Turbulent Times for Foreign Exchange

BRICS Ditch the Euro

The BRICS nations, consisting of Brazil, Russia, India, China and South Africa, have been unloading their foreign exchange holdings of the Euro over the past two years. In 2012, the combined group of countries dropped almost $46.5 billion worth of the European currency. As a result, the status of the Euro as a world reserve currency has been greatly reduced.

For those with a CFD broker, who enjoy forex trading and playing the stock market, it would be wise to keep an eye on the fluctuating financial markets. Currently, the euro accounts for 24% of the allocated reserves held by 109 of the IMF members designated as developing economies. This is the lowest percentage since the euro was introduced in 2002.

A senior fellow at the Peterson Institute for International Economics, Edwin Truman, announced that as a result, “The effects of the euro crisis will linger, growth will be slow, interest rates will remain low, and the general attractiveness of euro assets low”.

Google versus Europe

Google has had its fair share of bad publicity when it comes to its privacy policies.  Last year it opted to amalgamate all 60 of its privacy policies (for YouTube, Gmail etc) into one universal procedure. Now Google is in hot water with six different European data protection authorities which have voiced their concerns on the new policy.

Who’s complaining?

Data protection authorities from France, Britain, Spain, Italy, the Netherlands and Germany have all investigated Google’s privacy policy document and have made requests for changes to be made.

Europe’s data protection laws are almost all stricter than those of the US and CNIL, France’s privacy body, along with its European counterparts have threatened an investigation and the issuing of fines.

Malta Jobs Creation with Aviation Industry Growth

As Malta becomes one of the hotspots for international investment, many Maltese companies are seeing a major boost to their business. M.C.M Maintenance Centre Malta is one such company that is growing and creating more Malta jobs for locals, with their latest acquisition of a hangar for more aircraft maintenance.

Job Creation

Started in December 2008 M.C.M Maintenance has grown substantially and increased their employment significantly particularly in the operations department. The company specialises in the repair and maintenance and aircraft, specifically in the overhaul of business jets. The company’s recent acquisition of a new hangar is thanks to a 5.5 million Euro investment, which means 40 new Malta jobs. The company operates from the islands but with its international clientele their need for an international law firm means even further job creation. The demand for larger aircraft has led to the need for larger facilities, as the current M.C.M Maintenance facilities cannot reasonably accommodate larger craft. The new hangar will be 2,400 square-metres and is set to be constructed adjacent to the current hangar.

Fears Over Sliding Value of Sterling

There is a growing concern as the value of the Pound begins to slide to the lowest since the Lehman Brothers bank collapse in 2008. Foreign exchange branches have seen a rush to buy Dollars and Euros as the British public have fears that the Pound will slide further against many of the strong world currencies.

Rush for Cash

Many Britons going overseas or have international properties have placed mammoth orders for Euros and Dollars since news of the weakening Pound hit headlines. Forex trading rates and exchange conversions have seen a huge leap in the sterling-to-euro demand, and many of those making the big purchases are wealthy people with international properties and investments, but several holidaymakers are also scrambling to ensure they get their money’s worth while overseas.

G7 Issues Statement Regarding Foreign Exchange Concerns

Warns Against Currency Manipulation

The Group of Seven nations, consisting of the United States, Britain, France, Germany, Japan, Canada and Italy, reiterated their support for foreign exchange rates that are determined by the market, instead of practices aimed at deliberately affecting global currency exchange. This comes in response to Japan’s recent fiscal policies, which have intentionally weakened their domestic currency in order to combat inflation and stimulate the economy. Switzerland has also implemented a similar financial strategy in order to maintain the strength of the Franc.

Possible Consequences?

French officials are worried, however, that these policies will adversely affect the foreign market and forex trading, by driving up the price of the Euro even further. Since many economies in the Eurozone are still under immense pressure, this is a pertinent concern. However, the head of the European Central Bank, Mario Draghi, maintained that the situation would be closely monitored. Currency manipulation can have a domino effect, wherein other countries make use of similar policies in order to remain competitive and reduce their export prices. This in turn can lead to the disruption of foreign exchange rates, and ultimately result in what is colloquially known as a “currency war”.

Warehouse Space Shrinks as Rice Stockpiles Rise

Thailand, February 2013 – Rice stockpiles are set to reach a record high this year, and the nation’s Government is faced with the task of sourcing enough warehouse space to adequately store the abundant grain. According to the Food and Agriculture Organisation (FAO), global rice production is currently outpacing consumption, and is set to rise an estimated 7% (around 10 million tonnes).

Industrial Storage of Rice

Warehousing and mezzanine companies will recognise the importance of storing produce correctly to maximise its shelf life. White or polished rice can be stored for a decade or more if it’s correctly packaged in a cool, clean and dry space, but brown rice spoils relatively quickly – within less than a year.

Sustainable Construction Projects Applauded by UK Government

No entity in the UK seems to be more consistently linked to construction projects than the government at the moment as it announces the success of several large scale developments in efficiency and cutting waste. The success awarded by these construction projects paints a promising picture for 100 delegates in the industry from across the country who sat with government to discuss further implementation of these efficiency research programs. It’s safe to say these developments will affect everything from skyscraper to mezzanine floor construction in the country. For SMEs in the UK, construction is a vital driver of growth in the economy so from the foundations to the ceiling there are smiles all around.