will

By Shamim Adam March 3 (Bloomberg) — Asian policy makers risk creating asset bubbles and fueling inflation by keeping interest rates “too low for too long” in their attempts to boost domestic demand, Standard & Poor’s said. Fiscal and monetary stimulus, along with an improvement in the U.S. and Europe, and China’s “locomotive” economy have helped strengthen the region’s recovery, economists led by Dharmakirti Joshi wrote in a report released today. Asia is leading a global recovery from the worst slowdown since World War II, prompting the region’s central banks to start removing some emergency steps taken to counter the slump. Policy makers in China, India and Vietnam have tightened monetary conditions amid signs that accelerating growth is fueling inflation and increasing the risk of asset bubbles. “Although Asia-Pacific economies will continue to face the challenge of offsetting slow external demand by creating enough domestic demand for local goods, keeping interest rates low for too long, or bringing in further fiscal stimulus, could create heightened inflationary risks, asset price bubbles, and fiscal worsening,” the S&P analysts said. Asset bubbles are starting to appear in Asia, where stock and property markets are looking “frothy,” David Wyss , an economist at Standard & Poor’s, said in a conference call today. Australia’s central bank yesterday resumed raising interest rates after a one-meeting pause amid a booming jobs market, rising home prices and a rebound in confidence. Monetary Tightening S&P said it expects monetary tightening this year in South Korea , Hong Kong and Singapore, where asset-price volatility is becoming a concern. India and China will also further tighten policy, according to the report. In Japan, where the recovery is lagging behind the rest of the region, such a move is less likely and further policy support will be needed to mitigate recessionary conditions, the analysts said. China, India, Vietnam, and Indonesia will continue to “lead the pack” in economic expansion in 2010, S&P predicts. It said China’s “robust” recovery and strong domestic demand have spurred imports from the rest of the region. “The overall improvement in the Asia-Pacific’s economic performance is coinciding with a gradual, albeit patchy, stabilization of the global financial and economic system,” the economists wrote. “In our view, this situation warrants careful policy configuration.” Growth Risks Risks to Asia’s growth include inflationary pressures and the sustainability of the recovery in the U.S. and Europe, according to the report. “Inflationary concerns remain, due to oil and commodity prices and higher asset prices,” the economists said. “Higher inflation may inspire faster rate hikes, which may in turn jeopardize the pace of the growth rebound. Inflation may also deter recovery in private investment.” Most Asian governments will probably shift from “crisis management to ongoing recovery management” this year and this will affect funding costs, S&P analyst Ian Thompson said in the report. “This shift will likely entail moderating expansionary programs, raising official interest rates, and gradually withdrawing fiscal stimuli to avoid asset-price inflation,” Thompson said. “This will necessarily have a negative effect on funding costs for the corporate, infrastructure, and financial institutions sectors, and runs the risk of stalling recovery if poorly executed.” To contact the reporter on this story: Shamim Adam in Singapore at sadam2@bloomberg.net

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Asia Risks Asset Bubbles Due to Low Rates, China `Locomotive,’ S&P Says

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What’s Next for Bulgaria?

by on February 8, 2010

Catherine Deshayes The Move Channel Banks could hold the key to what will happen with Bulgaria’s depressed real estate sector in 2010, it is claimed. There are concerns that if they decide to start selling foreclosed properties this will lead to prices

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What’s Next for Bulgaria?

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Malaysia confident economy will grow 5% this year

January 24, 2010

Malaysia confident economy will grow 5% this year

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Australia Says Economy to Grow Faster Than Expected, Keeps Deficit Outlook

November 1, 2009

By Madelene Pearson and Jacob Greber Nov. 2 (Bloomberg) — Australia’s government said the nation’s economy will grow faster than previously expected and the budget deficit will be in line with a previous forecast. The nation will have a cash deficit in the 12 months ending June 30, 2010, of A$57.7 billion ($51.8 billion), compared with A$57.6 billion forecast in May, Treasurer Wayne Swan told reporters today in Canberra. The economy will grow 1.5 percent compared with a May forecast of a 0.5 percent contraction. Australia’s economy is growing faster and generating more jobs than the government forecast six months ago, after record interest-rate cuts and more than A$20 billion ($18 billion) in cash handouts to consumers spurred spending. Rising household confidence and China’s demand for natural resources were among reasons central bank Governor Glenn Stevens last month raised borrowing costs from a half-century low. “The improved economic outlook reflects the effectiveness of monetary and fiscal stimulus in Australia, and the stronger global recovery,” Swan, 55, said today. The central bank, which on Nov. 6 is also due to publish revised economic forecasts, in August scrapped a prediction the economy will fall into a recession. GDP will rise 1 percent in year through June 2010 and 3.25 percent the following year, it said. GDP growth unexpectedly accelerated in the second quarter at the fastest pace in more than a year, expanding 0.6 percent from the first quarter when it gained 0.4 percent. Growth was driven by consumer and government spending, including A$22 billion on roads, railways and schools. Third-quarter figures will be published next month. IMF Forecast The International Monetary Fund last week reiterated its prediction that Australia’s economy will expand 0.7 percent this calendar year and 2 percent in 2010. Mounting evidence of an economic rebound prompted Stevens to raise the benchmark interest rate last month by a quarter percentage point to 3.25 percent, making him the first Group of 20 policy maker to raise borrowing costs since the height of the global financial crisis. Eighteen of 22 analysts surveyed by Bloomberg News expect Stevens will raise the overnight cash rate target by another quarter-point tomorrow. The rest predict a half-point increase. The government today forecast a A$46.6 billion deficit in fiscal 2010-11 with 2.75% economic growth and a A$31.2 billion deficit the following fiscal year. Inflation Outlook Inflation will be 2.25 percent this fiscal year, in line with the central bank’s annual target of between 2 percent and 3 percent. It will be the same in 2010-11, Swan said. The consumer price index rose 1.3 percent in the third quarter from a year earlier. Australia’s jobless rate , which Swan predicted in May would reach 6 percent in this year’s second quarter and 8.25 percent 12 months later, fell in September for the first time in five months, declining to 5.7 percent from 5.8 percent. The unemployment rate will rise to 6.75 percent by the June quarter of 2010, decreasing to 6.5 percent the following year, Swan said. Swan is due to release the national budget for 2010-11 on May 11 in Canberra. To contact the reporters on this story: Madelene Pearson in Canberra on mpearson1@bloomberg.net Jacob Greber in Sydney at jgreber@bloomberg.net

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Mikulski, Cardin Announce Maryland Organizations to Receive $185 Million in New Markets Tax Credits

October 31, 2009

– investments that will help finance community development projects, stimulate economic growth and create jobs. This will create real opportunities to change lives and transform communities,” said Senator Mikulski, a senior member of the

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Fitch Cuts Ratings On Peter Cooper CMBS, Says Default Likely …

October 30, 2009

Upon default, the special servicer will need an updated appraisal. If this is significantly lower than the outstanding loan amount, appraisal subordinate entitlement reductions (ASERs) based on an appraisal reduction amount (ARA) will …

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World Assurance Group Inc. (PINKSHEETS: WDAS) Launches Credit and Distressed Real Estate Subsidiary Anav Holdings … (Marketwire via Yahoo! Finance)

October 9, 2009

NEW YORK, NY–(Marketwire – 10/09/09) – World Assurance Group Inc. (Pinksheets: WDAS – News ) announced today that it has embarked on a new direction by launching Anav Holdings Corporation. Anav Holdings Corporation will be focused on distressed commercial and residential real estate opportunities within the United States, the United Kingdom, Germany and Canada. The investment strategy will …

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Jones Lang LaSalle starts online auction joint venture – Chicago …

September 16, 2009

Jones Lang LaSalle and other real estate firms see the potential for a growing market for distressed commercial real estate as the number of commercial property defaults continues to climb and are hoping the online auction approach will …

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Afghanistan’s Election Security Tests Police, Army as U.S. Forces Lay Low

August 18, 2009

By Viola Gienger Aug. 19 (Bloomberg) — Newly trained Afghan police and army soldiers will aim to show progress toward self-sufficiency as they take the lead in providing security for tomorrow’s presidential and provincial elections. With about 6,500 polling places to protect, the Afghan National Police and the Afghan National Army will be the most visible security presence, said Australian Brigadier General Damian Cantwell, chief of the election task force for the NATO- led coalition force in Afghanistan. Foreign troops will keep their distance, monitoring from the air and providing backup on the ground as needed, he said. “I think it is a critical step in the development of both the Afghan Security Forces but also the country as a whole for the people to see and develop trust and confidence in their own security agencies,” Cantwell told reporters at the Pentagon yesterday via video link from Kabul. The Afghan forces will try to protect an estimated 15 million registered voters across a country almost the size of Texas. Taliban militants who sheltered al-Qaeda before the Sept. 11, 2001, terrorist attacks on the U.S. have stepped up their campaign of violence leading up to the election. A suicide bomber detonated an explosive in a vehicle on a busy street in Kabul yesterday. It killed one member of the international force as well as seven Afghan civilians and two United Nations employees, said Canadian Brigadier General Eric Tremblay, a spokesman for the force. More than 50 Afghans and two civilian employees of the International Security Assistance Force were injured. Disrupt, Discredit The insurgents clearly intend “to disrupt and discredit the process wherever possible,” Cantwell said. “For that very reason, I think it’s critical that the Afghan security forces are seen by their people as a credible response.” The number of militant attacks in Afghanistan has risen from an average of 32 a day in the past 10 days to 48 a day in the past three to four days, Tremblay said during the joint briefing with Cantwell. That number is low in comparison to the number of polling locations nationwide, he said. Statistically, “they’re not going to be able to attack even 1 percent of the entire polling sites in this country,” Tremblay said. At least 13 politics-related killings and at least 10 abductions of Electoral Commission officials, candidates and campaign workers occurred between April 25 and Aug. 1, according to New York-based Human Rights Watch. “The overall security situation is considerably worse than during the last elections” in 2004 and 2005, the group said in a statement this week. ‘Agile Posture’ Even with an increase in foreign forces in Afghanistan this year to quell a growing insurgency, the 63,000 U.S. troops and 40,500 others will hang back out of sight in a “low-profile but agile posture,” Cantwell said. Afghan police will provide the most close-in security at each polling site, with the Afghan army securing nearby neighborhoods and roads. The international forces will serve as the third and fourth tiers of security. The international force is counting on the security plan, multiple checkpoints approaching the polls and scenario rehearsals to mitigate the inexperience of the 92,000 Afghan troops and 80,000 police officers trained thus far. “We recognize that, as security agencies, they have some way to develop and mature,” Cantwell said. Among the weaknesses he cited was the lack of a “long-range planning culture.” “They are very aggressive once on the ground to ensure they’re doing the very best mission they can,” he said. Election security should be sufficient to provide “reasonable access” for 85 percent to 90 percent of registered voters, Cantwell said. Long Haul President Barack Obama , who earlier this year authorized 17,000 more combat troops and 4,000 additional trainers to augment Afghan security personnel, has tried to prepare Americans for a long haul in Afghanistan. “This will not be quick,” he told a Veterans of Foreign Wars convention in Phoenix yesterday. “This will not be easy.” Security for the election is “as good as one can expect in a country where you still have an active insurgency,” said Mark Schneider , senior vice president for the International Crisis Group , a Brussels-based nonprofit policy organization. The Afghan security forces are “much stronger” than they were during the last presidential election in 2004, he said. Their training period is short, just eight weeks for the police, for example. “The level of competence is pretty low,” Schneider said. Use of Donkeys Afghanistan’s Independent Election Commission , which registered 4.7 million new voters this year, illustrates the security challenges in its own plans, which call for more donkeys than cars to ferry supplies such as voter screens and tables and chairs to polling stations. The commission will use 3,039 cars, three helicopters and 3,171 donkeys, according to a July 29 statement outlining preparations. Security has declined in western Afghanistan since 2005, according to World Vision , an international aid group that works in three provinces. With the biggest U.S. and coalition military efforts concentrated in the country’s volatile east and south, development assistance has followed to those areas, and the west receives relatively little security or aid by comparison, said Christine Beasley, World Vision’s country program manager. The fear among Afghans in provinces such as Herat and Badghis and Ghor has spilled over to the election season. “What we’re seeing in our areas is lots of concern about the safety of voting,” said Beasley, who returned from Afghanistan in late June. World Vision, which lost four Afghan staff in two attacks in 2006, evacuated its foreign workers last week until after the election. To contact the reporter on this story: Viola Gienger in Washington at vgienger@bloomberg.net .

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