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The Federal Reserve is postponing the release of stress tests on the biggest U.S. banks

Fri, May 1 2009, 12:52 GMT
by Benny Menashe

Finotec Group Inc.

The swine flu reached 11 countries, as governments closed schools, planned for vaccine production and tapped emergency stockpiles of antiviral medicine. Genetic tests have confirmed more than 331 people have the strain originally labeled swine flu, according to the World Health Organization’s. A phase 5 warning is “a strong signal that a pandemic is imminent” with little time left for preparation, according to the UN’s agency. At the moment, the World Health Organisation has decided to place a phase 5 warning which means “a strong signal that a pandemic is imminent” with little time left for preparation. The peso strengthened against the dollar after the Inter-American Development Bank said it will lend Mexico $3 billion to combat the swine flu outbreak, while hog futures rose, paring a 9.3 percent decline this week.

The one company which gathered most of the public interest this week was company born 84 years ago in Walter P Chrysler’s reorganization of the Maxwell Motor Co. The bankruptcy filing on Thursday by the Auburn Hills, Michigan-based automaker is the company’s fourth near-death experience since 1979. But analysts reckon that Chrysler didn’t escape bankruptcy in its latest death- defying move, and the success of its marriage with Fiat isn’t a given.

In the world of Forex, The yen fell against the dollar and the euro as Japan’s unemployment rate rose to a four-year high and signs of economic recovery in China and the U.S. encouraged investors to seek higher-yielding currencies. The Japanese currency dropped for a third day against the dollar, losing 0.7 percent, and slid 1 percent against the euro, to a two-week low. The green note has strengthened towards the end of the week as high as 99.58 against the Japanese currency after trading on Tuesday as low as 95.62 USD/JPY.

The Federal Reserve postponed this week the release of stress tests on the biggest U.S. banks while executives debate preliminary findings with examiners, according to government and industry officials. Regulators and bank executives are concerned about how the disclosure is handled because weaker institutions could suffer a collapse in their stock prices. The S&P 500 which comprises 80 companies has gone up 30 percent in the past month as officials played down the prospect of nationalization and the economy showed signs of stability.

This week it was published that the American Treasury Secretary Timothy Geithner told U.S. lawmakers that there is no need for new bank bailout money as of now. Geithner has said that banks can add capital by a variety of ways, including converting government-held preferred shares dating from capital injections made last year, raising private funds or getting more taxpayer cash.

In the UK, it has been published that Lloyds, Northern Rock Make ‘Meaningless’ Loan Promises to the country while relying on public funds. It’s been discovered that Lloyds Banking Group and Northern Rock Plc’s government-brokered pledges to boost U.K. lending by 42 billion pounds ($62 billion) over two years may not increase the total supply of credit to businesses and homeowners. Parliament’s Treasury Committee, in a report released on Friday, said it remained concerned about the availability of loans. The government should publish a “clear overall strategy” on its programs to increase lending and progress toward meeting those goals, the report said. The U.K.’s benchmark FTSE 100 stock index was little changed at 4,238.76 following last month’s rally, the steepest since April 2003. Having said that the Pound has strengthened against the USD and managed to reach the heights of 1.4924 GBP/USD after trading on Monday as law as 1.4586.

Today's Economic Events

Published on  Fri, May 1 2009, 12:56 GMT