Time-sharing plans
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12/31/2008
The Nasdaq Composite Index (^ IXIC) - time-sharing plans
Time-sharing plans
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The Dow Jones industrial average (^ DJI) - time-sharing plans
Time-sharing plans
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U.S. funds to rescue the market has over-spending tens of billions of dollars in recent
Congress authorized the U.S. Treasury Department in the financial industry 350,000,000,000 U.S. dollars in relief funds has been overrun by nearly 100 billion U.S. dollars, which may limit the incoming government to spend the rest of Obama's financial means.
Ministry of Finance said Monday, 6,000,000,000 U.S. dollars will be allocated to help financial services company General Motors (GMAC LLC), so the problem assets from the relief program is committed to providing relief funds and guarantee the total 358,400,000,000 U.S. dollars. This indicates that the Ministry of Finance is to use before Congress in October allocated 700,000,000,000 U.S. dollars of relief funds remaining half.
Criticism of the rescue plan Vermont Senator Sanders (Bernie Sanders) said they were testing the bottom line. They are now being vigorously to create a situation in which Obama was elected president and Congress put pressure on the remaining requests for 350,000,000,000 U.S. dollars.
According to the relief funds approved by the Legislative Council, the Ministry of Finance early access to 350,000,000,000 U.S. dollars, and the need to provide a detailed financial plan in order to use the pressure to spend the other half of the funds. The purpose of this legislation is to enable the broad authority given to the Ministry of Finance have misgivings of lawmakers to conduct a review.
The Ministry of Finance said that it is acting in accordance with the relief bill. Monday informed the matter to the reporter's Ministry of Finance officials said the short-term cash flow from the point of view, the Ministry of Finance has yet to reach the upper limit of 350,000,000,000 U.S. dollars, because not all the promises have been fulfilled. As of Tuesday, has allocated funds of about 207,000,000,000 U.S. dollars.
Ministry of Finance, including the actual commitment to the bank injected 250,000,000,000 U.S. dollars to the insurance company American International Group (AIG) injection of 40,000,000,000 U.S. dollars, the U.S. Federal Reserve (Fed) to provide consumer financing plan 20,000,000,000 U.S. dollars of funds to Citigroup Group (Citigroup Inc.) Provision of 25,000,000,000 U.S. dollars and grant assistance 23,400,000,000 U.S. dollars U.S. auto industry.
Treasury Secretary Paulson (Henry Paulson) on December 19 announced that the automotive industry assistance plan that Congress clearly needs to spend the rest of 350,000,000,000 U.S. dollars of funds in order to maintain financial market stability. But a growing number of members of the Yituanluanma rescue plan is not satisfied that they have made it clear that Paulson did not want to fund, and Obama would rather give the money to the Government, or simply to defer the use of the funds.
Washington Center for Economic Policy Research (Center for Economic and Policy Research) co-director Dean Baker • (Dean Baker) said that the Ministry of Finance in excess of their authority to make decisions is a commitment to "arbitrary".
Obama will be able to government as it considers appropriate way to adjust the plan and security, but also to guard against financial market turmoil caused.
Ministry of Finance said Monday, 6,000,000,000 U.S. dollars will be allocated to help financial services company General Motors (GMAC LLC), so the problem assets from the relief program is committed to providing relief funds and guarantee the total 358,400,000,000 U.S. dollars. This indicates that the Ministry of Finance is to use before Congress in October allocated 700,000,000,000 U.S. dollars of relief funds remaining half.
Criticism of the rescue plan Vermont Senator Sanders (Bernie Sanders) said they were testing the bottom line. They are now being vigorously to create a situation in which Obama was elected president and Congress put pressure on the remaining requests for 350,000,000,000 U.S. dollars.
According to the relief funds approved by the Legislative Council, the Ministry of Finance early access to 350,000,000,000 U.S. dollars, and the need to provide a detailed financial plan in order to use the pressure to spend the other half of the funds. The purpose of this legislation is to enable the broad authority given to the Ministry of Finance have misgivings of lawmakers to conduct a review.
The Ministry of Finance said that it is acting in accordance with the relief bill. Monday informed the matter to the reporter's Ministry of Finance officials said the short-term cash flow from the point of view, the Ministry of Finance has yet to reach the upper limit of 350,000,000,000 U.S. dollars, because not all the promises have been fulfilled. As of Tuesday, has allocated funds of about 207,000,000,000 U.S. dollars.
Ministry of Finance, including the actual commitment to the bank injected 250,000,000,000 U.S. dollars to the insurance company American International Group (AIG) injection of 40,000,000,000 U.S. dollars, the U.S. Federal Reserve (Fed) to provide consumer financing plan 20,000,000,000 U.S. dollars of funds to Citigroup Group (Citigroup Inc.) Provision of 25,000,000,000 U.S. dollars and grant assistance 23,400,000,000 U.S. dollars U.S. auto industry.
Treasury Secretary Paulson (Henry Paulson) on December 19 announced that the automotive industry assistance plan that Congress clearly needs to spend the rest of 350,000,000,000 U.S. dollars of funds in order to maintain financial market stability. But a growing number of members of the Yituanluanma rescue plan is not satisfied that they have made it clear that Paulson did not want to fund, and Obama would rather give the money to the Government, or simply to defer the use of the funds.
Washington Center for Economic Policy Research (Center for Economic and Policy Research) co-director Dean Baker • (Dean Baker) said that the Ministry of Finance in excess of their authority to make decisions is a commitment to "arbitrary".
Obama will be able to government as it considers appropriate way to adjust the plan and security, but also to guard against financial market turmoil caused.
12/30/2008
New investors in the master how to resolve
With the market all the way down, has also experienced the pain of frequent resort, not only to erase the entire profit last year, and the principal of a loss of more than 50%. However, as market Exploration low point of 1664 after fierce fighting several beautiful turn of the battle, more than the stock had a smooth release, but also to achieve a profit, it is worthy of new investors in the master.
Thinking fighter to win
Professional investors are not fierce, occasionally working hours to open the computer to look at the stock market, a look at one single mistake on the Green to turn off the computer and concentrate on doing their jobs. By the end of July this year to about 7 yuan / share of the purchase price in the Second Railway Bureau, did not expect more than a month after the stock fell about 3.6 yuan, 30,000 yuan lost almost half. "At that time, a lot of investors out one after another resort, but I think the Board of Iron II is the railway sector, the country's economic development be able to leave the railway it? Definitely has the potential in the future, it is worth the long-term holders. So low they make up the 10,000 yuan." Fierce Told reporters.
Later, in the Second Railway Board rose to 10 all the way around sharp sell stock, not only successfully resolve, but also earned nearly 30,000 yuan.
Follow the money and run hot
Another strong stock market is characterized by following the hot spots, to attract bargain-hunting, once the stock up, to earn 20% -30% of the profits out. To help stand up a fierce fight in the second battle of Chinese stocks is the medium-term. By the end of October this year, China fell to the lowest mid-term of about 10 yuan / share, is a fierce 15 yuan / share into the cargo, fitted by more than 4 months, shares in the hands of paid 5,000 yuan.
"At that time, the news media have published, the state will launch stock index futures in a timely manner, I think China is a medium-term futures industry leader, once the market starts, it will have a ferocious round of the rally. Such shares can not be sure resort, so this year I am 11 In mid another 13 yuan / share price of 10,000 yuan to cover positions. The results a week after it had risen to 18 yuan. 5 days trading both, a total of up to about 40%, I would not only release, also earned a million in the past. " Said fierce.
Do not be greedy bear market may be set free
Note the country in senior financial analyst Chang-ting all the East, said the new investors in the stock bull market in fixed and often get returns. But the bear market in stocks, fixed cover, often the most tragic loss.
Zhang said that the East are in a bear market in the release of the basic strategies are: low to cover positions, Jiancang temper, not greed, not to give up, the cumulative number of operations, can continue to reduce costs, out of deadlock. But the point to grasp and the grasp stocks particularly hard. The first is to choose stocks fallen too far, and the other is to choose hot stocks, the first intervention and wait for the new capital raised, and then shipped. The new shareholders hold a fierce success of these two points, the success of the release, the experience is worth learning from.
Thinking fighter to win
Professional investors are not fierce, occasionally working hours to open the computer to look at the stock market, a look at one single mistake on the Green to turn off the computer and concentrate on doing their jobs. By the end of July this year to about 7 yuan / share of the purchase price in the Second Railway Bureau, did not expect more than a month after the stock fell about 3.6 yuan, 30,000 yuan lost almost half. "At that time, a lot of investors out one after another resort, but I think the Board of Iron II is the railway sector, the country's economic development be able to leave the railway it? Definitely has the potential in the future, it is worth the long-term holders. So low they make up the 10,000 yuan." Fierce Told reporters.
Later, in the Second Railway Board rose to 10 all the way around sharp sell stock, not only successfully resolve, but also earned nearly 30,000 yuan.
Follow the money and run hot
Another strong stock market is characterized by following the hot spots, to attract bargain-hunting, once the stock up, to earn 20% -30% of the profits out. To help stand up a fierce fight in the second battle of Chinese stocks is the medium-term. By the end of October this year, China fell to the lowest mid-term of about 10 yuan / share, is a fierce 15 yuan / share into the cargo, fitted by more than 4 months, shares in the hands of paid 5,000 yuan.
"At that time, the news media have published, the state will launch stock index futures in a timely manner, I think China is a medium-term futures industry leader, once the market starts, it will have a ferocious round of the rally. Such shares can not be sure resort, so this year I am 11 In mid another 13 yuan / share price of 10,000 yuan to cover positions. The results a week after it had risen to 18 yuan. 5 days trading both, a total of up to about 40%, I would not only release, also earned a million in the past. " Said fierce.
Do not be greedy bear market may be set free
Note the country in senior financial analyst Chang-ting all the East, said the new investors in the stock bull market in fixed and often get returns. But the bear market in stocks, fixed cover, often the most tragic loss.
Zhang said that the East are in a bear market in the release of the basic strategies are: low to cover positions, Jiancang temper, not greed, not to give up, the cumulative number of operations, can continue to reduce costs, out of deadlock. But the point to grasp and the grasp stocks particularly hard. The first is to choose stocks fallen too far, and the other is to choose hot stocks, the first intervention and wait for the new capital raised, and then shipped. The new shareholders hold a fierce success of these two points, the success of the release, the experience is worth learning from.
How to resolve: the stock release solution
Talk about how to resolve - resolve stock solutions:
Into the stock market investors have been virtually locked in, this is an all reluctant to talk about, but everyone can not be avoided. It is the maturing of each investor must pass through a threshold. Now that can not be avoided, we must face it bravely, to find their own solutions.
Resolve the deadlock strategy initiative is divided into passive strategies and release strategy.
Release strategy initiative:
1, Zhancang: When they find their purchase is a very serious mistake, especially in the pre-buying surge Niugu over the top, then there must be Zhuangshiduanwan determination in a timely manner Zhancang resort to abandoning Diuju. As long as we can to ensure that funds from big losses in the stock market will always have numerous opportunities can be taken as a bonus
2, convertible: in the hands of shares in a weak position after being locked in, there is still room for down time, if accurately judge the other's shares rose shortly after the space, the trend will certainly stronger than in the hands of their own species, can be decisive convertible, In order to buy a new species of the former offset profit losses.
3, short: Some people might think that Chinese stock market is no mechanism for short, can not be short, this is wrong and can be fitted on the stock short. When they find deep-set has been unable to Zhancang, also confirmed that market or stock market outlook is still room for further deep down, can be used short way, the first hold-up to sell shares, wait until the re-location of the lower back, to effectively reduce costs .
4, after T +0: based on the present system can not do T +0, but there are bearing a share of the pre-condition to full use of them. On all aspects of the Unit usually more understanding, Any sign of trouble, get a fishing, the commission is now down only a fraction the cost of money in and out easily.
Passive strategy to resolve:
1, smoothing: buy when the price is not high, or optimistic about the future of the market when the firm could choose to use smoothing techniques. Ordinary investors in the funds are usually only able to withstand a second-share, the most important thing is the time-share must be a good choice
2, wait: Mancang has been locked in depth, can not cut, it can not afford to cover positions, only to wait for such a negative way. As long as it is their money, not as long as the use, loan, and so it can not be afraid?
The final release is the best strategy
Release strategy, and that is your own state of mind to grasp. After the lock-in, first of all, fear not, there must remain cool-headed thinking has done nothing wrong, wrong, and in what manner strain. Do not Poguanposhuai emotional, or blindly to cover positions, or the easy indiscriminate resort to do together. Hold-up is not terrible, Yang million once said: "Sometimes not making money is not set, but a lot of money trap," I feel the same. So, do not simply believe that the hold-up is a disaster if the strain well, it may turn into an opportunity.
Into the stock market investors have been virtually locked in, this is an all reluctant to talk about, but everyone can not be avoided. It is the maturing of each investor must pass through a threshold. Now that can not be avoided, we must face it bravely, to find their own solutions.
Resolve the deadlock strategy initiative is divided into passive strategies and release strategy.
Release strategy initiative:
1, Zhancang: When they find their purchase is a very serious mistake, especially in the pre-buying surge Niugu over the top, then there must be Zhuangshiduanwan determination in a timely manner Zhancang resort to abandoning Diuju. As long as we can to ensure that funds from big losses in the stock market will always have numerous opportunities can be taken as a bonus
2, convertible: in the hands of shares in a weak position after being locked in, there is still room for down time, if accurately judge the other's shares rose shortly after the space, the trend will certainly stronger than in the hands of their own species, can be decisive convertible, In order to buy a new species of the former offset profit losses.
3, short: Some people might think that Chinese stock market is no mechanism for short, can not be short, this is wrong and can be fitted on the stock short. When they find deep-set has been unable to Zhancang, also confirmed that market or stock market outlook is still room for further deep down, can be used short way, the first hold-up to sell shares, wait until the re-location of the lower back, to effectively reduce costs .
4, after T +0: based on the present system can not do T +0, but there are bearing a share of the pre-condition to full use of them. On all aspects of the Unit usually more understanding, Any sign of trouble, get a fishing, the commission is now down only a fraction the cost of money in and out easily.
Passive strategy to resolve:
1, smoothing: buy when the price is not high, or optimistic about the future of the market when the firm could choose to use smoothing techniques. Ordinary investors in the funds are usually only able to withstand a second-share, the most important thing is the time-share must be a good choice
2, wait: Mancang has been locked in depth, can not cut, it can not afford to cover positions, only to wait for such a negative way. As long as it is their money, not as long as the use, loan, and so it can not be afraid?
The final release is the best strategy
Release strategy, and that is your own state of mind to grasp. After the lock-in, first of all, fear not, there must remain cool-headed thinking has done nothing wrong, wrong, and in what manner strain. Do not Poguanposhuai emotional, or blindly to cover positions, or the easy indiscriminate resort to do together. Hold-up is not terrible, Yang million once said: "Sometimes not making money is not set, but a lot of money trap," I feel the same. So, do not simply believe that the hold-up is a disaster if the strain well, it may turn into an opportunity.
European shares closed down 15 banks led by stocks
European stock markets slightly lower Monday. As the market worried about a lot of banking companies may be subject to Bernard - Adolf Michael (Bernard Madoff) investment companies implicated in the fraud case, banks generally lower plate, offset by oil producers and mining companies rose positive impact.
Bank stocks were the biggest drag on the index, Ma Duofu as a result of investment fraud on the banking sector as investors worried about the impact that may have been the case for investors 50,000,000,000 U.S. dollars of losses.
Once the stock market rose in early trading, the oil and gas heavyweights strong boost at the same time, the three major U.S. auto manufacturer likely to receive government assistance is also expected to support the market. However, Ma Duofu cases as well as the Federal Reserve may cut interest rates to 16 to 0% of the stock-taking is expected to lead to a rise in early trading.
The Dow Jones Stoxx 600 Index fell 0.4 percent to 197.5 points. UK FTSE 100 index closed down 0.07 percent, to 4277.56 points. French CAC 40 index fell 0.87 percent to 3,185.66 points. German DAX 30 index fell 0.18 percent to 4,654.82 points.
In addition, the United States in November industrial output data also weighed on stocks. The data in the third decline in four months, showing that the U.S. state of the industry is still not optimistic.
Up close, the pan-European Dow Jones 600 index (ST: SXXP) fell 0.4 percent to close at 197.51 points.
Monday all the major European countries in the stock market, the British FTSE 100 index (UK: UKX) down 0.1 percent, to close at 4277.56 points. French CAC-40 (FR: 1804546) index fell 0.9 percent to close at 3185.66 points. German DAX 30 index (DX: 1876534) fell 0.2 percent to close at 4654.82 points.
European stock markets today, the bank board by a great deal of industry news.
Fortis Bank (Fortis) this week and a suspension of trading Tuesday, after a court of the company's shareholders should consult their plan to split. The bank said that with BNP Paribas (BNP Paribas) (FR: 013110) to complete the transaction will not be subject to the above-mentioned decision.
Fortis Bank and BNP Paribas, originally scheduled for this week from the beginning of the transaction.
BNP Paribas shares fell 10.1 percent.
Bank stocks were the biggest drag on the index, Ma Duofu as a result of investment fraud on the banking sector as investors worried about the impact that may have been the case for investors 50,000,000,000 U.S. dollars of losses.
Once the stock market rose in early trading, the oil and gas heavyweights strong boost at the same time, the three major U.S. auto manufacturer likely to receive government assistance is also expected to support the market. However, Ma Duofu cases as well as the Federal Reserve may cut interest rates to 16 to 0% of the stock-taking is expected to lead to a rise in early trading.
The Dow Jones Stoxx 600 Index fell 0.4 percent to 197.5 points. UK FTSE 100 index closed down 0.07 percent, to 4277.56 points. French CAC 40 index fell 0.87 percent to 3,185.66 points. German DAX 30 index fell 0.18 percent to 4,654.82 points.
In addition, the United States in November industrial output data also weighed on stocks. The data in the third decline in four months, showing that the U.S. state of the industry is still not optimistic.
Up close, the pan-European Dow Jones 600 index (ST: SXXP) fell 0.4 percent to close at 197.51 points.
Monday all the major European countries in the stock market, the British FTSE 100 index (UK: UKX) down 0.1 percent, to close at 4277.56 points. French CAC-40 (FR: 1804546) index fell 0.9 percent to close at 3185.66 points. German DAX 30 index (DX: 1876534) fell 0.2 percent to close at 4654.82 points.
European stock markets today, the bank board by a great deal of industry news.
Fortis Bank (Fortis) this week and a suspension of trading Tuesday, after a court of the company's shareholders should consult their plan to split. The bank said that with BNP Paribas (BNP Paribas) (FR: 013110) to complete the transaction will not be subject to the above-mentioned decision.
Fortis Bank and BNP Paribas, originally scheduled for this week from the beginning of the transaction.
BNP Paribas shares fell 10.1 percent.
New York, the three major stock indexes down
Kuwait to terminate the joint venture with Dow Chemical to set up the news put pressure on the market and energy stocks offset the positive impact of rising, 29, New York, the three major stock market indexes were lower.
On the New York Stock Exchange was light. Kuwait decided to cancel the establishment of Dow Chemical and petrochemical joint venture. Dow Chemical shares fell 19%. As the market worried that the decision on the Dow also plans to buy Rohm and Haas has dealt a strong blow, Rohm and Haas stock price has plummeted by 16%.
The Standard & Poor's energy sector is big business in 10 plate up only in the plate. On the New York market, international crude oil futures prices rose for a second day because of Israeli air strikes in Gaza continue to lead investors to worry that the Middle East oil supplies might be interrupted. The rise in oil prices to the consumer-related stocks pressure.
New York stock market closed, the Dow Jones industrial average price index over the previous trading day down 31.62 points to close at 8483.93 points, or 0.37 percent. Standard & Poor's 500 index fell 3.38 points to close at 869.42 points, or 0.39 percent. The Nasdaq composite index fell 19.92 points to close at 1510.32 points, or 1.30 percent.
Major European stock markets rose one after another on the same day. London stock market, "Financial Times" 100 Share Index rose 2.4 percent to close at 4319.35 points. Frankfurt DAX stock index rose 1.63 percent to close at 4704.86 points. Paris CAC40 stock index rose 0.47 percent to close at 3130.72 points.
On the New York Stock Exchange was light. Kuwait decided to cancel the establishment of Dow Chemical and petrochemical joint venture. Dow Chemical shares fell 19%. As the market worried that the decision on the Dow also plans to buy Rohm and Haas has dealt a strong blow, Rohm and Haas stock price has plummeted by 16%.
The Standard & Poor's energy sector is big business in 10 plate up only in the plate. On the New York market, international crude oil futures prices rose for a second day because of Israeli air strikes in Gaza continue to lead investors to worry that the Middle East oil supplies might be interrupted. The rise in oil prices to the consumer-related stocks pressure.
New York stock market closed, the Dow Jones industrial average price index over the previous trading day down 31.62 points to close at 8483.93 points, or 0.37 percent. Standard & Poor's 500 index fell 3.38 points to close at 869.42 points, or 0.39 percent. The Nasdaq composite index fell 19.92 points to close at 1510.32 points, or 1.30 percent.
Major European stock markets rose one after another on the same day. London stock market, "Financial Times" 100 Share Index rose 2.4 percent to close at 4319.35 points. Frankfurt DAX stock index rose 1.63 percent to close at 4704.86 points. Paris CAC40 stock index rose 0.47 percent to close at 3130.72 points.
12/29/2008
U.S. stock markets rose sharply overnight
U.S. stocks rose sharply Thursday, as a result of the Fed's statement was interpreted as the current rate hike cycle nearing an end, the Dow rose 217 points.
Up close, the Dow Jones Industrial Average rose 217.24 points to 11190.80 points, or 1.98 percent. Today, the Dow was up a point since April 2003 has been high, the Dow 30 kinds of constituent stocks rose across the board.
The Nasdaq composite index rose 62.54 points to 2174.38 points, or 2.96 percent; Standard & Poor's 500 index rose 26.87 points to 1272.87 points, or 2.16 percent.
New York Stock Exchange, shares rose more than 5 to 27 leading stocks fell on the Nasdaq stock market rose more than 6 to 24 leading stocks fell on.
New York Stock Exchange volume was 2.6 billion shares 3100, Nasdaq volume was 2.1 billion shares 5800.
In the stock market all day to keep up, but the Federal Reserve will raise overnight interest rates to 5.25 percent after the major indexes rising to a new high, this is the 17th consecutive time the Federal Reserve raising interest rates.
Investors the Federal Reserve to change the wording of the statement made a positive response. Federal Open Market Committee to delete the words "may be" more of a steady demand for policy measures to control the statement, and will be based on the economic prospects and decide whether or not to take "additional measures to control" its place.
EKN Financial Services stock market analyst Barry - Hyman (Barry Hyman), "the Fed is still worried about inflation, but seems to hint that the current rate hike cycle is coming to an end."
He said that this does not mean that the Fed will not be meeting again in August rate hike by 25 basis points, but the statement clearly shows that rate hike cycle is about to end.
Stephens Capital Management's fixed-income analyst Bill - Taidefute (Bill Tedford) said that the statement is a strong hint that the Fed will stop raising interest rates.
He pointed out that the statement of impartiality and integrity of direct economic growth is easing, but the previous statement that the economy may be easing. He said, "I do not think the Fed will be easing in the economic circumstances interest rate increase."
Mike Holland of the fund balance - Holland (Mike Holland), said the wording of a statement to alleviate the fears of investors, "Prior to the market worried about the Federal Reserve will make a stupid statement, but the statement is a responsible, not People would mistake for the U.S. Federal Reserve economic mess. "
At the end of the quarter buying also supported the market, some portfolio managers expect to increase buying by portfolio value. Friday is the June, as well as in the second quarter of the last trading day.
Today's report showed that the two economies in the U.S. economy in good condition.
First-quarter gross domestic product growth was revised to the final 5.6 percent, a three-year high. MarketWatch survey of economists on average expected growth of 5.5 percent.
At present, economists expected in the next few quarters, U.S. economic growth will slow to around 3%, non-inflationary growth rate of close to the long-term economic development under pressure from the ceiling.
In the first quarter of the core consumer price index to grow by 2%, lower than the fourth quarter of last year's 2.4 percent.
Last week, for the first time the number of applications for unemployment benefits increased 4,000 to 313,000, an average of four weeks to apply for unemployment benefits fell by 6,000 to 305,500 people, the highest since Feb. 25 has been low. MarketWatch survey of economists expected growth to an average of 311,000 people.
Other market
Since the Fed's statement did not show his hard-line attitude of the U.S. dollar hit a new low for the week.
The U.S. dollar against the Japanese yen exchange rate fell 1.3 percent, to 1 U.S. dollar 114.96 yen; the euro against the U.S. dollar exchange rate rose 0.8 percent, to 1 euro dollar exchange 1.26.44.
The bond market closed higher, the fixed income market on the current rate hike cycle is expected to terminate the Fed's statement made a positive response.
The benchmark 10-year bond rose 10/32 point, to 99 12/32, to yield 5.205 percent, down from Wednesday's 5.247 percent.
Gold futures closed higher. Gold futures for August delivery rose 7.90 U.S. dollars to 588.90 U.S. dollars an ounce, the contract was a breakthrough after 600 U.S. dollars.
Crude futures also rose in recent months, the contract rose 1.33 U.S. dollars to 73.52 U.S. dollars a barrel, or 1.8 percent. In the past seven trading days, the price of crude oil were up 6%.
Focus stocks
McDonald's (MCD) rose 5.0 percent, closing 33.56 U.S. dollars. Merrill Lynch raised the rating of fast food distributors, the brokerage expected McDonald's sales and profit margins, particularly in Europe, will be improved.
Ford Motor (F) was down 0.31 percent, closing 6.40 U.S. dollars. CEO Bill Gates - Ford (Bill Ford) in "The Wall Street Journal", said the company than the current situation a few months before the expected worse, as a result of the recent rise of oil prices, sports car sales decline in the rate Faster than expected.
Walt Disney (DIS) rose 1.7 percent, closing 29.88 U.S. dollars. The company said yesterday that the company has named John Pepper Jr. For the new chairman and chief executive officer.
Tenet Healthcare Corp. (THC) fell 1.8 percent, closing 7.10 U.S. dollars. The health care provider agreed to pay 700,000,000 25,000,000 U.S. dollars to the U.S. Department of Justice and its pre-2003 part of the medical insurance payment receipts to reach a settlement. The reconciliation of the financial arrangements relating to the medical and health insurance code.
The company also revealed a plan aimed at improving profit margins. The company will sell 11 hospitals and expand its capital investment projects.
Cardiovascular stent maker Boston Scientific (BSX) fell 1 cents to close at 16.94 U.S. dollars. Citigroup will be the medical equipment manufacturer rating from "hold" tune down to "sell." The broker that the company's acquisition of Guidant to make a wrong decision the financial situation in trouble, and the growth of its more limited scope.
Up close, the Dow Jones Industrial Average rose 217.24 points to 11190.80 points, or 1.98 percent. Today, the Dow was up a point since April 2003 has been high, the Dow 30 kinds of constituent stocks rose across the board.
The Nasdaq composite index rose 62.54 points to 2174.38 points, or 2.96 percent; Standard & Poor's 500 index rose 26.87 points to 1272.87 points, or 2.16 percent.
New York Stock Exchange, shares rose more than 5 to 27 leading stocks fell on the Nasdaq stock market rose more than 6 to 24 leading stocks fell on.
New York Stock Exchange volume was 2.6 billion shares 3100, Nasdaq volume was 2.1 billion shares 5800.
In the stock market all day to keep up, but the Federal Reserve will raise overnight interest rates to 5.25 percent after the major indexes rising to a new high, this is the 17th consecutive time the Federal Reserve raising interest rates.
Investors the Federal Reserve to change the wording of the statement made a positive response. Federal Open Market Committee to delete the words "may be" more of a steady demand for policy measures to control the statement, and will be based on the economic prospects and decide whether or not to take "additional measures to control" its place.
EKN Financial Services stock market analyst Barry - Hyman (Barry Hyman), "the Fed is still worried about inflation, but seems to hint that the current rate hike cycle is coming to an end."
He said that this does not mean that the Fed will not be meeting again in August rate hike by 25 basis points, but the statement clearly shows that rate hike cycle is about to end.
Stephens Capital Management's fixed-income analyst Bill - Taidefute (Bill Tedford) said that the statement is a strong hint that the Fed will stop raising interest rates.
He pointed out that the statement of impartiality and integrity of direct economic growth is easing, but the previous statement that the economy may be easing. He said, "I do not think the Fed will be easing in the economic circumstances interest rate increase."
Mike Holland of the fund balance - Holland (Mike Holland), said the wording of a statement to alleviate the fears of investors, "Prior to the market worried about the Federal Reserve will make a stupid statement, but the statement is a responsible, not People would mistake for the U.S. Federal Reserve economic mess. "
At the end of the quarter buying also supported the market, some portfolio managers expect to increase buying by portfolio value. Friday is the June, as well as in the second quarter of the last trading day.
Today's report showed that the two economies in the U.S. economy in good condition.
First-quarter gross domestic product growth was revised to the final 5.6 percent, a three-year high. MarketWatch survey of economists on average expected growth of 5.5 percent.
At present, economists expected in the next few quarters, U.S. economic growth will slow to around 3%, non-inflationary growth rate of close to the long-term economic development under pressure from the ceiling.
In the first quarter of the core consumer price index to grow by 2%, lower than the fourth quarter of last year's 2.4 percent.
Last week, for the first time the number of applications for unemployment benefits increased 4,000 to 313,000, an average of four weeks to apply for unemployment benefits fell by 6,000 to 305,500 people, the highest since Feb. 25 has been low. MarketWatch survey of economists expected growth to an average of 311,000 people.
Other market
Since the Fed's statement did not show his hard-line attitude of the U.S. dollar hit a new low for the week.
The U.S. dollar against the Japanese yen exchange rate fell 1.3 percent, to 1 U.S. dollar 114.96 yen; the euro against the U.S. dollar exchange rate rose 0.8 percent, to 1 euro dollar exchange 1.26.44.
The bond market closed higher, the fixed income market on the current rate hike cycle is expected to terminate the Fed's statement made a positive response.
The benchmark 10-year bond rose 10/32 point, to 99 12/32, to yield 5.205 percent, down from Wednesday's 5.247 percent.
Gold futures closed higher. Gold futures for August delivery rose 7.90 U.S. dollars to 588.90 U.S. dollars an ounce, the contract was a breakthrough after 600 U.S. dollars.
Crude futures also rose in recent months, the contract rose 1.33 U.S. dollars to 73.52 U.S. dollars a barrel, or 1.8 percent. In the past seven trading days, the price of crude oil were up 6%.
Focus stocks
McDonald's (MCD) rose 5.0 percent, closing 33.56 U.S. dollars. Merrill Lynch raised the rating of fast food distributors, the brokerage expected McDonald's sales and profit margins, particularly in Europe, will be improved.
Ford Motor (F) was down 0.31 percent, closing 6.40 U.S. dollars. CEO Bill Gates - Ford (Bill Ford) in "The Wall Street Journal", said the company than the current situation a few months before the expected worse, as a result of the recent rise of oil prices, sports car sales decline in the rate Faster than expected.
Walt Disney (DIS) rose 1.7 percent, closing 29.88 U.S. dollars. The company said yesterday that the company has named John Pepper Jr. For the new chairman and chief executive officer.
Tenet Healthcare Corp. (THC) fell 1.8 percent, closing 7.10 U.S. dollars. The health care provider agreed to pay 700,000,000 25,000,000 U.S. dollars to the U.S. Department of Justice and its pre-2003 part of the medical insurance payment receipts to reach a settlement. The reconciliation of the financial arrangements relating to the medical and health insurance code.
The company also revealed a plan aimed at improving profit margins. The company will sell 11 hospitals and expand its capital investment projects.
Cardiovascular stent maker Boston Scientific (BSX) fell 1 cents to close at 16.94 U.S. dollars. Citigroup will be the medical equipment manufacturer rating from "hold" tune down to "sell." The broker that the company's acquisition of Guidant to make a wrong decision the financial situation in trouble, and the growth of its more limited scope.
Britain to suspend a century-old store retail stocks red strobe
Founded in 1909, the existing 840 outlets in Britain daily necessities and household goods and entertainment supermarket chains WOOLWORTHS26 Group announced today that its stock of the London Stock Exchange suspended. Recently, people have been hearing voices from the United Kingdom greeting card companies, furniture companies, enterprises, "bad news", the United Kingdom began a variety of retail "warning."
WOOLWORTHS in a statement that the group is working with the British Broadcasting Corporation (BBC) consultations, the two will set up a joint venture to produce entertainment company 2ENTERTAIN40% of the shares sold to the BBC. In view of the ongoing negotiations on the acquisition, the board of directors to apply for shares stopped trading on the entry into force on the 26th. When the news was announced, the company's stock price will stop at 1.22 pence per share level (1.5 U.S. dollars or about 1 pounds, 1 pounds to 100 pence).
WOOLWORTHS said, because of specific conditions still under consultation, also with its lending banks to maintain close contact. Market speculation, WOOLWORTHS relative to this part of the money transfer business, but also to get some money to live, to ease the pressure on the company right now.
The century-old from Liverpool in the old All-England has 30,000 employees in the past 12 months, the company's share price fell by 90%. The company had announced 19 to 1 pounds are willing to "honor the price" to sell themselves, but because of its liabilities of up to 385,000,000 pounds, very interested buyers.
25, referred to as Britain's largest seller of the gift card, "Clinton's gift card chain," announced in the past 16 weeks, the company's sales dropped 6%. Before Christmas is the gift card sales this season, but that the performance of the greeting card retail business professionals how tense.
In addition, the greeting card company since early August, although opened 12 new stores, but at the same time it was closed 21. Although the new store opened as usual, the customs of the old shop is quite normal "strategic adjustment", but taking into account the decline in sales, so some adjustments in the number of "ominous".
The luck seems to be more than the two above-mentioned enterprises, the latest news in Britain, 110 stores in MFI Furniture company is also facing the risk of bankruptcy. The company executives said, because of difficulties to pay the rental store, the company may be closed.
As a result of this operation are not good in 2006 to 1 pounds of hand-turned furniture price is a 80-year-old shop in the UK there are more than 1,500 employees, specializes in home and office furniture. In addition to the store, also on-line sales. Despite this year in September to replace the management, but many of its stores are still facing difficulties to pay rent.
WOOLWORTHS said, because of specific conditions still under consultation, also with its lending banks to maintain close contact. Market speculation, WOOLWORTHS relative to this part of the money transfer business, but also to get some money to live, to ease the pressure on the company right now.
The century-old from Liverpool in the old All-England has 30,000 employees in the past 12 months, the company's share price fell by 90%. The company had announced 19 to 1 pounds are willing to "honor the price" to sell themselves, but because of its liabilities of up to 385,000,000 pounds, very interested buyers.
25, referred to as Britain's largest seller of the gift card, "Clinton's gift card chain," announced in the past 16 weeks, the company's sales dropped 6%. Before Christmas is the gift card sales this season, but that the performance of the greeting card retail business professionals how tense.
In addition, the greeting card company since early August, although opened 12 new stores, but at the same time it was closed 21. Although the new store opened as usual, the customs of the old shop is quite normal "strategic adjustment", but taking into account the decline in sales, so some adjustments in the number of "ominous".
The luck seems to be more than the two above-mentioned enterprises, the latest news in Britain, 110 stores in MFI Furniture company is also facing the risk of bankruptcy. The company executives said, because of difficulties to pay the rental store, the company may be closed.
As a result of this operation are not good in 2006 to 1 pounds of hand-turned furniture price is a 80-year-old shop in the UK there are more than 1,500 employees, specializes in home and office furniture. In addition to the store, also on-line sales. Despite this year in September to replace the management, but many of its stores are still facing difficulties to pay rent.
November U.S. stock fund net inflow of 14,900,000,000 U.S. dollars
November U.S. stock mutual funds recorded a net inflow of 14,900,000,000 U.S. dollars, show that since March this year, funds from flowing into the stock market's trend is continuing. However, in October compared to the 25.3 billion net inflow of 1 million dollars the amount of inflow in November The amount of the stock market has been slow. At the same time, the Organization of the United States Investment Company (ICI) data also show that the November bond funds recorded a net outflow of 2.5 billion, money market funds also recorded a net outflow of 7,700,000,000 U.S. dollars. In November, is now in the hands of fund shares than the weighting of 4.6 percent, and October's 4.5 percent or less the same, but less than 5 percent a year ago.
German companies reported losses in emerging solar energy shares passed their prime
Berlin, Dec. 16 Germany's largest solar power company Conergy companies said last week that the company this year will be 150000000-200000000 euros pre-tax loss as a restructuring of the company, will lay off 500 people next year. After the announcement, the company's share price fell more than 20%.
Within two months, Conergy shares have fallen about 70%. As early as in early November, the company issued a profit warning for the first time on the market panic, the company's share price fell nearly one-third of the day. 8 trading days later, Germany 10 emerging energy prices a quarter of the shares, investors shudder.
In recent years, new energy enterprises can be said to be Germany's brightest stars of the stock market. In the past 4 years, the German Technical Exchange index of 10 component stocks of companies the market value of the stock up almost 8 times.
In fact, such a surge in the fall after not unusual. At present, Xiamen Machinery & Electronics Exhibition has always been the type of stock analysts have changed their view that solar and wind energy stocks are no longer "unlimited scenery." An investment bank analyst noted that, while such enterprises have good prospects, but in view of falling commodity prices, profit margins, as well as reduce the silicon raw material supply bottlenecks encountered, their production capacity and the ability to profit expansion can not be sustained.
In addition, Germany, according to previously issued by the "Renewable Energy Law", began in 2009 at the latest from government subsidies to the industry will be gradually reduced, which will cause the industry's profits shrink. The German solar energy equipment, the main importer of the United States, the legislature would extend the tax benefits of these products is unknown.
From the statistics, in the new round of energy shares fell, hurt most are still small and medium-sized investors. They emerging energy stocks may be too high expectations, many individual investors also joined by the banks to issue new shares of energy index warrants gamble, some people now have to lose money.
Within two months, Conergy shares have fallen about 70%. As early as in early November, the company issued a profit warning for the first time on the market panic, the company's share price fell nearly one-third of the day. 8 trading days later, Germany 10 emerging energy prices a quarter of the shares, investors shudder.
In recent years, new energy enterprises can be said to be Germany's brightest stars of the stock market. In the past 4 years, the German Technical Exchange index of 10 component stocks of companies the market value of the stock up almost 8 times.
In fact, such a surge in the fall after not unusual. At present, Xiamen Machinery & Electronics Exhibition has always been the type of stock analysts have changed their view that solar and wind energy stocks are no longer "unlimited scenery." An investment bank analyst noted that, while such enterprises have good prospects, but in view of falling commodity prices, profit margins, as well as reduce the silicon raw material supply bottlenecks encountered, their production capacity and the ability to profit expansion can not be sustained.
In addition, Germany, according to previously issued by the "Renewable Energy Law", began in 2009 at the latest from government subsidies to the industry will be gradually reduced, which will cause the industry's profits shrink. The German solar energy equipment, the main importer of the United States, the legislature would extend the tax benefits of these products is unknown.
From the statistics, in the new round of energy shares fell, hurt most are still small and medium-sized investors. They emerging energy stocks may be too high expectations, many individual investors also joined by the banks to issue new shares of energy index warrants gamble, some people now have to lose money.
All-around to Germany-based Bank of corporate finance model Review
Britain and the United States compared to Germany's relative stock market is neither here nor there, despite the domestic bond market to develop good, but because of participation in the bond market is the main government and the banks, in general very few industrial and commercial enterprises to issue bonds in 1991 and just the opening notes The market is stagnant. In this context, the German enterprise debt-equity ratio than the United Kingdom and the United States than about 50% of the companies rely largely on external financing to bank loans, a large proportion of which is a long-term fixed-rate loans, securitization of loans to the extent Compared with the United States also Very low. However, the German banking industry in corporate finance in the impact of significantly more than the United Kingdom, the United States, the bank will not only give direct loans to enterprises, but also help enterprises to issue stocks and bonds, at the same time assume the commercial banks and investment banking functions of the two. In addition, the German bank's shareholders to vote through proxy, the board of supervisors seat, and other enterprises to obtain further imposed on listed companies. As a result, Germany's banking system known as the "all-round banking system", the all-around in the banking and corporate finance to participate in corporate governance plays a very significant role. In particular, the German banking system is all-based bank, the Bank added in a professional, all-around banks, including commercial banks, savings banks and cooperative banks 3 system among commercial banks as the core. The full participation of all-bank financial activities, including deposits, loans (including mortgage loans), the issuance of securities underwriting, including direct investment in stocks and other kinds of securities can engage in traditional commercial banking, investment can also be carried out Banking, is a multi-functional, and a full range of banking. Germany's major commercial banks including Deutsche Bank, Dresdner Bank and commercial banks such as Germany 3 major banks, regional banks, as well as a number of foreign bank branches; savings banks are in the public interest, not to maximize profit target Banking institutions, including local, state and central level 3; cooperative bank depositors at the same time, the bank's shareholders as well as local, state and central level 3. Does not belong to the professional all-bank financial services offered by banks is less than all-banks, such as specializing in mortgage loans, agricultural credit or bank credit for SMEs.
First, all-German banks and non-bank business relationship between ownership
OECD (OECD) released statistics show that: (1) to the end of 1993, German banks hold a total of public and private non-financial enterprises by the total number of issued shares of 14%, while Britain and the United States of the banking sector to Non-financial holding companies is practically nil. This is the German banking sector from the British and American counterparts the most important feature, that is, they are directly held by non-bank companies a substantial proportion of the shares. (2) U.S. non-financial enterprises of the shares in the main control in addition to individual investors and banks outside the hands of institutional investors, insurance companies and pension funds control of the British non-financial enterprises the main shares, while Germany is the ratio of institutional investors holding Small, on the contrary, non-financial companies holding shares as high as 39%. (1) In addition, Deutsche Bank and non-bank businesses, non-bank mutual holding companies is widespread. Table 1 provides that in 1991 Germany's major banks at the time of the 10 largest manufacturing company's shareholdings.
Table 1 in 1991, Germany's largest manufacturing company's 10 shareholding banks list
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10 largest manufacturing companies owned bank │ │ bank shares
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Daimler is contained - Mercedes-Benz, Deutsche Bank │ │ 28.5%
│ Banken und Versicherungen │
Bayer │ │ 38%
│ (bank insurance) │
China Rubber Company, Deutsche Bank │ │ 28.5%
Germany's Linde │ │ commercial banks about 10%
Schering Corporation │ Banken und Versicherungen │
│ (bank insurance) │ 23%
Heidelbeger Zement's Dresdner Bank │ │ more than 25%
Didier-Werke AG │ │ Deutsche Bank more than 25%
│ │ Hypobank bank more than 25%
Brau und Brunnen's │ │
Dresdner Bank │ │ more than 25%
Phoenix's Deutsche Bank │ │ about 20%
Hamburg's Holsten Brauerei │ │ community banks is greater than 25%
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Note: these manufacturing companies ranked according to sales.
Source: German commercial banks, "Who Belongs to Whom?", 1991 annual data.
Table 1 shows, including Germany's Commerzbank, Deutsche Bank and Dresdner Bank, Germany's major banks in the top 10 manufacturing companies have a substantial proportion of the shares. As the German company law does not require banks to disclose shares held less than 25% of the stock of information, so this is just one of the most conservative statistics, the actual all-around bank-owned manufacturing company's equity ratio will certainly be much higher than these figures. At the same time, German law provides that the shares held by more than 25% can veto power, which means that like Daimler - Mercedes-Benz such a major decision-making in large companies must first of all with the consent of Deutsche Bank's agreement, no resolution Can not be adopted. Even ignore the ownership below 25% could not disclose the factors, Germany's largest 10 companies in the manufacturing sector is still at least 8 in the bank holding more than 25% of the phenomenon, which means that this bank's 8 The main decision-making with veto power, also shows that Germany's leading banks have been firmly in control of the whole manufacturing sector. Let's look at Germany's biggest bank in Germany in 1994 of equity portfolio (part of), as shown in table 2.
Table 2 in 1994, Deutsche Bank shares held by the main list
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Daimler is contained - Mercedes-Benz │ 24.4% │ Leonische wire and cable │ 12.5%
Gerling Insurance Group │ 30.0% │ Linde Company │ 10.1%
Philipp Holzmann's │ 25.8% │ Metal Co., Ltd. │ 16.6%
Hutschenreuther company │ 25.1% │ Schmalbach-Lubeca's │ 10.0%
Klockner-Humboldt-Deutz │ │ │
Company │ 45.0% │ Phoenix's │ 10.0%
Nǖrnberger Investment Company │ 25.9% │ SalaMander Company │ 10.7%
Allianz insurance holding company │ 10.0% │ Sǖdzucker Company │ 12.8%
China's rubber │ 10.1% │ joint power generation equipment company │ 6.3%
Fuchs Petrolub company │ 10.0% │ Verseidag Company │ 10.4%
Hapag-Lloyd's │ 10.0% │ Vogele Company │ 10.0%
Heidelberger soil Chen Ning Company │ 10.1% │ Vossloh's │ 7.6%
Karstadt's │ 10.0% │ WMF's │ 9.1%
Aachener und Mǖunchener │ │ Mǖnckener Re │ 10.0%
Investment Company │ 5.0% │ │
│ │ Leifheit's │ 11.0%
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Source: Deutsche Bank Annual Report 1995.
Table 1 and compared to some of the reduction of Deutsche Bank AG - Mercedes-Benz shares, but still holds a direct 24.4 percent stake. The bank has been holding shares of both companies, including investment companies, insurance companies, financial companies, including many manufacturing companies, covering a very wide range of industry sectors. All-German banks to non-bank holding companies in general are very stable, they will not easily change the existing ownership structure, which Germany shares in the company's sustainable development has provided more favorable to the protection of the system, at least so that the company faces significant pressure on the M & A Mitigate and help managers to focus on the realization of the company's long-term goals. In Germany, the all-around not only the banks holding a large number of shares, non-bank companies also hold large shares of the all-around bank, which is Germany with the characteristics of mutual shareholding system, the system in the non-bank enterprises are also very popular.
According to German law provides that a person can not be two companies each hold more than 25% of the shares, but does not limit cross-shareholdings. This is among German companies, including financial enterprises and non-financial enterprises between a wide range of mutual ownership structure provides a legal basis. Prowse (1994 years), taking into account the characteristics of the companies holding each other after the re-calculated the actual market value of the stock markets, that is deducted each other listed companies held by the flow of stock market value, Germany and Japan found that the actual market value of almost adjustment Pre-shrunk by half, and the United Kingdom and the United States before and after the big change. This shows that Germany and Japan held each other phenomenon is widespread. As shown in Table 3, 1985, Germany accounted for a total market value of the stock when the gross domestic product (GDP) of 29%, after holding deducted from each account for only 14% of GDP, that is, the net market value of the total market value of 48.3%. (2) Wenge, and Kaserer (1998) in carefully identified at the end of 1994, German listed companies holding each other amount, calculated after deducting holding each other's net market value of listed companies is 73% of the total market value, the figure Prowse is greater than the estimated value, but can be seen as the upper limit of the market value of the net. Since the law does not require listed companies to disclose all the information held, so the public disclosure of data calculated the net market value and the actual market value of the net between sure there is a big difference. Kasere and Wenger in particular, the study asked about the insurance companies listed on a Wurttembergische AG, the company found that the actual number of shareholders than provisions of the law to disclose the amount should be higher than 33%. If the company as a reference, it is estimated that their data from 73% to 64% adjustment, which is estimated Prowse out 48.3 percent of the data on a closer.
Table 3 of the main countries in 1985 and held each other a list of the total market value of the stock market
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United States │ │ Britain │ │ Japan Germany
Calculation of indicators │ │ │ │
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Shares with a total market value of the proportion of GDP accounted for │ 51% │ 90% │ 71% │ 29%
After discounting the effect of cross-shareholdings of listed companies after the net │ 48% │ 81% │ 37% │ 14%
The proportion of GDP accounted for the market value of │ │ │ │
Net market value of the total market value of the share of │ 94.1% │ 90% │ 52.1% │ 48.3%
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Source: Prowse, S.1994.Corporate Governance in an IntemationalPerspective Basle: Bank for Intemational Settlements.
Table 3 of the statistics concise and pointed out the company's Japan and Germany and the United States system, the major difference between Britain, which is almost half the market value of shares held by each other out to create a "virtual" market value, and holding each other in the UK And the United States, there is very little. This is from a macro point of view on the stock market mutual shareholding system, a micro point of view, the financial enterprises, financial enterprises and non-financial enterprises are holding each other to form a very stable ownership structure. As shown in table 4, Allianz Insurance and Reinsurance Company Münchener Germany is the largest and second largest insurance company, Dresdner Bank and Bayer.Hypo. Is Germany's second-largest and fifth largest bank, the 4 large companies core Companies, such as AMB and 4 of these large financial companies belonging to the company's satellite companies, a large number of shares they hold each other. Table 4 shows that the core and satellite companies took control of Allianz Insurance 42.67 percent stake in Dresdner Bank's 31.6 percent stake in Münchener Re and 45.9 percent of the shares also were close to those of the minority holders of the company. It can be said that this 8 of the financial holding company with each other through the establishment of a strong shareholding structure of the internal and external impact is difficult to shareholders of these companies operating managers in decision-making, external capital markets almost impossible for them to pose any threat. From the corporate governance point of view, this holding each other and the formation of a special ownership and control structure would be the advantages and disadvantages of co-existence.
Table 4 in 1994 with the German banking industry mutual insurance holding of the typical cases (%)
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│ 4 large holding company's core
├ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ─ ─ ─
Allianz │ │ Bayer. │ Dresdner Adams │ Mǖnchener
Insurance │ │ Hypo. │ │ Dayton Bank Re
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Allianz Insurance │ │ 0.06 │ 5 │ 10.08 │ 26.07
│ Bayer. Hypo. │ 22.6 │ - │ - │ 5.8
Dresdner Bank was │ │ 23.0 │ 1.27 │ 1.27 │ 2.53
│ Mǖnchener hold Re │ 25 │ 6.19 │ 12.1 │ --
Unit │ │ │ │ │
Public │ AMB │ 5.01 │ - │ 14.7 │ 8.6
Secretary │ BHF │ 15.2 │ - │ - │ 6.2
│ IKB │ 12.0 │ - │ 3.67 │ 6.2
│ Victoria │ - │ - │ 6.6 │ 23.64
─ ─ ┴ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ─ ─ ─
│ 4 large holding company's core
─ ─ ┬ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─
Allianz Insurance │ │ 41.21
│ Bayer. Hypo. │ 28.4
Dresdner Bank was │ │ 28.09
│ Munchener hold Re │ 43.29
Unit │ │
Public │ AMB │ 28.31
Secretary │ BHF │ 21.37
│ IKB │ 21.83
│ Victoria │ 30.24
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─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─
Holding Company │ 4 satellite company
├ ─ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ─ ─ ─
│ AMB │ BHF │ IKB │ Victoria
│ │ │ │
─ ─ ┬ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ─ ─
Allianz Insurance │ │ 0.02 │ 1.41 │ - │ 0.03
│ Bayer. Hypo. │ - │ - │ - │ --
Dresdner Bank was │ │ 1.39 │ - │ - │ 2.12
│ Mǖnchener hold Re │ 0.11 │ 2.28 │ - │ 0.26
Unit │ │ │ │ │
Public │ AMB │ - │ - │ - │ 2
Secretary │ BHF │ - │ - │ 4 │ --
│ IKB │ - │ 10 │ - │ --
│ Victoria │ 4.75 │ - │ - │ --
─ ─ ┴ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ─ ─ ─
Holding Company │ 4 satellite company
─ ─ ┬ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─
Allianz Insurance │ │ 1.46
│ Bayer. Hypo. │ 0
Dresdner Bank was │ │ 3.51
│ Munchener hold Re │ 2.65
Unit │ │
Public │ AMB │ 2
Secretary │ BHF │ 4
│ IKB │ 10
│ Victoria │ 4.75
─ ─ ┴ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─
Source: Wenger, Ekkehardard and Christoph Kaserer, 1998.The German System of Corporate Govemance-A Model which Should not be Imitated, inCompetition and Convergence in Financial Markets: The German and Anglo-American Models, edited by SWBlack and M. Moersch , North-Holland, 1998.
Cross-ownership system brought about by the obvious benefits: (1) financial enterprises as well as between non-financial enterprises and financial firms to form a stable strategic partnership for long-term goal of enterprises is of positive significance. (2) the business is relatively stable shareholding structure, forming a large number of shareholders of the common control mode, which can solve the supervision of the shareholders and managers of the power-sharing costs. (3) from the accounting point of view, mutual shareholding system allows enterprises led to the holding of the actual cash flow significantly reduced, which facilitate corporate use of limited funds to achieve portfolio, the realization of other companies have been able to maintain control at the same time good assets Mobility. A company such as 1-funded 0,000,000 yuan to hold 10% of the company's B shares, while company B and 8,000,000 yuan investment holding 8% of the company's A shares (A, B Company's share capital are set up to 1 million), A company's actual cash outflow of 2,000,000 yuan only. (4) in general will not always exist in our country, "Yigududa", several major shareholders of the common control between competition and cooperation is the unity, which helps to avoid an absolute controlling shareholder of the interests of other shareholders Erosion.
However, each holding the disadvantages are also obvious, the main problems: (1) holding each other to form a system of a relatively stable shareholding structure will help the company achieve Although the long-term goals, but also the company's control over the market's managers Bound relatively ineffective. Germany's managers are usually held by the group to appoint or hire, their jobs and the stability of the company's share price fluctuations in the correlation between relatively weak. Franks and Mayer (1990 years) An Empirical Study: German companies facing hostile takeover was a lot less than Britain and Germany. (3) (2) all-German banks were holding each other because of some of the core business control, holding a smaller proportion of the bank's shareholders on the bank a direct impact on the all-bound to be very limited, which in turn will affect the all-round participation in non-bank financial firms Corporate governance initiative and effectiveness, as they rarely from the bank's minority shareholders interests of the exercise of the duties of supervisors, and often subject to the entire shareholding of the Group of common interests. (3) business ownership among investors confused with the investors, shareholders and the relationship between the company and the interests of both the complexity of relations and even long-winded. (4) from an accounting point of view, although arrangements for the holding of mutual holding companies can incur a reduction in actual cash flow, greatly reducing the cost of holding companies, but the minority shareholders is a clear disadvantage. In the above example, A real company has invested only 2,000,000 yuan on the B's have 10% of the voting rights, the actual price is 0.2 yuan per share, while the actual inflow of B Company of 2,000,000 yuan is holding 8% of A Company Equity, real negative for the stock. This situation is clear for the A's and B's other minority shareholders is extremely unreasonable, because the minority shareholders to buy the stock price of 1 yuan per share, much higher than the A's and B's. This is clearly a violation of "the same right to share with the" basic principles, the impact of minority shareholders to participate in the effectiveness of corporate governance. (5) mutual holding companies have been under the all-around, including banks, several major shareholders of common control, even though this can be effectively resolved between the shareholders and managers of the issue of conflict of interest, but cooperation between the major shareholders than the competition, then They are fully possible "conspiracy" to erode the common interests of minority shareholders.
Second, all-German non-financial enterprises in the banking supervisory board seat and influence
In 1965 promulgated the Law provides that Germany shares the shares of three companies to set up a statutory body: the management board of directors, board of supervisors and the annual general meeting of shareholders, that is to implement two-tier management system. Management and board of directors of the board of supervisors are very clear division of responsibilities, which is responsible for the company's day-to-day operations and strategic decision-making, corporate governance by the board of supervisors responsible for the implementation of their primary function is to oversee the management and control of the board of directors, directors who sit on the board of supervisors can not be members of the board of supervisors Can not bear any day-to-day management tasks. Due to Germany's all-around non-bank financial firms have a considerable proportion of the shares, they will certainly send a representative to act as a member of the board of supervisors. Germany's two-tier management system and below constitute a mechanism for joint decision of the German-style house the core of governance.
Germany's all-appointed board of the Bank acts led to a number of large companies on behalf of the board of supervisors in the bank too, and some of the senior management of the bank at the same time more than the company's board, which has been so much controversy that end, in 1965 Germany adopted the so-called Abs of the bill provides that each person can only serve as supervisors of 10 posts. Abs was named by the bill, because at the time of the Deutsche Bank governor Hermann-Josef Abs at the same time the 30 board positions in the stock market and investors are very worried that this kind of bank supervisors whether there is sufficient energy to participate in corporate governance. In order to better play the role of supervision and control, German bankers have begun to take the initiative to avoid a number of companies as board positions, but generally do not serve as Chairman of the Board of Supervisors, unless their own investment bank was the company's largest shareholder. As a result, the current German bankers in the company's board of supervisors in the occupied seats than Abs which greatly reduces the times, but still has a very high proportion.
As shown in table 5, 1993, Germany's 100 largest banks in the board of supervisors still have the 99 board seats, accounting for 6.3 percent of the total, on behalf of the workers and other industrial companies on behalf of the respective shares of 35.2% and 27.4%.
Table 5 in 1993 Germany's 100 largest source of a list of members of the board of supervisors
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Supervisors source │ │ proportion of the number of
─ ─ ─ ─ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ─
Private Banking │ 99 │ 6.3%
Other banks and insurance companies │ 53 │ 3.4%
Industrial companies and other companies │ 427 │ 27.4%
Politicians and civil servants │ 67 │ 4.3%
On behalf of other owners │ 155 │ 9.9%
Representatives of trade unions │ 211 │ 13.5%
Other workers on behalf of the │ 549 │ 35.2%
The total number │ 1561 │ 100%
─ ─ ─ ─ ─ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ─ ─
Source: Federation of German Banks, 1995.Power of Bank, Cologne.
Table 5 also reflects Germany's corporate governance structure is another characteristic that is representative of the workers at the Board of Supervisors holds a very important role, which by the trade union representatives and shareholders to participate on behalf of the board of supervisors, known as "co-decision system." The system was first set up in 1951, first in the iron and steel, coal mine enterprises to provide a total of 11 members of the board of supervisors, on behalf of shareholders and employees on behalf of the 5, 11 have been identified by members of the 10 supervisors to the Annual General Meeting To make recommendations by the Annual General Meeting elected. In 1976 the revised decision of the common system applicable to the shares of major companies to stipulate that 50% of the company members of the board of supervisors should be elected by shareholders and the other 50% of the workers by the members of the election. The size of the board of supervisors according to the number of workers in all the company decided that if fewer than 10,000 employees, board of supervisors should be 12 members; the number of employees more than 10,000 people but less than 20,000 people, should be composed of 20 board of supervisors. Chairman of the Board of Supervisors has a special power, that is a member of the board of supervisors after two rounds of voting are still unable to obtain a majority (more than 50%), the President has the final decision. Chairman of the Board of Supervisors elected by the entire board, a candidate must receive two-thirds majority to be elected. If no candidate obtains a two-thirds majority vote by the board of supervisors in the press on behalf of the President of the shareholders, employees and representatives of the elected Vice-Chairman.
This joint decision was Germany's system of corporate governance is an important feature of the trade union's participation in decision-making and corporate governance has played a positive role, but some people think this is a system weaken the bank's shareholders include the election of supervisors in the corporate governance of Role. Wenger and Kaserer (1998 years) that the board of supervisors to effectively monitor managers brought about the ultimate value-added shareholder value to control who belong to (such as all-Bank) and control (AG) of private shareholders, and the board itself can only be part of the proceeds, here There are still oversee the costs and benefits of asymmetry, that is, as the supervisors who are not shareholders, but that representatives of the shareholders. At the same time, the German financial enterprises and non-financial enterprises there is a clear mutual shareholding relationship, to shareholders of the general all-around bank does not constitute an effective external pressure. Germany to send some of the all-around bank of supervisors and managers often do not want to rigorous implementation of the supervision of the main reasons is that these banks did not come from its private shareholders of external pressure. (4)
Third, proxy voting system with the German bank's control over the all-around
German banks to participate in all-round corporate governance is another important means of access by small and medium-sized shareholders to authorize proxy voting, which is known as the proxy voting system. According to the Baums and Fraune (1995 years) statistics, the 1992 all-around Germany's largest bank in the 24 listed companies annual general meeting of shareholders to vote on the actual average of 60.95 percent, in one of the 11 companies the right to vote or even more than 75 %. (5) The reason why the bank can agent all-round vote, which the law allows them to assume the functions of investment banking presence in close contact. Deutsche Bank shares will bear a greater share of the underwriters, they will usually have most of the underwriters to sell shares to their customers, and these customers for the safety of investing in stocks and lower transaction costs and generally kept in bank stocks. Cable (1985) estimated that about 50% of the shares of listed companies shareholders was deposited in the bank. (6)
Proxy voting system is characterized by: (1) did not develop all-automatic proxy voting, but must be authorized by shareholders in order to exercise this right, generally by the bank shareholders to take the initiative to obtain such authorization. (2) In practice, the German individual investors or minority shareholders usually commissioned by the bank to act as custodian of the shares and shares in the company's annual general meeting of shareholders on proxy voting by banks, shareholders and proxy voting rights in general can only be entrusted to a A specific credit institutions, and commissioned period of up to 15 months. (3) of the bank's annual general will be to the shareholders the right to vote the use of the possibilities, and then make a decision by the shareholders. If Deutsche Bank is usually recommended to their clients as much as possible to participate in the annual general meeting of shareholders, or the right to vote will be entrusted to individuals or on behalf of the shareholders association, if these customers are not interested in Deutsche Bank is also acceptable to the commission to vote on their behalf. (4) Bank as the custodian must take part in the annual general meeting of shareholders before the vote, or the intention of the proposed motion to inform shareholders of its customers, clients or shareholders did not object, the bank must be prepared in advance in accordance with the general meeting of shareholders to participate in the program can not Not change his mind. Clients (shareholders) in the general meeting of shareholders before the voting power of the specific proposals put forward, and the bank must comply with these recommendations, but in practice an average of only 2% of the shareholders will vote in specific views. (7) (5) Universal Banking in the face of the more controversial issues often consult the views of shareholders, if the shareholder has not given a clear vote, the bank will give the agent the right to vote. For example, Daimler - Mercedes-Benz in 1995 before the general meeting of shareholders expected in 1996 will be 5.7 billion German marks for the huge losses, the general meeting of shareholders in 1994 and is expected to return to moderate growth to judge the contrary, in the face of this grave situation, The company's major shareholders, Deutsche Bank, Dresdner Bank and the German commercial banks have their own recommendations of its customers and shareholders to participate in the exercise of the right to vote, or by the customer as to whether the restructuring of the managers are given very clear, otherwise these large banks Will abstain from voting.
These features indicate that the proxy voting system under the all-around small and medium-sized banks do not have a monopoly of the shareholder the right to vote, but with full respect for the legitimate rights of small shareholders, only if they are authorized to carry out the premise of proxy voting, but also to ensure that the general meeting of shareholders before the vote With the full intention of small and medium-sized shareholders to communicate in a major conflict of interest in particular cases, to seek specific shareholder vote, or else give up on the agent the right to vote. Such proxy voting system was that the OECD is a very effective means of corporate governance, as the bank through active participation in the annual general meeting of shareholders to effectively monitor and restricted shares of the company's day-to-day decision-making operating and maintaining the vast number of investors, including debt and equity investors to invest Interests.
Universal Banking proxy voting system has two main advantages: First, to address the spread of joint decision-making groups, shareholders when there is a "free rider" problem and cost-sharing. However, the large number of shares held in very small groups of shareholders to safeguard the common interests sometimes must unite to vote, but because of the existence of "free rider" problem, the implementation of this joint vote difficult. All-around polling commissioned by the bank is effectively overcome this problem, the bank will be the cost of proxy voting by all clients (shareholders) share, significantly reduced the minority shareholders in joint decision-making costs. Secondly, the proxy voting system to build a stable shareholder groups, is conducive to maintaining the stability of the business for the company managers and shareholders, board of supervisors, such as communication, thereby reducing their short-term volatility in the stock market under pressure to take some short-term behavior At the expense of long-term interests of the company. In the absence of proxy voting stake in the company and the system is relatively dispersed, the floor manager of the company is facing an uncertain and even a random shareholder groups, as they dispersed small and medium-sized shareholders at any time can be combined or reorganized into a new Large groups of shareholders, which will increase the manager level and the major shareholder groups to communicate more difficult, different combinations of the shareholder group may often interfere with normal business managers in decision-making activities, thus affecting the long-term interests of all shareholders. In the company's share price down and become a M & A target, the pressure is more obvious, because in the end to ascertain whether a floor manager and who to consult, not knowing whether the shares of small and medium-sized shareholders has been to focus on the acquisition. In order to avoid the risk of mergers and acquisitions in order to safeguard the stability of their jobs, managers are usually taken are conducive to the promotion of short-term stock price decision-making, but this is the decision-making at the expense of the company's long-term interests. This is Britain, the United States market-based financial model, the typical short-sighted in the stock market problems. Proxy voting system to create a long-term vision of the right to vote and to have control of the voters - all-around bank. The reason why the bank has the all-around long-term perspective: (1) all-bank holding company directly to a larger share of stock, they will lead to the need to focus on long-term gains rather than short-term capital gains; (2) to the all-around bank of these enterprises paid a huge amount of Long-term loans, loans to safeguard the safety and profitability, they must proceed from a long-term care to vote on the decision-making; (3) all-bank proxy voting must be to safeguard the fundamental interests of the client, if the reckless decision-making will inevitably harm the interests of its clients in order to All-around final damage the credibility of the bank, and one through the absorption of loans to deposits to obtain profits of major banks, credit is undoubtedly the most important.
Proxy voting system is the largest bank in each general meeting of shareholders on whether the real will to safeguard the interests of investors, in particular, it represents the interests of minority shareholders. Many economists expressed doubts, Wenger and Kaserer (1998 years) put forward, as the German Securities Exchange Act does not require banks to disclose their all-around on behalf of the list of shareholders and those shareholders holding shares in the amount, a number of subsidiary In the investment banking firms and other institutional investors are fully commissioned by the bank may choose to give up voting in person participate in the general meeting of shareholders, so as to ensure that the market does not rise to the attention of shock and achieved a number of strategic objectives. At this point, all-around at the expense of the bank is likely at the cost of the interests of minority shareholders and institutional investors for profit, but such actions are hidden, often under the banner of safeguarding the interests of minority shareholders of the banner appears, therefore, great potential harm. German investment company managed domestic stock market value of about 800 billion deutsche marks, accounting for total stock market value of about 10%, many of the investment company is a subsidiary of some of the largest banking subsidiary, the Bank of proxy voting with the minority shareholders when there is a A certain degree of conflict of interest. (8) Although the all-German company law requirements of the banks that they must represent the interests of the shareholders to implement Deputy voting rights, but the abuse of the law of the agent the right to vote in order to achieve the purpose of self-interest bank does not have enough sanctions.
Fourth, all-German bank and the banking system and the mode of financing Review
Based on the above analysis, all-German bank through four main channels of influence business investment, companies involved in corporate governance, first, loans, and the other is held directly, as is the three supervisors, four proxy voting is. Compared with the United States, Germany's main source of funds business from the all-around banks and insurance companies, such as Poensgen (1980) found 75 percent of German companies debt financing from the banking system. (9) Germany 3 major banks - Germany's Commerzbank, Deutsche Bank and Dresdner Bank in the credit market, accounting for the special share, in 1972 they accounted for Germany's manufacturing sector loans 28.2 percent, to the 20th century, 80 The market share has declined in 1982 but still reached 18.2 percent. (10) all-German banks, through direct ownership, as supervisors, proxy voting, and so fully involved in the process of corporate governance will help the bank more extensive and in-depth collection of business information in order to better supervise the utilization of loan funds and For future decision-making loans to provide useful information. In fact, companies can also take part in the government bank in the process of benefit, which benefits not only the performance of the enterprise will be stable credit funds, and they can share in the financial banking, technology and other fields of expertise. Through the bank as corporate supervisors directly involved in major business investment, finance, personnel, and other decision-making, is in control of first-hand information and to avoid the credit market, there is usually a result of information asymmetry as a result of adverse selection problems, contribute to the bank for business The specific credit and financial situation of the development of specific loan interest rates, loan guarantees, loan repayment policies, which the bank credit to optimize resources, reduce credit risk, increase the income of credit has been very positive. And other companies and their investors on behalf of the board of supervisors from the bank can also participate in corporate governance activities, the importance of access to financial information and other expertise, is conducive to scientific decision-making. More importantly, because of the bank in the information symmetry can be achieved under the optimal conditions for the loan arrangements for credit and financial condition of enterprises, they can effectively in-house information to banks and banking supervisors themselves, so as to obtain Conditions for preferential loans to avoid becoming a victim of adverse selection, the corporate cost of capital will also be greatly reduced.
Cable (1985 years) that the German banking and industrial sectors closely related to the creation of a "quasi-internal capital markets," the quasi-capital market pressures brought about by encouraging enterprises to minimize costs and maximize profits.According to his research, the German banking sector and large industrial enterprises is closely linked to the extent of these large enterprises and the financial position of a significant positive correlation between. Gorton and Schmid (1996) studied the years 1974-1985 the bank holding company and the relationship between performance and found that: in 1974, the bank holding company to improve performance, instead of the bank holding company's performance did not affect. By 1985, they found that banks and non-bank holdings are holding on to improve the performance of the company to have a positive impact. Shows that Germany is indeed all-stock banks directly help to improve the performance of the company, but from the 1970s to the 80s that the changes in the bank's influence with the development of capital markets and non-bank holdings and increase the relative decline of these non-bank Institutions have begun to actively participate in corporate governance, the banking sector in Germany's corporate governance pose a challenge to the special status. Elston and Albach (1995 years) of the study is further evidence of Cable's "quasi-internal capital markets" hypothesis, they believe that the general day-to-day business operations must attach great importance to the mobility of assets, only to maintain a certain level of liquidity in order to ensure that The timely repayment of short-term bank borrowings and other liabilities, in order to guarantee a certain degree of mobility, enterprises must consider when making investment decisions to stay out of a short-term capital investment or direct bank deposit, the rate of return on investment is relatively low investment in fact a waste of valuable Financial resources in the guise of improved corporate financing costs. (11) Under normal circumstances, a more distant relationship with the creditors of the business need to maintain a higher proportion of liquid assets, in order to reduce the risk of default and bankruptcy risk. But the all-around with the bank to maintain close relations in business investment decision-making when you do not need too much liquidity into account, because the bank to give the all-around is the main long-term loans, and business and close a large bank is relatively easy to negotiate. Albach and Elston also found that in the years 19831992, and close to all-bank businesses to invest its function of the liquidity problem is not sensitive, and the other of our investments should be very clear that the liquidity constraints of the problem. (12) Chirinko and Elston (1996 years) in the course of the study did not find that Germany close relationship between the bank and to reduce the company's financing costs, but also found no relationship between the bank's profitability and positive correlation between, but Discovered an important fact that the close relationship between the bank and the type of concentrated ownership structure of the relationship between the alternative. (13) in the highly fragmented ownership structure of the company prevails in the "free rider" problem, although the shareholding structure of the focus can be part of the settlement of shareholder oversight of managers, but would give rise to the major shareholders and the interests of minority shareholders of the conflict to form The new agency costs. ChirinkoElston in accordance with that type of close relationship between the bank and can substitute for part of the centralized ownership structure to better address the issue of corporate governance, which can address the excessive concentration of ownership structure where the majority shareholder of the interests of minority shareholders erosion, it can help solve Ownership Structure spread too thin layer under the manager and the interests of minority shareholders and managers of the conflict-monitoring.
The all-powerful banks and the close relationship between the bank and the German model of financing a large impact. On the whole, Germany is not well-developed stock market, oversee functions is not clear that the company's shareholding structure is more concentrated, many listed companies the right to vote on the all-hands Bank, the company can not control the market and what role to play. In addition, the company's share price based on the performance of managers incentive compensation system has not been established in order to pay a fixed salary as the main source of the managers prefer to engage in low-risk investment projects and construction of a wide range of corporate structure with the aim of reducing The company into financial crisis, as well as reduce bankruptcy caused by specific human capital loss. From the internal structure of corporate governance, the Board of Supervisors play a larger role. Board of Supervisors of the main trade unions on behalf of the employee's efforts to safeguard the stability of employment and, therefore, managers and the same preferences in low-risk investment projects or a wide range of business activities. Board of Supervisors on behalf of the workers in the non-elected by the shareholders, they are usually controlled with the right to vote on behalf of the interests of the bank's all-around, rather than other non-bank shareholders. Bank of the interests of the all-clear, they are concerned about the company is able to guarantee payment of principal and interest of loans, their participation in corporate governance is the ultimate objective of the loan in order to protect the safety and profitability. All-around small and medium-sized Bank settlement of a shareholder vote "free rider" problem, so that decision-making mechanism of listed companies not meet the shareholding structure of the fragmentation of failure, both at the same time to prevent a "vacuum of control" and restricted the managers of the company's "internal control "Solved in a modern company owner operator of the supervision and restriction issues.
In short, to all-bank-based financing model for German companies to cultivate a stable ownership structure and control structure, the financing model of the internal structure and external relations than market-based financing model more simple, especially for this model The requirements of the legal system is relatively low because the interests of small and medium-sized investors, directly or indirectly, by the all-around bank of effective protection, rather than the interests of minority shareholders in the United States must be very sound legal system to protect this relationship-based financing model is Conducive to promoting the steady macro-economic growth.
First, all-German banks and non-bank business relationship between ownership
OECD (OECD) released statistics show that: (1) to the end of 1993, German banks hold a total of public and private non-financial enterprises by the total number of issued shares of 14%, while Britain and the United States of the banking sector to Non-financial holding companies is practically nil. This is the German banking sector from the British and American counterparts the most important feature, that is, they are directly held by non-bank companies a substantial proportion of the shares. (2) U.S. non-financial enterprises of the shares in the main control in addition to individual investors and banks outside the hands of institutional investors, insurance companies and pension funds control of the British non-financial enterprises the main shares, while Germany is the ratio of institutional investors holding Small, on the contrary, non-financial companies holding shares as high as 39%. (1) In addition, Deutsche Bank and non-bank businesses, non-bank mutual holding companies is widespread. Table 1 provides that in 1991 Germany's major banks at the time of the 10 largest manufacturing company's shareholdings.
Table 1 in 1991, Germany's largest manufacturing company's 10 shareholding banks list
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10 largest manufacturing companies owned bank │ │ bank shares
─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ─
Daimler is contained - Mercedes-Benz, Deutsche Bank │ │ 28.5%
│ Banken und Versicherungen │
Bayer │ │ 38%
│ (bank insurance) │
China Rubber Company, Deutsche Bank │ │ 28.5%
Germany's Linde │ │ commercial banks about 10%
Schering Corporation │ Banken und Versicherungen │
│ (bank insurance) │ 23%
Heidelbeger Zement's Dresdner Bank │ │ more than 25%
Didier-Werke AG │ │ Deutsche Bank more than 25%
│ │ Hypobank bank more than 25%
Brau und Brunnen's │ │
Dresdner Bank │ │ more than 25%
Phoenix's Deutsche Bank │ │ about 20%
Hamburg's Holsten Brauerei │ │ community banks is greater than 25%
─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ─ ─
Note: these manufacturing companies ranked according to sales.
Source: German commercial banks, "Who Belongs to Whom?", 1991 annual data.
Table 1 shows, including Germany's Commerzbank, Deutsche Bank and Dresdner Bank, Germany's major banks in the top 10 manufacturing companies have a substantial proportion of the shares. As the German company law does not require banks to disclose shares held less than 25% of the stock of information, so this is just one of the most conservative statistics, the actual all-around bank-owned manufacturing company's equity ratio will certainly be much higher than these figures. At the same time, German law provides that the shares held by more than 25% can veto power, which means that like Daimler - Mercedes-Benz such a major decision-making in large companies must first of all with the consent of Deutsche Bank's agreement, no resolution Can not be adopted. Even ignore the ownership below 25% could not disclose the factors, Germany's largest 10 companies in the manufacturing sector is still at least 8 in the bank holding more than 25% of the phenomenon, which means that this bank's 8 The main decision-making with veto power, also shows that Germany's leading banks have been firmly in control of the whole manufacturing sector. Let's look at Germany's biggest bank in Germany in 1994 of equity portfolio (part of), as shown in table 2.
Table 2 in 1994, Deutsche Bank shares held by the main list
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Daimler is contained - Mercedes-Benz │ 24.4% │ Leonische wire and cable │ 12.5%
Gerling Insurance Group │ 30.0% │ Linde Company │ 10.1%
Philipp Holzmann's │ 25.8% │ Metal Co., Ltd. │ 16.6%
Hutschenreuther company │ 25.1% │ Schmalbach-Lubeca's │ 10.0%
Klockner-Humboldt-Deutz │ │ │
Company │ 45.0% │ Phoenix's │ 10.0%
Nǖrnberger Investment Company │ 25.9% │ SalaMander Company │ 10.7%
Allianz insurance holding company │ 10.0% │ Sǖdzucker Company │ 12.8%
China's rubber │ 10.1% │ joint power generation equipment company │ 6.3%
Fuchs Petrolub company │ 10.0% │ Verseidag Company │ 10.4%
Hapag-Lloyd's │ 10.0% │ Vogele Company │ 10.0%
Heidelberger soil Chen Ning Company │ 10.1% │ Vossloh's │ 7.6%
Karstadt's │ 10.0% │ WMF's │ 9.1%
Aachener und Mǖunchener │ │ Mǖnckener Re │ 10.0%
Investment Company │ 5.0% │ │
│ │ Leifheit's │ 11.0%
─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┴ ─ ─ ─ ─
Source: Deutsche Bank Annual Report 1995.
Table 1 and compared to some of the reduction of Deutsche Bank AG - Mercedes-Benz shares, but still holds a direct 24.4 percent stake. The bank has been holding shares of both companies, including investment companies, insurance companies, financial companies, including many manufacturing companies, covering a very wide range of industry sectors. All-German banks to non-bank holding companies in general are very stable, they will not easily change the existing ownership structure, which Germany shares in the company's sustainable development has provided more favorable to the protection of the system, at least so that the company faces significant pressure on the M & A Mitigate and help managers to focus on the realization of the company's long-term goals. In Germany, the all-around not only the banks holding a large number of shares, non-bank companies also hold large shares of the all-around bank, which is Germany with the characteristics of mutual shareholding system, the system in the non-bank enterprises are also very popular.
According to German law provides that a person can not be two companies each hold more than 25% of the shares, but does not limit cross-shareholdings. This is among German companies, including financial enterprises and non-financial enterprises between a wide range of mutual ownership structure provides a legal basis. Prowse (1994 years), taking into account the characteristics of the companies holding each other after the re-calculated the actual market value of the stock markets, that is deducted each other listed companies held by the flow of stock market value, Germany and Japan found that the actual market value of almost adjustment Pre-shrunk by half, and the United Kingdom and the United States before and after the big change. This shows that Germany and Japan held each other phenomenon is widespread. As shown in Table 3, 1985, Germany accounted for a total market value of the stock when the gross domestic product (GDP) of 29%, after holding deducted from each account for only 14% of GDP, that is, the net market value of the total market value of 48.3%. (2) Wenge, and Kaserer (1998) in carefully identified at the end of 1994, German listed companies holding each other amount, calculated after deducting holding each other's net market value of listed companies is 73% of the total market value, the figure Prowse is greater than the estimated value, but can be seen as the upper limit of the market value of the net. Since the law does not require listed companies to disclose all the information held, so the public disclosure of data calculated the net market value and the actual market value of the net between sure there is a big difference. Kasere and Wenger in particular, the study asked about the insurance companies listed on a Wurttembergische AG, the company found that the actual number of shareholders than provisions of the law to disclose the amount should be higher than 33%. If the company as a reference, it is estimated that their data from 73% to 64% adjustment, which is estimated Prowse out 48.3 percent of the data on a closer.
Table 3 of the main countries in 1985 and held each other a list of the total market value of the stock market
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United States │ │ Britain │ │ Japan Germany
Calculation of indicators │ │ │ │
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Shares with a total market value of the proportion of GDP accounted for │ 51% │ 90% │ 71% │ 29%
After discounting the effect of cross-shareholdings of listed companies after the net │ 48% │ 81% │ 37% │ 14%
The proportion of GDP accounted for the market value of │ │ │ │
Net market value of the total market value of the share of │ 94.1% │ 90% │ 52.1% │ 48.3%
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Source: Prowse, S.1994.Corporate Governance in an IntemationalPerspective Basle: Bank for Intemational Settlements.
Table 3 of the statistics concise and pointed out the company's Japan and Germany and the United States system, the major difference between Britain, which is almost half the market value of shares held by each other out to create a "virtual" market value, and holding each other in the UK And the United States, there is very little. This is from a macro point of view on the stock market mutual shareholding system, a micro point of view, the financial enterprises, financial enterprises and non-financial enterprises are holding each other to form a very stable ownership structure. As shown in table 4, Allianz Insurance and Reinsurance Company Münchener Germany is the largest and second largest insurance company, Dresdner Bank and Bayer.Hypo. Is Germany's second-largest and fifth largest bank, the 4 large companies core Companies, such as AMB and 4 of these large financial companies belonging to the company's satellite companies, a large number of shares they hold each other. Table 4 shows that the core and satellite companies took control of Allianz Insurance 42.67 percent stake in Dresdner Bank's 31.6 percent stake in Münchener Re and 45.9 percent of the shares also were close to those of the minority holders of the company. It can be said that this 8 of the financial holding company with each other through the establishment of a strong shareholding structure of the internal and external impact is difficult to shareholders of these companies operating managers in decision-making, external capital markets almost impossible for them to pose any threat. From the corporate governance point of view, this holding each other and the formation of a special ownership and control structure would be the advantages and disadvantages of co-existence.
Table 4 in 1994 with the German banking industry mutual insurance holding of the typical cases (%)
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│ 4 large holding company's core
├ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ─ ─ ─
Allianz │ │ Bayer. │ Dresdner Adams │ Mǖnchener
Insurance │ │ Hypo. │ │ Dayton Bank Re
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Allianz Insurance │ │ 0.06 │ 5 │ 10.08 │ 26.07
│ Bayer. Hypo. │ 22.6 │ - │ - │ 5.8
Dresdner Bank was │ │ 23.0 │ 1.27 │ 1.27 │ 2.53
│ Mǖnchener hold Re │ 25 │ 6.19 │ 12.1 │ --
Unit │ │ │ │ │
Public │ AMB │ 5.01 │ - │ 14.7 │ 8.6
Secretary │ BHF │ 15.2 │ - │ - │ 6.2
│ IKB │ 12.0 │ - │ 3.67 │ 6.2
│ Victoria │ - │ - │ 6.6 │ 23.64
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│ 4 large holding company's core
─ ─ ┬ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─
Allianz Insurance │ │ 41.21
│ Bayer. Hypo. │ 28.4
Dresdner Bank was │ │ 28.09
│ Munchener hold Re │ 43.29
Unit │ │
Public │ AMB │ 28.31
Secretary │ BHF │ 21.37
│ IKB │ 21.83
│ Victoria │ 30.24
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─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─
Holding Company │ 4 satellite company
├ ─ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ─ ─ ─
│ AMB │ BHF │ IKB │ Victoria
│ │ │ │
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Allianz Insurance │ │ 0.02 │ 1.41 │ - │ 0.03
│ Bayer. Hypo. │ - │ - │ - │ --
Dresdner Bank was │ │ 1.39 │ - │ - │ 2.12
│ Mǖnchener hold Re │ 0.11 │ 2.28 │ - │ 0.26
Unit │ │ │ │ │
Public │ AMB │ - │ - │ - │ 2
Secretary │ BHF │ - │ - │ 4 │ --
│ IKB │ - │ 10 │ - │ --
│ Victoria │ 4.75 │ - │ - │ --
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Holding Company │ 4 satellite company
─ ─ ┬ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─
Allianz Insurance │ │ 1.46
│ Bayer. Hypo. │ 0
Dresdner Bank was │ │ 3.51
│ Munchener hold Re │ 2.65
Unit │ │
Public │ AMB │ 2
Secretary │ BHF │ 4
│ IKB │ 10
│ Victoria │ 4.75
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Source: Wenger, Ekkehardard and Christoph Kaserer, 1998.The German System of Corporate Govemance-A Model which Should not be Imitated, inCompetition and Convergence in Financial Markets: The German and Anglo-American Models, edited by SWBlack and M. Moersch , North-Holland, 1998.
Cross-ownership system brought about by the obvious benefits: (1) financial enterprises as well as between non-financial enterprises and financial firms to form a stable strategic partnership for long-term goal of enterprises is of positive significance. (2) the business is relatively stable shareholding structure, forming a large number of shareholders of the common control mode, which can solve the supervision of the shareholders and managers of the power-sharing costs. (3) from the accounting point of view, mutual shareholding system allows enterprises led to the holding of the actual cash flow significantly reduced, which facilitate corporate use of limited funds to achieve portfolio, the realization of other companies have been able to maintain control at the same time good assets Mobility. A company such as 1-funded 0,000,000 yuan to hold 10% of the company's B shares, while company B and 8,000,000 yuan investment holding 8% of the company's A shares (A, B Company's share capital are set up to 1 million), A company's actual cash outflow of 2,000,000 yuan only. (4) in general will not always exist in our country, "Yigududa", several major shareholders of the common control between competition and cooperation is the unity, which helps to avoid an absolute controlling shareholder of the interests of other shareholders Erosion.
However, each holding the disadvantages are also obvious, the main problems: (1) holding each other to form a system of a relatively stable shareholding structure will help the company achieve Although the long-term goals, but also the company's control over the market's managers Bound relatively ineffective. Germany's managers are usually held by the group to appoint or hire, their jobs and the stability of the company's share price fluctuations in the correlation between relatively weak. Franks and Mayer (1990 years) An Empirical Study: German companies facing hostile takeover was a lot less than Britain and Germany. (3) (2) all-German banks were holding each other because of some of the core business control, holding a smaller proportion of the bank's shareholders on the bank a direct impact on the all-bound to be very limited, which in turn will affect the all-round participation in non-bank financial firms Corporate governance initiative and effectiveness, as they rarely from the bank's minority shareholders interests of the exercise of the duties of supervisors, and often subject to the entire shareholding of the Group of common interests. (3) business ownership among investors confused with the investors, shareholders and the relationship between the company and the interests of both the complexity of relations and even long-winded. (4) from an accounting point of view, although arrangements for the holding of mutual holding companies can incur a reduction in actual cash flow, greatly reducing the cost of holding companies, but the minority shareholders is a clear disadvantage. In the above example, A real company has invested only 2,000,000 yuan on the B's have 10% of the voting rights, the actual price is 0.2 yuan per share, while the actual inflow of B Company of 2,000,000 yuan is holding 8% of A Company Equity, real negative for the stock. This situation is clear for the A's and B's other minority shareholders is extremely unreasonable, because the minority shareholders to buy the stock price of 1 yuan per share, much higher than the A's and B's. This is clearly a violation of "the same right to share with the" basic principles, the impact of minority shareholders to participate in the effectiveness of corporate governance. (5) mutual holding companies have been under the all-around, including banks, several major shareholders of common control, even though this can be effectively resolved between the shareholders and managers of the issue of conflict of interest, but cooperation between the major shareholders than the competition, then They are fully possible "conspiracy" to erode the common interests of minority shareholders.
Second, all-German non-financial enterprises in the banking supervisory board seat and influence
In 1965 promulgated the Law provides that Germany shares the shares of three companies to set up a statutory body: the management board of directors, board of supervisors and the annual general meeting of shareholders, that is to implement two-tier management system. Management and board of directors of the board of supervisors are very clear division of responsibilities, which is responsible for the company's day-to-day operations and strategic decision-making, corporate governance by the board of supervisors responsible for the implementation of their primary function is to oversee the management and control of the board of directors, directors who sit on the board of supervisors can not be members of the board of supervisors Can not bear any day-to-day management tasks. Due to Germany's all-around non-bank financial firms have a considerable proportion of the shares, they will certainly send a representative to act as a member of the board of supervisors. Germany's two-tier management system and below constitute a mechanism for joint decision of the German-style house the core of governance.
Germany's all-appointed board of the Bank acts led to a number of large companies on behalf of the board of supervisors in the bank too, and some of the senior management of the bank at the same time more than the company's board, which has been so much controversy that end, in 1965 Germany adopted the so-called Abs of the bill provides that each person can only serve as supervisors of 10 posts. Abs was named by the bill, because at the time of the Deutsche Bank governor Hermann-Josef Abs at the same time the 30 board positions in the stock market and investors are very worried that this kind of bank supervisors whether there is sufficient energy to participate in corporate governance. In order to better play the role of supervision and control, German bankers have begun to take the initiative to avoid a number of companies as board positions, but generally do not serve as Chairman of the Board of Supervisors, unless their own investment bank was the company's largest shareholder. As a result, the current German bankers in the company's board of supervisors in the occupied seats than Abs which greatly reduces the times, but still has a very high proportion.
As shown in table 5, 1993, Germany's 100 largest banks in the board of supervisors still have the 99 board seats, accounting for 6.3 percent of the total, on behalf of the workers and other industrial companies on behalf of the respective shares of 35.2% and 27.4%.
Table 5 in 1993 Germany's 100 largest source of a list of members of the board of supervisors
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Supervisors source │ │ proportion of the number of
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Private Banking │ 99 │ 6.3%
Other banks and insurance companies │ 53 │ 3.4%
Industrial companies and other companies │ 427 │ 27.4%
Politicians and civil servants │ 67 │ 4.3%
On behalf of other owners │ 155 │ 9.9%
Representatives of trade unions │ 211 │ 13.5%
Other workers on behalf of the │ 549 │ 35.2%
The total number │ 1561 │ 100%
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Source: Federation of German Banks, 1995.Power of Bank, Cologne.
Table 5 also reflects Germany's corporate governance structure is another characteristic that is representative of the workers at the Board of Supervisors holds a very important role, which by the trade union representatives and shareholders to participate on behalf of the board of supervisors, known as "co-decision system." The system was first set up in 1951, first in the iron and steel, coal mine enterprises to provide a total of 11 members of the board of supervisors, on behalf of shareholders and employees on behalf of the 5, 11 have been identified by members of the 10 supervisors to the Annual General Meeting To make recommendations by the Annual General Meeting elected. In 1976 the revised decision of the common system applicable to the shares of major companies to stipulate that 50% of the company members of the board of supervisors should be elected by shareholders and the other 50% of the workers by the members of the election. The size of the board of supervisors according to the number of workers in all the company decided that if fewer than 10,000 employees, board of supervisors should be 12 members; the number of employees more than 10,000 people but less than 20,000 people, should be composed of 20 board of supervisors. Chairman of the Board of Supervisors has a special power, that is a member of the board of supervisors after two rounds of voting are still unable to obtain a majority (more than 50%), the President has the final decision. Chairman of the Board of Supervisors elected by the entire board, a candidate must receive two-thirds majority to be elected. If no candidate obtains a two-thirds majority vote by the board of supervisors in the press on behalf of the President of the shareholders, employees and representatives of the elected Vice-Chairman.
This joint decision was Germany's system of corporate governance is an important feature of the trade union's participation in decision-making and corporate governance has played a positive role, but some people think this is a system weaken the bank's shareholders include the election of supervisors in the corporate governance of Role. Wenger and Kaserer (1998 years) that the board of supervisors to effectively monitor managers brought about the ultimate value-added shareholder value to control who belong to (such as all-Bank) and control (AG) of private shareholders, and the board itself can only be part of the proceeds, here There are still oversee the costs and benefits of asymmetry, that is, as the supervisors who are not shareholders, but that representatives of the shareholders. At the same time, the German financial enterprises and non-financial enterprises there is a clear mutual shareholding relationship, to shareholders of the general all-around bank does not constitute an effective external pressure. Germany to send some of the all-around bank of supervisors and managers often do not want to rigorous implementation of the supervision of the main reasons is that these banks did not come from its private shareholders of external pressure. (4)
Third, proxy voting system with the German bank's control over the all-around
German banks to participate in all-round corporate governance is another important means of access by small and medium-sized shareholders to authorize proxy voting, which is known as the proxy voting system. According to the Baums and Fraune (1995 years) statistics, the 1992 all-around Germany's largest bank in the 24 listed companies annual general meeting of shareholders to vote on the actual average of 60.95 percent, in one of the 11 companies the right to vote or even more than 75 %. (5) The reason why the bank can agent all-round vote, which the law allows them to assume the functions of investment banking presence in close contact. Deutsche Bank shares will bear a greater share of the underwriters, they will usually have most of the underwriters to sell shares to their customers, and these customers for the safety of investing in stocks and lower transaction costs and generally kept in bank stocks. Cable (1985) estimated that about 50% of the shares of listed companies shareholders was deposited in the bank. (6)
Proxy voting system is characterized by: (1) did not develop all-automatic proxy voting, but must be authorized by shareholders in order to exercise this right, generally by the bank shareholders to take the initiative to obtain such authorization. (2) In practice, the German individual investors or minority shareholders usually commissioned by the bank to act as custodian of the shares and shares in the company's annual general meeting of shareholders on proxy voting by banks, shareholders and proxy voting rights in general can only be entrusted to a A specific credit institutions, and commissioned period of up to 15 months. (3) of the bank's annual general will be to the shareholders the right to vote the use of the possibilities, and then make a decision by the shareholders. If Deutsche Bank is usually recommended to their clients as much as possible to participate in the annual general meeting of shareholders, or the right to vote will be entrusted to individuals or on behalf of the shareholders association, if these customers are not interested in Deutsche Bank is also acceptable to the commission to vote on their behalf. (4) Bank as the custodian must take part in the annual general meeting of shareholders before the vote, or the intention of the proposed motion to inform shareholders of its customers, clients or shareholders did not object, the bank must be prepared in advance in accordance with the general meeting of shareholders to participate in the program can not Not change his mind. Clients (shareholders) in the general meeting of shareholders before the voting power of the specific proposals put forward, and the bank must comply with these recommendations, but in practice an average of only 2% of the shareholders will vote in specific views. (7) (5) Universal Banking in the face of the more controversial issues often consult the views of shareholders, if the shareholder has not given a clear vote, the bank will give the agent the right to vote. For example, Daimler - Mercedes-Benz in 1995 before the general meeting of shareholders expected in 1996 will be 5.7 billion German marks for the huge losses, the general meeting of shareholders in 1994 and is expected to return to moderate growth to judge the contrary, in the face of this grave situation, The company's major shareholders, Deutsche Bank, Dresdner Bank and the German commercial banks have their own recommendations of its customers and shareholders to participate in the exercise of the right to vote, or by the customer as to whether the restructuring of the managers are given very clear, otherwise these large banks Will abstain from voting.
These features indicate that the proxy voting system under the all-around small and medium-sized banks do not have a monopoly of the shareholder the right to vote, but with full respect for the legitimate rights of small shareholders, only if they are authorized to carry out the premise of proxy voting, but also to ensure that the general meeting of shareholders before the vote With the full intention of small and medium-sized shareholders to communicate in a major conflict of interest in particular cases, to seek specific shareholder vote, or else give up on the agent the right to vote. Such proxy voting system was that the OECD is a very effective means of corporate governance, as the bank through active participation in the annual general meeting of shareholders to effectively monitor and restricted shares of the company's day-to-day decision-making operating and maintaining the vast number of investors, including debt and equity investors to invest Interests.
Universal Banking proxy voting system has two main advantages: First, to address the spread of joint decision-making groups, shareholders when there is a "free rider" problem and cost-sharing. However, the large number of shares held in very small groups of shareholders to safeguard the common interests sometimes must unite to vote, but because of the existence of "free rider" problem, the implementation of this joint vote difficult. All-around polling commissioned by the bank is effectively overcome this problem, the bank will be the cost of proxy voting by all clients (shareholders) share, significantly reduced the minority shareholders in joint decision-making costs. Secondly, the proxy voting system to build a stable shareholder groups, is conducive to maintaining the stability of the business for the company managers and shareholders, board of supervisors, such as communication, thereby reducing their short-term volatility in the stock market under pressure to take some short-term behavior At the expense of long-term interests of the company. In the absence of proxy voting stake in the company and the system is relatively dispersed, the floor manager of the company is facing an uncertain and even a random shareholder groups, as they dispersed small and medium-sized shareholders at any time can be combined or reorganized into a new Large groups of shareholders, which will increase the manager level and the major shareholder groups to communicate more difficult, different combinations of the shareholder group may often interfere with normal business managers in decision-making activities, thus affecting the long-term interests of all shareholders. In the company's share price down and become a M & A target, the pressure is more obvious, because in the end to ascertain whether a floor manager and who to consult, not knowing whether the shares of small and medium-sized shareholders has been to focus on the acquisition. In order to avoid the risk of mergers and acquisitions in order to safeguard the stability of their jobs, managers are usually taken are conducive to the promotion of short-term stock price decision-making, but this is the decision-making at the expense of the company's long-term interests. This is Britain, the United States market-based financial model, the typical short-sighted in the stock market problems. Proxy voting system to create a long-term vision of the right to vote and to have control of the voters - all-around bank. The reason why the bank has the all-around long-term perspective: (1) all-bank holding company directly to a larger share of stock, they will lead to the need to focus on long-term gains rather than short-term capital gains; (2) to the all-around bank of these enterprises paid a huge amount of Long-term loans, loans to safeguard the safety and profitability, they must proceed from a long-term care to vote on the decision-making; (3) all-bank proxy voting must be to safeguard the fundamental interests of the client, if the reckless decision-making will inevitably harm the interests of its clients in order to All-around final damage the credibility of the bank, and one through the absorption of loans to deposits to obtain profits of major banks, credit is undoubtedly the most important.
Proxy voting system is the largest bank in each general meeting of shareholders on whether the real will to safeguard the interests of investors, in particular, it represents the interests of minority shareholders. Many economists expressed doubts, Wenger and Kaserer (1998 years) put forward, as the German Securities Exchange Act does not require banks to disclose their all-around on behalf of the list of shareholders and those shareholders holding shares in the amount, a number of subsidiary In the investment banking firms and other institutional investors are fully commissioned by the bank may choose to give up voting in person participate in the general meeting of shareholders, so as to ensure that the market does not rise to the attention of shock and achieved a number of strategic objectives. At this point, all-around at the expense of the bank is likely at the cost of the interests of minority shareholders and institutional investors for profit, but such actions are hidden, often under the banner of safeguarding the interests of minority shareholders of the banner appears, therefore, great potential harm. German investment company managed domestic stock market value of about 800 billion deutsche marks, accounting for total stock market value of about 10%, many of the investment company is a subsidiary of some of the largest banking subsidiary, the Bank of proxy voting with the minority shareholders when there is a A certain degree of conflict of interest. (8) Although the all-German company law requirements of the banks that they must represent the interests of the shareholders to implement Deputy voting rights, but the abuse of the law of the agent the right to vote in order to achieve the purpose of self-interest bank does not have enough sanctions.
Fourth, all-German bank and the banking system and the mode of financing Review
Based on the above analysis, all-German bank through four main channels of influence business investment, companies involved in corporate governance, first, loans, and the other is held directly, as is the three supervisors, four proxy voting is. Compared with the United States, Germany's main source of funds business from the all-around banks and insurance companies, such as Poensgen (1980) found 75 percent of German companies debt financing from the banking system. (9) Germany 3 major banks - Germany's Commerzbank, Deutsche Bank and Dresdner Bank in the credit market, accounting for the special share, in 1972 they accounted for Germany's manufacturing sector loans 28.2 percent, to the 20th century, 80 The market share has declined in 1982 but still reached 18.2 percent. (10) all-German banks, through direct ownership, as supervisors, proxy voting, and so fully involved in the process of corporate governance will help the bank more extensive and in-depth collection of business information in order to better supervise the utilization of loan funds and For future decision-making loans to provide useful information. In fact, companies can also take part in the government bank in the process of benefit, which benefits not only the performance of the enterprise will be stable credit funds, and they can share in the financial banking, technology and other fields of expertise. Through the bank as corporate supervisors directly involved in major business investment, finance, personnel, and other decision-making, is in control of first-hand information and to avoid the credit market, there is usually a result of information asymmetry as a result of adverse selection problems, contribute to the bank for business The specific credit and financial situation of the development of specific loan interest rates, loan guarantees, loan repayment policies, which the bank credit to optimize resources, reduce credit risk, increase the income of credit has been very positive. And other companies and their investors on behalf of the board of supervisors from the bank can also participate in corporate governance activities, the importance of access to financial information and other expertise, is conducive to scientific decision-making. More importantly, because of the bank in the information symmetry can be achieved under the optimal conditions for the loan arrangements for credit and financial condition of enterprises, they can effectively in-house information to banks and banking supervisors themselves, so as to obtain Conditions for preferential loans to avoid becoming a victim of adverse selection, the corporate cost of capital will also be greatly reduced.
Cable (1985 years) that the German banking and industrial sectors closely related to the creation of a "quasi-internal capital markets," the quasi-capital market pressures brought about by encouraging enterprises to minimize costs and maximize profits.According to his research, the German banking sector and large industrial enterprises is closely linked to the extent of these large enterprises and the financial position of a significant positive correlation between. Gorton and Schmid (1996) studied the years 1974-1985 the bank holding company and the relationship between performance and found that: in 1974, the bank holding company to improve performance, instead of the bank holding company's performance did not affect. By 1985, they found that banks and non-bank holdings are holding on to improve the performance of the company to have a positive impact. Shows that Germany is indeed all-stock banks directly help to improve the performance of the company, but from the 1970s to the 80s that the changes in the bank's influence with the development of capital markets and non-bank holdings and increase the relative decline of these non-bank Institutions have begun to actively participate in corporate governance, the banking sector in Germany's corporate governance pose a challenge to the special status. Elston and Albach (1995 years) of the study is further evidence of Cable's "quasi-internal capital markets" hypothesis, they believe that the general day-to-day business operations must attach great importance to the mobility of assets, only to maintain a certain level of liquidity in order to ensure that The timely repayment of short-term bank borrowings and other liabilities, in order to guarantee a certain degree of mobility, enterprises must consider when making investment decisions to stay out of a short-term capital investment or direct bank deposit, the rate of return on investment is relatively low investment in fact a waste of valuable Financial resources in the guise of improved corporate financing costs. (11) Under normal circumstances, a more distant relationship with the creditors of the business need to maintain a higher proportion of liquid assets, in order to reduce the risk of default and bankruptcy risk. But the all-around with the bank to maintain close relations in business investment decision-making when you do not need too much liquidity into account, because the bank to give the all-around is the main long-term loans, and business and close a large bank is relatively easy to negotiate. Albach and Elston also found that in the years 19831992, and close to all-bank businesses to invest its function of the liquidity problem is not sensitive, and the other of our investments should be very clear that the liquidity constraints of the problem. (12) Chirinko and Elston (1996 years) in the course of the study did not find that Germany close relationship between the bank and to reduce the company's financing costs, but also found no relationship between the bank's profitability and positive correlation between, but Discovered an important fact that the close relationship between the bank and the type of concentrated ownership structure of the relationship between the alternative. (13) in the highly fragmented ownership structure of the company prevails in the "free rider" problem, although the shareholding structure of the focus can be part of the settlement of shareholder oversight of managers, but would give rise to the major shareholders and the interests of minority shareholders of the conflict to form The new agency costs. ChirinkoElston in accordance with that type of close relationship between the bank and can substitute for part of the centralized ownership structure to better address the issue of corporate governance, which can address the excessive concentration of ownership structure where the majority shareholder of the interests of minority shareholders erosion, it can help solve Ownership Structure spread too thin layer under the manager and the interests of minority shareholders and managers of the conflict-monitoring.
The all-powerful banks and the close relationship between the bank and the German model of financing a large impact. On the whole, Germany is not well-developed stock market, oversee functions is not clear that the company's shareholding structure is more concentrated, many listed companies the right to vote on the all-hands Bank, the company can not control the market and what role to play. In addition, the company's share price based on the performance of managers incentive compensation system has not been established in order to pay a fixed salary as the main source of the managers prefer to engage in low-risk investment projects and construction of a wide range of corporate structure with the aim of reducing The company into financial crisis, as well as reduce bankruptcy caused by specific human capital loss. From the internal structure of corporate governance, the Board of Supervisors play a larger role. Board of Supervisors of the main trade unions on behalf of the employee's efforts to safeguard the stability of employment and, therefore, managers and the same preferences in low-risk investment projects or a wide range of business activities. Board of Supervisors on behalf of the workers in the non-elected by the shareholders, they are usually controlled with the right to vote on behalf of the interests of the bank's all-around, rather than other non-bank shareholders. Bank of the interests of the all-clear, they are concerned about the company is able to guarantee payment of principal and interest of loans, their participation in corporate governance is the ultimate objective of the loan in order to protect the safety and profitability. All-around small and medium-sized Bank settlement of a shareholder vote "free rider" problem, so that decision-making mechanism of listed companies not meet the shareholding structure of the fragmentation of failure, both at the same time to prevent a "vacuum of control" and restricted the managers of the company's "internal control "Solved in a modern company owner operator of the supervision and restriction issues.
In short, to all-bank-based financing model for German companies to cultivate a stable ownership structure and control structure, the financing model of the internal structure and external relations than market-based financing model more simple, especially for this model The requirements of the legal system is relatively low because the interests of small and medium-sized investors, directly or indirectly, by the all-around bank of effective protection, rather than the interests of minority shareholders in the United States must be very sound legal system to protect this relationship-based financing model is Conducive to promoting the steady macro-economic growth.
UK fund managers in December for the second consecutive month of increase in the proportion of shares held by
Investigation revealed that UK-based fund manager for the second consecutive month in December to increase the proportion of shareholders, the reduction of debt and cash positions, as a result of a further decline in interest rates, the market found some support.
9 of the British investment company survey showed that in December they hold stock average proportion rose to 63.0 percent, in November when the survey of 11 investment companies accounting for 61.0 percent share.
The average bond holders increased from 24.6% down to 22.7 percent, the proportion of cash fell to 7.7 percent from 7.5 percent.
Fund positions imply changes in the proportion of investor risk appetite recovery, thanks to the Government's intervention measures and a series of initiatives to cut interest rates, the market has become more stable.
Bank of England rate cut in December to 2%, the lowest since the 1950s level.
Britain in December to the fund's investment in the stock market, the United States market share of 38% to 23.6% in the euro zone, the European Union outside the euro area to 14.7 percent, Japan 10% of the market, the Asian market outside Japan to 8.7 percent, to Latin America 2.1%.
Standard Life Investments head of global strategy Andrew Milligan said: "The recovery in financial markets poses a number of components needed to put in place gradually. Asset classes there are a lot of great value, such as the bond market, stock market, and even some of the real estate business."
"In the New Year at the dawn of the view that we remain cautious as a result of taking into account the depth of the recession on corporate profits, debt default, foreclosure and bankruptcy, and whether the market price to completely absorb all the bad news there is doubt."
9 of the British investment company survey showed that in December they hold stock average proportion rose to 63.0 percent, in November when the survey of 11 investment companies accounting for 61.0 percent share.
The average bond holders increased from 24.6% down to 22.7 percent, the proportion of cash fell to 7.7 percent from 7.5 percent.
Fund positions imply changes in the proportion of investor risk appetite recovery, thanks to the Government's intervention measures and a series of initiatives to cut interest rates, the market has become more stable.
Bank of England rate cut in December to 2%, the lowest since the 1950s level.
Britain in December to the fund's investment in the stock market, the United States market share of 38% to 23.6% in the euro zone, the European Union outside the euro area to 14.7 percent, Japan 10% of the market, the Asian market outside Japan to 8.7 percent, to Latin America 2.1%.
Standard Life Investments head of global strategy Andrew Milligan said: "The recovery in financial markets poses a number of components needed to put in place gradually. Asset classes there are a lot of great value, such as the bond market, stock market, and even some of the real estate business."
"In the New Year at the dawn of the view that we remain cautious as a result of taking into account the depth of the recession on corporate profits, debt default, foreclosure and bankruptcy, and whether the market price to completely absorb all the bad news there is doubt."
12/28/2008
Germany's E. ON declined to bid for British Energy Group rumors comment
German energy giant E. ON declined to 16 companies bid for British energy company on the rumors of the Group for comment.
Comprehensive news on April 16 reported that the media rumors about Germany's E. ON may bid for British Energy Group (British Energy Group PLC) has, E. ON declined to comment.
16 Earlier, the media have quoted company E. ON spokesman as saying that E. ON will not be a separate company or other companies to jointly bid for British energy group.
But the report also quoted the spokesman as saying, E. ON company in the UK for new nuclear power plant operating in the territory optimistic.
The company E. ON, Germany's spokesman also said that he did not know the direct source of these come from.
Comprehensive news on April 16 reported that the media rumors about Germany's E. ON may bid for British Energy Group (British Energy Group PLC) has, E. ON declined to comment.
16 Earlier, the media have quoted company E. ON spokesman as saying that E. ON will not be a separate company or other companies to jointly bid for British energy group.
But the report also quoted the spokesman as saying, E. ON company in the UK for new nuclear power plant operating in the territory optimistic.
The company E. ON, Germany's spokesman also said that he did not know the direct source of these come from.
U.S. stocks higher; the overall European stock markets lower
U.S. stocks closed higher Wednesday, the market due to holiday falls on light trading. GM (General Motors) and Citigroup (Citigroup), and other companies have recently suffered the setback rebound, the stock market to close higher. However, the type of material, and other economically sensitive companies have been weak consumer spending and drag the poor unemployment data.
The stock market ahead of Wednesday's close, the Dow Jones Industrial Average index closed up 48.99 points to 8468.48 points, or 0.58 percent, but down 36 percent this year, cumulative, in December fell a total of 4.1 percent. Standard & Poor's 500 index rose 4.99 points to 868.15 points, or 0.58 percent. The Nasdaq composite index rose 3.36 points to 1524.90 points, or 0.22 percent.
Data:
U.S. MBA Market Index rose 48.0 percent to 1245.4; last week to 841.4; MBA purchasing index rose 10.6 percent to 316.5; last week to 286.1; MBA refinancing index rose 62.6 percent to 6758.6; for 4156 last week.
United States Department of Labor (Labor Department) Wednesday announced a seasonally adjusted basis, as of December 20 the week for the first time the number of applications for unemployment benefits increased 30,000, to 586,000, a record high of 26 years. Every Thursday due to the Christmas holidays, the data released a day ahead of schedule. Prior to Dow Jones Newswires (Dow Jones Newswires) survey of economists expected, on December 20 weeks when the United States for the first time the number of applications for unemployment benefits will increase by 6,000 people.
U.S. Department of Commerce (Commerce Department) published Wednesday, seasonally adjusted, the United States in November durable goods orders dropped 1.0 percent, to 186,880,000,000 U.S. dollars. Above the 1.0 percent drop lower than market expectations. Wall Street analysts had expected durable goods orders in November fell 3.0 percent of the total.
U.S. personal spending in November for the fifth consecutive month decline, while the previous one of the key indicators to measure inflation low, but consumers want to reduce the economic recession of their own lives, the U.S. personal savings in November also increased again. Wednesday, the Commerce Department reported a seasonally adjusted basis, November personal spending fell 0.6 percent from the previous month; October personal spending fell 1.0 percent for the initial value.
Data released Wednesday showed that on December 13 the week the Dow Jones - Mitsubishi Tokyo UFJ Bank (Dow Jones-Bank of Tokyo-Mitsubishi-UFJ) business climate index fell 0.5 percent after declining 0.7 percent for the week.
U.S. Department of Energy: U.S. crude oil inventories fell last week, 3,101,000 barrels, to 3.18188 billion barrels; gasoline inventories increased by 3,336,000 barrels per day, to 2.07295 billion barrels; distillate inventories increased by 1,814,000 barrels per day, to 1.35337 billion barrels.
Stock:
Stocks higher in large part by the impact of General Motors, which rose 25 cents to 3.25 U.S. dollars, an increase of 8.3 percent.
Bank of America (Bank of America) and Citigroup led a large banking stocks, Bank of America rose 78 cents to 13.53 U.S. dollars, up 6.1 percent; Citigroup rose 26 cents to 6.78 U.S. dollars, or 4%.
Home builder stocks fell across the board again Wednesday, Pulte Homes fell 23 cents to 10.31 U.S. dollars, or 2.2 percent.
Although the number of non-essential consumer stocks rose slightly on Wednesday, but this year's holiday shopping season, business performance for the past several decades may be the worst fears mood level is still lingering. Macy's rose 11 cents to 8.82 U.S. dollars, or 1.3 percent, but the unit still has this week dropped a total of 17%.
Bulk commodity prices and the trend of the stock market's further evidence of the slowdown in global economic growth expectations. Alcoa (Alcoa) fell 18 cents to 9.39 U.S. dollars, or 1.9 percent, since the unit earlier this year hit a peak level has since dropped 79%.
European stock markets Wednesday Review:
European stock markets closed Wednesday down overall. This is the week's last trading day.
UK FTSE 100 index closed down 0.9 percent, to 4216.6 points, the French CAC-40 index fell 0.4 percent, to 3116.2 points. Frankfurt market closed Wednesday. Trading was quiet in the market, the market can guide the company more than news.
The stock market ahead of Wednesday's close, the Dow Jones Industrial Average index closed up 48.99 points to 8468.48 points, or 0.58 percent, but down 36 percent this year, cumulative, in December fell a total of 4.1 percent. Standard & Poor's 500 index rose 4.99 points to 868.15 points, or 0.58 percent. The Nasdaq composite index rose 3.36 points to 1524.90 points, or 0.22 percent.
Data:
U.S. MBA Market Index rose 48.0 percent to 1245.4; last week to 841.4; MBA purchasing index rose 10.6 percent to 316.5; last week to 286.1; MBA refinancing index rose 62.6 percent to 6758.6; for 4156 last week.
United States Department of Labor (Labor Department) Wednesday announced a seasonally adjusted basis, as of December 20 the week for the first time the number of applications for unemployment benefits increased 30,000, to 586,000, a record high of 26 years. Every Thursday due to the Christmas holidays, the data released a day ahead of schedule. Prior to Dow Jones Newswires (Dow Jones Newswires) survey of economists expected, on December 20 weeks when the United States for the first time the number of applications for unemployment benefits will increase by 6,000 people.
U.S. Department of Commerce (Commerce Department) published Wednesday, seasonally adjusted, the United States in November durable goods orders dropped 1.0 percent, to 186,880,000,000 U.S. dollars. Above the 1.0 percent drop lower than market expectations. Wall Street analysts had expected durable goods orders in November fell 3.0 percent of the total.
U.S. personal spending in November for the fifth consecutive month decline, while the previous one of the key indicators to measure inflation low, but consumers want to reduce the economic recession of their own lives, the U.S. personal savings in November also increased again. Wednesday, the Commerce Department reported a seasonally adjusted basis, November personal spending fell 0.6 percent from the previous month; October personal spending fell 1.0 percent for the initial value.
Data released Wednesday showed that on December 13 the week the Dow Jones - Mitsubishi Tokyo UFJ Bank (Dow Jones-Bank of Tokyo-Mitsubishi-UFJ) business climate index fell 0.5 percent after declining 0.7 percent for the week.
U.S. Department of Energy: U.S. crude oil inventories fell last week, 3,101,000 barrels, to 3.18188 billion barrels; gasoline inventories increased by 3,336,000 barrels per day, to 2.07295 billion barrels; distillate inventories increased by 1,814,000 barrels per day, to 1.35337 billion barrels.
Stock:
Stocks higher in large part by the impact of General Motors, which rose 25 cents to 3.25 U.S. dollars, an increase of 8.3 percent.
Bank of America (Bank of America) and Citigroup led a large banking stocks, Bank of America rose 78 cents to 13.53 U.S. dollars, up 6.1 percent; Citigroup rose 26 cents to 6.78 U.S. dollars, or 4%.
Home builder stocks fell across the board again Wednesday, Pulte Homes fell 23 cents to 10.31 U.S. dollars, or 2.2 percent.
Although the number of non-essential consumer stocks rose slightly on Wednesday, but this year's holiday shopping season, business performance for the past several decades may be the worst fears mood level is still lingering. Macy's rose 11 cents to 8.82 U.S. dollars, or 1.3 percent, but the unit still has this week dropped a total of 17%.
Bulk commodity prices and the trend of the stock market's further evidence of the slowdown in global economic growth expectations. Alcoa (Alcoa) fell 18 cents to 9.39 U.S. dollars, or 1.9 percent, since the unit earlier this year hit a peak level has since dropped 79%.
European stock markets Wednesday Review:
European stock markets closed Wednesday down overall. This is the week's last trading day.
UK FTSE 100 index closed down 0.9 percent, to 4216.6 points, the French CAC-40 index fell 0.4 percent, to 3116.2 points. Frankfurt market closed Wednesday. Trading was quiet in the market, the market can guide the company more than news.
British stock market crash for a few days of tension panic
In the United States by the time the crisis caused by global financial turmoil, the British stock market over the past few days, the market panic tension. At the same time, the United Kingdom increased inflation, consumer prices, the parties predict Britain will speed up the economic recession, a negative atmosphere.
According to the Hong Kong Ta Kung Pao reported that the Bank of England Monday to 5,000,000,000 pounds into the market after the payment of 20,000,000,000 again Tuesday to rescue the market. However, the British Financial Times index is still down 178 points Tuesday, fell to the lowest level in three years. Today, the U.S. insurance group AIG in an emergency, even though the U.S. government to take action to rescue the market, the British were still falling stock market opened.
Tuesday all the major British banking stocks were down in an emergency, in which Britain's biggest mortgage bank HBOS's share price had once dropped by 34% and 22% to close down. Britain's largest real estate bank loans Xiali Fass Jie Housing Agency is under the bank HBOS, Britain has a 20% open Housing loans, borrowing more than 2000 million customers. 17, when the market opened, while other British bank shares rebounded somewhat, but HBOS shares rose before 8:00 back again.
Royal Bank of Scotland and the British National Westminster Bank also belong to the same group HBOS, the Tuesday following the stock market fell 10 percent after the market opened on the 17th also see the end of the pick-up.
U.S. bank Lehman Brothers in the City of London has over 5,000 employees, most of these people suddenly find themselves unemployed Tuesday. Market analysts pointed out that the United States by storm is not the end of the meeting, the City estimated the number of unemployed in the near future will be close to 8-1000, their average annual salary of about 60,000 pounds, down significantly to the recent economic recession caused by a direct attack on the British market Worse still, the confidence.
Britain 17 forecast China Federation of Trade Unions, a year after Britain's long-term unemployment rate will be doubled. British unemployment rate is currently at a level of 5.4 percent, to the end of next year, is expected to exceed more than one year of the unemployed will reach 700,000, the national unemployment rate to rise to 2,000,000.
Britain announced Tuesday the inflation rate reached 4.7 percent, with the official set by the 2% annual inflation rate amounted to vary considerably, at the highest level in 16 years. Britain Governor of the Bank of England this week sent a letter to the finance minister, warned that the British consumer prices rose due to the inflation rate may rise to 5%.
British food-to-date inflation up to 14.5 percent, since the fuel price increases this year, nearly 28% of the electricity user fee increase of 18%. Economic experts here said that Britain is facing a 16-year life of the fastest-growing consumer price index and the economic recession is a significant performance.
The real estate figures released this week also showed that in the past in the first quarter of the country's housing sale at a rate of 30-year low. Meeting in the United States affected by the crisis, the United Kingdom over the past six months building a considerable tightening credit, the British property prices over the past four months in a row down.
In Britain 350 large enterprises in the survey, 2 / 3 of people believe that the credit crisis and yet to come, and be prepared to face the worse the prospect of even worse. A few days ago, the British entrepreneurs also warned that Britain is entering a more severe than expected downturn in the economy is more severe credit crunch and financial crisis yet to come.
According to the Hong Kong Ta Kung Pao reported that the Bank of England Monday to 5,000,000,000 pounds into the market after the payment of 20,000,000,000 again Tuesday to rescue the market. However, the British Financial Times index is still down 178 points Tuesday, fell to the lowest level in three years. Today, the U.S. insurance group AIG in an emergency, even though the U.S. government to take action to rescue the market, the British were still falling stock market opened.
Tuesday all the major British banking stocks were down in an emergency, in which Britain's biggest mortgage bank HBOS's share price had once dropped by 34% and 22% to close down. Britain's largest real estate bank loans Xiali Fass Jie Housing Agency is under the bank HBOS, Britain has a 20% open Housing loans, borrowing more than 2000 million customers. 17, when the market opened, while other British bank shares rebounded somewhat, but HBOS shares rose before 8:00 back again.
Royal Bank of Scotland and the British National Westminster Bank also belong to the same group HBOS, the Tuesday following the stock market fell 10 percent after the market opened on the 17th also see the end of the pick-up.
U.S. bank Lehman Brothers in the City of London has over 5,000 employees, most of these people suddenly find themselves unemployed Tuesday. Market analysts pointed out that the United States by storm is not the end of the meeting, the City estimated the number of unemployed in the near future will be close to 8-1000, their average annual salary of about 60,000 pounds, down significantly to the recent economic recession caused by a direct attack on the British market Worse still, the confidence.
Britain 17 forecast China Federation of Trade Unions, a year after Britain's long-term unemployment rate will be doubled. British unemployment rate is currently at a level of 5.4 percent, to the end of next year, is expected to exceed more than one year of the unemployed will reach 700,000, the national unemployment rate to rise to 2,000,000.
Britain announced Tuesday the inflation rate reached 4.7 percent, with the official set by the 2% annual inflation rate amounted to vary considerably, at the highest level in 16 years. Britain Governor of the Bank of England this week sent a letter to the finance minister, warned that the British consumer prices rose due to the inflation rate may rise to 5%.
British food-to-date inflation up to 14.5 percent, since the fuel price increases this year, nearly 28% of the electricity user fee increase of 18%. Economic experts here said that Britain is facing a 16-year life of the fastest-growing consumer price index and the economic recession is a significant performance.
The real estate figures released this week also showed that in the past in the first quarter of the country's housing sale at a rate of 30-year low. Meeting in the United States affected by the crisis, the United Kingdom over the past six months building a considerable tightening credit, the British property prices over the past four months in a row down.
In Britain 350 large enterprises in the survey, 2 / 3 of people believe that the credit crisis and yet to come, and be prepared to face the worse the prospect of even worse. A few days ago, the British entrepreneurs also warned that Britain is entering a more severe than expected downturn in the economy is more severe credit crunch and financial crisis yet to come.
Germany this year and next year is expected to grow by 1.5% and 1%
Deutsche Bundesbank president and European Central Bank (ECB) member Weber said on May 5, the central bank is still expected to Germany in 2006 Germany's economy will grow by about 1.5 percent during the year the growth rate may accelerate to 2%, but lower annual average number.
He also said: "The German central bank is still expected 2007 economic growth rate of about 1%, may be higher.
Short-term economic risks and in the past, is the basic balance. Medium and long term there may be a slight downward risk because of global economic imbalances caused. But basically, I think the outlook for 2012 remains unchanged. "
German Ministry of Economic Affairs said that the recent rise of the euro against the dollar if it continues, it may end up on Germany's export industry will be affected.
German Ministry of Economic Affairs, in its monthly report that since February the euro against the U.S. dollar exchange rate increased significantly. If prices continue to rise into the final, will be getting more and more negative impact on export activities
He also said: "The German central bank is still expected 2007 economic growth rate of about 1%, may be higher.
Short-term economic risks and in the past, is the basic balance. Medium and long term there may be a slight downward risk because of global economic imbalances caused. But basically, I think the outlook for 2012 remains unchanged. "
German Ministry of Economic Affairs said that the recent rise of the euro against the dollar if it continues, it may end up on Germany's export industry will be affected.
German Ministry of Economic Affairs, in its monthly report that since February the euro against the U.S. dollar exchange rate increased significantly. If prices continue to rise into the final, will be getting more and more negative impact on export activities
A large number of new funds flowing into China, Switzerland, Germany equity funds so popular these days
In the United States on the brink of bankruptcy three major auto plants, the Government continued to shout "help", Germany's Porsche (Porsche) has earned Fan Tian, a year profit more than 10,000,000,000 U.S. dollars.
Porsche Motor Company announced on the 7th, by the end of July deadline for the fiscal year, pretax profit rose 46 percent to 8,570,000,000 euros, the equivalent of 10,900,000,000 U.S. dollars. However, 80 per cent of the profits from the production car is not, but skillfully operating profits of financial instruments, which operate for a long time to Porsche and Volkswagen would like to buy (VW) the intention of the relationship go a long way.
Porsche in the operational profit, the actual depot for more than two General of the United States and the Ford Motor Company of the total market value. The share price slide all the way General Motors, has only a few of the current market value of 2,470,000,000 U.S. dollars, Ford only 4,570,000,000 U.S. dollars.
Led the "sea fishing" is the long-running Porsche Wade King and Chief Financial Officer and special, but more importantly, their collaboration and the Volkswagen Beetle is the creator of the grandson of the two snow-bo (Wolfgang Porsche) Piech and (Ferdinand Piech), they are the Porsche and Volkswagen's chairman of the board.
Since 2005, Porsche through a selection of the right tools to make large profits, and help them quietly to the creation of Fox's huge holdings, and the market has no information on this. Until the end of last month, Porsche disclosed information shows that they have real control over the market shares of most of the Fox, Volkswagen's share price has been soaring along with it.
As a result, the original stock of Fox's short hedge funds, they rolled into the classic trap air, the Fox share price rocketed even got to allow the global market value of the Volkswagen car company's highest throne. The hedge fund industry desperately in the market chasing a limited stock of the results of their week in just a few hours on the loss of hundreds of millions of dollars.
The Porsche's move shows that the traditional old economy manufacturers have to learn from hedge funds, and have the ability to hedge funds in the main battle field to defeat them.
Porsche relying on the strategy in the global automotive industry Ku Haha, or even struggling for survival, in the last fiscal year's net income surged 51% trend has reached 6,390,000,000 euros. Moreover, the settlement in July only to the financial year, not even reflected in last month's huge profit.
However, it has not yet come to an end, German monetary authorities have to investigate to find out whether there is a Porsche improper operation of the Fox shares suspects. Porsche stressed that they do not have any misconduct, Fox share price boom is the result of short replenishment.
But on the other hand, Porsche Porsche wants to control the revenue is 15 times the output of up to 60 times more of the Volkswagen, it seems that there are many obstacles to be overcome.
Porsche Motor Company announced on the 7th, by the end of July deadline for the fiscal year, pretax profit rose 46 percent to 8,570,000,000 euros, the equivalent of 10,900,000,000 U.S. dollars. However, 80 per cent of the profits from the production car is not, but skillfully operating profits of financial instruments, which operate for a long time to Porsche and Volkswagen would like to buy (VW) the intention of the relationship go a long way.
Porsche in the operational profit, the actual depot for more than two General of the United States and the Ford Motor Company of the total market value. The share price slide all the way General Motors, has only a few of the current market value of 2,470,000,000 U.S. dollars, Ford only 4,570,000,000 U.S. dollars.
Led the "sea fishing" is the long-running Porsche Wade King and Chief Financial Officer and special, but more importantly, their collaboration and the Volkswagen Beetle is the creator of the grandson of the two snow-bo (Wolfgang Porsche) Piech and (Ferdinand Piech), they are the Porsche and Volkswagen's chairman of the board.
Since 2005, Porsche through a selection of the right tools to make large profits, and help them quietly to the creation of Fox's huge holdings, and the market has no information on this. Until the end of last month, Porsche disclosed information shows that they have real control over the market shares of most of the Fox, Volkswagen's share price has been soaring along with it.
As a result, the original stock of Fox's short hedge funds, they rolled into the classic trap air, the Fox share price rocketed even got to allow the global market value of the Volkswagen car company's highest throne. The hedge fund industry desperately in the market chasing a limited stock of the results of their week in just a few hours on the loss of hundreds of millions of dollars.
The Porsche's move shows that the traditional old economy manufacturers have to learn from hedge funds, and have the ability to hedge funds in the main battle field to defeat them.
Porsche relying on the strategy in the global automotive industry Ku Haha, or even struggling for survival, in the last fiscal year's net income surged 51% trend has reached 6,390,000,000 euros. Moreover, the settlement in July only to the financial year, not even reflected in last month's huge profit.
However, it has not yet come to an end, German monetary authorities have to investigate to find out whether there is a Porsche improper operation of the Fox shares suspects. Porsche stressed that they do not have any misconduct, Fox share price boom is the result of short replenishment.
But on the other hand, Porsche Porsche wants to control the revenue is 15 times the output of up to 60 times more of the Volkswagen, it seems that there are many obstacles to be overcome.
U.S. pressure in the coming year the central Tinggang is timely
For the three-week Christmas Eve, the U.S. stock market early in the 13 o'clock closed, trading volume decreased significantly. Rest of the morning before the U.S. government announced a series of positive and negative sides of the mixed economic data, including consumer spending in November fell for the fifth consecutive month, but the margin was better than market expectations, initial applications for unemployment benefits last week, a further increase in the number of high - The market expected, and so on. In these slightly better than market expectations data under the influence of U.S. stock index more positive response. This week for the long Christmas holiday, many fund managers on leave, and that the transaction volume deserted, I believe that many investors this year will no longer sell investment is expected to wait until early next year, will start to deploy, this period will be in the index Hovering within a narrow range. Last week, U.S. mortgage applications increased 48% as a result of home loan interest rates to 5-year low and then increase the number financiers. U.S. Mortgage Bankers Association's index of applications last week, including the purchase of mortgage loans or refinancing applications have also increased significantly, the highest in 2003. Last week, U.S. 30-year fixed-rate loan, the average interest rate dropped to the second lowest in the history of loans to reduce monthly payments. Although the increase in applications for home purchase, home purchase index or an eight-year low near the home sales showed a sharp recession may last until next year. U.S. consumer spending in November after adjustment for inflation, the increase in the last two years, the biggest hit, showing a decline in oil prices to the American people more cash to spend during the Christmas holiday. The United States in November After adjustment for inflation, personal spending growth of 0.6 percent for the six months increased for the first time. Gasoline prices plummeted, and many discount retailers such as department store sales, though the American people to face the second year of economic recession, but also to maintain spending. However, more than 1,900,000 people out of work, also a record decline in housing prices, consumer confidence has been shaken in the next few months will not be any major improvement in sales. In the coming year is estimated that U.S. pressure. Although the People's Bank of China on Monday abruptly cut interest rates, but the rate is far lower than the market expected, the performance of Hong Kong stocks affected the opportunity to short before the long holidays to reduce the hands of the shareholders, and look forward to the earlier interest rate cuts through improper means and within the Housing Unit also Has obviously been taking. China Eastern Airlines shares as a result of the acquisition came on the air and news to stimulate the restructuring of the industry, leading to a whole are subject to the support plate. I believe that next year there is still room for interest rate cuts, the Mainland in the future there will be more of the new monetary policy introduced. Hong Kong stocks in the long Christmas holiday for a few days ago, "Jiaoruan" week or three days a total of nearly 1,300 points, deserted investment climate, further contraction of the transaction to close to 26-month low. Now how to revive and rebuild market confidence in the Hong Kong Special Administrative Region Government must deal with as quickly as possible, key issues, the central government last week introduced 14 measures to support Hong Kong can be described as timely. The combination of boxing is using the policy to buy time to develop in exchange for living space, involving more than 14 measures in the field, I believe Hong Kong can benefit from a wide range of industries. I believe that many of the "Ting Gang" measures, the largest and most far-reaching impact on the permit is eligible to RMB business in Hong Kong, trade payment, which will help strengthen our position as an offshore renminbi trading center, as well as clearing center , To strengthen the economy of Hong Kong, the Hong Kong dollar to maintain the linked exchange rate system, while Hong Kong's commercial banks have the opportunity to develop new business and reduce redundancy. |
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