Archive for June, 2008

Prime Minister offers surety on hard currency funds

Wednesday, June 11th, 2008

Since 1992 Vietnam is struggling with the issue of rising prices of over 25 percent encouraging the distress that the dong will lose is importance with the standard stock index continues its losing events. In the previous month majority of the rating agencies have decreased what they think about the country’s debt referring to the slow government action against the rising prices. The government in a try to decrease the consumer price profits the economic growth was slashed from seven to nine percent.

According to a statement that was posted on the government’s website saying that in the year 2009 they are aspiring for the growth to be 7.3 percent. Prime Minister added that the government has enough foreign currency that they will easily be able to interfere in continuing the value of the dong and also the imports.

Mr. Dominic who is the director at Dragon Capital, an investment company at Ho Chi Minh was of the view that the government is very much aware of the situation and they are making the people aware of what are the steps that they are making for it. Government is making necessary progress in recuperating the dong value. The currency made a progress of 0.02 percent taking up to 16,285.48 per dollar. Since August the dollar has gained as compared to the dong for the three months which is considered to be the longest streak. Going by the website the reference rate that was fixed by State Bank of Vietnam was 16,137 a dollar as compared to 16,130 which was on Monday.

On Tuesday the Stock Index of Ho Chi Minh crashed down to 1.46 percent which will easily lead to inflation and will to the selling of the local assets forcing the dong to fall. For the current year the standard loss has been more than 50%. According to the government kn the first five months for the current year the balance of payments illustrated an additional of $1 billion.

On May 28 Morgan Stanley made a statement that Vietnam will be facing currency emergency and the country’s deficit rate might increase. Same predictions have been coming from Deutsche Bank AG forecasting the deflation of dong with the increasing prices. According to General Statistics Office as for the first five months the trade gap stretched to $14.40 billion.

The statement was disclosed only after the meeting with the Prime Minister and Mr. David who is the head of marketing research with JP Morgan Chase & Co. Last week Mr. Phuc was of the view that they are not in need of any funds yet from IMF (International Monetary Fund). This prediction was made when Deutsche Bank made a prediction that the country might have to adopt IMF program for the coming months due to the lack of foreign funds.

Mr. Nguyen who is the director of external financing with Vietnam’s Ministry of Finance was of the view that the foreign currency funds of Vietnam said raised around $20 billion from $18 billion by the end of 2007. He also added that the funds will more by the end of the year.

Oil becomes steady but other profits are not yet met

Wednesday, June 11th, 2008

The business of the oil was about to reach to the closing point but suspended to move further in the middle of the further supplies, worldwide demand, and the growing tension in the Middle East. The crude oil gained a raise of 27 cents coming at $134.60 a barrel and previously it rose to more than $135. Following last week’s gain the market is taking time out and according to Mr. Victor who is an energy analyst working with Purvin and Gertz in Singapore said that there are still chances of the market to further rise.

International Energy Agency didn’t show any interest towards the demand for the oil in the international market due to amid surging prices. Mr. Victor was of the view that supplies might be effected in a situation where Atlantic hurricane season effecting the production levels in Gulf of Mexico. After the Israeli cabinet minister gave a warning of the attack on Iran it put off the markets.

Mr. Ehud who is a Israeli Prime Minister didn’t shared any comments and the minister also had not being put across the policies of the government. It all began after Mr. Jean-Claude stated that the bank could increase the interest rates to face inflation. Crude oil prices reached to $139.10 a barrel which is quite high. On Monday the prices move back when the dollar got better than euro after the comment made by Mr. Henry who is Treasury Secretary. Late Monday the euro was on $1.5649 to $1.5570 in New York.

According to Mr. Addison who is the director of market research with Tradition Energy at Connecticut a blast that took place at a natural gas production unit in Australia raised that demand for diesel in that area. Mr. Addison said in Nigeria one of the important oil suppliers for America could face a strike which means that they will loose more than 448,000 barrels of oil which is major setback to the market. According to IEA they predicted that international demand for oil in the year 2008 will see an increase of more than 0.5 percent.

It is because of the increased oil prices majority of the developed countries were in favor of decreasing the fuel subsidies. The data of both 2006 and 2007 have also been modified, along with the reduction in the international demand for barrels per day previous month. The agency is continuously decreasing their demands for past couple of months with oil rising at a faster rate.

For Nymex trading the oil futures rise by 2 cents to around $3.8988 liters, Gasoline prices also raised at $3.4015 a gallon, and as for the natural gas at $12.607 per 1,000 cubic feet. July Brent crude decreased 62 cents to $133.26 a barrel on London’s ICE Futures Exchange.

Gas prices crosses $4 mark where as there is some relief for oil prices.

Wednesday, June 11th, 2008

On a stronger dollar the prices for the oil witnessed a downfall and talks have been conducted on the rising oil prices. On the other hand the price for gas is witnessing a constant rise leaving behind the $4 mark. After Mr. Paulson who is the Treasury Secretary gave a comment that he is not denying the interference to make the American currency steady the dollar witnessed an improvement as compared to the euro.

Seeing the rising prices of the oil all the countries engaged in producing oil were called for a meeting by Saudi Arabia. One of the Saudi minister said that they will be working along with OPEC for the supply of the oil in the present times and in the near future also. He went to add that the current rise in the price is groundless.

On New York Mercantile Exchange the price of the crude crashed down $4.19 to stop at $13.44 a barrel. It was on Friday that the oil witnessed a record breaking rise of more than $9 in just one day, but on the other hand the gas didn’t stopped and kept on rising. According to Oil Price Information Service and AAA the average price of the gallon across the nation rose by more than 1.6 cents and reached to $4.021. Even though some parts of the country paid the price for weeks now but it was on Sunday that average crossed $4.

Mr. Tom who is a chief oil analyst and publisher at Oil Price Information Service in Wall, New Jersey was of the view that if the oil stayed near $138 a barrel you can still expect the gas prices to rise in the coming days. According to a spokesman of AAA the prices will still rise to 2 to 3 cents. With the gas prices going up where some of the drivers have cut back on the other hand the gas producers will have to raise the prices seeing the prices of the crude oil also increasing.

The rise in the gas prices has already made the drivers to change the type of cars they used to drive or they are planning to buy. Seeing all this General Motors has also made an announcement last week that that they will be shutting down their four units engaged in producing pick-up trucks and SUVs.

It will be really a costly affair if you have a SUV which costs around $90 to fill it up not to mention if you have to pick and drop your kids to school. Around Memorial Day the prices of the gas often witness a raise and then move back in the summer time. After last week when Mr. Trichet who is the President of European Central Bank made a comment on the rising interest rates in the month of July to face price rises the sharp rise was witnessed. This made the euro to easily rise against the dollar.

In an interview Mr. Paulson said that he don’t deny the fact that they are interfering to make the dollar stable but he refused to make any comment on what will be the government reaction towards this issue. Mr. Paulson’s comments made an impact on the euro to decrease sending oil crashing down.