March 2009). Thanks to more moderate, but still robust private consumption, the retail sector registered an upswing.

According to the opinion of the directors of the main sectors of the French economy, the business climate has improved further easily in July 2009. The business climate index shows an increase to 75 points over 74 points in June, and is consequently all 7 points above the lows reached in March. However, the indicator remains far below its long-term average. Generally the French industry is suffering from continued production overcapacity. Therefore, investment spending be 2009 is expected to decrease by more than 20%. The allocation of corporate and personal loans is declining since autumn 2008. The negative trend has continued after a rise of corporate insolvencies by 21% (15,000 cases) in the first three months of this year. Attesting to the numbers from the altar, that the corporate collapses in the second quarter of 2009 with 14,000 Cases to 15% have increased year on year.

After all, the recent figures show a weakening of the negative developments in some major industries such as construction, retail, agriculture and the food industry. u0085 but the signals for France’s economy remain mixed despite some positive signs the economic forecast for the rest of the year remain uncertain. While in the first quarter of 2009, bottomed has been reached, French GDP will arrive is expected in the third quarter at a low level. Consensus Economics forecasts a decline in the economic performance of 2.9% for the coming year for the full year 2009 a slight recovery with growth of 0.3%. After a massive reduction of inventories in the last nine months, we expect, supported by foreign demand, a rise in domestic orders. The French purchasing managers index reached a peak in July with 48.1 points for over a year back. But with growing unemployment in the coming months expected, which in turn consumption, currently one of the major economic pillars, could affect. Therefore, begun recovery will remain subdued in the remaining months of the year. We assume that the number of corporate insolvencies will remain high in the second half of 2009. With the exception of agriculture and the food – and pharmaceutical industry, all sectors of which will be significantly affected. However, the possibility of a slight decrease in comparison to the previous months. The French EDF indicator to measure the failure probability is decreasing for several months. However, it remains above the long-term level and indicates a high risk of default for listed companies

New Economic Bubble

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In these volatile, however, there is cause for optimism exciting times on the capital market. In these volatile, however, there is cause for optimism exciting times on the capital market. According to Dirk Notheis, Germany / Austria boss and CEO of Morgan Stanley Bank AG, the importance of capital markets will increase significantly. The financial crisis has reinforced this trend. The role of investment banks is to introduce financial entrepreneur in a new world where new financing instruments, as well as new investor groups have their place.\” Today’s diversity of investors circle is of the utmost importance. Investors have no other way to turn their backs as traditional rating instruments and to take care of business with certain risk factors.

Ultimately it is for these companies to not a bad choice, where profitability can be expected. Spending the economies after the burst of the speculative bubble, which has experienced the world, could be a national\”bubble the next financial risks. DirkNotheis explains worldwide have run many countries about their financial circumstances. The Greece crisis that we currently experience, is a phenomenon that extends far beyond the Mediterranean.\” As CEO of Morgan Stanley AG, DirkNotheis is worried about the growing global trend of new indebted Nations. Deficit and debt has risen continuously in recent years in many European countries, particularly in Greece. For the Greeks, it is important to balance the State budget as other debt-plagued Nations such as Portugal, Spain and Italy have done. The budgetary situation in Japan, United Kingdom and the United States is also posted.

It is more important than ever now to cut spending and get the national budgets in the handle. Investors will quickly so don’t step up and fill in for broken economies, how recently the example of Portugal was observed. It is for money with high capital costs for a State that is simply too expensive, rent.