The Web Tycoon’s blog

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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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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The Obama Administration will approve a new plan of aid to those who have a mortgage and are unemployed. Valued in $7.5Bn, will be ale to reduce or modify the mortgages from those with most problems. The objective is brake the number of foreclosures caused by the economic crisis since, the biggest recession since the 30’s.

This is an ambitious plan that will give flexibility mortgages to help mortgagors who are unemployed and those which have a house whose value in the market is lower than what they owe.

The economic recession attacked the real residential state industry, and several zones suffered high loses in house prices that were doped during the real state bubble. The program could help those in this case by refinancing its debt with mortgages apported by the government.

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American Economy registered a growth by 5.6% during the fourth quarter of 2009, lower than the 5.9 expected by analysts. This is a 0,3% lower than previous calculations, reported today the commerce department.

economic growth

During all 2009, the Gross Domestic product of the United States contracted by 2,4% according the final calculation from the government.

The increase of Gross Domestic Product in the fourth quarter of 2009, reflected mainly “the positive contributions of private investment on inventories, exportations, expenditure on personal consumption and non residential non movable investment, shown the report”.

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The Chinese economy became in 2009 the first exporter in the world, surpassing Germany, by making the 9,6% of the exportations in all the world, with a value higher than $1,200Bn according data from the World Trade Organization (WTO).

This way, the Asiatic giant advanced a position since 2008, when the first exporter of goods was Germany, the second China and the third the United States.

From the point of view of importations, according the data from the World Trade Organization these countries are also holding the first three positions, although the United States are still keeping the first position once more, the second position is to China (that advanced a position from 2008) , and the third from Germany.

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