Peugeot follows Toyota car recall
Peugeot Citroen, Europe’s second-biggest carmaker, is recalling cars made at a Czech plant with Toyota.
Peugeot Citroen, Europe’s second-biggest carmaker, is recalling cars made at a Czech plant with Toyota.
An automatic trading system is a program that is designed to trade the forex market and enter trades for the trader. These systems are becoming increasingly popular as more and more traders enter the market. These new traders want a way to make get a piece of the pie of forex profits, but are unsure of how to go about doing it quickly, so they turn to an automatic trading system.
In October, I wrote about a “separation” that had taken place in currency markets between the “sick” currencies and the “healthy” currencies. At the time, I argued that the former category was comprised mainly of the Dollar and the Pound, with most other currencies healthy by comparison. While I still stand by this paradigm, I would like to revise it slightly. Specifically, I would like to add the Euro and the Yen to this list.
The recent blow-up surrounding the downgrade of Greece’s debt and subsequent explosion in the price of credit default swaps (which insure against default), have shined a spotlight on the fiscal problems of many of the EU’s member states, including Spain, Italy, Portugal, Ireland, and others. The situation in Japan, meanwhile, has been much more gradual, though equally dangerous: “In 1990, Japan’s total national debt load was 390% of GDP. Now it’s 460%. In the interim, the country has suffered sub-par growth and routine recessions.”
The fiscal problems of the US and UK governments as well as the debts of their citizens and companies have long been famous. For that reason, when the sick/healthy paradigm was first proposed, they were the two most obvious candidates. Having conducted some additional analysis, it’s now patently obvious that the same problems affect the EU and Japan. Given that their economies are also in weak shape, it doesn’t really make sense to group them in with the healthy currencies. Canada (and the Loonie, by extension) is also looking sickly, with its surging national debt and record budget deficits. The only reason it is being spared from the list is because of its richness in natural resources; in other words, it has something tangible that it can use to pay its debts.
Among the so-called majors, then, only the Swiss Franc, Canadian Loonie, Australian Dollar, and New Zealand Dollar get clean bills of health. A re-casting of the paradigm, then, would put the super-majors (Euro, Yen, Pound, and Dollar account for more than 75% of all foreign exchange activity) on one side, and virtually every other currency on the other. Given that national debt ratios and interest rate differentials diverge across the same boundary, it’s not hard to conjure a basis for this partition. “The IMF forecasts that gross government debt among advanced economies will continue to rise until 2014, reaching 114% of GDP, compared to just 35% for developing nations.” Adds another analyst: “If you look at currencies as a proxy for growth, then you can anticipate that emerging-market currencies will appreciate against the dollar.”

There is also a correction that is taking place within the group of sick currencies. investors have come to realize belatedly that a Dollar sell-off doesn’t make any sense against the Euro and Yen, whose economic and fiscal situations could hardly be characterized as healthy. “Against the majors, we’re pretty close to the end, if we haven’t already reached the end of a bear market in the dollar,” asserted one analyst. Given that the Dollar’s demise had all but been taken for granted, this reconsideration isn’t coming natural. Volatility has surged to a 3-month high, and investors are responding by moving funds back to the US. Among the majors, then, it looks like the Dollar is still the “least worst” currency.

Toyota says it is recalling up to 1.8 million cars in Europe, including 220,000 in the UK, due to an accelerator problem.
It has been a proven fact that foreign exchange robot systems, or known simply as forex-automated robots, are specially made to help non-experienced forex traders through the jungle that is the forex market. Before anything else, a lot of people do not realize what they have been missing by not participating in the industry of currency exchange.
In 2009, the South African Rand was the world’s second best performing currency, after only the Brazilian Real. Since September, however, it has stagnated, and over the next year, it is projected to fall 10%. What happened?!

The Rand represents an interesting case study because it sits at the nexus of several trends. The first is the movement of funds into currencies with high interest rates. (The benchmark rate in South Africa is 7%). The second is the movement of funds into economies that are rich in natural resources. (South Africa is the world’s largest producer of platinum and the third largest producer of gold). The third is the movement of funds generally into emerging market economies. (South Africa’s economy was one of the world’s strongest [perhaps least weak is more apt] economies in 2009).
Thus, we should ask whether then Rand’s stagnation and projected decline is due to unique circumstances, or if instead it represents a reversal of one or more of these trends. Let’s start by looking specifically at South Africa. First of all, natural resource prices (gold and platinum) remain buoyant. Gold, as most of you are probably aware, is still hovering close to its (nominal) all-time high, while the price of platinum has resumed its upward trend, and is arguably closer to is all-time high than oil. In short, the pessimism can’t be explained by commodity prices.

How about interest rates? Well, South African rates are among the highest in the world. Despite a handful of cuts totaling 500 basis points over two years, the benchmark rate still stands at a healthy 7%, which is significantly higher than its counterparts in the developed world. Unfortunately, inflation in South Africa is also quite high (6%), which means real interest rates are closer to 1%. In addition, while Central Banks in other countries are contemplating raising rates, South Africa hasn’t ruled out cutting its benchmark further.
What about the fact that South Africa is considered to be one of the world’s vanguard emerging market economies? Well, this too, looks shaky. In contrast to the modest contraction in 2009 that made it a standout, 2010 may not be so kind. Analysts are expecting growth of only 2% in 2010, near the bottom of all economies, emerging market and industrialized. The US economy is projected to grow by 2.6%, in comparison.

With the exception of commodity prices (and perhaps the World Cup), there really isn’t much to be excited about when it comes to the South African Rand these days. For those looking for a growth play, South Africa isn’t it. For those employing a carry trade strategy, the Rand is also not an attractive candidate, since the positive interest rate spread it enjoys (small in real terms and shrinking) is hardly enough to compensate for the risk of currency depreciation. Those looking at Rand technicals (forgive me for not citing specifics here) must be worried that the Rand’s monumental surge in 2008 could only be followed by a correction. Not to mention the fact that various political factions in South Africa are calling for the Rand to be pegged to the Dollar at a rate 33% higher than current levels.
When you consider also that asset prices in emerging markets are now stalling, as investors fret about possible bubbles and contemplate bringing cash “home,” and also that the carry trade is slowly falling out of favor, it’s no wonder that analysts are gloomy about the Rand’s near-term prospects.
Toyota announces the recall of vehicles in the US, Europe and China over concerns about faulty accelerator pedals.
Legendary investor George Soros says it is necessary to break up banks and create global rules to prevent another crisis.
One of the best creations of technology nowadays and evidently useful is the surfacing of the automated Forex robot. This is the so-called automated Forex trading software which makes it easy for anyone who wants to start up with a Forex trading business.