Credit rating agency Standard & Poor’s (S & P) downgraded bonds in one of the major European economies, France. Not only that, debentures eight other European countries, who are also fellow users euro currency (euro zone) came down the rankings, there’s even coming into the category of “trash.”

Credit downgrades illustrates that the debt crisis in the eurozone in the past two years has become more severe. This crisis raises doubts among financial market participants for the future of regional currencies in Europe.

According to news agency Reuters, bond downgrades number of European countries was announced at the S & P on Friday, January 13, 2012 New York time. France, which has become one economic power in Europe with Germany, has decreased one level, from AAA to AA +. The same fate also experienced by Austria.

Malta, Slovakia, and Slovania also decreased one level. Their colleagues, Italy, Spain, Portugal, and Cyprus suffered a decrease of two ranking. In fact, as reported by the BBC, the credit status of the latter two countries that fall into the category of “junk” (junk).

Germany, for the S & P, still survive. Treasury bond remains AAA and economic status is considered stable.

S & P also claimed to fear that a number of initiatives that have been rolled out of European leaders in the face of the debt crisis “could be not enough to fully respond to systemic pressure that goes on within the euro zone.”

A number of countries are already implementing unpopular measures in tackling the crisis, namely by implementing austerity budgets and raise taxes. That policy led to a wave of layoffs among civil servants and triggering a series of protests.

The fall in credit ratings in a number of European countries could trigger a series of similar downgrades on some major banks and large corporations and government agencies of Europe. It can happen to the European Financial stabilization facility (EFSF), which formed to save the euro zone countries affected by financial crisis.

S & P’s announcement triggered the stock price decline on the New York and the euro exchange rate on the transaction on Friday.

admin    Business     Civil Servants, Countrie, Currency Euro, Debt Crisis, Downgrades, Efsf, Euro Zone, European Economies, European Leaders, Eurozone, Fellow Users, Financial Market Participants, Financial Stabilization, Large Corporations, New York Time, Regional Currencies, Slovania, Spain Portugal, Time France, Treasury Bond

Barrack Obama

President Barack Obama told Congress that the U.S. government plans to increase debt limit of U.S. $ 1.2 trillion. This plan is actually in effect when the U.S. was struggling to cope with an increasingly bloated debt and occurs when the country was again preparing for the upcoming November elections.

According to Reuters, Obama delivered the notice in writing to the Speaker of the House John Boehner on Thursday when Washington DC. “Further loans needed to meet a number of commitments,” Obama wrote.

Furthermore, Congress should hold a special session of up to 15 days to discuss and make a decision whether or not they agree on the government’s plans. Whereas Congress last year failed to formulate a way to overcome budget deficit amid increasing U.S. government debt, which has reached trillions of dollars.

Obama initially wanted to propose the addition of debt it plans to Congress on December 30, 2011. However, both the House and Senate when it asked him to postpone it until the recess is over.

While waiting for the discussion of the Congress, the government through the Ministry of Finance to rely on cash reserves, called the Exchange Stabilization Fund, which has a supply of dollars of U.S. $ 22.7 billion.

A Finance Ministry official also revealed that the government could temporarily suspend the first financing a number of programs, such as pension funds, until Congress approved the additional proposals of the government debt

admin    Finance     Barack Obama, Barrack Obama, Budget Deficit, Cash Reserves, Commitments, Congress, Debt Limit, Exchange Stabilization Fund, Finance Ministry Official, Government Debt, John Boehner, Ministry Of Finance, Pension Funds, Proposals, Recess, Reuters, Speaker Of The House, Special Session, Trillion, Trillions

Despite being volatile, is generally optimistic people in the world would be better in 2012. Nearly three-quarters of the 24 countries surveyed in this state.

Ipsos / Reuters held a survey to find out what ideas they have for next year based on those experienced in 2011. “All indicators show even though people worry about today, but there is a glimmer of hope in the future,” said Clifford Young, Senior Vice President Ipsos Public Affairs.

Optimism is felt most strongly in France and Indonesia, where 91 percent of people think 2012 will be a better year. Following after that Brazil (90 percent) and India (89 percent).

Italy, Japan and Sweden the least optimistic with this new year, only 45 percent respectively, 46 percent and 55 percent who rate the better. While Hungary at the rate of 56 percent and the UK in numbers 58 percent.

“Europe is still a problematic place. Not to solve all problems,” said Young. “But in North America, particularly the United States, has seen signs of progress.”

Seventy-four percent of Americans shows optimism in 2012. “They look so much better conditions: a little more job stability, the ability to put less food on the table,” he said.

But only four of 10 respondents, amounting to 21,245 people around the world are assessing the global economy will be stronger in 2012. France, Hungary, Belgium, Italy and Sweden are the least to see a stronger global economy. But the majority in India, Brazil, Indonesia and Saudi Arabia believe the global economy will be strengthened.

Surveys show that young, affluent and educated are the most optimistic for 2012. Nearly 80 percent of young people under the age of 35 years believes the new year will be better.

admin    Business, Finance     35 Years, Belgium, Brazil, Clifford, Food On The Table, Glimmer Of Hope, Global Economy, Hungary, Indonesia, New Year, North America, Optimism, Public Affairs, Respondents, Reuters, Saudi Arabia, Senior Vice President, Seventy Four, Signs, Three Quarters

Nike

Device manufacturers Nike Inc will pay overtime pay thousands of workers on their factory in Indonesia. Previously, overtime pay of U.S. $ 1 million (Rp9, 1 billion) this was not paid by a company headquartered in the United States.

Reporting from Washington Post, Thursday, January 12, 2012, payment of overtime from Nike will begin early next month. According to the National Labor Union (SPN), which represents 4500 workers of PT Nikomas, shoe maker Nike factory in Banten, Nike did not pay the wages of 600,000 hours of overtime for two years.

Bambang Wirahyoso, chairman of NES, said that the overtime pay of U.S. $ 1 million obtained following negotiations for 11 months. This amount was thought still too small compared to what is experienced by workers in Nikomas for 18 years.

“The practice of working overtime without pay has actually happened in Nikomas for 18 years, but the law in Indonesia only allows compensation for two years,” said Wirahyoso in a statement, quoted from the BBC news station.

Nevertheless, he said that the case would be a kind of whip for workers seven days a week without overtime pay they deserve. “This case will be a whip for the movement of workers in Indonesia. We’ve just started,” he continued.

Nike said in a statement the company said it will make corrections in the performance of well-being of workers. In addition, Nike also offers training programs and establish a task force to accommodate the aspirations of the workers.

“Nike factories in support of their action plan and efforts to correct deficiencies in existing policies in protecting the rights of workers. Nike will continue to monitor and support their efforts in improving the situation,” wrote Nike said in a statement.

admin    Business, Finance     1 Billion, 18 Years, Aspirations, Banten, Bbc News, Deficiencies, Device Manufacturers, Negotiations, News Station, Nike, Nike Factories, Nike Factory, Nike Inc, Seven Days, Shoe Maker, Spn, Wages, Washington Post, Whip, Working Overtime

The fall in nine countries in Europe ranked by Standard & Poor’s benefit Indonesia. Government bonds would be sold and hunted by foreign investors because Indonesia’s ranking rose to investmet grade.

Ministry of Finance Debt Management Director General Rahmat Waluyanto said today foreign investors to buy government bonds with a mild interest.

“The lower-ranking 9 countries in Europe that have actually been anticipated. Italy at Austria fell one notch, the rest of Spain, Portugal that was down two notchs. So it is quite bad. On Friday it was still a foreign net buy Rp 2 trillion (government bonds) and occurs strengthening of prices in several series of benchmark bonds, “Rahmat said when met at the Office of the MoF, Wahidin Jalan Raya, Jakarta, Monday (01/16/2012).

As a result, Grace continued, bond prices to be high and its yield (the yield) also decreased. Per week, its yield was down 5 basis points.

“Yield Indonesia which we publish RI bond yield was down 142. Down about 5 basis points from the position of the initial issuance, per week,” he explained.

However, if it is spreading to other countries, the U.S. bond yield difference with Indonesia then widened so that the reduction in yield will be smaller.

“If for example, many other countries including many emerging markets are experiencing a deteriorating condition, which we fear the spread between the yield on us treasury yield rose, though its base yields down, but if the spreads go up, bond yields decline in Indonesia is small, the secondary market, “he concluded

admin    Finance     Basis Points, Bond Prices, Bond Yield, Bond Yields, Countries In Europe, Debt Management, Director General, Emerging Markets, European Countries, Foreign Investors, Government Bonds, Indonesia Government, Initial Issuance, Jalan Raya, Management Director, Mild Interest, Ministry Of Finance, Mof, Rahmat, Spain Portugal