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Analysis: ECB struggles with "D" word as price rises slow – even fall

FRANKFURT (Reuters) - Modelled on the hawkish, inflation-fighting Bundesbank, the European Central Bank is used to focusing on containing price rises rather than worrying about them increasing too slowly - or even falling.

But now ECB policymakers are keenly aware that inflation in their 17-country euro zone risks slipping further below their target of just under 2 percent, even if they insist deflation is not a threat.

The concern - which will add to pressure for the bank to cut interest rates or take other "easing" actions - has been highlighted by a slide in Greek inflation to below zero.

So far Greece, which entered deflationary territory in March for the first time in 45 years, is an isolated case. But price pressures are weak elsewhere in the euro zone periphery once tax rises are discounted.

In Portugal, annual inflation is running at 0.5 percent, although Nordea analyst Holger Sandte calculates consumer price inflation measured at constant tax rates is just 0.3 percent there. It is at 0.7 percent in neighbouring Spain, he says.

"Given the recession, rising unemployment and tight fiscal policy in these countries, it would be no surprise at all to see rates below zero at least for a few months this year," said Sandte, one of a batch of analysts to put out research notes in recent days on the risk of a drift towards deflation.

Even in France, inflation slowed to 1.1 percent in March.

The concern about weak prices arises just as the Bank of Japan is embarking on an aggressive policy shift to try to end more than a decade of deflation and revive its ailing economy.

The ECB is not about to copy Japanese policy, confident that expectations are firmly anchored in line with its target.

Inflation expectations implied by government bonds, meanwhile, show no risk of a deflationary spiral on a 10-year view. The inflation expectations embedded in 10-year German and French inflation-linked bond prices are just below 2 percent.

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Analysis: ECB struggles with "D" word as price rises slow - even fall

Online TV Candu Iromo Gayeng Janjimu campursari Sragen – Video


Online TV Candu Iromo Gayeng Janjimu campursari Sragen

By: Joon Woo

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Online TV Candu Iromo Gayeng Janjimu campursari Sragen - Video

Getting Traffic Look at Pinterest Social Media Platform – Video


Getting Traffic Look at Pinterest Social Media Platform
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By: Bruce Stewart

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Getting Traffic Look at Pinterest Social Media Platform - Video

BestWebsitesDesigner.com tutorial explaining how to add easing slider lite in Word Press – Video


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This tutorial is from http://www.BestWebsitesDesigner.com. This tutorial explains how to add slideshow in Word Press website using easing slider lite.

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BestWebsitesDesigner.com tutorial explaining how to add easing slider lite in Word Press - Video

DGAP-Adhoc: Leclanché SA: Shareholders Approve All Board Proposals at Annual General Meeting

Press Release

Leclanch Shareholders Approve All Board Proposals at Annual General Meeting

- Shareholders approved the financial restructuring of the company providing for a capital reduction and subsequent capital increases

Yverdon-les-Bains, Switzerland, 10 April 2013 - Leclanch S.A. (SIX Swiss Exchange: LECN), specialized in the production of large-format lithium-ion cells and energy storage solutions, announced today that its shareholders approved all the proposals of the Board of Directors at its 2013 annual general meeting held today in Yverdon-les-Bains. Shareholders approved the 2012 Annual Report and financial statements as well as the financial restructuring of the company providing for a capital reduction and subsequent capital increases. Both Mr Rolf Eckrodt and Mr Stefan Mller were re-elected as board members for a period of one year and three years.

'We sincerely thank our shareholders for approving all proposed resolutions, which provide Leclanch with the means and the flexibility to implement its financial restructuring plan,' commented Rolf Eckrodt, Chairman of the Board. 'The Board of directors and the management is fully engaged in seeking to secure the mid-term funding of the company and implement the turnaround plan for the company. The successful implementation of these various measures, should allow Leclanch to overcome its current difficulties and take advantage of the upcoming market opportunities.'

Summary of the financial restructuring Shareholders of Leclanch S.A. approved: - A capital reduction through nominal value reduction

- The nominal value of all outstanding 5,630,145 registered shares will be reduced from the current nominal value of CHF 5 to CHF 2. The reduction amount of CHF 3 per share (in total CHF 16,890,435) will be allocated to the general reserves.

- An ordinary capital increase in three separate tranches

- a share issue with pre-emptive rights preserved for existing shareholders. The share capital can be increased through the issuance of a maximum of 8,445,218 shares with a nominal value of CHF 2 each, by a maximum amount of CHF 16,890,436.

- a private placement reserved for new investors. The share capital can be increased through the issuance of a maximum of 10,000,000 shares with a nominal value of CHF 2 each, by a maximum amount of CHF 20,000,000.

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DGAP-Adhoc: Leclanché SA: Shareholders Approve All Board Proposals at Annual General Meeting