August 31st, 2009

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Cabinet has forbidden to alienate property Nadra Ukraine without his permission

Monday, August 31st, 2009

Cabinet forbidden to alienate property of the National Joint-Stock Company Nadra Ukraine without proper government authorization.

This is stated in the decree of Cabinet of Ministers № 905 dated August 26.

this document the Government amended the charter of Naftogaz, according to which the company is forbidden to undertake any action with respect to property, including the shares transferred to founder in its share capital, which could result in his alienation, without a decision by the Cabinet.

Also, according to the new statute Nadra Ukraine, the property company can not be assigned without the permission of the government.

As earlier reported, on August 19, former head of government Nadra Ukraine Eduard Stavitskiy Guided by a court decision (on August 4) took the company's premises and restored order in a post.

August 20 at the extraordinary meeting of the Government pursuant to the same decision, the court reinstated Stavisky in the post and immediately dismissed him. Click to continue »

Judge: This week is not expected major changes in the market of Ukrainian eurobonds

Monday, August 31st, 2009

This week is not expected major changes in the market of Ukrainian eurobonds.

This is stated in a weekly review of the Eurobond market, prepared by an economist of the investment group Socrates Mikhailov Salnikov.

It seems that this week the market will wait for news on further development of the situation surrounding Naftogaz. positive or negative background to negotiate the restructuring will have an impact both on the dynamics of the yield securities Naftogaz and other quasi-sovereign and sovereign issues, - he believes.

This expert did not rule out that the aggressive position of holders of Eurobonds public company associated with the hope of creditors in such a way to achieve better terms of restructuring, and therefore a compromise between a company and investors is possible.

Salnikov recalled that last week of paper Naftogaz bonds due Sept. Click to continue »

Euro continued to fall, currently testing 1.4280 support

Monday, August 31st, 2009

USD /JPY

In the wake of positive messages and the victory of the DPJ (Democratic Party of Japan) for the first time in fifty years, the yen strengthened, which helped her get closer to the field of support 92.85/70. If the motion to continue and further down to the next level, most likely, will be 92.40. In favor of this hypothesis stands the fact that oscillators and trend indicator OsMA at 4-hour chart (Figure 1) show bearish direction. On the hourly chart (Fig. 2), the picture blurry: Stochastics and SS OsMA confidently rushed up, not excluding the possibility of rollback, but the RSI turned in the opposite direction, confirming our assumption of a break of support.

Thus, in my opinion, the situation can be characterized as uncertain, so it wait for a break of this support, and only after this open positions for sale with a close stop loss.

Support: 92.85/70, 92.40, 92.00, 91.55, 91.00, 90.70, 90.00, 89.70, 89.00, 88.40, 88.00.

Resistance: 93.20/00, 93.60/50, 94.10/00, 94.60/50, 94.90/95.00, 95.30/40, 95.90/96.00, 96.30, 96.60, 97.00, 97.50/75, 98.00, 98.35, 98.60, 98.90/99.00, 99.40/60, 100.00.

USD /CHF

At the moment the prices are kept above 1.0600, and if the movement continues, the next mark will be 1.0650. The situation at 4-hour chart (Fig. 3) indicates this possibility, as both the trend indicator OsMA, and oscillators demonstrate growth. However, the situation on the hourly chart (Figure 4) gives a different picture: all the indicators turned bearish in the direction, not excluding the likelihood of re-testing support.

In light of this, in my opinion, is to wait for clarification of the situation and only after this open positions with a close stop-loss in the direction of the breakout.

Support: 1.0600, 1.0550, 1.0500/1.0490, 1.0400, 1.0350, 1.0300, 1.0250, 1.0200, 1.0175, 1.0130, 1.0100, 1.0070.

Resistance: 1.0650, 1.0700,1.0730, 1.0750/60, 1.0800, 1.0840/50, 1.0900, 1.0935/40, 1.0970, 1.1000/10, 1.1050/60, 1.1100/20, 1.1150, 1.1200/15, 1.1270, 1.1320, 1.1375, 1.1400, 1.1450. Click to continue »

Review of the precious metals market for 28.08.09

Monday, August 31st, 2009

Dynamics

On Friday 28 August at the tender quotes for gold and silver have grown substantially in price. Range Trading on the dollar in the foreign exchange market, FOREX, as well as the dynamics of the mixed stock pads could not push prices out of the range of precious metals.

As a result of trading on the COMEX, division of the New York Mercantile Exchange (NYMEX), quotes on gold rose by 11.50 to 958.80 dollars per ounce, the price of silver rose 56 cents to 14.81 dollars per ounce.

Causes

On Friday, August 28 quotes for precious metals market showed a significant upward trend in price. Last week, gold has risen in price by 0,4%. In percentage terms, silver futures have risen in price on Friday is much more than gold. Silver is more widespread industrial application, so if the economic situation improves, then the ratio of prices of gold and silver are aligned. Trading volume on the last week were relatively small, since many market professionals have traditionally at this time went on vacation.

From the news it may be noted that the JSC Buryatzoloto in the 1 st half of 2009 increased its net profit doubled to 686.319 million rubles, compared with the same period in 2008 The company's revenues in the 1-m half of the year grew by 46%, to 2,355 billion rubles. The main factor that influenced the change in the size of revenue, is the world price of gold, as well as sales, the U.S. Click to continue »

Overview of the oil market for 28.08.09

Monday, August 31st, 2009

Dynamics

Quotes of the oil market on Friday, August 28 closed with a slight increase due to wide-band trades in the U.S. dollar in the FOREX market against the backdrop of conflicting reports regarding the recovery of the U.S. economy, as well as on the background of the limited growth of the shares in the stock markets.

At the New York Stock Exchange NYMEH the October futures price of U.S. light crude rose by 0.25 dollars and its price, thus, amounted to 72.74 dollar per barrel.

The exchange ICE in London, Brent oil price rose 0.28 to 72.79 dollars per barrel.

Causes

On Friday, August 28 quotes on the market of black gold have shown little upward trend in costs as a result of wide-band trades in the U.S. dollar in the FOREX market against the backdrop of conflicting reports regarding the recovery of the U.S. economy, which limited the continued growth of quotations, which began a day earlier. Published economic makrostatistika, namely, data on consumer confidence in the U.S., led to a decrease in stock indexes, but the quotations of futures for oil resist the reduction.

From news is the announcement by Iranian President Mahmoud Ahmadinejad that Iran needs to develop its own oil refining industry and reduce the export of crude oil. The Iranian leader said that the oil sector should create new jobs in the country and contribute to its technological development, and not to turn Iran into a simple source of raw materials. Click to continue »

Technical analysis by currency pair EUR / USD

Monday, August 31st, 2009

pair EURUSD - time period daily

So, the currency pair eur /usd is traded under the divergent triangle, which has transformed the 5th wave in a corrective wave. As we have noted, this wave is the wave Y in the global wave V.

At the moment Opinions were divided regarding the development of divergent triangle. So the optimists are beginning to consider this formation on 16 June, so now waiting for the final dash to the area of 1.46-1.47 points within doformirovaniya wave e. The maximum goals are the same paragraphs 1.48-1.52, if the wave of e will be extended, that often happens.

At the same time, the pessimists believe that the 4th wave ended with a July 8, with a wave of it was truncated. In the end, Bears consider this formation of 8 July, all 5-Th waves in it abcde has already been formed. Reduction of 5 August to 17 August is considered as the first stage of a new downward movement in the subsequent rebound as the 2nd wave, which can form a double top in the area of 1.4449 points. The final fracture of the upward trend after overcoming 1.379 points. Click to continue »

Many of the prohibitions, little reform

What has been Yulia Tymoshenko almost two years as prime minister …

Monday, August 31st, 2009

Ukrainians, who returned from abroad in early August, experienced a real culture shock: jump in the dollar, have never priced in the summer, soaring gasoline prices and filling the city streets with a new political ads of the presidential race.

disappointing economic results of six months could spoil campaign anyone. But not Yulia Tymoshenko, who has long straddled the horse meni not given. On his performance in the whole country, Prime said the slogans: They are blocking. It - is working; They say. It - is working; They betrayed. It - is working.

of a barrel of tar statistical deftly retrieved a spoon of honey. Tymoshenko announced in July that the industry has grown by about five percent compared to June (only due to two additional working days), while the annualized decline remains at almost 30%. It is surprising drop in the hryvnia against the backdrop of reducing the negative trade balance in the first half compared to the same period last year, seven times (according to Goskomstat - fifteen, but it does not matter, because the trade balance has remained in short supply).

Manipulating figures and mass consciousness has only just begun - soon Tymoshenko intends to support the spirit of the country's population through the budget process. Last week, the Prime Minister unveiled the basic parameters of the state budget-2010: maintaining the level of social benefits on the background of Ukraine's GDP growth at three percent.

about the prospects of new promises can be judged by analyzing the old. Discarding the irony callback posters series She, expert analyzed the successes and failures of the Cabinet of Ministers over the past two years.

Who is to blame? They!

budget - is the quintessence of power in all countries, and Ukraine is no exception. Excessive centralization when local budgets are only three per cent generated from its own revenues, and the rest is redistributed through Kiev, - one of the main problems of the budgetary system of the country. Realizing this, Tymoshenko, in May launched a massive PR-campaign for the budget reform. She held a series of press conferences on the plight of local governments. The capital was visited by the mayors and heads of village councils, demanding that the prime minister to provide on site more money, the parliament promptly prepared and adopted a new draft of the Budget Code. However, the correct idea of decentralization of public finances Tymoshenko presented a in such a way that Viktor Yushchenko could not make it not rubbish. The draft law provides not only the devolution of additional funding, but also the right to reallocate all the Cabinet's own budgetary purposes as in the center, and in the field without permission from anyone. The Government is also empowered to establish their own social standards, that is, wages and pensions. It was a dangerous instrument, which gave the government unprecedented leverage manual transfers from the central treasury on the ground that before the election looked like a clear political action - said expert former Finance Minister Mykola Azarov.

Conclusion - head of state signed the law, the Party of Regions refused to overcome the veto, the prime accused his opponents of anti-people policies, and the country continued to live in the old Budget Code. The history of this document shows is not an isolated failure, and a typical welcome: good purpose statement with such conditions as to political opponents have blocked its achievement, and Yulia Tymoshenko was one more reason to loudly declare: I work - they destroy.

It's a pity that the policy to prevent this, deep reforms, including reform of the finance for the benefit of local government, the dreams of the community the last seventeen years, - Tymoshenko commented on the President's veto of the Budget Code. With this statement, she took off the burden of obligations to the local elite and to shift responsibility to their counterparts.

Start and finish

no less often the head of government uses, and another method - the pathos start of a campaign to combat the sort of lack of government, the first positive results and the continuing disregard of the topic in a public space, which in practice results in the aggravation of chaos and corruption. For example, Timoshenko managed to realize one of his campaign promises - to eliminate corruption Tender Chamber. Under the same policy the prime minister ousted from the gas market odious intermediary RosUkrEnergo and strictly forbidden in the country of gambling.

However, the law on public procurement has not been adopted, more than a year inthis area operates a temporary, rather dubious government decree. As a result, the purchase were not removed from the manual control officials. The system of procurement has become more tenizirovannoy. In the absence of legitimate transactions take place in the manual mode, simple decision-making center shifted to the Ministry of Economy. There is gradually shifted people who previously worked in the Tender Chamber, - noted the Chief Scientific Adviser to the Institute of Legislation of the Verkhovna Rada Oleksandr Kirichenko . Bribery in this area actually declined as sharply reduced government spending on the purchase of anything because of the budget deficit.

Quite often loud statement as a result of the government are only empty rhetoric. A striking example of this approach - tax reform. Since December 2007 the first government of at least three times, decide on the need for it: the last statement was dated July of this year. This was the main topic during the brilliant performances of Yulia Tymoshenko to the adoption of the Law on State Budget-2009. But in the intervening period since nothing had been done. The draft Tax Code had not been introduced to the Verkhovna Rada, the document does not exist even in a rough of developments in the Ministry of Finance. Instead of the promised tax cuts (in conjunction with the expansion of tax base), full compensation for VAT arrears (formerly chairman of the State Tax Administration Serhiy Buriak has promised to eliminate it before April 1, 2008), the Government only decided to introduce electronic reporting of VAT and abolished the tax bills . Elimination of bills scheme (scheme unusual export) destroyed one of the most popular ways to budget speculation, and the electronic records in general optimize cooperation Tax and taxpayers. According to first deputy head of the State Tax Administration Alexander Buhanevicha, effectiveness and feasibility of electronic relationship with the Tax Administration assessed the entrepreneurs themselves. If in April 2008, the first reports electronically filed 52,5% of taxpayers, then in August of 2009 - already 86%. Take a virtual relationship with the State Tax Administration were to guarantee the transparency of payment of VAT and its fiscal recovery by reducing the number of audits. Checks actually decreased, but in general it did not reduce the debt on VAT. As a result, by August, according to expert, the total amount of debt to recover this tax amounted to about 16 billion hryvnia.

Yulia Timoshenko failed completely and other tax promises inherent in the never Rada adopted the program Ukrainian Breakthrough with which it entered the elections 2007. In particular, the Government has failed to reform the system of simplified taxation. All attempts to eradicate the abuse with a single tax met with active opposition to lobbyists. Fearing the hurt of the electorate, Tymoshenko has always lagged behind the small and medium-sized lobbyists, often using uproschentsev to save on taxes. According to the Tax Administration, in 2008 from 80 billion hryvnia, that an agency hoped to get in the form of VAT payments by economic entities operating on a simplified scheme of taxation, the budget received only two billion hryvnia.

Before the threat of rebellion of small and medium businesses the Prime Minister has always retreated. For example, on December 20 last year the Government introduced changes to its order number 1118. They require physical persons, who before moving to the simplified system of taxation are subject to VAT, the tax authorities to file a request for cancellation of such registration and submit VAT registration certificate. The document did not last long: in early 2009, lobbyists of all stripes have organized a successful large-scale campaign to abolish harmful, from their point of view, the decision of the Cabinet.

Step Forward, Two Steps Back

strength of the Yulia Tymoshenko - the ability of the entire country to fight their own mistakes. A prime example of such tactics - the imposition on the initiative of deputies from BYuT Sergei Cereals and subsequent removal of 13 per cent premium to the duties on goods imported uncritically. The result - an open disregard of the Constitutional Court on the restoration and preservation duties allowance only for the import of cars and refrigerators. Thus, almost half the head of government has spent on it to block a resolution adopted on her own initiative.

Yulia Tymoshenko was able to prevail in a conflict situation: dismiss the chairman of the State Property Fund Valentina Semeniuk, Minister Yuriy Yekhanurov, Viktor Pynzenyk, Volodymyr Ogryzko. But it rarely brings it started to the end - the new leaders loyal to the relevant departments have not yet been appointed. Get the same effect as that of the elimination of the gas intermediary RosUkrEnergo or solicitation House - Prime Minister had the power exactly as much to remove a player from the market or an official from the chair, but not to reform the market and bring order to the department.

During his second coming in Tymoshenko's government has failed to privatize any strategic object, as well as create a land market, in particular, to lift the moratorium on the sale of agricultural land. The Government has not implemented a land registry has not undertaken a monetary value of land. Complete paralysis of the experts state and in the market for housing and communal services, which did not happen long-awaited deregulation and privatization ZhEKov. For two years the Cabinet of Ministers was unable to prepare a reasonable bill for a tax on property - the main resource maintenance of local budgets in the world. The latter document, which Yulia Tymoshenko has made for an urgent review of the Verkhovna Rada could not stand criticism - Bill number 2113 on Tax on immovable property (real estate), other than land does not specify a register of owners of property that in principle the idea brings to naught. Click to continue »

Prices of securities Russia's fuel and energy enterprises, in particular, the company Rosneft, falling on Monday under the influence of negative dynamics of quotations of oil

Monday, August 31st, 2009

MICEX today to 12:30 Moscow time has decreased by 1.75% to 1 091.84 points.

noticeably better thanthe market with shares of Russia's re-look cross-regional telecommunications companies, which seem to continue to win back the expectations of investors regarding a possible surge in coming quarters processes of corporate mergers and acquisitions in the industry.

Paper Uralsvyazinform, Sibirtelecom and Dalsvyaz against this background that went up by 4,59%, 3,37% and 3,33% respectively.

On the other hand, the capitalization of companies, rather actively increased in recent days, this morning, apparently under the influence of technical factors demonstrated negative dynamics. Shares of OJSC AvtoVAZ and OAO Razguliay cheaper in the first two hours of trading Monday at 2,92% and 2,41% respectively.

prices of securities companies of Russia fuel and energy, in particular - the company Rosneft, fallen in price on 2,54%, declined on Monday under the influence of the negative dynamics of quotations easy oil, which, however, remain above the significant level of support at $ 70 -72 per barrel.

In general, despite the growing bear correction of quotations in the run-up out in the coming days a number of important indicators of U.S. macroeconomic statistics, the situation on Russia's stock market seems fairly stable. Stock indicator of the Moscow Interbank Currency Exchange retains formed last week rising trend.

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MICEX Index has consistently failed to go above 1100 points, but not in a hurry to fall below

Monday, August 31st, 2009

That ended the summer ...

Russia

Russia's stock market ended last week on a positive note: the RTS index added 1.77% on Friday, the MICEX index rose by 2,9%. Most papers grew quite amicably, as the apparent cause for optimism came in a fairly large volume, forcing players to buy shares of companies of various sectors of the economy. Trading volume on the RTS stock exchange was $ 2.73 billion, of which $ 1.63 billion were in the tools of the derivatives market, the MICEX Stock Exchange Section of gain by selling at 141.77 billion, turnover in the index amounted to 49.99 billion rubles.

Europe

indices of the Old World have increased by an average of 1% on the background of neutral macroeconomic statistics and corporate optimism in the region of the registered companies. In general, the current month of August remember, contrary to expectations, the quietness and serenity against the background of high volatility and lack of new ideas.

America

indices of the New World were closed with a range from 0,05% to -0,4%, which is caused by conflicting statistics and a tendency of investors to such categories as expectation, trust, hope. The market is playing with words and ideas, but not fundamental factors, that is why the movement is, and no progress, in the sense that the volatility increases, as distinct stable dynamics is not observed. Officials from the Fed and its sister agencies around the world can be any number of players to try to calm the financial markets, but the real economy from knock-down has not yet been released, and this means that the flame extinguished without solving the problems that actually caused the fire. Moreover, there is a sincere belief that the problems became more - they were simply carried to future periods.

raw materials, currency and so on

industrial metals on the auctions in London as of Friday rose (it's when you look at the stock exchange composite index LME, individually, some metals are updated yearly highs). Gold failed to gain a foothold above $ 960. The U.S. dollar is behaving fairly stable.

remarkable index called BDI (Baltic Dry Index), which is sometimes used as a leading indicator, during the summer, fall, against the rising stock market indices. Assuming BDI indicator reflecting the economic activity through the prism of the maritime transport industry, then this very special activity is not observed. The May rise was due entirely speculative sentiment associated with the strategic procurement of raw materials by China and a temporary shortage of available tonnage. In general, I would have thought about the reality of the real sector of the economy and its prospects - moving up the essence of the merit of Ben Bernanke, who just do not scatter dollars from a helicopter (it should pay tribute to the chairman of the Fed - he keeps his word).

Oil prices, which are thrown from the frying pan into the fire, at 9-30 (Moscow time) as follows: Brent crude futures are slightly higher than $ 72.25, WTI futures traded on the mark just below the $ 72.5 .

Statistics and Reporting

Monday is expected fairly quiet in terms of an information day: firstly, in the UK today, a bank holiday to mark the end of the summer, and secondly, from the macroeconomic statistics, published only index of consumer prices in the euro area (13-00 Moscow time) and the index of activity in the U.S. (17-45 Moscow time).

Forecast

I look forward to the beginning of trading on the equity market in the last calendar day of summer with the gap down within 1-1,5%. The following look at the behavior of oil futures, which, compared with Friday while not feeling well.

MICEX Index has consistently failed to go above 1100 points, but below the plow and not in a hurry. At the time of the MICEX index pushed up their monthly moving average, which is conjugate to the same level of support from top motion is limited level of 1120 points. The chances of an attack is like a bear on the side of which are logic, common sense and the position of the real sector, as well as a bull, backed by cash flows.

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Indices in the U.S. fell on Friday, the decline is continuing in the futures market on Monday

Monday, August 31st, 2009

U.S. stock index Dow Jones and SP 500 fell on Friday on 0,2-0,4%, after investors began to sell shares of companies that depend on the economic situation in the least degree, the so-called security paper, reports agency Bloomberg.

Quotations of futures on the last day of summer also show negative dynamics: the September contracts for the SP 500 by 8:41 IST lost 0,5%, for Dow Jones to 8:39 MSK - 0,57%.

The players probably are thinking about the transition from defense to attack, - said an analyst with Federated Clover Investment Advisors Lawrence Kritura.

market value of Merck Co., producer of drugs for asthma and allergies, decreased by 1,7%. After it cheaper stocks and other companies related to health.

Quotations securities anticoagulants manufacturer Bristol-Myers Squibb Co. dropped to 2.9% after Morgan Stanley's analysts worsened outlook for the company's shares to market level, stating that they are not cheap.

As a result

subindex SP 500, a calculation which includes the shares of pharmaceutical companies dipped 0.2%.

The bad results demonstrate the company with defense strategy - said analyst MF Global Ltd. Nick Kalivas.

In addition, shares of Novell Inc., developer of the operating system Linux, fell 7% as the company's profits has been worse than the forecasts of experts. Impairment Novell has seen a record among all the securities included in the calculation of the SP 500.

However, falling stock price of a security companies offset by rise in price of Intel, Dell, and Tiffany, forecasts and income statements which were better than expected.

second-largest global PC maker Dell on the results of the second fiscal quarter reduced net income and earnings, but the less, not so much as many investors had feared. Net income in May-July fell by 23% - to $ 472 million, or 24 cents per share, earnings decreased by 22% - to $ 12.76 billion, because of falling sales of PCs and their prices against the background of global recession.

Dell revenue and profits declined in May and July, the fourth consecutive quarter, however, according to the company, the rate of decline in the second finkvartale slowed down compared with February-April. Click to continue »