* Euro hits 21-month low vs dollar before EU summit
* Dollar index hits highest since Sept 2010, yen firmer
* Growth-linked currencies take a hit
By Anirban Nag
LONDON, May 23 (Reuters) - The euro fell to a 21-month low against the dollar on Wednesday as investors added to bearish bets on growing concerns about a chaotic Greek exit and widespread scepticism about the outcome from an EU summit due later in the day.
EU leaders are expected to discuss growth-boosting measures at an informal summit but they are not expected to produce any plan that would restore optimism among investors, especially given Germany remains strongly opposed to joint euro bonds.
Investors are doubtful that the leaders will come up with any measures to calm fears that have grown since an inconclusive Greek election earlier this month left the country on the path to bankruptcy and a possible exit from the euro zone.
The euro fell to $1.2615 on trading platform EBS, dropping below the 2012 low of $1.2624 set in January to mark its lowest since August 2010 as real money investors, corporates and macro funds stepped up euro selling.
Traders reported an option barrier at $1.2600 with stop-loss orders below $1.2575. It was last trading at $1.2640, still down 0.3 percent on the day, with option expiries at $1.2650 and $1.2725-30 likely to check gains.
"The euro's downtrend is entrenched and we think there are too many risks of potentially nasty outcomes in the euro zone, especially with regard to what will happen to Greece," said Ned Rumpeltin, currency strategist at Standard Chartered.
"We expect euro to be at $1.25 by the end of the quarter, but today's close will be very important in the short term. If there is a bounce, we will see the euro consolidating a bit more, but if we end near today's lows, then we should see it weaken further. In any case the euro is a sell on a rebound."
Fears that Greece may have to leave the euro grew after Dow Jones earlier quoted former prime minister Lucas Papademos as saying Greece had no choice but to stick with a painful austerity programme or face a damaging exit from the euro zone.
His clarification in a television interview later offered little respite to the struggling euro, which has shed 4.5 percent against the dollar so far this month.
Apart from concerns about political uncertainty in Greece, investors remain edgy about the potential for contagion and troubles in the Spanish banking sector.
"There may be some very minor support at the August 2010 low (of $1.2588) but generally ... most market players (are) targeting $1.25," said Andrew Robinson, FX analyst for Saxo Capital Markets in Singapore.
DOLLAR INDEX AT 20-MONTH HIGH
Growing worries about a possible exit by Greece supported safe-haven assets and currencies. Reflecting those fears, European powerhouse Germany sold two-year government debt on which it will pay no interest, its first zero-interest issue with such a maturity.
Safe-haven currencies like the U.S. dollar and the yen remained the key beneficiaries from the euro zone crisis. The dollar index, which measures the dollar's value against a basket of major currencies, rose to 81.913 - a 20-month high.
The euro fell to a 3-1/2 month low against the yen of 100.16 yen on EBS while high-yielding currencies like the Australian and New Zealand dollars fell sharply. The U.S. dollar also advanced to a four-month high against the Swiss franc.
Against the yen, however, the dollar fell after the Bank of Japan kept its monetary policy unchanged.
While the decision was in line with most expectations, a few participants had been speculating the central bank could follow up with new easing steps after its monetary easing in April.
The dollar was down 0.7 percent versus the yen to 79.39 yen, with the Japanese currency recovering from falls on Tuesday after Fitch downgraded Japan's sovereign credit rating.
"Dollar/yen has been helped most by the rise in U.S. two-year government bond yields, which may well drift lower if euro zone problems intensify, which would no doubt drag dollar lower against the yen too," said Derek Halpenny, European head of global market research at Bank of Tokyo Mitsubishi.
Forex: USD/CHF rallies above 0.9500 - FXStreet.com
FOREX-Euro sinks to 21-mth low as Greek exit fears rise - Reuters India
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
Junk paper on black money - Express Buzz
When the issue of black wealth stashed away by Indians became an election issue in 2009, thanks to the Bharatiya Janata Party leader L K Advani coming out with a white paper on black money, the knee-jerk reaction of the Congress was that it was a figment of imagination. Within a week the party had to abandon its denial mode. The prime minister was forced to assure that within 100 days the new government would take steps to bring back the monies stashed away. The Congress president Sonia Gandhi had to say that the party would address the issue of bringing back black money. The new government told Parliament through the President’s Address in June 2009 that it “was fully seized of the issue of illegal money of Indian citizens outside in secret bank accounts” which it “will vigorously pursue”. The next year, however, the president completely forgot the issue.It was a year later, in 2011, that the Union finance minister remembered the issue. He said that a rigorous study would be carried out to get a reliable estimate of the black money stashed abroad. In March 2011 an MoU was signed between the Central Board of Direct Taxes and three expert bodies — National Council of Applied Economic Research, National Institute of Financial Management, and National Institute of Public Finance and Policy — to do the study and report within 18 months, by September 2012. Suddenly the minister announced in his budget speech on March 16, 2012 that he could come out with a white paper on Black Money soon. That white paper came out a few days ago on May 21. Three years after it promised vigorously to pursue black money, the government has thus produced a white paper on black money. What is the need, however, for the white paper now when ‘the rigorous study’ to get ‘reliable estimates’ of black money initiated by the government is scheduled to be over in September?When the white paper says innocuously that there is no reliable estimate of black wealth in or outside India and so a rigorous study is on, it is no innocent statement. The intention is to undermine the estimates made by diverse sources. Also the white paper ignores that those estimates were time specific. The estimates of 1960s and 1980s and 1990s cannot be compared with one another and seen as conflicting. What the white paper leaves unsaid is that since there is no reliable estimate of black money it is not a serious issue. The unstated but obvious objective of the white paper is to trivialise the estimates of black money by such credible sources such as Global Financial Integrity (GFI) and the International Monetary Fund (IMF) as not reliable. Is it not how the Congress started in 2009, namely that the amount of black wealth of India abroad was a ‘figment of imagination’? Is the white paper implying the same without saying explicitly?The white paper refers to black money estimates made in 1960s, 1970s, 1980s and in the early part of 1990s, till 1995. The amount of black money generated before early 1990s would be insignificant as compared to the post-financial liberalisation period from early 1990s. The GDP of India for 2012-’13 will cross `100 lakh-crore. Till 1980s, it was less than `1 lakh-crore — just 1 per cent of the size of today’s economy on rupee to rupee basis. The black money generated in the last 15 years and that what is being generated now is incomparably huge. The information in the white paper on the estimates of black money till 1995 is 17 years old and is irrelevant. Anyone familiar with recent economic history knows that there is no comparison between pre-liberalisation and post-liberalisation Indian economy. The GFI estimated that most of the black money has been stashed away post 1991. Applying the IMF estimates of the informal economy in India (at 23.7 per cent of the GDP mentioned in the white paper itself) the amount of black economy in India would now be about `24 lakh-crore. Against these huge numbers the white paper talks of `36,000 crore as black component of the GDP in 1983-’84 (page 12) as if the said figures are relevant now. This white paper is thus fit only for archives. It is an old paper to be junked, not a white paper to be preserved. Actual money was only the source of white or black money till 1980s. Now new money known as derivatives (which are just speculative monies that turn into actual monies) are a bigger source of black money. The global speculative money stock of $82 trillion (`4,610 lakh-crore) in 1997 has multiplied by more than 10 times to $618 trillion (`33,990 lakh-crore) in 2009. As compared to the real global economy of $58 trillion (`3,190 lakh-crore) speculative money stock is 10 times more. Again, the cash wealth of the rich rose from $5.7 trillion in 1997 to $32.8 trillion in 2009. Some 40 per cent of it, `556.5 lakh-crore, is black money. This is managed by banks as trustees. Just one bank — UBS — alone manages $2.7 trillion (`148.5 lakh-crore). This is outside the balance sheets of banks. In India the total of forex, stock and commodity market speculative money stock is `685 lakh-crore. It has outstripped the real economy by almost seven times. Yet, the white paper totally omits this huge source of black money.The most ridiculous claim made in the white paper (page 17) is that part of the black money stashed away abroad is ‘already returned’. It refers to the infamous PN or Participatory Note under which anyone, including an Indian, abroad can invest black money in the name of an approved investment institution. It shamelessly admits (para 2.8.3) that ultimately Indians could be the owners of the PN and therefore large parts of the PN and may represent ‘return’ black monies stashed away by Indians. It can’t be more ridiculous. The PNs are not Indian monies in India, but Indian monies abroad which have escaped tax. To claim they are return of Indian monies is a fraudulent claim as well.The white paper is deafeningly silent on the names of those who have stashed away monies abroad. Ottavio Quattrocchi’s millions and Hasan Ali’s billions are standing examples. Not to speak of the suspected holdings of the Sonia Gandhi family, estimated at between $10-19 billion. When such suspects rule, how will black money come? Only white paper will.(Views expressed in the column are the author’s own)S Gurumurthy is a well-known commentator on political and economic issues. E-mail: comment@gurumurthy.net
Money market fund assets fall to $2.569 trillion - Yahoo Finance
NEW YORK (AP) -- Total U.S. money market mutual fund assets fell by $5.35 billion to $2.563 trillion for the week that ended Wednesday, the Investment Company Institute said Thursday.
Assets of the nation's retail money market mutual funds rose $369 million to $889.88 billion, the Washington-based mutual fund trade group said. Assets of taxable money market funds in the retail category rose $390 million to $702.8 billion. Tax-exempt retail fund assets fell $17 million to $187.08 billion.
Meanwhile, assets of institutional money market funds fell $5.72 billion to $1.673 trillion. Among institutional funds, taxable money market fund assets fell $5.61 billion to $1.586 trillion; assets of tax-exempt funds fell $110 million to $86.95 billion.
The seven-day average yield on money market mutual funds was 0.03 percent in the week that ended Tuesday, unchanged from the previous week, said Money Fund Report, a service of iMoneyNet Inc. in Westborough, Mass.
The 30-day average yield was also unchanged from last week at 0.03 percent. The seven-day compounded yield was flat at 0.03 percent. The 30-day compounded yield was unchanged at 0.03 percent, Money Fund Report said.
The average maturity of portfolios held by money market mutual funds rose to 46 days from 45 days in the previous week.
The online service Bankrate.com said its survey of 100 leading commercial banks, savings and loan associations and savings banks in the nation's 10 largest markets showed the annual percentage yield available on money market accounts was unchanged from last week at 0.13 percent.
The North Palm Beach, Fla.-based unit of Bankrate Inc. said the annual percentage yield available on interest-bearing checking accounts was unchanged from the week before at 0.06 percent.
Bankrate.com said the annual percentage yield on six-month certificates of deposit was unchanged from the previous week at 0.22 percent. The yield on one-year CDs was also unchanged at 0.33 percent. It was flat at 0.53 percent on two-and-a-half-year CDs and steady at 1.13 percent on five-year CDs.
Forex Flash: EUR/USD returns to 2012 lows - Commerzbank - FXStreet.com
Money becomes new church battleground - The Guardian
The Rev Paul Perkin seemed bewildered by the question: what was his take on the latest scheme for conservative evangelical churches to withhold money from the rest of the Church of England in order to keep it out of the hands of liberals, gay people or women priests?
"I can't talk about that," he said. "You'll have to ask James Paice." Both men are vicars in south London. And both are directors of the company set up last month to implement this scheme, the Southwark Good Stewards Company. It is the latest, and perhaps the most serious, move in a bitter power struggle within the CofE and the wider Anglican communion.
Not contributing to central funds could represent a serious threat to the rest of the CofE, whose cohesion depends in part on a redistribution of money from rich, largely suburban and middle-class parishes to the inner cities and the countryside where congregations are too small and the buildings too old to be economically sustainable.
Although the Good Stewards Company claims not to be separating from the rest of the CofE, this reading is plausible only if you assume it is the rest of the CofE that has separated from Christianity.
The money will be made available only to churches that commit themselves to a rejection not just of homosexuality, but of liberalism: they must sign "in good faith" a declaration that they will "reject the authority of those churches and leaders who have denied the orthodox faith in word or deed … Pray for them and call on them to repent and return to the Lord." Such people include the present archbishop of Canterbury, Rowan Williams.
The involvement of Perkin in this protest brings it very close to the heart of the institutional church. His is one of the most prosperous and well connected parishes in England: St Mark's, Battersea Rise, in south London, which hosted an international meeting of conservative bishops last month. Apart from encouraging others to hold back money, it is also preparing a network of sympathetic lawyers in case the church fights back.
St Mark's has a long history of financial and political links with conservative churches outside England, but it also stands very close to the central networks of the CofE. Until last year, the church's most senior civil servant, William Fittall, who is the secretary general of its governing body, the General Synod, was a regular worshipper there, a licensed reader who sometimes preached for them.
Before last month's meeting, the congregation were treated to a sermon from the archbishop of Sydney, Dr Peter Jensen, one of the leaders of the conservative movement, who said: "The world has invaded the church. So the contest we have, as Bible-based, Bible-believing Christians, is on two fronts. It is against the world, but it is also against those in the church who have come to terms with the world, who have made their peace with the world, who have compromised with the world, who have given up biblical standards in order to be thought well of in the world."
He warned the congregation they would be vilified, discriminated against, and turned into second-class citizens for their beliefs. "Alas, the truth of the matter is that there are occasions in which the church is being used to persecute the church," he said.
Last year, the evangelical parties blocked the appointment as bishop of Southwark of the two liberal candidates, Jeffrey John, who is gay, and Nick Holtam, who is sympathetic to gay marriage. The compromise candidate, Christopher Chessun, has failed to promote any evangelicals in his first year in office. This month 100 of them demanded, and got, a meeting with the bishop to complain about this.
Even those among conservatives who do not support the financial boycott, and they are a majority, now feel aggrieved at the lack of promotion for evangelicals.
And among the others, the dream of financial independence from the rest of the church has been nurtured for years.
The Rev Richard Perkins, who runs a small independent but still Anglican chapel in Southwark, once blogged: "Why would you give money to a corrupt central administration that'll use it to fund ministries which we oppose? … We shouldn't fund heresy. That's disgraceful."
These tensions are mirrored in the wider Anglican communion, which the conservatives hope to control because they far outnumber the liberal churches of the Anglo-Saxon world. They believe they speak for the true CofE, never mind what the archbishop of Canterbury or the synod may decide. They have set up a body calling itself the Anglican Mission in England.
Five retired English bishops, among them Dr Michael Nazir-Ali, the former bishop of Rochester who was the evangelical candidate for archbishop of Canterbury last time, have promised to act as bishops for those clergy who sign up to the pledge not to accept women bishops or tolerate gay people in the church. It is not at all clear that these arrangements are legal, since the authority of the bishops over their clergy is established by the law of England. But any legal battle would be enormously expensive and time consuming. There is no sign that the rest of the Church of England has the stomach for it.
One crisis is approaching rapidly. This summer the synod must decide whether to accept legislation allowing women to become bishops that will not make special provision for their opponents. The present draft is the product of years of wrangling. If it goes through unamended Nazir-Ali predicts that more clergy will come over to his organisation. They will attempt to leave the rest of the CofE, taking their money and their churches with them – all the while claiming, as their rhetoric already suggests, that it is the rest of the church that has left them.
But if the bishops water down the draft to avoid this open split the other side – a great majority of the church – will probably rebel. Campaigners for women bishops threaten to vote the whole measure down rather than accept amendments that would give them a permanent second-class status. The bishops meet later this month to decide and their space for compromise is vanishingly small.
Save Money Purchasing A Used Vehicle - Examiner
The most common concern in purchasing any used vehicle, of course, is the price, interest and payment plan (if applicable). Obtaining a good deal is a matter of deciding what you can afford budget wise. However, one of the most often overlooked facets to used car purchases is not the base price or monthly payments, but the condition of the vehicle, resale value, fuel economy (engine and vehicle size) and repair expenses for parts and labor. Your job stability and frequency of income also plays a major part in determining what is truly affordable for your family budget. Put all of these considerations together before signing that contract, a contract that could have you locked into steep long-term payments, with a vehicle that will soon need extra service and major repair.
Job and Budget Concerns
A permanent, full-time job is the best assurance when entering into a used car contract, or any major purchase. Good to great credit scores are also beneficial, if not a solid requirement. A decent part-time job can be okay, provided you have the added income of another household member who can shoulder some of the financial burden. If you have a job that pays on commission, you will need to know your accurate average draw per month (after taxes), and factor in seasonality income, if it applies. The ideal time to sign a used car contract is when you have just paid off another major expense, like a doctor bill, landscaping modification, room addition, or another car payment. Check your emotions¯obey your logic¯Time your used car purchase when you know, emphatically, that it will not put a strain on your overall budget and expenditures.
Dollars and (Sense)
According to financial expert's rule of thumb: your total debt payments shouldn't be any higher than roughly 36 percent of your gross yearly income. If you make $50,000 per year, your totaled debt payments should not exceed a yearly income of $18,000. This is a base average, but allows for a safe margin for just about any budget. Divide the figure by 12 and it will indicate $1,500 per month. So if your total debts for the month are $1,300, then it leaves room for only a $200 monthly car payment. Avoid contracts that stipulate 60 or 70-month long-term durations. A basic rule of thumb states that you should be able to pay the vehicle off in three years or less. Also try to keep your interest rates down, and this will depend on your credit rating. Anywhere from 5 to 9 percent will be much more digestible than 13 to 19 percent. Get an insurance quote on the vehicle before you make the purchase.
Make Model and Year
Owning a BMW or Audi might give you an ego boost and impress the neighbors, but you will end up paying extra for service, parts and labor down the road. Exotic foreign make vehicles generally have much higher repair costs than domestics, like Ford or Chevrolet. Dealership repairs are even higher, where per-hour labor costs can approach triple digits. Luxury cars equipped with extras like seat warmers, electric antennas, light-sensing headlights, GPS, and other electrical add-ons will most certainly be factored into the price. Ask yourself if you need these options and are willing to pay extra for them. Vehicles that are 3 to 5 years old (generally) are good used car bets, provided the mileage does not exceed around 150,000 miles. The lower the mileage, the better, unless the vehicle has a very poor service record or major visual damage. Consider smaller four-cylinder and V-6 options for engine size. These smaller engines have met with vast improvements in horsepower and fuel economy, even in the last few decades. Refer to the Kelly Blue Book for used value, which can help you determine the best vehicle for resale.
Visual Condition
Tires should be a first consideration when visually inspecting the outside of the vehicle, since replacements can run into the hundreds of dollars. Bald tires show neglect and raise safety issues. The horizontal bridges (or wear bars) should be visually prominent across the breadth of the tire tread. You would like to have at least half of the original tire tread showing, or between 4/32 to 6/32 of an inch remaining. All navigational lights, brake lights, directional, head and taillights should be operational, with lenses intact. The window panes, especially the front, should be free of blemishes, cracks and chips. Test the structural integrity of the car exterior by knocking on the body panels: doors, fenders, hood, trunk and roof. This simple test can determine if body putty has been used as a repair procedure after an accident.
Major Components and Engine
Have a certified mechanic check the vehicle out before purchase. It's well worth the investment and precaution. Or a potential buyer can perform their own cursory inspection. Look for evidence of major fluid leaks, like transmission fluid, antifreeze, brake fluid, gear and engine oil. Tapping or clacking sounds can point to worn or collapsed hydraulic lifters, or solid lifters in need of adjustment. White-blue smoke can indicate excessive oil consumption, while black smoke and rough idle or starting, can signify excessive fuel consumption. Any noise originating from the front end can point to worn ball joints or A-arm bushings, tie rod ends or other worn suspension parts. A vehicle should not drift or pull as it is driven down a straight, slightly crowned road. Any vehicle pull can denote a worn suspension part or a need for alignment.
Service Records
Obtain the service records of the vehicle beforehand, and find out if the vehicle has been properly serviced at regular intervals. Door jamb stickers can indicate light service intervals, like oil changes and tuneups. Go online to use a vehicle history report, such as Carfax. By listing the vehicle's license plate or VIN (vehicle identification number) in the Carfax database, you can obtain information on the vehicle's sales history, accident record, and major engine and component repair information. Such a vehicle history report will also warn against liens and vehicle theft, verifying that it has a "clean" title.
No comments:
Post a Comment