Asian shares down on continued concern over Portugal

Investing.com –

Investing.com – Asian markets traded down at the end of the week led by South Korea as concerns of over the health of a Portuguese lender shocked global markets.

Japan’s Nikkei 225 lost 0.3% and South Korea’s KOSPI was down 0.8% and Australia’s SP/ASX 200 down 0.2%.

The decline in Asia folowed U.S. stocks, which fell on reports Portugal’s largest bank missed payments to bondholders, which sparked concerns that banking sectors in the euro zone periphery may be in trouble.

The Dow 30 fell 0.42%, the SP 500 index fell 0.41%, while them NASDAQ Composite index fell 0.52%.

The parent company of Portugal’s largest bank, Banco Espirito Santo (LISBON:BES), said it missed payments on commercial paper to a few clients, which spooked markets by fueling concerns surrounding the soundness of the banking sectors in Portugal as well as in Spain and Italy.

Elsewhere, weak euro zone factory data rattled nerves in stock markets across the globe, including in the U.S.

Italy’s industrial output unexpectedly fell 1.2% in May from April, defying expectations for a 0.2% expansion, while French industrial production plunged 1.7% in May, also confounding expectations for a 0.2% gain.

Meanwhile in the U.S., solid jobless claims managed to help bring prices up from earlier lows.

The U.S. Department of Labor reported earlier that the number of individuals filing for initial jobless benefits in the week ending July 5 declined by 11,000 to 304,000. Analysts had expected jobless claims to hold steady at 315,000 last week.

Elsewhere, Wall Street continued to applaud the Federal Reserve’s June policy meeting minutes released day earlier, which pointed to an October date in which the U.S. central bank’s bond-buying program should end.

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CBI uses the electronic payment system

aggiedad77 “Central uses the electronic payment system for the settlement of the instruments between governmental institutions and banking”

Hasn’t Frank been talking about this very topic….that the CBI would be using the electronic payment system going forward….here is the start…..with governmental institutions and banking entities…..and more to come of course when they load the Q cards…..they are foretelling that this will be a safe and efficient method of banking….of note too is that many Iraqi banks are still in the process of catching up to internet business…..given time they will get there.

Mutual cooperation has been discussed between Iraq’s Premier and Egyptian President

The Premier, Nouri al-Maliki, discussed with Egyptian President, Abdul Fatah al-Sisi, over phone on the mutual cooperation in all fields between the two countries.
According to a statement, received from Maliki’s office, said, “Maliki phoned al-Sisi as appreciated the Egyptian stance in supporting Iraq against terrorism.”
The statement also added, “Maliki highlighted the huge vital role of Egypt headed by al-Sisi and called to expand the cooperation between the two sides.”
Finally, the statement concluded, “For his part, al-Sisi stressed that he will send the Egyptian FM to confirm the consolidation of bilateral relations and called to invest the time to form the new Iraqi Government.”

LINK

More Tidbits from Frank26 and KTFA Members Thursday Evening

moneytalks1   FRankie, Frankie, You are amazing!! I don’t suppose you know exactly when we can cash in at what price!!!???   Thanx

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Frank26:  IMO ……Yes I do ……. But You don’t want me to spoil dinner for You do You?

Besides ……. In the last 8 days …….. I have posted it twice but no one saw it or caught it or understood it.

TEAM CC tonight ……. Look.

KTFA,   Frank
….

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AzProf:  This one on or about the 6th….

Hmmm ………… I came out with ………… 9281214.

That is the number to my next ……….. TEAM FILES.

I best go now ……….. I Love My KTFA Family………

KTFA, Frank

Then, a couple days later, Frank was talking about the tooth fairy..
Getting 9.28 per and 1214 for a wisdom tooth.

Does that mean ..
DATE- 9/28/2014
RATE- 1 dinar = $2.14 ??

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McDan:  Frank who’s having a baby? They might be going into labor. What is up with the word pregnancy word in this article

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Frank26:   This RI/RV of the IQD is at 9.5 months ……… Overdue!!!

Water broke and evaporated !

The crown even came back around !!

The Labor has been so long ……. It formed a Union !!!   lol

KTFA,  Frank

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Sager .”It is expected that the agreement will be concluded before the Eid Al-Fitr holiday, at the end of July, during a meeting to choose the three government prominent posts.”

Let’s see what happens this Sunday first   Sager

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Frank26:  Brother …..IMO ….. This Sunday must not be a Sinday for the Iraqi Politicians!

They find more ways to sin against their Citizens and those who Help them.

If they sit ……. Lava Flows.

If no sit ……… Lava still Flows but more sluggish……. IMO.

Indeed ……. This Sunday is a key day in progress.

KTFA,   Frank

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fbs : I guess O wasn’t the blame for the troops leaving Iraq after all. May God have mercy on us all because we all need it..

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Frank26:  No ……. He is 100% responsible for You and The World being delayed two years for the SECURITY and STABILITY of IRAQ and ……….. He knows it.

O feels like he is on Saturn because the pressures is killing him.

KTFA, Frank

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22coconuts22 » July 10th, 2014, I was just watching abc news and they were talking about how some storms are causing unseasonably cold weather in July.

They called it julember (July and December combined)

hmmmm maybe it will be Christmas in July

Tlar: “No News Is Probably Good News”

Post From Currency Chatter – Tlar & Friends Comments After News  Article

US, Iran and Saudi agree on Maliki’s third term

The United Sates, Iran and Saudi Arabia have agreed to allow Iraq’s Prime Minister Nouri Al-Maliki to stay in office for a third term, Al-Araby Al-Yawm newspaper reported.

The news agency quoted an Iraqi source familiar with the agreement details as saying “according to the agreement Al-Maliki will have to give up sovereign ministries and the security file, and abide by the 2010 agreement and establish a National Security Council for Iraq, headed by a Sunni figure.”

Sunni, Shia and sections of the Kurdish Jalal Talabani’s group have united to counter Kurdistan’s attempts to separate from Iraq, the source said.
~~~

  It is expected that the agreement will be concluded before the Eid Al-Fitr holiday, at the end of July, during a meeting to choose the three government prominent posts.

According to the source, Barham Saleh will be chosen as president while Saleem Al-Jbouri will act as parliament speaker, and Al-Maliki as prime minister.

“Tarek Najm is expected to become vice president, and Hussein Al-Attiyah will act as foreign minister succeeding Hoshyar Zebari,” Al-Araby Al-Yawm said.

The source noted that Sunni figures from Tikrit and Mosul will be chosen for sovereign ministries.

The Iraqi parliament announced yesterday that it has decided to bring forward its second parliamentary session. “We have decided to bring forward the second parliament session to Sunday July 13,” acting parliament speaker, Mehdi Al-Hafez, said in a statement.

Military sources said the Iraqi forces continue to bomb Sunni areas in Tikrit, Baquba and Diyala where elements of the former Iraqi army and Baath Party affiliates are believed to be positioned.

According to the source, Sunni leaders describe Sunni militants as rebels who revolted against Al-Maliki’s sectarian policies.

https://www.middleeastmonitor.com/news/middle-east/12663-us-iran-and-saudi-agree-on-malikis-third-term

BlueyesinLevis:  The Sunni’s would burn Iraq to the ground….  obvious bull crap  The Saudis DESPISE Maliki…

rDiddy   I can imagine the average Iraqi’s response – why bother having elections if the US, Iran and the Saudis are calling the shots? I call BS on this article

Tim:   don’t believe it, maybe Iran would support Maliki but there’s no way that the US and the Saudi’s would support a marginalized dictatorial government.

Rileysetter:   Saudi Arabia is 90% plus Sunni Muslim.  I highly doubt they would give their stamp of approval to Maliki.  If they found a way to strip him of most of his power…maybe…but I still have my doubts about this article.

KJWayne:   What was it tlar said would happen, more mis conflicting news and rumors JUST before the end. Or something like that.  I call this as one of the BS articles he is talking about.

Peace:  KJWayne I agree there’s too much suffocating smoke “Cough!!!!

XXXXX:  Here’s Vinman’s thoughts on this: “

If the “National Security Council,” (which would be headed by a Sunni) is the same entity discussed in the original Erbil agreement, then this is just plain BULL.

 Assuming it’s the same, the entity mentioned in the Erbil Agreement would have had POWER sharing and quasi-legislative power. THERE IS NO PROVISION FOR THIS IN THE IRAQI CONSTITUTION.

To create an entity with “power” authority would require an amendment to the Iraqi Constitution. They can’t just “create this out of thin air,” just as President Obama cannot meet with Pelosi, Reed, Boehner and McConnell to form and decree a “group” of government with any decision-making authority or legislative power.

This is exactly how Allawi got hosed last time. After winning the popular vote (like Maliki did this time), he agreed to head this “Council” as part of a power-sharing agreement. But the Council was unconstitutional. Ooops. Sorry bud… you lose. But Maliki had already become PM so it was too late.

 This is like a re-run of a really bad movie. I don’t believe it for a nano. Don’t need any popcorn for this one. I’m changin’ the channel.”

Aaanth:               ths article has “made the rounds: already and has been shown to be part of the maliki spin machine.  it’s complete BS.  disregaed this entirely

BeastMaster:     Frankie Frankie believes this to be true. Actually, Frankie Frankie implies that he knew this was coming and it’s out a day early.

 Ralph:    Tlar, pardon me, but what is POP??  Appreciate your input as always!!

Tlar:   President of Parliament.  Equivalent to our Speaker of the House in his duties.  tlar

Tlar:   There is no news that is noteworthy coming out.  At this point in the process, no news is probably good news.  What is being printed is utter nonsense. 

Articles like this and the other saying the US and Iran are on board with a third term, are ridiculous.  With all that’s gone on, who would generate such a stupid premise? 

I am sure there are a few holdouts in the SOL that are still hoping to see a third term most likely because they are deeply involved in theft and need the protection and are still speaking to the press, but by and large the SOL has turned its back on Maliki. 

There is progress being made but we won’t see it yet because the negotiations behind the scene I’m sure are delegate.  (delicate?) We will wait to see the results of what has been going on this Sunday or before.

 Everything will continue to be confusing in the news until then because the news itself is being largely kept in the dark and they are searching for stories.  Hang in everyone.  This will come out right. 

I am hopeful that they can build the government in one day but realistically it might take a couple of days.  If we see the new POP in place, that means to me that the 3 presidencies are more than likely to follow quickly. 

It also could be that the new government could be introduced all at once before Sunday.

 If that happens we would then know that parliament has already been in session for a few days and would answer someone on here who asked the question,

” if parliament is not in session, where are all the new laws that are being announced in the Gazette coming from?”  It’s a very insightful and intriguing question.   tlar 

www.currencychatter.com

Caught in crossfire – the oil industry of Iraq

While the mayhem and political impasse go on in Iraq, it is not possible to underestimate the impact on the domestic market and crude oil prices in the world.
Since almost a month’s time span, intense fighting erupted between the forces of the Baghdad government and its adversaries in most of the west and north of the country. Of course, the current situation is a result of the government’s failure to handle peacefully what was initially an orderly and transparent demonstration to demand reforms in the way the country was being run, especially in the now affected areas.
The oil situation in Iraq even before the current crisis was mixed. While crude oil production was rising slowly but surely after the signing of a multitude of service contracts with international oil companies, the domestic oil market was far from being satisfactory.
For 11 years, the government failed to operate its refineries at more than 70 per cent of capacity and their expansion was slow in coming. The quality is the lowest among its neighboring countries. It was only recently that Iraq signed a contract to build a new refinery which may come on stream in 2018.
Therefore, Iraq relied on petroleum product imports to satisfy rising demand, with severe shortages being reported every now and then. The average daily import of light petroleum products in 2013 and the first quarter of 2014 were close to 100,000 barrels a day and at an enormous cost to the economy.
Focusing on a Battle Ground
In the current crisis, the Baiji refinery became a battle ground and was even damaged by helicopters raids. It is now out of operation and it is difficult to estimate the damages. As this refinery contributes close to 50 per cent of domestic products production, imports are definitely going to rise sharply, though the government is denying products and electricity to those regions impacted by the uprising.
On the gas side, the situation is bleak; Iraq is flaring almost 12 billion cubic meters a year of gas while the power stations are crying out for more gas instead of the costly liquid fuels. Gas processing plants are not even at the level they were in 2003 and new ones are yet to be initiated to cater to rising gas production. While flaring is going on, the government is to import gas from Iran and it is doubtful whether this solution is in any way positive.
As was said earlier, Iraq’s crude oil production is rising, especially after the rehabilitation of some old fields and the start-up of production from new fields such as Badra, Gharraf, West Qurna 2 and Majnoon. Production in 2013 was close to 3 million barrels a day (mbd) and exports around 2.4 mbd. However, Iraq lost its northern exports since early March and also the Kirkuk fields to the Peshmerga. Therefore, the expected increase in the southern fields this year may only compensate for the loss of the northern production.
All this is likely to change since what happened on June 9 led to the central government losing control over large swathes of the country. Many oil companies in the south have reduced their staff substantially as fear rises that violence may even involve the southern governorates. Judging by what happened recently in Karbala, Dewaniya and other places is an indicator that this is now more probable.
Additionally, the country is locked in a political crisis where no mandates emanated from the first meeting of the Parliament to elect a speaker and president and to form a new government.
To demonstrate the seriousness of the situation we have just to look at the oil market reaction. Although Iraq’s exports have not been affected so far by the fighting in the west and north of the country, crude oil prices rose sharply with Brent rising from $109.82 a barrel on June 9 to more than $115 on June 19.
Although prices eased later due to the return of Libyan export ports to under government control, the risk premium to Iraqi oil is still there. Some media sources reported that Asian refiners shunning Iraq crude in the spot market “worried that the militant insurgency in the country could spread to the area where the oil is churned out and exported”.
The most serious result of the Iraqi situation so far is the fact that the Kurdish Regional Government has seized Kirkuk and its oilfields in addition to all what they call “disputed regions” and declaring that they will not give them back under any circumstances.

LINK

Amidst crisis, western banks being withdrawal from Iraq

The western banks are reportedly pulling out senior staff from Iraq, and are also tightening controls on clients’ funds in wake of the escalating security concerns in the country.
British lender Standard Chartered has relocated the head of its Iraqi business, Gavin Wishart and another official to Dubai, from where they continue to manage operations.
While Wishart is regularly flying to the country from Dubai, the bank’s local staff in Baghdad branch has been working from home recently for security reasons. StanCharted is claimed to have the biggest presence of any Western bank in Iraq following the opening of two branches in Baghdad and Erbil in November and December 2013.
The bank, which has 21 employees in Iraq, had originally planned to open a third branch in Basra by last month, but put the plan on hold due to the rapid advance of the Islamic State of Iraq and the Levant (Isis) militants.
Another foreign bank, Citigroup has also moved the head of its Baghdad-based representative office, Dennis Flannery to Amman, Jordan, while advising its multinational corporate customers to reduce the amount of cash they keep in Iraq to a minimum.
In addition, HSBC has suspended its correspondent banking relationship with the Iraqi lender, Dar Es Salaam Investment Bank, in which it owns a 70% stake.
HSBC had planned to divest its stake in Dar Es Salaam Investment Bank last year, but the sale was delayed due to a technical problem in transfer of the Baghdad-listed shares, according to person with the knowledge of matter.
However, financiers insist that foreign lenders continue to operate and service their big multinational corporate clients in Mosul and other places that are under Isis control. The bankers told last month that they were preparing for the worst situation after Isis militants stole about $450m of cash and gold from Mosul’s central bank and other banks in the northern Iraqi city, according to the news agency.

LINK

Indicators on the seriousness of the Iraqi dinar

7-10-2014  Aggiedad77 Article: “Indicators on the seriousness of the Iraqi dinar because of the security crisis and the government strongly reassure reservists” I firmly believe there must be a large number of people around the world that only read headlines and some of these are written purposefully to incite fear just from the title…while many Iraqi’s made the choice to remove their money from various banks at the outset of the security issues with ISIS…the dinar itself has essentially remained unphased by the crisis…..as has been repeatedly mentioned over the past few weeks the reserves that the CBI has can easily continue to support the exchange rate of the dinar against the dollar.