The Web Tycoon’s blog

The president of the United States, Barack Obama, is also worried for the crisis in Spain that could trigger the European Domino. Barack Obama, Spoke yesterday with the Spanish president, José Luis Rodríguez Zapatero, also known as Mr Bean, to answer about the economics measures to take in Spain. One of the reasons of the conversation between Barack Obama and José Luis Rodríguez Zapatero could be the heavy loses suffered by Wall street caused by the weakness in the Eurozone.

According the spokesman of the White House, Robert Gibbs, the conversation was produced because Spain “suffers some problems where is necessary to take measures on them to be sure that will not extent to other countries”. However, José Luis Rodríguez Zapatero reiterates that Spanish Economy isn’t Greek economy.

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Barack Obama defensed the necessity of reform the financial system to protect consumers and regulate the behavior in Wall Street.

Obama suggested in the yearly meeting on Washington of the enterprise council, to support the law project discussed in the congress about the financial reform.

“The measures we proposed are no way intended to hurt companies”. Assured Barack obama.

“As we learned so painfully last years, the Government has the obligation to establish rules of common sense in the markets”, aggregated.

Otherwise, “some can find more attractive try to take profit of the system than compete and innovate in honest way inside it”.

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The Popular Bank of China (PBOC,Central) announced a rise in the bank reserve ratio by 50 basic points on may 10th. This is the third rise that made this year, with th objective of contain credit.

According the Popular Bank of China, in a communicate showed today, the current level is placed at 16.5 percent for big companies and 14.6 percent for small ones.

The Popular Bank of China, in Hong Kong

However, the Popular Bank of China, said that the currency reserve for credit cooperatives and rural banks will remain steady to help the agricultural industry.

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The Federal Reserve repeated the same speech from last months when keeping interest rates in a historical minimum, between the 0% and the 0.25%, and return to show that is willing to keep it during a “period of time”. The Federal Reserve also noted that in the last month the economy has been getting stronger.

The Federal Reserve hasn’t changed any coma of his habitual speech, at the end of the meeting began yesterday, the Federal reserve decided to keep the price of money steady in his historical minimum one more month. Since December of 2008, the interest rates of the United States remained between 0% and 0.25%.

Furthermore, the Federal Reserve reiterated that interest rates will remain in a low level “during a period of time”, repeating the same words that some are voices are demanding to be suppressed from communicates. However, the members of the open committee of the Federal Reserve are defending that the forecasts point that these measures are necessary to help promote the economic and labor recovery, so as price stabilization.

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The market share of Google in China, the country with more Internet surfers of the world, decreased from 35.6% to 30.9 in the first quarter of 2010, matching with the closing of Google.cn, highlighted the company Analysys International.

According company Analysys , the winner of the “case Google” was his main competitor in the country, the search engine Baidu, that increased its share in search engines from 58.4% to 64%.

On the 23th of March, Google closed his Chinese version, that autocensured “sensible” websites for the communist government, and since then, the URL Google.cn redirects the users to the version from Hong Kong of the search engine., also in Chinese language, but not censored.

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After receiving pressure from everywhere Greece has surrendered even before than the expected. The Greek government has finally asked for the activation of the European mechanism of aid with collaboration of the International monetary fund (IMF), the fears of defaulting on the Greek economy decreased a bit and his risk prime of Greek debt at 10 years decreased from 578,6 basic points of difference with Germany to 560, by 3,4% less in just one day

The punishment continued for Portugal (from 190.6 to 190.4 basic points), and specially for Spain (from 88.78 to 91.9 basic points). The president of the Central German Bank, Axel Weber, Warned that many countries have excessive budget deficits, and for that reason “the risk has increased”.

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The beginning of the meetings with the European Union and the international monetary fund, didn’t prevent a new record on the price of defaulting insurances of Greek debt. The fears are getting bigger until the point of boosting the interest rate of the 10 years Greek debt to 8.28%, with 500 basic points of difference from Germany. Spain also increased the interest rate of hist debt to 80 basic points.

Investors of public debt are fairly opting to reduce its risk profile. The German debt becomes winner in a tendency that affect the surrounding markets.

credit default swaps (CDS) to 5 years of Greek debt also reached a new maximum of 489 basic points, what means that the cost of insurance $10milion grows to $489,000.

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There Junk bonds succeeded in the beginning of the 80’s in the market of the United States thanks to Michael Milken, who inspired a character in a film by Gordon Gekko, the mad in the film of Wall Street.

These Junk bonds are in his best rally since 1996, after having positive profitavilities during 14 consecutive months, due to the growing hunger from investors to the risk in the middle of an scenario of low interest rates. In the year, they won a 4.74% according the index Bank of America Merrill Lynch US High Yield Master II.

The Junk bonds had one of the bests behaviors in the industry. The category grew by an average of

47,29% I the lest 12 months, by 6,9% during the first quarter of 2010 and by 3,01% in March, according figures from Interactive Data.

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The Securities and Exchange Commission accused the biggest investment bank from Wall Street of fraud for omitting information about CDO’s (products of collateral debt). The new has fallen like a jar of cold water to goldman Sachs, that lost a 13% of his share value in just 1 day . And provocated a strong wave of sales in international markets.

The Securities and Exchange Commission accused Goldman Sachs of committing fraud in the structure and commercialization of CDO’s. These financial products of non-equity share,gathered under a single umbrella several different kinds of emissions, among them, high risk mortgages.

The Securities and Exchange Commission has several reasons to accuse Goldman Sachs, first of all the SEC pointed that “the vice president of Goldman Sachs, Fabrice Tourre, defrauded the investors when launching incorrect information and omitting key details about the financial products aggregated to trash mortgages, when the residential market of the united states began to give debility signs”. This CDO was known as Abacus, whose responsible was Tourre himself.

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After several months on the eye of the Hurricane for the struggle with China, Google will be again the center of attention for corporate reasons. The search Engine is the second technological company in the United States after Intel, that published its budget from the first quarter.

The results of the group will be carefully revised by the analysts, because the stocks of Google have been seriously affected by its problems with China, European regulations, and the pressure from competitors like Apple and Microsoft.

Google closed the first quarter of 2010 with profits of $4930 million, or $6.57 per share, according the consensus from analysts consulted by Reuterts agency. FactSet elevates the estimation to $6.59 per share.

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