Riffrag Business & Finance Report

The Government of Indonesia to cancel plans global bond issue 30-year term, and the only debt issued bertenor 10 years.

According to Bloomberg sources, note the U.S. dollar-denominated debt that will be set based on the size or number. Benchmarks are usually worth at least U.S. $ 500 million.

Government explore global bonds worth U.S. $ 3 billion to U.S. $ 4 billion to finance its 2010 budget. Bond yield was estimated at 2.2% and 2.54% higher than debt securities with the same period published by the U.S. Treasury Department (U.S. Treasury).

Government of the Philippines and Turkey jointly issued dollar bonds worth U.S. $ 3.5 billion. Besides Indonesia, the government of Vietnam, Russia and Poland is also preparing the sale of dollar bonds in order to reap the benefits of debt reduction in borrowing costs in the U.S..

In the last week, the Philippine government bond yields set for 5.67%. Bonds that mature in 2020 were ranked BB-, as Indonesia dollar bonds. International debt rating agency Moody’s Investors Service earlier this week with a Ba2 rating to stable outlook for the global debt securities RI medium term.

The same debt ratings given when the government issued a letter RI RI debt worth U.S. $ 3 billion in February 2009, while Fitch Ratings provides ratings BB. Both are two levels below investment level. Instead, Standard & Poors rated BB-, three levels below investment level, which is equivalent to ranking Turkish acquisition.

A finance ministry official said the government has appointed Barclays Capital Plc, Citigroup Inc. and Credit Suisse Group AG as an underwriter of global bonds plan this RI.

Three major indices in Wall Street experienced a correction at the close of trade Tuesday local time, as the slump in corporate profits snapper class in China, Alcoa Inc and fears of investors for global economic growth is uncertain.

As quoted by Reuters on Wednesday (13/1/2010), Alcoa Inc. profit declined far below the expectations of some analysts, that the question for investors of the economic recovery in China later. Section. This snapper-class company, is a large company in the market.

Alcoa’s fears and the prospect of large companies increased materials producers, after China re-tighten monetary policy and increase the reserves for banks. Steps are taken to control the growth so that not too fast. But on the other hand, can impede the recovery process of other countries as well as negative impact for companies that sell natural resources to the country.

At the same time, President of the United States (USA) Barack Obama has said if he was with the parliament will consider a tax levy on the banking services sector, covering losses in the Troubled Asset Relief Program from the 2011 state budget plan. Triggering shares weakened financial sector, investors worried that the move would erode banking profits.

“Currently, talks about bank charges brought uncertainty in the market, it became the financial sector to turn around,” said Prudential Financial analyst Quincy Krosby.

Some traders took off banking shares over the concerns that Washington would encourage increased income from the bank, in connection with the disbursement stimulus in 2008 and 2009. Senior administration official said, President Barack Obama is considering such steps.

Sentiment carried the Dow Jones index fell 36.73 points, or 0.3 percent to the equivalent level of 10,627.26. Meanwhile, the S & P 500 fell 10.76 points, or 0.9 percent, to equal 1136.22, after being at the best level since 1987 and the Nasdaq index down 30.1 points or 1.3 per cent equivalent to 2282.31.

Income from the Suez Canal of Egypt is strategically dropped 20 percent in 2009 due to the global economic crisis, a Suez Canal Authority official said Monday (11/01).

Revenues reached 4.28 billion dollars in 2009, compared with 5.38 billion dollars in 2008, officials said unnamed. Officials blame “a global financial crisis continued” for the fall.

Canal, which connects the Mediterranean Sea and Red Sea and is one of the shipping lanes of the most widely used in the world, is the source of Egypt’s third largest revenue after tourism and remittances from foreign workers. Volume of traffic through the canal along the 163-kilometer (101 miles) is seen as an indicator of the health condition of maritime trade throughout the world.