Islamic Debt bond Market

Debt and interest on debt is strictly restricted in the Islamic countries. Free debt help is allowable without taking any interest ,or these can be treat as help to someone without intention to get interest from the lending person. As per Quran taking interest or paying interest on debt or loan is against the sariah law. So the bond investment is not popular among Muslim. Most of the petroleum exporting countries are investing there surplus amount in the US free debt help bonds and they not taken interest on the investing amount, these is beneficial for the US and also helpful for these country to protect their religious value. Sukuk which is plural form of sakk is come into existence to fulfill Muslim believe which is also a same thing as free debt help bond where there is no interest is calculated on invested amount of bond. There is no interest is calculated on the bond value.
Sukuk bond market demand continue rising after its arrival. The main reason behind the increase in the sukuk demand is devaluation of market value of the dollar and recession in US economy.
Most of the petroleum exporting country are investing there surplus in US bond market but after 2000 when the US dollar market value continue depreciated and the US economy faces lots of problem and there is continue rising of the US fiscal debt than there is a big problem arises for the OPEC investor and they think that they loss there reserve market value.
Euro would give another option to the investor, but euro unable to become the close competitor of the US dollar.
Islamic finance today is led predominantly by sukuk(plural of sak) bonds; sukuk is an Arabic word which means “certificates.” In its simplest form, sukuk are analogous to assets-backed securities which provide an investor ownership right of an investor ownership right of an assets. The most important criteria for the issuance of sukuk are the existence of the underlying assets on the balance sheet of the issuing entity, which distinguishes sukuk from conventional bonds. Unlike the conventional bond, which is a contract debt obligation entitling the holder to receive interest as well as principals on specified dates, a sukuk holder enjoys proportionate share in the revenues generated by the sukuk assets as in the proceeds of the realization of the underlying assets. Another distinguishing feature of a sukuk is that in cases where certificates represent a debt to the holder, such certificates will not be trade-able in the secondary market and instead is held till the maturity period or sold at par. Moreover, adherence to strict Shari’ah rule, which prohibits speculation, prevents Islamic investors from using conventional hedging tools such as interest rate swaps, forwards or options to offset fluctuations in interest rate and currencies. In last couple of years, the Islamic bond market has undergone huge expansion, partly boosted by the oil-driven financial liquidity in the Gulf and the rapidly growing number of Muslims seeking more religiously-sanctioned products. However, the western world too has begun several banks
Insurance and pension funds, particularly from Europe, entering the fray, with the aim to tap the boom in the Gulf economies led by soaring profits on the back of strong oil prices during the past five years.

Credit Repair after bankruptcy

Repair Credit after bankruptcy is hard but it can be done.You need to create a good transaction history to apply for the credit card.Try to avoid bankruptcy because its badly affect on your credit score, but it don't mean you can loss everything after bankruptcy.
Try to avoid unnecessary expenses or postpone the unwanted expenses for future.Try to use cash for most of the transaction.First you can prepare the monthly budget for your income and expenses this help you to get the actual picture of your financial condition.

You can apply for the secured credit card where you need to deposit a specific amount with the issuing company as a guarantee deposit.This deposit is work as your credit limit.
This guarantee money is refunded when you make a good transaction history with the bank.

Its very easy to get the personal loan or car loan and the installment payment for your loan is also measure for your credit history.If you have made all your installment payment on time than this will go in your favor.

You can apply for store card, this is the secure credit card. Getting the unsecured credit card is the last step.
If you can create a good credit history by paying all you installment on time and there is no default history than you can apply for the unsecured credit card. If you rejected than apply on next half of the financial period.

These are the steps for repair credit after bankruptcy, but if you control your unwanted expenses than sure you don't need to face the problem of bankruptcy.
Future financial condition is not predecide but at least you need to make proper arrangement that if there is any adverse condition arises tan what is your backup support o get out of the financial crunch.

Many time people select the the big installment option for payment of there loan and try to come out of the debt as soon as possible, but when they select the big installment option they don’t assume there future uncertain financial condition. Suppose your monthly income is $20000 and your mortgage installment is $10000 and due to some reason there is medical bill come $ 50000 ,or you got married or you become a father than your monthly expenses increases and you cannot be able to afford the huge installment payment. This is better than you can fix your installment 40% of your income to avoid these circumstances.

You made all your A to Z expenses with card so, you made a huge expenses on different payment.Try to avoid unwanted expenses or make the cash payment when there is small transaction and always try to use your resource by planned manner. Budget is the best way to control your unwanted expenses.

Russian Economy dependence reduce on petroleum

The investment climate in Russia has improved after the government’s efforts to attract private investors. The country has been witnessing several high-profile development deals with western companies. The first global beyond fund in Moscow is Texas Pacific Group (TPG). Others include IKEA, the Swedish furniture retailer, Wrigley, the American chewing gum maker and Wal-Mart. Western firms are also attracted to the consumer boom in Russia. On the other hand, domestic firms are also rising hefty sums for investing in the domestic markets. Overall, Russian firms raised $2.75bn through stock offering in 2006 .However industry expert says that the domestic growth in many sectors is possible only if there is an influx of cash from its primary resource industries and rapidly increasing service industries.

The banking sector is dominated by the state-owned players Sberbank and VTB. Experts opine that the Russian government’s banking model is required to be a mixed banking model is required with dominant role for several state-owned banks competing with strong private and foreign banks. Ideally, In the coming days, There may be some consolidations or tie-ups with strong private and foreign banks. The recently reported Russia-based Ros bank and France’s Societe generale merger is in the right direction. So far, the largest M&A deals are in oil and gas, metals and mining industries. Although, the FDI in Russia is still much lower, It is ahead of Japan and Canada.

Russia may achieve dynamic economy status as the country is slowly moving away from oil dependency. Besides, the recent entry of Russia in the WTO may attract more foreign competitors to the Russian market. However, much depends on the public and the private sectors to effectively act as intermediaries for the demand and supply to determine the shape of Russia’s medium term future, economically and politically. To join the world as a competitive partner, Russia should capitalize on its resources and boost its economic development. However, global experience reveals that natural resources may turn out to be a curse, rather than a blessing. More ever, the increasing corruption level may hamper Russia’s economic diversification. Adnan Vatansever, Associate Fellow at the Institute for the Analysis of Global security (IAGS) warns, “Undoubtedly, Russia has emerged as one of the world’s primary energy suppliers today. Its increasing reliance on natural resources, however, raises questions essential for Russia’s future evolution as well as its international role.

Cadbury Schweppes.................... Beverages on Block

On June 19, 2007, Cadbury Schweppes, the world’s largest confectionery company and the makers of popular Dairy Milk chocolate,in a significant yet surprising development, announced its decision to separate its American confectionery and beverage businesses to concentrate more on it confectionery business. The move assumes significance as earlier, in March 2007, the confectionery major had stated that it would either sell or demerger its Americas Beverages, which owns brands such as Dr Pepper,7Up,Sunkist, Snapple, and Hawaiian Punch. However, executives at the London-headquartered firm stressed that it was not a surprise move as the confectionery giant-as stated by Ken Hanna, Cadbury Schweppes’ CFO – had “been working on the possible separation of beverage for at least a couple of years”. Such explanations in the media by some investors that the British giant might itself be up for sale. Some investors even speculated that Cadbury’s decision might have been influenced by the US activist investor, Nelson Pletz, who recently acquired close to 3% stake in the British major.

The transport and General Workers’ Union (T&G), which has some 2,000 of Cadbury’s 3,500 UK workforce as its members, has expressed concern about Pletz’s intentions.”Cadbury is iconic British brand and a very successful company which does not need the attention of Pletz”, said Brain Revell, T&G National Organizer for food and agriculture. He termed Pletz’s intervention in Heniz as “a ruthless pursuit of profit for share holder”.He added, “Cadbury, with its Quaker background, has been an enormous success for all its stakeholders and shareholders as well as its workforce.

Japanese real estate boom or a bubble

The US sub prime crisis in several ways is reminiscent of the property bubble that took place in Japan in the 1980s. The two events, though separated by almost about two decades, share several striking similarities. Both bubbles were inflated by heavy speculation which, in turn, was fueled by a combination of easy availability of finance and an explosion in new, complex financial products. At its dizzying height, property prices in Tokyo’s Imperial Palace valued more than the entire land in Florida. During the 1980s, Japan’s economy experienced rapid surge in asset prices, increase in money supply and credit, and an expansion of economic activity. What further led to the emergence and expansion of bubble were factors like protracted monetary easing, taxation and regulation biased toward accelerating the rise in land prices, progress of financial deregulation and aggressive behavior of financial institution. During the bubble period , Japan implemented policies that facilitated easy credit Japan and organized large trades through loans from banks. The most famous economic bubble lasted from 1986 to 1990 and it has taken Japan over a decade now it recover from that crisis, although banks are still grapping to clean their balance sheets while land prices are on a journey down south.

While such atrocious valuations may be missing from the US real estate scene, the fact is that the US housing prices kept pace with and even outpaced inflation consistently till 2005.

Between 2000 and 2005, the housing pieces in the US leapt up from about 5% to close to triple the digit. The mortgage lenders dearly with many of them, including Citigroup and Merrill Lynch, writing off billions of dollar question is there any lesson to be drawn from the Japanese assets bubble?

China become the largest technology exporter of the world

China was once viewed by the world a manufacturer of low quality and low priced products such as toys, apparel and textiles. However ,this perception is no longer valid.

It is rapidly emerging as a world class producer of advanced technology products, including semiconductors, fiber optics, pharmaceutical, etc. China’s incredible economic growth has been achieved mostly by its trade and export supremacy. Low manufacturing costs, abundant technically-skilled labor and thriving consumer market have pushed China towards becoming a global manufacturing hub.Its ‘global path’ has stretched significantly. It is now the world’s largest producer of the mobile phone,PCs,and cameras.The huge domestic market is attracting mammonth hi-tech firms worldwide,which have found a ninch in China. The country is in the process of becoming a technology superpower soon.For instance,though a meager 8% of Chinese have access to the internate , this equates 100 million people online, second only to the US. China replaced America as the world largest technology exporter.

Nonetheless, China has long way to go before it could catch up with the US on the technology front. The gap between both the countries in terms of progress in high-technology. The dragon is slowly gearing upto challenge the American dominance in the technology world.The main problem with the Chinese electronic sector is that most of the branded producer facing the problem from duplicate items with low quality.Suppose a black berry device which is a branded company provide new feature and gadget in there new model,the feature model with same name available in China with low prices,this will hamper goodwill of the company.

Food prices vs biofuel

The food prices across the globe hit a record high,and show the signs that they will go on rising this year too as well as in future .In fact ,expert are says that year of cheap food over and the world economy has get used to it .The reason behind the spurt in food prices is certainly not bad harvest,but turning too many foodgrain into fuel.More over the increasing in demand of the biomass energy is also diverting agricultural production away from food crops,leading to mass starvation in poor countries.
The skyrocketing oil prices are driving the demand for biofuels. The increasing demand of biofuels indicate that the prices of the basic staples food such as corn is no longer based on its requirement as a food ,but also a fuel.Accordingly the food market is under going a major change,and there is an unexpected rise in the prices of food grain such as wheat,corn,maize and soybeans around the world.

Biofuels are commercial crops and here the return are much higher than the tradition food crops.
Regular cultivation of the food grain also reduce the productivity of the field so production of the biofuels also help to get achieve the recycle of the food grains.

Western countries are highest suppliers of food grain the world market.Canada,US and Australia are the main source.Asian countries produce huge food grain but most part of the production consumed by themselves.So, very low portion go to the world market which not affect the world trade of the food grain.
It is the problem for all countries so it is important to think on this to get the solution.