Soros : Interest Rates Will Rise In Year

Soros : Interest Rates Will Rise In Year. There will be a dramatic increase in interest rates after the clear signs that the U.S. economy increased, George Soros told CNBC. Soros said the U.S. needs to rebuild its growth to help shrink the debt, and he also said that the Federal Reserve's policy of buying bonds is precisely because it does not increase the amount of net debt. Soros also warned of the risk. He mentioned it as a "two-phase maneuver difficult," the former Fed throwing more money at the economy and then the economy will have to take the money back. But as long as the money out to the economy, so it can protect the recovery. "It may already have begun," Soros said there would be a movement in interest rates.

EURUSD Flying Post IFO The Solid Data

The euro ended higher against the U.S. dollar after a sharp intraday swing suffered a day earlier supported by data IFO solid. IFO data released 103.1 104.2 exceeded estimates and higher than the previous month at 102.4, this data when combined with the PMI manufacturing data released yesterday had an overall positive for the EURUSD. Euro zone manufacturing activity improved in the month of January was triggered by the strong performance of Germany despite slump in manufacturing activity in France. Observed so far pairing EURUSD soared 0.40% at the level of 1.3428, after reaching its highest point at 1.3432 and intraday lows at 1.3350 daily. Target hourly appear in the range of 1.3450. The increase in interest due to the period of euros in bank debt settlement LTRO various European banks on ECB also become a positive catalyst for the EURUSD.

Falling Pound Easter GDP report

Having proved that the UK economy half way to triple dip recession, due to the economic contraction of -0.3% -0.1% below the estimate for Q4 2012 is largely due to the fall of the mining, manufacturing and government budget austerity program slowdown. GBPUSD depressed 60 pips since the data was released, after a short rebound to 1.5819, prices consolidated in the range of 1.5758, with intraday lows at 1.5747 still. While the EURGBP cross rate soared to 0.58% at the level of 0.8519, compared to yesterday's close at 0.8472. Governor of the Bank of England, Mervyn King expect a moderate pace of recovery this year, the IMF cut its UK growth forecast for 2013 will be lower due to government budget cuts program.

ECB Draghi : Economic Activity From Stable

European Central Bank President Mario Draghi said on Friday that financial markets experienced "relative calm" at the beginning of this year and all the indices showed a substantial improvement in economic conditions. "The level of economic activity is currently in the process stabilized at very low levels, and we predict that the economic recovery will occur in the second half of this year," Draghi said at the World Economic Forum in Davos. He praised the structural reforms that followed by the euro zone and said that the year 2012 has been a year of "re-launch of the euro." Current account surpluses are now starting, improved fiscal position, "said Draghi." Government should be given credit for what they do. "

Samsung please register record profit in Q4

Samsung reported that it posted a record quarterly profit of $ 8.3 billion and investment in 2013 will continue to run as the level of the previous year, this is contrary to previous estimates that they may reduce the budget amid weakening demand for computer chips. The South Korean company said that profit in October-December rose 89 percent from the previous year were worth 8.84 trillion won ($8.3 billion), in line with previous estimates. In a statement on Friday, Samsung said that they would stay invested in 2013 at the same level as in 2012, despite the gloomy outlook for the PC and the movement of which is a rival to Apple's base diversify its suppliers.

Focus on Asian markets next week

Outlook next week especially in Japan and China, sentiment will be affected by China's PMI manufacturing report will be released to add to the optimism of China's economic rebound as a whole after the data were relatively positive in December, is expected to report for the month of January is still showing the consistency of the growth rate. The Chinese government also recognizes that economic conditions are always positive, so the perception of market participants is also better on the rate of growth. In addition it will also shift attention to the earnings reporting season in Japan. Various corporate Japan is now entering its third fiscal year report, which means less significant but can be used as indicators of annual growth. Chance of Japanese industries still show flat sales from year to year, but some specific stocks still showed a surprise potential after recovering from the earthquake in 2011. Although there are obstacles boycott some products exported by China, but its impact was not so severe as originally feared.

Honda earnings reports that will be the focus in the coming weeks, a report is expected to show sales growth of 25% YoY, followed by the estimated increase in profit operation up to 5% - 6%. The increase in the rate of profit automotive manufacturers such as Honda were also supported by a weaker yen since Shinzo Abe Q3 influenced policy. In economic terms, the results of the Tankan survey can also add optimism, improved global conditions for the export market should be able to fix the amount of industrial production in Japan at least a 1% growth Year-on-Year. Asian region of interest, ie, in Korea, despite the weakening of the Japanese yen, but on the contrary Korean Won appreciated sharply, but exports of Korea remains solid. Bagaimapun major exporters such as Samsung Electronics does not produce a lot of jobs in the domestic, as the company's global production, but it most Koreans do not want to work in a factory and chose to work in the domestic service industry, so that the appreciation of Korean Won actually beneficial to the sector . So the Korean position is not too attenuated want the exchange rate, in contrast to Japan, as long as during the global export market is not so severe that the rate of export growth is maintained.