Tag Archives: european
The First Romanian Agriculture Fund To Provide Farmers With Financial Compensation For Economic Losses
Balkans.com Business News Correspondent – 03.09.2013 The first Romanian agriculture fund to take on risks insurers do not cover will be set up by the National Federation Pro Agro, the president of the farmers’ organization, Alexandru Jurconi, told BR last week. The fund is an income stabilization tool and will provide farmers with financial compensation for economic losses caused by such events as adverse weather and environmental calamities. While the model is a first for the Romanian market, it has a strong background in Western Europe. The need to set up an agriculture mutual fund has long been debated locally and has become more pressing in the context of climatic disasters such as last year’s drought as well the more recent food safety scandals. The fund will mostly be fuelled from public sources – 65 percent of the compensation will come from the state and EU funds, and the remaining 35 percent will represent members’ contributions. “The contribution paid by the Pro Agro Agriculture Mutual Fund members will be calculated so that it won’t be a financial burden for the farmer but can still cover compensation of up to 97 percent,” said Jurconi, adding that the organization is currently working on a contribution framework to best cover the losses suffered by farmers. Pro Agro’s announcement comes after Romania finally transposed the EU legislation pertaining to agricultural mutual funds this summer. “I believe that setting up a mutual fund would be local agriculture’s biggest achievement in the last 10 years,” said agriculture minister Daniel Constantin this June. At that time he also expressed hopes that only one such fund would be set up at national level which would “make it stronger”. Under the current law, several such mutual funds can be set up as non-governmental organizations. Any local farmers’ organization can set up a fund but one of the main conditions is that its members represent at least 30 percent of the country’s farming surface. Any farmer who reports revenues can subscribe to a mutual fund both individually and through associations of which the farmer is a member. In the first phase compensation applications will be submitted to the Agency of Payments and Intervention for Agriculture (APIA) until the mutual fund develops a national network, the authorities have previously announced. “In addition to the insurance companies, farmers will have the option to contribute to a mutual fund created and supported by the European Commission. It will be an NGO whose running costs will be supported for a three-year period from EU rural development funds to which Romania will have access,” added Constantin. Members of the National Federation Pro Agro will automatically become members of the mutual fund, which will be headquartered in Bucharest and will have seven other regional branches. Business Review Romania Continue reading
Upbeat economic data lifts world shares
Upbeat economic data lifts world shares (Reuters) / 5 September 2013 European government bond yields were at near 1-1/2 year highs on Thursday and the dollar clung close to six week peaks on a combination of a better global economic outlook, nervousness about Syria and pending central bank meetings. Russia and China, meanwhile, both warned the US ahead of the G23 meeting in St Petersburg that the end of the Federal Reserve’s bond-buying programme could have a profound impact on the global economy. The European Central Bank and Bank of England were both expected to leave interest rates unchanged, but investors were looking for statements reiterating pledges to keep rates low given recent stronger economic data. ECB President Mario Draghi “is going to want talk down the prospects of recovery a little bit and get people’s feet on the ground” said Will Hobbs, head of equities strategy at Barclays Wealth. European money market rates have been moving higher recently in response to stronger economic data and on expectations the Federal Reserve is set to begin unwinding its stimulus, possibly as soon as later this month. Analysts see little options for the bank other than just maintaining a soft tone in communication, sending German 10-year bond yields have raised to 1-1/2 year highs of 1.981 percent. Earlier the Bank of Japan voted unanimously to maintain its monetary stimulus, while declaring the world’s third-largest economy was on a recovery path, sending the yen briefly above 100 to the dollar, a six week low. In the emerging markets India’s new RBI began his tenure in spectacular fashion by unveiling measures to support the currency and the banking sector that sent the Nifty up 3.3 percent and boosting the rupee. The rupee rose to as high as 65.53 per US dollar, pulling well away from a record low around 68.85 set last week. The gain in Indian stocks and a slight rise in Tokyo’s shares after the BOJ decision helped lifted Asia equity prices by 0.6 percent, to near a three week high. European share markets were up 0.5 percent in early trade, gaining ground for the second day in a row and hitting its highest level since August 27. “People are waiting for cues from the central banks, and there is just no real trend on the market at the moment,” said Guillaume Dumans, co-head of research firm 2Bremans. The euro last traded at $1.3185, down slightly against the stronger dollar and not far from a six-week low of $1.3138. MSCI world equity index was up 0.1 percent following a second day of gains on Wall Street spurred by another set of upbeat USdata, which included the strongest monthly rise in car sales during August since October 2007. “Strong car sales in the US again lifted market confidence in the economy, and lifted expectations that the US Federal Reserve will start cutting back its stimulus this month,” said Isao Kubo, an equity strategist at Nissay Asset Management. Syria Action Markets remained cautious about Syria as a possible US military strike moved one step closer after a Senate committee voted in favour of action, clearing the way for a vote in the full Senate, likely next week. The possible military strike against Syria in reaction to its alleged use of chemical weapons and the Fed’s decision to reduce its stimulus were expected to dominate discussions at a meeting of leaders from the Group of 20 developed and developing economies in St Petersburg. In a note prepared for the meeting the IMF warned that emerging countries were particularly vulnerable to a tightening of US monetary policy. It urged strengthened global action to revitalise growth and better manage risks, adding some downside risks have become more prominent. US President Barack Obama meanwhile was expected to use the meeting to win international backing for a military strike against Syria and this was keeping a floor under oil markets Brent crude rose 56 cents to $115.47, while US oil was up 64 cents to $107.97. Continue reading
Stocks Mixed As Syria Worries Weigh
http://www.ft.com/cms/s/0/78a30882-15dc-11e3-b519-00144feabdc0.html#ixzz2e0jj0PQn By Jamie Chisholm Thursday 10:35 BST. Optimism on the global economy is helping nudge many growth-focused assets higher, but the bullishness is contained by worrying over the potential geopolitical fallout of the Syria crisis and some monetary policy uncertainty. Stronger European financials but weaker energy stocks leaves the Stoxx 600 index barely changed after the FTSE Asia-Pacific index rose 0.2 per cent. US index futures point to the S&P 500 on Wall Street opening flat at 1,653. The dollar index is up 0.1 per cent to flirt with one-month highs, while gold is up $1 to $1,392 an ounce. Underpinning investor sentiment is a recent rash of fairly upbeat economic data. Well-received manufacturing and service sector surveys from China and Europe this week have joined with better US figures – such as buoyant car sales in August – to raise hopes of a broadening global recovery. That has lifted industrial commodities of late, and many are mildly firmer again on Thursday, with copper up 0.3 per cent to $3.25 a pound and Brent crude adding 48 cents to $115.39 a barrel. However, oil is also getting support from wariness about the chances of supply disruption should the US attack Syria. The potential for broader political fallout following any such action will be in focus as the G20 meets in Russia, which supports the Damascus government; and fretting over this issue is likely to be suppressing the broader market’s confident tone. China’s vice finance minister has warned that a military strike on Syria would hurt the global economy, and Turkey’s lira, which has been buffeted of late by Syria-linked and emerging market tensions, is 1.3 per cent weaker to trade at a record low of TL2.075 per dollar. Also causing some reticence is possible monetary policy “headline risk”. The session sees strategy announcements from the central banks of Japan, Sweden, the UK and the eurozone – a lot for traders to absorb. Labour market data from the US – in the form of the weekly initial unemployment claims and the ADP private sector jobs survey – will set the scene for Friday’s non-farm payrolls numbers, a report considered crucial in formulating the Federal Reserve’s decision on when to start reducing its bond buying programme. “We expect this Friday’s employment report to seal the deal on a September tapering announcement,” said analysts at Société Générale. US implied borrowing costs are consequently moving up, pulling other highly-rated sovereigns along in their wake. The 10-year Treasury yield is up 4 basis points to 2.93 per cent, flirting with two-year highs, while equivalent duration Bunds are advancing 6bp to show 2.0 per cent for the first time since March 2012. Japanese benchmark bonds are up 1bp at 0.79 per cent after the Bank of Japan concluded its two-day meeting, leaving rates and its asset purchase programme unchanged. In an upbeat statement, the BoJ lifted its assessment of Japan’s economy, which it said appeared to be “recovering moderately”. The yen briefly moved above Y100 versus the dollar, but is now changing hands at Y99.85, just 10 pips weaker on the day. After gaining 5 per cent so far this week, the Nikkei 225 has similarly decided to take time for consolidation, closing up just 0.1 per cent. In Hong Kong, the Hang Seng index was up 1.2 per cent, but on the mainland the Shanghai Composite was down 0.2 per cent, highlighting a mixed session for the region. Australia’s S&P/ASX 200 index lost 0.4 per cent after figures showing a greater than expected trade deficit for July. On the back of below-forecast mineral exports, the deficit reached A$765m after a modest surplus of A$243m in June. “There is nothing here to challenge the growing view that mining investment has already peaked, with little signs of a pick-up in other sectors so far,” said economists with TD Securities. Australia holds its federal election on Saturday, where the opposition Liberal Party candidate is expected to win. The Aussie dollar is seeing some profit taking after bouncing 3 per cent in the past three sessions on reduced expectations for easier monetary policy following stronger than forecast second-quarter GDP data. The Aussie is weaker by 33 pips to US$0.9133. The Indian rupee is moving further away from record lows as the market perceives greater credibility in the Reserve Bank of India’s new chief. Confidence in Raghuram Rajan’s measures to support the currency sees the dollar fall 1.4 per cent to Rs66.14, nudges bond yields lower and has helped boost the Sensex equity gauge by 2.3 per cent. Additional reporting by Sarah Mishkin in Hong Kong Continue reading
