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BenjaminFX
New Member
Friday 15th April 2011
Ireland downgraded following talks with the EU, ECB & IMF
EU ministers, the European Central Bank and members of the International Monetary Fund met with the Irish finance minister, Michael Noonan, for the first review of Ireland’s financial assistance program.
Among other things, the joint EU/ECB/IMF committee plans to reverse the recent cut in minimum wage, compensating employers by halving the Pay Related Social Insurance rate.
The three lenders will be looking to outline a package of stimulated growth and employment which will have to be cleared in Washington, Brussels and Frankfurt before implementation.
Meanwhile, Moody’s credit rating agency has this morning downgraded the value of Ireland’s bond ratings by 2 points.
With three years remaining on the current austerity programme, the outlook for the country remains negative.
Flair-up ahead of G20 meeting
One day ahead of the meeting in Washington of the Group of 20 finance ministers and central bank chiefs, it seems that the US and China are at loggerheads over international imbalances.
Being partially blamed for the decline of the US Dollar since yesterday, China’s current monetary policies are coming under direct pressure which could have tremendous impact on the US bond market.
China has been in disputes with the US for several years, with issues ranging from the US imposing a higher import tax on tires, aiding American manufacturers but creating an unofficial trade embargo, where as the Chinese seem to be deliberately undervaluing the Yuan in an effort to increase export.
This debate over change rates and trade imbalances is a danger to the global economy as it inflicts collateral damage on the exports of smaller countries.
Yesterday, publications revealed that China’s economic growth needs control as their Gross Domestic Product grew another 9.7 percent in March, and both it’s annual savings of $3.2 trillion and investment of $52.9 trillion already exceed the matching totals for either the US or Europe.
Policymaker of the G20 will need to address this power position with swift reforms to be governed by the IMF.
And Finally...
Porto, Benfica and Braga reached the Europa league semi finals yesterday. Porto has overwhelmed Spartak Moscow by winning 5-2 in Russia. Villarreal is the fourth team to have qualified. The probability that a Europa leage victory is claimed by a Portuguese Club is very high, 8 years after Mourinho led his outstanding Porto team to a Champions League victory.
The rumours surrounding a possible move for Cristiano Ronaldo over the last few days could actually become a reality. While Berlusconi’s intention to bring CR7 into his team was only considered as a dream idea, it is believed that Milan is currently preparing a plan to entice the player to leave Real Madrid and join them. If this happened the transfer costs would be the highest ever seen, estimated at more than £90 Million and a £15 million year contract. Nevertheless, Berluconi has often shown that nothing is impossible for him…
Foreign Exchange Rates Table
Currency Pairs Current Mid-Rates at 9.00am
GBP - EUR 1.1295
EUR - GPB 0.8833
GBP - USD 1.6346
EUR - USD 1.4471
GBP - AUD 1.5540
GBP - CAD 1.5752
GBP - NZD 2.0565
GBP - CHF 1.4587
GBP - HKD 12.7195
GBP - NOK 8.8350
GBP - SEK 10.1215
GBP - ZAR 11.18
GBP - THB 49.25
GBP - AED 6.0045
GBP - MAD 12.8048
GBP - ILS 5.5882
GBP - TRY 2.4842
GBP - JPY 135.71
These are indicative rates, not buy rates
Benjamin Cole
Foreign Exchange Broker / Market Analyst
Ireland downgraded following talks with the EU, ECB & IMF
EU ministers, the European Central Bank and members of the International Monetary Fund met with the Irish finance minister, Michael Noonan, for the first review of Ireland’s financial assistance program.
Among other things, the joint EU/ECB/IMF committee plans to reverse the recent cut in minimum wage, compensating employers by halving the Pay Related Social Insurance rate.
The three lenders will be looking to outline a package of stimulated growth and employment which will have to be cleared in Washington, Brussels and Frankfurt before implementation.
Meanwhile, Moody’s credit rating agency has this morning downgraded the value of Ireland’s bond ratings by 2 points.
With three years remaining on the current austerity programme, the outlook for the country remains negative.
Flair-up ahead of G20 meeting
One day ahead of the meeting in Washington of the Group of 20 finance ministers and central bank chiefs, it seems that the US and China are at loggerheads over international imbalances.
Being partially blamed for the decline of the US Dollar since yesterday, China’s current monetary policies are coming under direct pressure which could have tremendous impact on the US bond market.
China has been in disputes with the US for several years, with issues ranging from the US imposing a higher import tax on tires, aiding American manufacturers but creating an unofficial trade embargo, where as the Chinese seem to be deliberately undervaluing the Yuan in an effort to increase export.
This debate over change rates and trade imbalances is a danger to the global economy as it inflicts collateral damage on the exports of smaller countries.
Yesterday, publications revealed that China’s economic growth needs control as their Gross Domestic Product grew another 9.7 percent in March, and both it’s annual savings of $3.2 trillion and investment of $52.9 trillion already exceed the matching totals for either the US or Europe.
Policymaker of the G20 will need to address this power position with swift reforms to be governed by the IMF.
And Finally...
Porto, Benfica and Braga reached the Europa league semi finals yesterday. Porto has overwhelmed Spartak Moscow by winning 5-2 in Russia. Villarreal is the fourth team to have qualified. The probability that a Europa leage victory is claimed by a Portuguese Club is very high, 8 years after Mourinho led his outstanding Porto team to a Champions League victory.
The rumours surrounding a possible move for Cristiano Ronaldo over the last few days could actually become a reality. While Berlusconi’s intention to bring CR7 into his team was only considered as a dream idea, it is believed that Milan is currently preparing a plan to entice the player to leave Real Madrid and join them. If this happened the transfer costs would be the highest ever seen, estimated at more than £90 Million and a £15 million year contract. Nevertheless, Berluconi has often shown that nothing is impossible for him…
Foreign Exchange Rates Table
Currency Pairs Current Mid-Rates at 9.00am
GBP - EUR 1.1295
EUR - GPB 0.8833
GBP - USD 1.6346
EUR - USD 1.4471
GBP - AUD 1.5540
GBP - CAD 1.5752
GBP - NZD 2.0565
GBP - CHF 1.4587
GBP - HKD 12.7195
GBP - NOK 8.8350
GBP - SEK 10.1215
GBP - ZAR 11.18
GBP - THB 49.25
GBP - AED 6.0045
GBP - MAD 12.8048
GBP - ILS 5.5882
GBP - TRY 2.4842
GBP - JPY 135.71
These are indicative rates, not buy rates
Benjamin Cole
Foreign Exchange Broker / Market Analyst
