Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: THE ANT who wrote (39923)	9/15/2008 1:17:39 PM
From: elmatador	Respond to of 217936

That's exactly what I wrote to C2 below. "It should have been a round of discussions with all the power players around the table to discuss a new economic world order." If this doesn't happen there won't be any concerted set of actions to put the world system in on steady feet. We should not lose track of why the interest rates went up: To send the message to the markets that CB was deadly serious about inflation. If they reverse that back they must say why and they have to be very very convincing to justify the about face. What more China can do? They are doing their bit. China mulls 370b stimulus package KathyWang Monday, August 25, 2008 China's leaders are carefully considering an economic stimulus package of about 370 billion yuan (HK$420.7 billion), including a 220 billion yuan new expenditure and 150 billion yuan of tax cut plan, that may ease the government's monetary policy by the end of the year, China Business News reported. "Although the details are yet to be sorted out, there is such a plan, and it has been approved by a central finance planning team," state-run Xinhua News Agency said in a report yesterday. The expenditure part will include the spending of 45 billion yuan on social welfare, 46 billion yuan on agriculture, 38 billion on education, 35 billion yuan on construction, and 28 billion yuan on import of energy and commodity products. ADVERTISEMENT The package will also propose tax cuts of 150 billion yuan in total, including measures to raise the threshold of personal income tax, export tax rebate, and preferential tax packages for small and medium- sized enterprises. However, concerns over whether to launch the plan within the year rose because officials aren't certain if the country has planned enough budget for it. This year's snowstorms in southern China and earthquake in Sichuan have already cost China 35 billion yuan. In the first half, China generated fiscal income of 3.4 trillion yuan, running a fiscal surplus of 1 trillion yuan. Last week, JPMorgan released a report saying Chinese authorities were considering an economic stimulus plan of at least 200 billion yuan to 400 billion yuan. The controversial news, although unconfirmed by the authorities, helped boost the A-share index by nearly 8 percent in a single trading day.

To: THE ANT who wrote (39923)	9/17/2008 7:30:36 AM
From: elmatador	Read Replies (1) \| Respond to of 217936

Wife wrote book: Bovespa comes calling. Klaser, Bovespa lady heard about wife's book, made contact. They had a meeting yesterday in Curitiba. They want to use her to teach Brazilian women to save and invest in the stock market.

To: THE ANT who wrote (39923)	9/17/2008 10:58:45 AM
From: elmatador	Read Replies (2) \| Respond to of 217936

Brazilian real sank 3.6 percent to 1.8725 per dollar at 10:33 a.m. New York time, from 1.8080 yesterday. The real is the worst performer among 16 major currencies in the month, having lost 12.9 percent against the dollar. It is down 17 percent from a nine-year high of 1.5545 reached Aug.

To: THE ANT who wrote (39923)	9/18/2008 1:26:06 PM
From: elmatador	Respond to of 217936

First signs of effects on Brazil: Lula. "The first signs are that credit starts to get scarce. But that not for Brazilian companies or for Brazil only. that is for everybody out there. He continues: we will not permit any big on going project to ground to a halt. He says he's got BRL500 billion for PAC until 2010 and other infrastructure projects already contracted and financed. Admits a possibility of a US recession but states that Brazil is not one of the ones who's going to be most affected since it depends only in 15% of commercial flow with the US. "Of course, a crisis in the US is a crisis in the US" but he is ready to get out of here and go out to AFrica or any other region to help Brazil exports... the question he was answering was about how the US crisis would affect Brazil.

To: THE ANT who wrote (39923)	9/18/2008 5:09:46 PM
From: elmatador	Respond to of 217936

Brazil central bank plans to sell U.S. dollars in the currency market for the first time since February 2003, seeking to inject liquidity amid a global credit crunch that sent the real to the lowest in a year Brazil Central Bank to Sell Dollars, Meirelles Says (Update2) By Fabio Alves and Adriana Brasileiro Sept. 18 (Bloomberg) -- Brazil central bank plans to sell U.S. dollars in the currency market for the first time since February 2003, seeking to inject liquidity amid a global credit crunch that sent the real to the lowest in a year. Banco Central do Brasil President Henrique Meirelles said today the bank will sell dollars in tandem with purchases of dollar futures contracts. He declined to provide further details, adding a formal announcement would be made later today. ``This move aims to correct liquidity distortions in the interbank foreign-exchange market,'' Meirelles told reporters in New York after meeting with Federal Reserve officials to discuss the global financial market meltdown. Brazil is joining the Fed and other central banks around the world to ease funding shortages as credit markets seize up after Lehman Brothers Holdings Inc.'s record bankruptcy and the U.S. government takeover of American International Group Inc. The Fed and other central banks for the biggest economies today announced a plan to pump $180 billion into the global financial system. Separately, the Fed added $105 billion to the banking system with repurchase agreements after channeling $140 billion into banks this week. The yield on Brazil's zero-coupon bonds due in January 2010 rose 45 basis points, or 0.45 percentage point, to 15.39 percent, the highest since July 7, according to Banco Votorantim. The yield has jumped 67 basis points in the past two days after trading little changed the first two days of the week. Liquidity Brazil's real sank for a second day and pared losses to 1.8965, or 0.4 percent, as of 4:35 p.m. New York time, after most trading had ended in Brazil. Earlier, the real weakened to 1.9599 to the dollar, the lowest since Sept. 10, 2007. ``The problem was a liquidity issue, a lack of short-term credit lines for local companies,'' said Francisco Carvalho, currency-trading manager at Sao Paulo-based brokerage Liquidez Corretora, Brazil's biggest currency derivatives brokerage. ``Investors were all asking and waiting for the central bank to move.'' Meirelles said the dollar auctions don't aim to influence currency prices and that the central bank doesn't target an exchange rate. ``We realized there was a deterioration in liquidity,'' Meirelles said. Banco Central do Brasil stopped buying dollars for reais in the spot market on Sept. 11 after purchasing the U.S. currency for much of the past five years to slow a rally in the real that was fueled by record commodity prices and rising exports. Purchases also helped the bank build international reserves that reached a record $208.5 billion on Sept. 16 from $39.7 billion six years earlier. To contact the reporter on this story: Fabio Alves in New York at falves3@bloomberg.net