The Web Tycoon’s blog

The International monetary fund (IFM) demanded transparency to the solvency tests will be published tomorrow (friday 23th) to be more transparent. Furthermore, the International Monetary Fund reported “weaknesses” in the banking system in the Eurozone, and pointed that “too many” financial entities depend in “excess” of the “liquidity and other types of governmental aid” .

The International monetary fund is worried about the recovery in Europe

The International Monetary Fund also warned that growth is too weak to afford problems of debt, deficit and unemployment and advised structural reformations, fiscal consolidation and measures to strengthen the banking system.

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The deception generated by the private sector employment report of June put Wall Street under pressure. Figures move between red and green after the heavy loses from Wednesday, with the Dow Jones far of the 10000 points.

The Industrial Dow Jones began Wednesday moving to 9867 points, the S&P500 rose by 0.212% to 1043 points. However the technological Nasdaq, has better perspectives and advanced by o.45% to the 2146 points.

Doubts do not leave Wall Street. Other bad macroeconomic figure has showed the weakness of the economic recovery, and the doubts on a possible meltdown are flying around.

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George Osborne, British ministry of Economy, has just announced in the British parliament a deal that the United Kingdom, Germany, and France will establish from January of 2011 a tax tat will penalize banks operating in these three European countries.

With this measure, the British government hopes to obtain 2000 millions of pounds from the entities placed in the United Kingdom and local branches from stranger groups that operate in the country. France and Germany will confirm early if they take a similar measure, according Osborne.

This tax will be similar as the one that the government of Barack Obama announced the past year.

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China announced this week that will adopt a more flexible policy about the exchange rate of the yuan, and will allow a moderate revaluation against the dollar.

The decision announced by surprise also shows that the appreciation allowed by Beijing will be gradual.

“Given the recent economic situation of national and international markets, the Popular Bank of China decided to advance the reform on exchange rates of the renmimbi and increase the flexivility of exchange rates”. Said the central bank in a communicate.

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Although record Warnings and the minimums in stock markets, the analysts from Goldman Sachs are optimistic, and think that reaching 1.250-1300 points in the S&P 500 (an increase by 20%) is a reachable objective in the mid-run. About the Euro, the analysts from Goldman Sachs think that is “where it should be”.

Last turbulences kept the S&P 500 near to lose the level of 1000 points. Just after the aperture was trying to reach the 1060 points, still very far from the forecasts of Goldman Sachs.

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Standard & Poor’s isn’t the only big agency in retrieved the maximum credit rate to Spain. Fitch also reduced the credit rating by a step, to AA+, with a ’steady’ perspective, so isn’t thinking in reduce it again in the future.

This decision was featured one hour after the closing of European markets, but affected Wall Street an the Euro as well. The risk factor in Spain continued to grow and reached 160 basic points. The treasure of Spain highlighted that this rating is still being high.

Fitch returned to trouble Spanish market, specially when looking to the beginning of the next week.

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he new British Government, proposed to charge financial the system with a new tax up to 8000 millions of pounds, to contain the growth of national debt.

According The Independent on Sunday, this figure, is three times higher than the offered in a beginning by the finance ministry , George Osborne, and is a indicative that The United Kingdom needs drastic measures in front of the serious problem with the national debt.

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Barack Obama will have to wait, the president of the Unites States, the main promoter of the financial regulatory reform in the country, was astonished after the Senate refused to end the parliamentary debate around the project of law.

The procedure to approve this new law is already spending several weeks, and the party of Barack Obama, the Democrats, intended to limit the debate at a maximum of 30 hours more to vote the legal text, without more patches, before the end of this week.

In order to accomplish that, called a previous motion to consider ended or not the parliamentary procedures. However, the High Chamber rejected th democrat demand, with Republicans united against it, and the debate will continue during several day in the Capitol, until the parties reach an agreement.

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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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