Darwin Financial Investing

Indonesia’s export value in December 2009 is the highest in recorded history of Indonesia reached 13.33 billion U.S. dollars or an increase of 23.69 percent compared to November 2009.

“This is the highest exports in Indonesian history.’ve Never reached the top 13.33 billion,” said Head Statistics Rusman Heriawan during a press conference at the BPS Office, Jakarta, Monday (1/2/2010).

According Rusman, December exports soaring because the contribution of export value of some commodity vegetable oil, copper, and coal. “Three things that are helping our exports and almost all export destination countries increase exports to December,” Rusman said.

The increased value of exports in December, according to Rusman, is a signal that the world economic recovery of Indonesia’s export surged along with the ability to buy a subscription that country also increased. Increasing exports is caused also by the non-oil exports increased by 28.30 percent and increased exports of oil and gas, although only 7.07 percent compared to November 2009

admin | Finanace | 02 1st, 2010 | No Comments »

Barack Obama once again made a breakthrough. This time refers to the thoughts of former Central Bank governor Paul Volcker. Thought is not far from the Banking Act of 1933 which is better known as the Glass-Steagall Act. Act was sponsored by Carter Glass and Steagall B Hendry.

Law was out in 1933 after the Great Depression. Core of the Glass-Steagall Act that prohibited commercial banks collaborate with brokerage firms or participating in investment banking activities. This law created to protect depositors from the additional risk from securities transactions.

At that time, the bank, for example, could be the issuance of stock underwriters. If the shares they do not sell jajakan, they bought using funds from the depositors. Often it without the knowledge of the depositor. Transactions for the sake of the bank is known as prop trading.

However, the Act was abolished in 1999. Consequently, the difference between commercial banks and securities increasingly blurred. Finance minister when the post was held by Lawrence Summers. The new law allows commercial banks, securities, and insurance united. According to Summers, this way the U.S. financial industry can grow and compete better.

With the new law, born of financial giants like Citigroup, a combination of commercial bank Citicorp and Travelers Group insurance company.

This mixing triggered conflicts of interest and is considered as one of the roots of the financial crisis.

Not heard

For months, Paul Volcker proposed a plan to fix Wall Street, which is making a clear boundary line between commercial banks and investment banks. Since the revocation of Glass-Steagall Act, which allowed institutions to collect funds allowed third parties to produce benefits not only from the old ways, shed credit and charge interest, but running hedge funds and speculative ways of others.

Volcker said that since their insured deposits of the central government, large banks may take risks that ultimately must be borne by the taxpayers. He insisted that the incentives are structured, totally unfair and the root of the crisis. It needs to be done for the U.S. banking system is to improve incentives to avoid a similar crisis.

For months, Volcker also ideas not heard by Obama administration. Both reform proposals from the government and the parliament based on the approach “too big to fall”. Approach translated by way of increasing capital requirements, making mechanisms of government bailouts and improve supervision of systemic risk.

U.S. financial system seems to minimize such risks. One reason for the perception that some financial firms “too big to fall”. Under Volcker rule, only commercial banks are not too risky just to enjoy that status. Investment banks, hedge funds and private equity firms have to rely on ourselves. Commercial banks may not engage in the activities of hedge funds and private equity funds because of conflict of interest in normal banking relationships.

admin | Bank | 02 1st, 2010 | No Comments »

LONDON – China’s economy is predicted to overtake the United States (U.S.) to become the largest economy in the world in 2020. The research revealed that the leading business consultant underlines the existence of “seismic change” in global economic power.

PriceWaterhouseCoopers (PWC) also said, in his report that in 2030 there are 10 states which accompany the world economy of China, the United States (U.S.), India, Japan, Brazil, Russia, Germany, Mexico, France, and England.

The 10 countries with the largest economy today, according to the data that was launched in 2008 from the International Monetary Fund (IMF), namely the U.S., Japan, China, Germany, France, England, Italy, Russia, Spain, and Brazil.

“These projects show that China could become the world’s largest economy by 2020 and likely will be some steps taken by the U.S. in 2030,” said the head of macroeconomics at PWC, John Hawksworth, as quoted by AFP on Thursday (21/1/2010 ).

Hawksworth added that after the period of 2020, India could grow faster than China. In addition, India also will move quickly to the top ranking for gross domestic product (GDP) global. Acceleration is more because India is a country with a population that’s growing faster than China.

This report also shows, increasing the share of global GDP taken by China and India, compared with the U.S. and the EU. The proportion in 2010 would be 20 percent for the United States, 21 percent for the European Union, 13 percent for China, and five percent for India.

Nevertheless, in 2030 the percentage will change to 16 percent for the United States, 15 percent for the European Union, 19 percent for China, and nine percent for India.

Chief global economist for U.S. investment bank Goldman Sachs, Jim O’Neill predicted on last November that China will overtake the U.S. in 2027, 14 years earlier than previous predictions of Goldman Sachs in 2041.

O’Neill coined the term “BRICs” which refers to four emerging market countries like Brazil, Russia, India, and China which has formed an informal group to discuss global issues and economic policy.

Group of developing countries in the G20 then gradually take over the traditional G7 group consisting of England, Canada, France, Germany, Italy, Japan and the U.S. as the main forum of economic talks.

admin | Economy | 01 21st, 2010 | No Comments »

NEW YORK – Crude oil prices back down to the level of $ 77 per barrel in trading Wednesday (20/1/2010) local time. The investors in the oil markets respond to a number of global sentiment toward, particularly the Dow Jones index drop on Wall Street, as well as concerns about China’s economy. On the other hand, the strengthening of United States dollars (U.S.) come to give the impact of oil price weakness this time.

As quoted by AFP on Thursday (21/1/2010) crude oil prices for February delivery contract fell $ 1, 4 to $ 77, 62 per barrel in trading for the contract last February the New York Mercantile Exchange (NYMEX). While in London, the price of Brent crude for March contract fell $ 1, 31 to level USD76, 32 per barrel on the ICE Futures.

U.S. stock markets tumbled as the banking concerns that the U.S. economy is still fragile and require a long time to recover. U.S. dollar also rose against major currencies other world, so the price of oil becomes expensive for investors who use currencies other than U.S. dollars.

Meanwhile, palm oil prices first fell on Wednesday trading, triggered by a report from the State Bamboo Curtain, China’s government says China to tighten policy further to avoid the risk of bad debts, banking.

China is the largest oil consumption country in the world, and economists expect this year was the demand of China oil consumption increases. However, these government-related measures, leading to fears that the economic recovery in China is still doubtful.

admin | Gold Investing | 01 21st, 2010 | No Comments »