Posts Tagged ‘International Monetary Fund’

Brazil Buyout Firms Have $9 Billion in ‘Dry Powder’

(Bloomberg) — Buyout firms are poised to spend $9 billion in Brazil on everything from infrastructure to oil exploration as the economy recovers from a recession, the nation’s private equity and venture capital association said.

Grupo Santander Brasil and San Francisco-based Paul Capital Partners said they may purchase stakes in companies that will benefit from the country hosting the World Cup in 2014 and Olympics in 2016.

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Soros More Than Doubled Gold ETF Stake in 4th Quarter

(Bloomberg) — Billionaire George Soros’s Soros Fund Management LLC more than doubled its holding in the biggest gold exchange-traded fund in the fourth quarter after bullion advanced 8.9 percent to a record.

The $25 billion New York-based firm became the fourth- largest holder in the SPDR Gold Trust, adding 3.728 million shares valued at $421 million, according to a filing with the U.S.

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Europe Commits to Action on Greek Debt Crisis

From left, Chancellor Angela Merkel of Germany, Prime Minister George Papandreou of Greece and President Nicolas Sarkozy of France left the European Union Council building after a meeting in Brussels on Thursday.


BRUSSELS — European leaders, facing a crucial test for the credibility of their common currency, promised “determined and coordinated action” to safeguard the euro as they sought to persuade jittery bond market investors that Greece would not be allowed to default on its government debt.

Herman Van Rompuy, president of the European Council, also said that the European Union would monitor closely Greece’s pledges to reduce its alarming budget deficit, and would propose measures for Athens drawing on the expertise of the International Monetary Fund.

Further work by finance ministers on assistance for Greece, and the conditions that would be attached to any aid, will take place early next week.

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U.S. criticizes U.K. proposal to tax financial transactions

Treasury Secretary Timothy Geithner voiced disapproval with a proposal from U.K. Prime Minister Gordon Brown for a tax on financial transactions. Geithner said he would not support the tax but appeared to soften his stance later, saying the International Monetary Fund would be responsible for coming up with possibilities.

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International Monetary Fund now estimates global bank losses at $3.4 trillion

The International Monetary Fund (IMF) has reduced its estimate of global bank losses by $600 billion – but warned the new figure of $3.4 trillion could rise further due to high unemployment rates across the world pushing up loan losses.

Rising security values combined with a new way of calculating losses are to thank for the improvement on the original $4 trillion deficit calculated in April.

But the IMF says that around another $1.5 trillion worth of loan writedowns will hit banks by the end of 2010.

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Policymakers consider taxing financial transactions

The Economic Policy Institute suggested taxing financial transactions, such as stock trades but not consumer transactions, to raise as much as $150 billion annually. Lawmakers, labor unions, the International Monetary Fund and others support taxing financial transactions as a way reduce budget deficits or fund initiatives, such as health care.

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This Day in Wall Street History 1944: Farewell to Bretton Woods

During the summer of 1944, representatives from 44 nations gathered at a resort hotel in Bretton Woods, N.H., to hash out the global finances for the remaining half of the 20th century.

Cast against the backdrop of World War II, the three-week conference was a striking display of the United States’ swelling political and fiscal might.

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China’s GDP to overtake U.S. by early 2020s, says Deutsche Bank

China will overtake the U.S. in terms of economic output within a decade, according to estimates released Thursday by Deutsche Bank, which said it had to accelerate its forecast of the mainland’s leadership in the global economy in view of favorable growth dynamics in emerging markets.

China’s growth will be underpinned by a rapid expansion in emerging market economies, which will account for about 70% of global GDP growth in the coming decade, Deutsche Bank’s Chief Economist for Greater China, Jun Ma, told an investment conference in Hong Kong.
China will “massively invest” in these emerging economies using its nearly $2 trillion in foreign exchange reserves, extend its leverage by extending loans to the International Monetary Fund, and allow the yuan to appreciate in preparation for the currency’s potential reserve status. 

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IMF predicts troubled assets could spiral to $4 trillion

The International Monetary Fund is forecasting that financial institutions have racked up $4 trillion in troubled debt. In its upcoming assessment of the global economy, the IMF is expected to raise its estimate of the deterioration of assets originated in the U.S.

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