Asian markets are trading firm on Wednesday with investors going in for some hectic buying, tracking a positive close on Wall Street overnight and higher commodity prices. Hopes of a global economic recovery on the back of the European Union’s move to help Greece get out of its debts and some encouraging reports from across the globe are also bolstering sentiment to a significant extent.

Financials, resources and industrials stocks are among the notable gainers in the Australian market. Stocks from various other sectors are also trading firm. The benchmark S&P/ASX 200 index is up 96.2 points or 2.1% at 4,664. The broader All Ordinaries index is currently trading at 4,683, up 92.4 points or 2% over its previous close.

On Tuesday, the S&P/ASX 200 index had ended up 22.3 points or 0.49% at 4,568, while the All Ordinaries index moved up 20.4 points or 0.45% to 4,591.

Among bank stocks, ANZ Bank is up 3.5%, National Australia Bank is trading higher by 3.3%, Westpac Banking Corporation is gaining about 2% and Commonwealth Bank of Australia is up with a gain of 2.5%. Macquarie Group is trading higher by 1.4%.

In the materials space, BHP Billiton is up 1.8%, Rio Tinto is gaining about 2.8% and Newcrest Mining is trading higher by 3.75%. Bluescope Steel, Orica, Incitec Pivot, Fortescue Metals and Lihir Gold are also trading notably higher.

Among energy stocks, Woodside Petroleum is up 1.6%, Santos is gaining 1.65%, Oil Search is up 2.2% and Origin Energy is trading stronger by about 2.5%.

Shares of Warrnambool Cheese & Butter Factory Co Holdings Ltd are up nearly 8% after the group received an improved takeover offer from Murray Goulburn Co-Operative Co Ltd. On Tuesday, WBC had reported a significant rise in first-half profit and said its outlook is positive.

Coffey International is down nearly 8% due to weak results. The global engineering and project management provider’s net profit fell 20% to A$10.85 million in the six months to December 31, from A$13.51 million in the prior corresponding half. Operating earnings before interest, tax, depreciation and amortization fell 14% to A$31.1 million. The company has blamed a strong Australian dollar exchange rate and the global financial crisis for the fall in its first-half profit.

On the economic front, an index measuring skilled job vacancies in Australia added 1.6% to 44.4 in February compared to the previous month, the Department of Employment and Workforce Relations said. That follows a 1.1% monthly increase in January.

Among the individual components, marketing and advertising positions jumped 9.9% on month, while metal trades and construction jobs also were sharply higher. The availability of health profession and accounting positions saw significant declines. By region, New South Wales, South Australia, Western Australia and Tasmania saw an increase in skilled vacancies, while Victoria, Queensland and the Northern Territory all saw declines.

A forward-looking index measuring the Australian economy added 1.3 points or 0.5% in December compared to the previous month, the Westpac/Melbourne Institute index revealed, coming in at 245.8. That follows the 1% monthly increase in November. On an annualized basis, the index jumped 6.2% after jumping 5.4% on year in the previous month. The survey also showed that the coincident index climbed 1 point or 0.4%.

In the currency market, the Australian dollar opened notably higher thanks to the positive close on Wall Street overnight. The Aussie was quoting at US$0.9008-US$0.9011 in early trades, up 0.85% from Tuesday’s close of US$0.8932-US$0.8937. The Australian dollar is currently trading at 0.9007 to the U.S. dollar.

The Japanese stock market is trading firm on Wednesday with investors picking up stocks cutting across various sectors.

The benchmark Nikkei 225 index, which rose to 10,258, was up 210.37 points or 2.1% at 10,245 at the end of the morning session.

The mood is so positive that just three stocks out of the 225-stock strong Nikkei 225 index are currently down in the red.

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1. Brazil
The Brazilian property market has got a lot going for it. The country is attracting a lot of inward investment, has one of the world’s fastest growing economies, a rapidly emerging mortgage market, a general shortage of quality homes, and has been selected to host the 2014 football World Cup and 2016 Olympic Games. This will lead to the construction of new and improved infrastructures and homes across Brazil.
Property investors from around the world are flocking to Brazilian shores with a view to snapping up real estate, in anticipation of future capital growth.

One local expect projects Brazilian property prices could appreciate by up to 200% over the next decade, driven by the country’s burgeoning economy, and the pending introduction of mortgages to overseas nationals. Investment banking firm Goldman Sachs believes that Brazil’s economic growth could outstrip that of the other BRIC (Brazil, Russia, India and China) member nations over the next few years.

Brazil’s economy is widely expected to become the fifth largest in the world by the time the Olympic Games kicks off in 2016, and yet Brazil property and land prices still remain a fraction of those found in more developed nations. The Brazilian president Luiz Inacio Lula da Silva has already pledged to spend up to ??11.5bn on building a million new homes in Brazil between now and 2011. However, potential high property investment rewards are not with out their risks, as crime and corruption still remains widespread in Brazil.

2. France
In stark contrast to the relatively high risk, high return nature of investing in Brazil, the risks associated with investing in French property are far lower. France has traditionally always been a rather safe haven for property investors. The nation was the first European country to come out of recession in 2009, reflecting the fact that the global credit crunch had much less of an impact, compared to other European counterparts.

France’s strong economy is having a positive impact on its property market, which now appears to be on the road to recovery. Increasing property and mortgage transactions are boosting residential values, with the latest FNAIM data revealing that the average price of a French property appreciated by 2.8% between April and September 2009.

Although average prices remain down 7.8% year-on-year, the market is generally expected to improve further, due to France’s prudent attitude to mortgage lending. Anyone taking out a mortgage in France is generally only permitted to borrow one third of their total gross monthly income. This has ensured that mortgages remain readily available, with 100% loan-to-value home loans available at competitive borrowing rates.

Consequently, mortgage lending in France is soaring. French mortgage broker Athena Mortgages reports that there was a 21% rise in mortgage enquiries in Q3 2009 compared with the previous quarter.

The buy-to-let and leaseback sectors are reportedly attracting particular interest from investors, due to improved yields across the country. The capital city of Paris has long been identified as one of the most attractive European cities for investment, and is typically the most popular place to buy a home in France, along with Cannes, Marseille and Nice, which are all located along the southern Mediterranean coast.

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STANDARD Chartered Bank has reduced its Kwacha base-lending rate from 24 per cent to 21 per cent with effect from next month because of stability in the economy.

Standard Chartered Bank managing director ,Mizinga Melu said the reduction in the base-lending rate by three per cent was a result of the drop in the level of inflation and other economic benchmarks.

Another bank, Invest Trust Bank, also reduced its rate by a similar margin recently.
Ms Melu, who is vice-chairperson for the Bankers” Association of Zambia, called on other financial institutions to review their base-lending rates downwards to support economic growth.

Last month, President Rupiah Banda, at the official launch of the First National Bank (FNB) in Lusaka, asked commercial banks to bring down loan interest rates because the current harsh lending conditions were responsible for the poor loan recovery rates and were eroding confidence in the banking sector.

The president said there was equally a risk of discouraging both savings and investments due to ironically low rates on deposits.

Mr Banda added that there was need for financial houses to bring down the high loan interest rates and other bank charges, which had made loan repayments exorbitant.

The rates for other banks are Barclays Bank at 25 per cent, First Alliance (23 per cent), Investrust (22 per cent) and Eco-bank (19 per cent).

Ms Melu said from January this year, the Government had managed to reduce inflation rate from 16 per cent to the current level of 12.3 per cent.

“We recognise the efforts and progress from the Government, through the Bank of Zambia, in reducing the level of inflation in the country. Inflation has reduced from a high of 16 per cent in January 2009 to the current level of 12.3 per cent,” she said.

Ms Melu said there had been consistent reduction in the benchmark market rates such as the three months” Treasury Bill rate which had dropped in the last two months.

She said Treasury Bills in the last two months had on average dropped between four per cent and six per cent.

Ms Melu said the bank was committed to assisting the customers in growing their businesses.

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Austrade launched its 2009 Financial Services Benchmark Report in conjunction with the Australian Financial Markets Association’s (AFMA) 2009 Australian Financial Markets Report last night at the Australian Securities Exchange.

Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen, launched the two key reports which demonstrate the strength and resilience of Australia’s financial markets and how well they have fared in contrast to other major financial centres following the Global Financial Crisis (GFC).

Austrade’s Chief Executive Officer, Peter O’Byrne, said during the last twelve months Austrade has increased its focus on financial services and has a team which extends throughout Austrade’s global network. This dedicated specialist team works to promote exports from Australia’s financial sector as well as attracting potential international investors.

“Working with the industry, the team supports missions and activities to highlight Australian capabilities to offshore markets extending from North America and Europe and into the Asia Pacific region, reflecting our strengths in funds management, investment banking and growing areas, such as Islamic finance,” Mr O’Byrne said.

“Significant steps toward establishing a strong mutual recognition framework between financial regulatory authorities in Australia and overseas markets have been taken, leading to stronger relationships with markets in the US and China.

“The Australian Financial Centre Forum, set up to help position Australia as a financial services centre in the region, will report on further ways to improve the competitiveness of our financial system, address tax and regulatory barriers and improve market access offshore later this year” Mr O’Byrne said.

Austrade’s National Manager Financial Services, Gary Johnston, said the joint launch of the two publications highlights the strong working relationship developed with AFMA.

Mr Johnston said, Austrade’s 2009 Financial Services Benchmark Report highlights the liquidity and sophistication of Australia’s financial markets and also points to the strength of regulatory and governance frameworks and their transparency which has benefited Australia during the GFC.

This year’s Benchmark Report shows Australia’s financial sector fared better than most other major financial centres. The sector remains strong, continuing to develop as a regional and global centre with Australian based institutions seeking global mandates and viewing Australia as a base for their products,” Mr Johnston said.

“Finance and Insurance remains a significant sector of the Australian economy, and contributed 8.1 per cent to Real Gross Value Added during 2008-09. The sector remains well capitalised, with total assets for Australia’s financial institutions exceeding A$4.4 trillion – equivalent to four times GDP.

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The key benchmark indices tumbled after the Reserve Bank of India withdrew emergency liquidity support measures that were implemented in the aftermath of the global financial crisis. The RBI had pumped in massive liquidity in the banking system in the past one year or so to help revive the domestic economy in the aftermath of the global financial crisis. The BSE 30-share Sensex fell 387.10 points or 2.31%. Market extends losses for second straight day.

The central bank warned of possible asset price bubbles, raised banks’ provisioning requirements for commercial real estate loans and lifted inflation forecast. Intraday volatility was immense. Banking stocks fell as the RBI did not relax mark-to-market rules for bank’s debt holdings. The market has been agog with talks of the central bank hiking the ceiling on the portion of government securities that banks can park in held-to-maturity (HTM). India’s largest steel maker by sales Tata Steel fell after poor Q2 result.

Telecom stocks declined sharply on concerns about price war. Rate and metal stocks also tumbled. Index heavyweight Reliance Industries drifted lower

Intraday volatility was immense. The market cut losses after an initial fall caused by weak Asian stocks. However, the intraday recovery proved short-lived. The market weakened soon after the central bank at 11:15 IST said at the time of announcing its quarterly policy review that an exit from an easy monetary policy has begun. The market extended losses in volatile trade later.

Volatility may remain high on the bourses this week as traders rollover positions in the derivatives segment from October 2009 series to November 2009 series ahead of the expiry October 2009 contracts on Thursday, 29 October 2009.

The Reserve Bank kept its benchmark lending and borrowing rates on hold at a quarterly monetary policy review on Tuesday, 27 October 2009. It also kept steady cash reserve ratio at 5% but raised the statutory liquidity ratio to 25% from 24% with effect from 7 November 2009. Funds in CRR fetch no return for banks, while returns from SLR are small. The central bank said an accommodative monetary policy stance is required as the ongoing economic recovery was fragile

The RBI kept 2009/10 GDP forecast at 6% with upside bias and said it sees modest decline in agriculture. The RBI raised projection of inflation to 6.5% with an upside bias at end March 2010 from earlier 5%.

The RBI said it will continue to monitor the price situation in its entirety and will take measures as warranted by the evolving macroeconomic conditions swiftly and effectively. It said it is mindful of its fundamental commitment to price stability. The central bank said the current large overhang of liquidity could engender inflation expectation even if credit demand remains subdued.

The central bank said the policy dilemma for India is different in some important respects from that of advanced economies as also other emerging market economies. It said India is confronted with an upturn in inflation, with rising headline inflation and stubbornly elevated consumer price inflation. According to RBI, most advanced economies and emerging market economies do not face an immediate risk of inflation. In several advanced economies, the concerns are about a possible deflation which are just about waning, it said

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If you need a temporary solution to pay a medical bill or help out a family member than bad credit payday loans is something that could save your day. Bad credit can happen to anyone, in any social class, and sometimes it is nice to know that there is help available in case you ever need a helping hand. With all the economical turmoil out there, it is not hard to find yourself in need of some extra cash.

Bad credit payday loans are becoming a more popular way for getting people out of a sticky situation. Sometimes getting a small reprieve is enough to help us get caught up and the ability to move forward in a comfortable manner. A big word of caution should be mentioned in the fact that this is not a solution for supplemental income.

With different companies, different requirements may exist. There are some requirements that are standard business practice with all bad credit payday loans. Although the amount of the loan will depend on your income, the loans usually fall in between $500 to $1000.

You must be employed or be bringing in a verifiable income. If you are receiving social security benefits, you can still qualify for a loan. An established bank account, either checking or saving account, is needed to receive your loan. Some companies will then get their payment form your account, as well. Bad credit payday loans are illegal in some states. And the military will not permit any of their active service people to get a payday loan.

There is a service fee that comes with a loan. The average fee is approximately $25 on every $100 borrowed. And the loan is usually expected to be paid by or on your next payday. If you cannot repay the loan by your next payday then some loan companies will allow you to repay on over a 10 to 12 month basis, for those that qualify.

Before agreeing to an extended repayment plan, you should find out what the interest rate is on the money you borrowed. The interest rate can be rather high in comparison to other loans, but you have to remember that this loan was extended to you without the proof of good credit, actually without a credit check at all.

If you are not totally aware of how these loans are designed, you could be setting yourself up for a major financial crisis. For most people they feel that these loans are a saving grace. However, they could add to your mountain of debt if they are mismanaged. If you even think that there is a possibility that you could not handle the repayment of this loan, then do not get one. This will only turn into a problem rather then a solution.

No one wants to see your situation get worse, the loan company makes money when you pay the loan off, so make sure that you can repay before you ever consider using a service like this.

With the financial crisis quickly becoming President Obama’s primary burden, his Administration has intensified its efforts to stem the rising tide of foreclosures in order to solve the root cause of the difficulties. On Feb. 11, Treasury Secretary Timothy Geithner and Shaun Donovan, Secretary of the Housing & Urban Development Dept., met with community groups and key stakeholders in the banking industry to gauge support for a potential program that would allow the government to directly buy whole loans from servicers of mortgage-backed securities (MBS) in order to modify them and keep more borrowers in their homes.

This is just one of several proposals the Obama Administration is considering as it comes to terms with the dire need to prevent further waves of foreclosures amid a deepening recession. There were foreclosure filings on 274,399 U.S. properties in January, down 10% from December but 18% higher than a year ago, according to RealtyTrac, a foreclosure research firm. In December, the Mortgage Bankers Assn. said that a record 1 in 10 U.S. families with a mortgage are either in arrears or having their house repossessed.

Banks and other mortgage servicers have being doing loan modifications under an Federal Deposit Insurance Corp. program since the first quarter of 2008, but many have failed to benefit from a cookie-cutter approach that’s paid insufficient attention to the financial condition of individual homeowners. And these “mods” haven’t addressed the need for a wholesale cleaning out of some of the most toxic loans, those collected in securitized pools and sold piecemeal to vast numbers of investors. The problem is that there is no flexibility to modify the terms of individual mortgages in most of the Pooling and Servicing Agreements, or PSAs, that govern these mortgage pools.

Employment is Key

At the Feb. 11 meeting with Geithner and Donovan, John Taylor, president and chief executive of National Community Reinvestment Coalition (NCRC), made the case for loan modifications on a large scale through the Homeowners Emergency Loan Program. This would allow the Treasury to buy distressed loans at big discounts, essentially equivalent to current market value, from the securitized pools. The government would only buy loans of borrowers who still have jobs, but the loans wouldn’t necessarily have to be delinquent. For example, they could be loans whose monthly payments are eating up more that 50% of a homeowner’s monthly income and therefore are at risk of future default.

“That creates the leeway for the government to buy these without any subsidies,” says Taylor. That wouldn’t even require much taxpayer money from the Troubled Assets Relief Program (TARP) if the government could turn around and sell the loans to banks that have received TARP funds, such as Wells Fargo (WFC) and Citigroup (C).

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