Wednesday, August 5, 2009
Forex trading tools
A trader with sound knowledge of currency trading can earn substantial profit in forex market. Along with the knowledge of trading, he should have access to a few tools of forex trading. The article talks about importance of online forex trading and tools in forex trading.
Facts about currency market
Being an awakened forex trader, you should undertake a rigorous analysis of the present and future scenario of the country, currency of which you are trading in the currency market. The best way to determine the potentiality of a currency trading is undertaking technical and fundamental analysis.
Get the basics of online currency trading in Forex
The method of online currency trading is remarkable for fast accessibility and ease of use. You can participate in forex trading from your own home. Online currency trading helps a trader to remain alert 24 hours a day. The article talks about important advantages of online currency trading.
Newcomers in Currency market
With all its distinguished features and attributes, forex trading may be unique of its kind. However, for a newcomer of currency market, forex trading may not fetch profit at the very first attempt. Very often new comers of forex trading find it a tedious task to survive in the market
How to access the best Forex Training program
Forex training programs are available everywhere. Several forex firms have come up with forex training courses which are designed to boost a new trader before he lands in the forex market
How to get a good forex broker for a winning forex trading
A broker of forex understands the trading pattern better than a new trader. He can prove out to be a great help for the latter. Now, how to select a good forex broker for a winning foreign exchange trading? A few tips are given in this article.
How to Make Money with Foreign Exchange
The basic concept involve behind Foreign Exchange is buying of one currency and selling of another. Management of a foreign currency account is depending on the procedure, eligibility criteria and the processing charges differ from bank to bank.
Choose the Right Currencies for Forex Trading
Forex market is operating through electronic network and currency trading it’s really difficult to decide the best currencies to trade with. The most important factor for currency trading is location and time at which you are available for trading.
What to Look for? While Choosing your Forex Broker
Forex trader play a important role to deal with the forex trading A forex broker is a forex trade provider that you sign up with, in order to trade the currency market. So before money trading just gather all available information and necessarily hire a broker.
Online Forex Trading How It Can Help You
Online forex trading is biggest financial players like banks, affluent people and huge financial firms. Forex currency trading is a fast business and if you don’t have proper understanding it can be very easy to lose your money with it.
Understanding the Analysis that powers a forex trader
Both technical and fundamental analyses are worth-mentioning in forex trading. These analyses help a trader to penetrate the factors that affect price movement. They also play key role in determining decisions regarding the strategies of forex and work behind a potential forex trading.
Strategy and Basics can fetch you money in fx trading
A trader with can easily strike gold in fx trading. However before that he needs to be well informed about every latest occurring of the market so also he should continue with a solid plan.
Potential and Beneficial: Basics of Currency trading in Forex
Forex is the largest market place of currency trading. While currency trading in forex or dwelling over currency market, one should mull over the present scenario and future prospects of the country, currency of which he is trading. The best way to determine the potentiality of a trading is undertaking a technical and fundamental analysis.
Why Your Trading Is Doomed
The single most important aspect in trading forex is to stay in the game, which means not to blow up your account. Whatever method of trading that you employ will not earn you profits if you keep on blowing off your hard earned profits or your account on a few losing trades.
Beware Of the scams in Currency Trading
Currency trading system boast of low-risk high-return investment but at the end of the day investors found these promises empty and only loss comes there way.
Ciphering the Forex Quotes
In Ciphering the Forex Quotes the most important point to remember about the forex quotes is, if a currency quote goes higher it increases the value of the base currency and a lower quote means the base currency is moving down.
Losing Money on the Bourse? Try Forex Instead
Taking a bit of time to learn how the forex market reacts to news and events will greatly enhance your trading profits. You can learn to chart and follow markets in the Forex trade world on your own, or you can rely on a broker as you would in the New York stock exchange. Forex brokers make their money on the spread that means the difference between the Bid and Ask price.
Highly Profitable & Risk-Free Alternative To Stock Trading
The other name for foreign exchange is Forex market or FX market in short. Trading that takes place between two countries with different currencies is the basis for the FX market and the background of the trading in this market. Foreign exchange is centuries old! But, the Forex Market as we know it
Forex Trading Course: Become a Captain of your Money Rather then a Slave
A Forex Trading course will show you how to take advantage of the shifting economies and earn money on the exchange rates of foreign currency. The wonderful part about a Forex Trading course is that you can have it online so you can study when you have time
Advantages of Forex Trading
The other name for foreign exchange is Forex market or FX market in short. Trading that takes place between two countries with different currencies is the basis for the FX market and the background of the trading in this market. Foreign exchange is centuries old! But, the Forex Market as we know it
Forex Trading - should you invest?
Forex trading is all about putting your money into other currencies, so you can gain the interest for the night, for time period or the difference in trading money all around.
Foreign currency exchange
Foreign currency exchange market is soon going to become the biggest trading platform of the world. Forex is the acronym used for the foreign currency exchange market which has a daily turn over of more than two trillion. All the organizations trading companies and individual traders are only two percent of actual market. The business is based on the on exchanging the international currencies.
Helpful Forex strategies to become a successful investor
As currency trading has become one of the most recent ways of earning money, a large chunk of people take this option just as a hobby. This type of trading is performed by exchanging currency of one country with that of another.
Discover The Proven System To Profiting From Forex
Forex training is the key to successful Forex trading. Forex training is one of the most important aspects of the Forex market. With good Forex training comes good profitability in the Forex market. As such, Forex training is one that is very worth to invest in. The benefits it reaps is high.
Learn to be a Day Trader – Not a Daily Trader
There’s a huge difference between a day trader and a daily trader. It has to do with get-rich-quick schemes vs. learning how to trade. Which one are you?
Advancements in the field of credit card repayment
credit card repayments can be done through Internet, phone, cheques or draft. The card users should take the safety concerns into account while making the repayment
Sitting on Your Hands” Trading Strategy
Sometimes the best trade is no trade. Some traders trade just to trade, which often means emotions get the best of them. There are huge benefits for “sitting on your hands” if you have the right techniques, tools, and strategies together with the discipline to follow your plan.
The Unorganized Trader
If you’re an unorganized trader, don’t worry. You’re not alone. The good news is that there are many tools and techniques that can turn you into a money-making
trading machine.
trading machine.
Don’t Give Back Profits
After racking up a very healthy trading portfolio, many traders get the idea that they are infallible and every trade will come as easy as the last. Don’t be a victim of this mindset.
Understanding the trends of Forex market
Forex is actually the foreign exchange and deals in the goods, services and currency trading. Forex trading has gained prominence with the passage of time and more and more people have started chasing the trend.
Butterfly Spreads- A conservative trading plan
The stock market always rides a wave that is not predictable and various factors impact the volatility. Spreads are strategies that manage your investments and are suggested by various experts as the smartest way to invest in options.
Introduction to Forex
Do you know Forex? Forex trading can help you to earn lot of money. “Forex” is the short form of Forex Exchange. Forex trading can definitely yield high profits. Anyone can do Forex trading via Forex brokers. Forex market mainly consists of currency traders that speculate on fluctuations in exchange
The best Foreign Currency Traders
The versatility and gains attracts many investors to become Forex traders and Forex Brokers. The liquidity of the Foreign Exchange Market is also very attractive for the Forex investor as trades range from 1 to 1.5 trillion dollars on a daily basis. These massive amounts of trades make it extremely difficult for any one trader to affect the market. Also, Forex prices can change at any moment in response to real-time events, such as political unrest or the rate of inflation. Currency market players typically use "Forex analysis" as a means of predicting currency price movements.
Best Forex Trading Broker
Some major Forex advantage lies in its accessibility. One can trade for 24 hours a day, 5 days a week. One can do their entire trading on computer as well. Now, to make it a successful deal, one needs the help of experts who will help understand FX signals. And utilize tools that can present comprehensive market analysis right in front of your eyes. At the same time, it is important the information be updated on a regular basis
Free Online Forex Trading
Foreign Exchange Market has the potential of being extremely lucrative. One can learn to trade by creating an online Forex Account and begin by using a learning account without real funds. This will help you to understand the Forex trading process and how currencies are affected by different things that are happening on a global scale. Remember, the FX market is one that is extremely volatile and extremely hard to read sometimes, with the possibility of more than a few hundred factors working all at one to change exchange rates and price movements
Friday, July 31, 2009
Weekly Trading Update - 20-24 July 2009
July 24, 2009
Weekly Trading Update - 20-24 July 2009
After the disappointment of last week, it's been a much more profitable week this week. My 4 hour trading system generated three decent set-ups (on the GBP/USD, GBP/JPY and USD/JPY pairs) and thankfully all of them worked out nicely.
The first two trades occurred on the GBP/JPY and USD/JPY pairs at roughly the same time on Tuesday evening. The daily Supertrend was (and still is) red so I was only looking for opportunities to go short and the EMAs did indeed cross downwards on the 4 hour chart for both of these pairs.
I went short on the GBP/JPY at 154.10 and opened a short position at 93.73 on the USD/JPY pair. Unfortunately they didn't move very much straight away so I had to let them run overnight. I set my profit targets at 100 and 40 points respectively. The 100 point target was triggered overnight on the GBP/JPY pair but the USD/JPY trade was still running when I woke up the next morning. However it did move nicely downwards and I managed to close half the position for 40 points and let the other half run, moving my stop loss down to break-even, however this stop loss was later taken out.
The other trade this week was on the GBP/USD pair. This pair is still in an upwards trend according to the Supertrend indicator on the daily chart so I was looking for upwards EMA crossovers on the 4 hour chart. I missed the first one unfortunately, because it happened between Sunday evening and Monday morning, but I did manage to catch the second crossover. This one occurred on Wednesday and I managed to go long at 1.6437.
Friday, July 24, 2009
Other proposals for a global currency
In March 30, 2009, at the Second South America-Arab League Summit in Qatar, Venezuelan President Hugo Chavez proposed the creation of the Petro is a supranational currency, in order to to face the instability that the generation of fiat currency has caused in the world economy.[11] The petro-currency would be backed by the huge oil reserves of the oil producing countries. [12
Russia and China call for global reserve currency
On March 16, 2009, in connection with the April 2009 G20 summit, the Kremlin called for a supranational reserve currency as part of a reform of the global financial system. In a document containing proposals for the G20 meeting, it suggested that the "IMF (or an Ad Hoc Working Group of G20) should be instructed to carry out specific studies to review the following options:
Enlargement (diversification) of the list of currencies used as reserve ones, based on agreed measures to promote the development of major regional financial centers. In this context, we should consider possible establishment of specific regional mechanisms which would contribute to reducing volatility of exchange rates of such reserve currencies.
Introduction of a supra-national reserve currency to be issued by international financial institutions. It seems appropriate to consider the role of IMF in this process and to review the feasibility of and the need for measures to ensure the recognition of SDRs as a "supra-reserve" currency by the whole world community."[6][7]
On March 24, 2009, Zhou Xiaochuan, President of the People's Bank of China, called for "creative reform of the existing international monetary system towards an international reserve currency," believing it would "significantly reduce the risks of a future crisis and enhance crisis management capability."[8] Zhou suggested that the IMF's Special Drawing Rights, a currency basket comprising dollars, euros, yen, and sterling and could serve as a super-sovereign reserve currency, not easily influenced by the policies of individual countries. US President Obama, however, rejected the suggestion stating that "the dollar is extraordinarily strong right now." [9] In the G8 summit the Russian president revealed the world currency[10].
Enlargement (diversification) of the list of currencies used as reserve ones, based on agreed measures to promote the development of major regional financial centers. In this context, we should consider possible establishment of specific regional mechanisms which would contribute to reducing volatility of exchange rates of such reserve currencies.
Introduction of a supra-national reserve currency to be issued by international financial institutions. It seems appropriate to consider the role of IMF in this process and to review the feasibility of and the need for measures to ensure the recognition of SDRs as a "supra-reserve" currency by the whole world community."[6][7]
On March 24, 2009, Zhou Xiaochuan, President of the People's Bank of China, called for "creative reform of the existing international monetary system towards an international reserve currency," believing it would "significantly reduce the risks of a future crisis and enhance crisis management capability."[8] Zhou suggested that the IMF's Special Drawing Rights, a currency basket comprising dollars, euros, yen, and sterling and could serve as a super-sovereign reserve currency, not easily influenced by the policies of individual countries. US President Obama, however, rejected the suggestion stating that "the dollar is extraordinarily strong right now." [9] In the G8 summit the Russian president revealed the world currency[10].
19th - 20th centuries
Prior to and during most of the 1800s, international trade was denominated in terms of currencies that represented weights of gold. Most national currencies at the time were in essence merely different ways of measuring gold weights (much as the yard and the meter both measure length and are related by a constant conversion factor). Hence some assert that gold was the world's first global currency. The emerging collapse of the international gold standard around the time of World War I had significant implications for global trade.
In the period following the Bretton Woods Conference of 1944, exchange rates around the world were pegged against the United States dollar, which could be exchanged for a fixed amount of gold. This reinforced the dominance of the US dollar as a global currency.
Since the collapse of the fixed exchange rate regime and the gold standard and the institution of floating exchange rates following the Smithsonian Agreement in 1971, most currencies around the world have no longer been pegged against the United States dollar. However, as the United States remained the world's preeminent economic superpower, most international transactions continued to be conducted with the United States dollar, and it has remained the de facto world currency.
Only two serious challengers to the status of the United States dollar as a world currency have arisen. During the 1980s, the Japanese yen became increasingly used as an international currency[citation needed], but that usage diminished with the Japanese recession in the 1990s. More recently, the euro has increasingly competed with the United States dollar in international finance
In the period following the Bretton Woods Conference of 1944, exchange rates around the world were pegged against the United States dollar, which could be exchanged for a fixed amount of gold. This reinforced the dominance of the US dollar as a global currency.
Since the collapse of the fixed exchange rate regime and the gold standard and the institution of floating exchange rates following the Smithsonian Agreement in 1971, most currencies around the world have no longer been pegged against the United States dollar. However, as the United States remained the world's preeminent economic superpower, most international transactions continued to be conducted with the United States dollar, and it has remained the de facto world currency.
Only two serious challengers to the status of the United States dollar as a world currency have arisen. During the 1980s, the Japanese yen became increasingly used as an international currency[citation needed], but that usage diminished with the Japanese recession in the 1990s. More recently, the euro has increasingly competed with the United States dollar in international finance
Hypothetical single supranational currency
An alternative definition of a world or global currency refers to a hypothetical single global currency or supercurrency, as the proposed terra or the Dey (acronym for Dollar Euro Yen) [3], produced and supported by a central bank which is used for all transactions around the world, regardless of the nationality of the entities (individuals, corporations, governments, or other organisations) involved in the transaction. No such official currency currently exists.
There are many different variations of the idea, including a possibility that it would be administered by a global central bank or that it would be on the gold standard.[4] Supporters often point to the euro as an example of a supranational currency successfully implemented by a union of nations with disparate languages, cultures, and economies. Alternatively, digital gold currency can be viewed as an example of how global currency can be implemented without achieving national government consensus.
A limited alternative would be a world reserve currency issued by the International Monetary Fund, as an evolution of the existing Special Drawing Rights and used as reserve assets by all national and regional central banks. Indeed, on March 26, 2009, a UN panel called for a new global currency reserve scheme which with "greatly expanded SDR (Special Drawing Rights), with regular or cyclically adjusted emissions calibrated to the size of reserve accumulations, could contribute to global stability, economic strength and global equity." [5]
There are many different variations of the idea, including a possibility that it would be administered by a global central bank or that it would be on the gold standard.[4] Supporters often point to the euro as an example of a supranational currency successfully implemented by a union of nations with disparate languages, cultures, and economies. Alternatively, digital gold currency can be viewed as an example of how global currency can be implemented without achieving national government consensus.
A limited alternative would be a world reserve currency issued by the International Monetary Fund, as an evolution of the existing Special Drawing Rights and used as reserve assets by all national and regional central banks. Indeed, on March 26, 2009, a UN panel called for a new global currency reserve scheme which with "greatly expanded SDR (Special Drawing Rights), with regular or cyclically adjusted emissions calibrated to the size of reserve accumulations, could contribute to global stability, economic strength and global equity." [5]
History
Spanish dollar: 17th-19th centuries
In the 17th and 18th century, the use of silver Spanish dollars or "pieces of eight" spread from the Spanish territories in the Americas westwards to Asia and eastwards to Europe forming the first ever worldwide currency. Spain's political supremacy on the world stage, the importance of Spanish commercial routes across the Atlantic and the Pacific, and the coin's quality and purity of silver helped it become internationally accepted for over two centuries. It was legal tender in Spain's Pacific territories of the Philippines, Micronesia, Guam and the Caroline Islands and later in China and other Southeast Asian countries until the mid 19th century. In the Americas it was legal tender in all of South and Central America (except Brazil) as well as in the U.S. and Canada until the mid-19th century. In Europe the Spanish dollar was legal tender in the Iberian Peninsula, in most of Italy including: Milan, the Kingdom of Naples, Sicily and Sardinia, as well as in the Franche-Comté (France), and in the Spanish Netherlands. It was also used in other European states including the Austrian Habsburg territories
In the 17th and 18th century, the use of silver Spanish dollars or "pieces of eight" spread from the Spanish territories in the Americas westwards to Asia and eastwards to Europe forming the first ever worldwide currency. Spain's political supremacy on the world stage, the importance of Spanish commercial routes across the Atlantic and the Pacific, and the coin's quality and purity of silver helped it become internationally accepted for over two centuries. It was legal tender in Spain's Pacific territories of the Philippines, Micronesia, Guam and the Caroline Islands and later in China and other Southeast Asian countries until the mid 19th century. In the Americas it was legal tender in all of South and Central America (except Brazil) as well as in the U.S. and Canada until the mid-19th century. In Europe the Spanish dollar was legal tender in the Iberian Peninsula, in most of Italy including: Milan, the Kingdom of Naples, Sicily and Sardinia, as well as in the Franche-Comté (France), and in the Spanish Netherlands. It was also used in other European states including the Austrian Habsburg territories
World currency
In the foreign exchange market and international finance, a world currency, supranational currency, or global currency refers to a currency in which the vast majority of international transactions take place and which serves as the world's primary reserve currency. In March 2009, as a result of the global economic crisis, China and Russia have pressed for urgent consideration of a global currency and a UN panel has proposed greatly expanding the IMF's SDRs or Special Drawing Rights.
Currencies have many forms depending on several properties: type of issuance, type of issuer and type of backing. The particular configuration of those properties leads to different types of money. The pros and cons of a currency are strongly influenced by the type proposed. Consider, for example, the properties of a complementary currency.
Currencies have many forms depending on several properties: type of issuance, type of issuer and type of backing. The particular configuration of those properties leads to different types of money. The pros and cons of a currency are strongly influenced by the type proposed. Consider, for example, the properties of a complementary currency.
The euro and the United States dollar
Since the mid-20th century, the de facto world currency has been the United States dollar. According to Robert Gilpin in Global Political Economy: Understanding the International Economic Order (2001): "Somewhere between 40 and 60 percent of international financial transactions are denominated in dollars. For decades the dollar has also been the world's principal reserve currency; in 1996, the dollar accounted for approximately two-thirds of the world's foreign exchange reserves" (255).
Many of the world's currencies are pegged against the dollar. Some countries, such as Ecuador, El Salvador, and Panama, have gone even further and eliminated their own currency (see dollarization) in favor of the United States dollar. The dollar continues to dominate global currency reserves, with 63.9% held in dollars, as compared to 26.5% held in euros (see Reserve Currency).
Since 1999, the dollar's dominance has begun to be eroded by the euro, which represents a larger size economy, and has the prospect of more countries adopting the euro as their national currency. The euro inherited the status of a major reserve currency from the German Mark (DM), and since then its contribution to official reserves has risen as banks seek to diversify their reserves and trade in the eurozone continues to expand.[1]
As with the dollar, quite a few of the world's currencies are pegged against the euro. They are usually Eastern European currencies like the Estonian kroon and the Bulgarian lev, plus several west African currencies like the Cape Verdean escudo and the CFA franc. Other European countries, while not being EU members, have adopted the euro due to currency unions with member states, or by unilaterally superseding their own currencies: Andorra, Monaco, Montenegro, San Marino, and Vatican City.
As of December 2006[update], the euro surpassed the dollar in the combined value of cash in circulation. The value of euro notes in circulation has risen to more than €610 billion, equivalent to US$800 billion at the exchange rates at the time (today equivalent to circa US$968 billion).[2]
Many of the world's currencies are pegged against the dollar. Some countries, such as Ecuador, El Salvador, and Panama, have gone even further and eliminated their own currency (see dollarization) in favor of the United States dollar. The dollar continues to dominate global currency reserves, with 63.9% held in dollars, as compared to 26.5% held in euros (see Reserve Currency).
Since 1999, the dollar's dominance has begun to be eroded by the euro, which represents a larger size economy, and has the prospect of more countries adopting the euro as their national currency. The euro inherited the status of a major reserve currency from the German Mark (DM), and since then its contribution to official reserves has risen as banks seek to diversify their reserves and trade in the eurozone continues to expand.[1]
As with the dollar, quite a few of the world's currencies are pegged against the euro. They are usually Eastern European currencies like the Estonian kroon and the Bulgarian lev, plus several west African currencies like the Cape Verdean escudo and the CFA franc. Other European countries, while not being EU members, have adopted the euro due to currency unions with member states, or by unilaterally superseding their own currencies: Andorra, Monaco, Montenegro, San Marino, and Vatican City.
As of December 2006[update], the euro surpassed the dollar in the combined value of cash in circulation. The value of euro notes in circulation has risen to more than €610 billion, equivalent to US$800 billion at the exchange rates at the time (today equivalent to circa US$968 billion).[2]
United States trade deficit
The United States of America has held a trade deficit starting late in the 1960s. It was this very deficit that forced the United States in 1971 off the gold standard. Its trade deficit has been increasing at an alarming rate since 1997 [35] (See chart) and increased by 49.8 billion dollars between 2005 and 2006, setting a record high of 817.3 billion dollars, up from 767.5 billion dollars the previous year.[36]
It is worth noting on the graph that the deficit slackened during recessions and grew during periods of expansion. Also of note, many economists calculate trade deficits and/or current account deficits as a percentage of GDP. The US last had a trade surplus in 1991, a recession year. Every year there has been a major reduction in economic growth, it is followed by a reduction in the US trade deficit.[24] The well known investor Warren Buffett has proposed a tool called Import Certificates as a solution to the United States' problem
It is worth noting on the graph that the deficit slackened during recessions and grew during periods of expansion. Also of note, many economists calculate trade deficits and/or current account deficits as a percentage of GDP. The US last had a trade surplus in 1991, a recession year. Every year there has been a major reduction in economic growth, it is followed by a reduction in the US trade deficit.[24] The well known investor Warren Buffett has proposed a tool called Import Certificates as a solution to the United States' problem
Physical balance of trade
Monetary balance of trade is different from physical balance of trade (which is expressed in amount of raw materials). Developed countries usually import a lot of primary raw materials from developing countries at low prices. Often, these materials are then converted into finished products, and a significant amount of value is added. Although for instance the EU (as well as many other developed countries) has a balanced monetary balance of trade, its physical trade balance (especially with developing countries) is negative, meaning that a lot less material is exported rather than imported.
John Maynard Keynes on the balance of trade
In the last few years of his life, John Maynard Keynes was much preoccupied with the question of balance in international trade. He was the leader of the British delegation to the United Nations Monetary and Financial Conference in 1944 that established the Bretton Woods system of international currency management.
He was the principal author of a proposal—the so-called Keynes Plan—for an International Clearing Union. The two governing principles of the plan were that the problem of settling outstanding balances should be solved by 'creating' additional 'international money', and that debtor and creditor should be treated almost alike as disturbers of equilibrium. In the event, though, the plans were rejected, in part because "American opinion was naturally reluctant to accept the principal of equality of treatment so novel in debtor-creditor relationships". [28]
His view, supported by many economists and commentators at the time, was that creditor nations may be just as responsible as debtor nations for disequilibrium in exchanges and that both should be under an obligation to bring trade back into a state of balance. Failure for them to do so could have serious consequences. In the words of Geoffrey Crowther, then editor of The Economist, "If the economic relationships between nations are not, by one means or another, brought fairly close to balance, then there is no set of financial arrangements that can rescue the world from the impoverishing results of chaos." [29]
These ideas were informed by events prior to the Great Depression when—in the opinion of Keynes and others—international lending, primarily by the United States, exceeded the capacity of sound investment and so got diverted into non-productive and speculative uses, which in turn invited default and a sudden stop to the process of lending. [30]
Influenced by Keynes, economics texts in the immediate post-war period put a significant emphasis on balance in trade. For example, the second edition of the popular introductory textbook, An Outline of Money, [31] devoted the last three of its ten chapters to questions of foreign exchange management and in particular the 'problem of balance'. However, in more recent years, since the end of the Bretton Woods system in 1971, with the increasing influence of Monetarist schools of thought in the 1980s, and particularly in the face of large sustained trade imbalances, these concerns—and particularly concerns about the destabilising affects of large trade surpluses—have largely disappeared from mainstream economics discourse [32] and Keynes' insights have slipped from view [33], they are receiving some attention again in the wake of the financial crisis of 2007–2009. [34]
He was the principal author of a proposal—the so-called Keynes Plan—for an International Clearing Union. The two governing principles of the plan were that the problem of settling outstanding balances should be solved by 'creating' additional 'international money', and that debtor and creditor should be treated almost alike as disturbers of equilibrium. In the event, though, the plans were rejected, in part because "American opinion was naturally reluctant to accept the principal of equality of treatment so novel in debtor-creditor relationships". [28]
His view, supported by many economists and commentators at the time, was that creditor nations may be just as responsible as debtor nations for disequilibrium in exchanges and that both should be under an obligation to bring trade back into a state of balance. Failure for them to do so could have serious consequences. In the words of Geoffrey Crowther, then editor of The Economist, "If the economic relationships between nations are not, by one means or another, brought fairly close to balance, then there is no set of financial arrangements that can rescue the world from the impoverishing results of chaos." [29]
These ideas were informed by events prior to the Great Depression when—in the opinion of Keynes and others—international lending, primarily by the United States, exceeded the capacity of sound investment and so got diverted into non-productive and speculative uses, which in turn invited default and a sudden stop to the process of lending. [30]
Influenced by Keynes, economics texts in the immediate post-war period put a significant emphasis on balance in trade. For example, the second edition of the popular introductory textbook, An Outline of Money, [31] devoted the last three of its ten chapters to questions of foreign exchange management and in particular the 'problem of balance'. However, in more recent years, since the end of the Bretton Woods system in 1971, with the increasing influence of Monetarist schools of thought in the 1980s, and particularly in the face of large sustained trade imbalances, these concerns—and particularly concerns about the destabilising affects of large trade surpluses—have largely disappeared from mainstream economics discourse [32] and Keynes' insights have slipped from view [33], they are receiving some attention again in the wake of the financial crisis of 2007–2009. [34]
Warren Buffett on trade deficits
The successful American business man and investor Warren Buffett was quoted in the Associated Press (January 20, 2006) as saying "The U.S trade deficit is a bigger threat to the domestic economy than either the federal budget deficit or consumer debt and could lead to political turmoil... Right now, the rest of the world owns $3 trillion more of us than we own of them."
Milton Friedman on trade deficits
In the 1980s, Milton Friedman, the Nobel Prize-winning economist and father of Monetarism, contended that some of the concerns of trade deficits are unfair criticisms in an attempt to push macroeconomic policies favorable to exporting industries. In the late 1970s and early 1980s, the U.S. had experienced high inflation and Friedman's policy positions tended to defend the stronger dollar at that time. He stated his belief that these trade deficits were not necessarily harmful to the economy at the time since the currency comes back to the country (country A sells to country B, country B sells to country C who buys from country A, but the trade deficit only includes A and B). However, it may be in one form or another including the possible tradeoff of foreign control of assets. In his view, the "worst case scenario" of the currency never returning to the country of origin was actually the best possible outcome: the country actually purchased its goods by exchanging them for pieces of cheaply-made paper. As Friedman put it, this would be the same result as if the exporting country burned the dollars it earned, never returning it to market circulation.[20] This position is a more refined version of the theorem first discovered by David Hume.[21] Hume argued that England could not permanently gain from exports, because hoarding gold (i.e., currency) would make gold more plentiful in England; therefore, the prices of English goods would rise, making them less attractive exports and making foreign goods more attractive imports. In this way, countries' trade balances would balance out.[22]
Friedman believed that deficits would be corrected by free markets as floating currency rates rise or fall with time to encourage or discourage imports in favor of the exports, reversing again in favor of imports as the currency gains strength. In the real world, a potential difficulty is that currency markets are far from a free market, with government and central banks being major players, and this is unlikely to change within the foreseeable future. Nevertheless, recent developments have shown that the global economy is undergoing a fundamental shift. For many years the U.S. has bore world has lent and sold. However, as Friedman predicted, this paradigm appears to be changing.
As of October 2007, the U.S. dollar weakened against the euro, British pound, and many other currencies. For instance, the euro hit $1.42 in October 2007[23], the strongest it has been since its birth in 1999. Against this backdrop, American exporters are finding quite favorable overseas markets for their products and U.S. consumers are responding to their general housing slowdown by slowing their spending. Furthermore, China, the Middle East, central Europe and Africa are absorbing more of the world's imports which in the end may result in a world economy that is more evenly balanced. All of this could well add up to a major readjustment of the U.S. trade deficit, which as a percentage of GDP, began in 1991.[24]
Friedman and other economists have pointed out that a large trade deficit (importation of goods) signals that the country's currency is strong and desirable. To Friedman, a trade deficit simply meant that consumers had opportunity to purchase and enjoy more goods at lower prices; conversely, a trade surplus implied that a country was exporting goods its own citizens did not get to consume or enjoy, while paying high prices for the goods they actually received.
Perhaps most significantly, Friedman contended strongly that the structure of the balance of payments was misleading. In an interview with Charlie Rose, he stated that "on the books" the US is a net borrower of funds, using those funds to pay for goods and services. He pointed to the income receipts and payments showing that the US pays almost the same amount as it receives: thus, U.S. citizens are paying lower prices than foreigners for capital assets to exchange roughly the same amount of income. The reasons why the U.S. (and UK) appear to earn a higher rate of return on their foreign assets than they pay on their foreign liabilities are not clearly understood. An important contributing factor is that the U.S. has investment primarily in stocks abroad, while foreigners have invested heavily in debt instruments, such as U.S. government bonds [25]. [26] Other reports contend that U.S. net foreign income has deteriorated, and appears set to stay in deficit in the future [27].
Friedman presented his analysis of the balance of trade in Free to Choose, widely considered his most significant popular work
Friedman believed that deficits would be corrected by free markets as floating currency rates rise or fall with time to encourage or discourage imports in favor of the exports, reversing again in favor of imports as the currency gains strength. In the real world, a potential difficulty is that currency markets are far from a free market, with government and central banks being major players, and this is unlikely to change within the foreseeable future. Nevertheless, recent developments have shown that the global economy is undergoing a fundamental shift. For many years the U.S. has bore world has lent and sold. However, as Friedman predicted, this paradigm appears to be changing.
As of October 2007, the U.S. dollar weakened against the euro, British pound, and many other currencies. For instance, the euro hit $1.42 in October 2007[23], the strongest it has been since its birth in 1999. Against this backdrop, American exporters are finding quite favorable overseas markets for their products and U.S. consumers are responding to their general housing slowdown by slowing their spending. Furthermore, China, the Middle East, central Europe and Africa are absorbing more of the world's imports which in the end may result in a world economy that is more evenly balanced. All of this could well add up to a major readjustment of the U.S. trade deficit, which as a percentage of GDP, began in 1991.[24]
Friedman and other economists have pointed out that a large trade deficit (importation of goods) signals that the country's currency is strong and desirable. To Friedman, a trade deficit simply meant that consumers had opportunity to purchase and enjoy more goods at lower prices; conversely, a trade surplus implied that a country was exporting goods its own citizens did not get to consume or enjoy, while paying high prices for the goods they actually received.
Perhaps most significantly, Friedman contended strongly that the structure of the balance of payments was misleading. In an interview with Charlie Rose, he stated that "on the books" the US is a net borrower of funds, using those funds to pay for goods and services. He pointed to the income receipts and payments showing that the US pays almost the same amount as it receives: thus, U.S. citizens are paying lower prices than foreigners for capital assets to exchange roughly the same amount of income. The reasons why the U.S. (and UK) appear to earn a higher rate of return on their foreign assets than they pay on their foreign liabilities are not clearly understood. An important contributing factor is that the U.S. has investment primarily in stocks abroad, while foreigners have invested heavily in debt instruments, such as U.S. government bonds [25]. [26] Other reports contend that U.S. net foreign income has deteriorated, and appears set to stay in deficit in the future [27].
Friedman presented his analysis of the balance of trade in Free to Choose, widely considered his most significant popular work
Views on economic impact
Since the stagflation of the 1970s, the U.S. economy has been characterized by slower GDP growth. In 1985, the U.S. began its growing trade deficit with China. Over the long run, nations with trade surpluses tend also to have a savings surplus while the U.S. has been plagued by persistently lower savings rates than its trading partners which tend to have trade surpluses with the U.S. Germany, France, Japan, and Canada have maintained higher savings rates than the U.S. over the long run.[9] Some economists believe that GDP and employment can be dragged down by an over-large deficit over the long run.[10][11] Wealth-producing primary sector jobs in the U.S. such as those in manufacturing and computer software have often been replaced by much lower paying wealth-consuming jobs such those in retail and government in the service sector when the economy recovered from recessions.[12][13][5] Some economists contend that the U.S. is borrowing to fund consumption of imports while accumulatiing unsustainable amounts of debt.[2][14]
In 2006, the primary economic concerns centered around: high national debt ($9 trillion), high non-bank corporate debt ($9 trillion), high mortgage debt ($9 trillion), high financial institution debt ($12 trillion), high unfunded Medicare liability ($30 trillion), high unfunded Social Security liability ($12 trillion), high external debt (amount owed to foreign lenders) and a serious deterioration in the United States net international investment position (NIIP) (-24% of GDP),[2] high trade deficits, and a rise in illegal immigration.[15][14]
These issues have raised concerns among economists and unfunded liabilities were mentioned as a serious problem facing the United States in the President's 2006 State of the Union address.[16][15] On June 26 2009, Jeff Immelt, the CEO of General Electric, called for the United States to increase its manufacturing base employment to 20% of the workforce, commenting that the U.S. has outsourced too much in some areas and can no longer rely on the financial sector and consumer spending to drive demand
In 2006, the primary economic concerns centered around: high national debt ($9 trillion), high non-bank corporate debt ($9 trillion), high mortgage debt ($9 trillion), high financial institution debt ($12 trillion), high unfunded Medicare liability ($30 trillion), high unfunded Social Security liability ($12 trillion), high external debt (amount owed to foreign lenders) and a serious deterioration in the United States net international investment position (NIIP) (-24% of GDP),[2] high trade deficits, and a rise in illegal immigration.[15][14]
These issues have raised concerns among economists and unfunded liabilities were mentioned as a serious problem facing the United States in the President's 2006 State of the Union address.[16][15] On June 26 2009, Jeff Immelt, the CEO of General Electric, called for the United States to increase its manufacturing base employment to 20% of the workforce, commenting that the U.S. has outsourced too much in some areas and can no longer rely on the financial sector and consumer spending to drive demand
Conditions where trade deficits may be considered harmful
Those who ignore the effects of long run trade deficits may be confusing David Ricardo's principle of comparative advantage with Adam Smith's principle of absolute advantage, specifically ignoring that latter. The economist Paul Craig Roberts notes that the comparative advantage principles developed by David Ricardo do not hold where the factors of production are internationally mobile.[4][5] Global labor arbitrage, a phenomenon described by economist Stephen S. Roach, where one country exploits the cheap labor of another, would be a case of absolute advantage that is not mutually beneficial.[6][7][8]
Definition 2
The balance of trade is likely to differ across the business cycle. In export led growth (such as oil and early industrial goods), the balance of trade will improve during an economic expansion. However, with domestic demand led growth (as in the United States and Australia) the trade balance will worsen at the same stage in the business cycle.
Since the mid 1980s, United States has had a growing deficit in tradeable goods, especially with Asian nations (China and Japan) which now hold large sums of U.S debt that has funded the consumption.[2][3] The U.S. has a trade surplus with nations such as Australia and Canada. The issue of trade deficits can be complex. Trade deficits generated in tradeable goods such as manufactured goods or software may impact domestic employment to different degrees than trade deficits in raw materials.
Economies such as Canada, Japan, and Germany which have savings surpluses, typically run trade surpluses. China, a high growth economy, has tended to run trade surpluses. A higher savings rate generally corresponds to a trade surplus. Correspondingly, the United States with its lower savings rate has tended to run high trade deficits, especially with Asian nations.
Since the mid 1980s, United States has had a growing deficit in tradeable goods, especially with Asian nations (China and Japan) which now hold large sums of U.S debt that has funded the consumption.[2][3] The U.S. has a trade surplus with nations such as Australia and Canada. The issue of trade deficits can be complex. Trade deficits generated in tradeable goods such as manufactured goods or software may impact domestic employment to different degrees than trade deficits in raw materials.
Economies such as Canada, Japan, and Germany which have savings surpluses, typically run trade surpluses. China, a high growth economy, has tended to run trade surpluses. A higher savings rate generally corresponds to a trade surplus. Correspondingly, the United States with its lower savings rate has tended to run high trade deficits, especially with Asian nations.
Definition
The balance of trade forms part of the current account, which includes other transactions such as income from the international investment position as well as international aid. If the current account is in surplus, the country's net international asset position increases correspondingly. Equally, a deficit decreases the net international asset position.
The trade balance is identical to the difference between a country's output and its domestic demand (the difference between what goods a country produces and how many goods it buys from abroad; this does not include money re-spent on foreign stocks, nor does it factor the concept of importing goods to produce for the domestic market).
Measuring the balance of trade can be problematic because of problems with recording and collecting data. As an illustration of this problem, when official data for all the world's countries are added up, exports exceed imports by a few percent; it appears the world is running a positive balance of trade with itself. This cannot be true, because all transactions involve an equal credit or debit in the account of each nation. The discrepancy is widely believed to be explained by transactions intended to launder money or evade taxes, smuggling and other visibility problems. However, especially for developed countries, accuracy is likely.
Factors that can affect the balance of trade figures include:
Prices of goods manufactured at home (influenced by the responsiveness of supply)
Exchange rates regarded in 1933
Trade agreements or barriers
Offset agreements
Other tax, tariff and trade measures
Business cycle at home or abroad.
The trade balance is identical to the difference between a country's output and its domestic demand (the difference between what goods a country produces and how many goods it buys from abroad; this does not include money re-spent on foreign stocks, nor does it factor the concept of importing goods to produce for the domestic market).
Measuring the balance of trade can be problematic because of problems with recording and collecting data. As an illustration of this problem, when official data for all the world's countries are added up, exports exceed imports by a few percent; it appears the world is running a positive balance of trade with itself. This cannot be true, because all transactions involve an equal credit or debit in the account of each nation. The discrepancy is widely believed to be explained by transactions intended to launder money or evade taxes, smuggling and other visibility problems. However, especially for developed countries, accuracy is likely.
Factors that can affect the balance of trade figures include:
Prices of goods manufactured at home (influenced by the responsiveness of supply)
Exchange rates regarded in 1933
Trade agreements or barriers
Offset agreements
Other tax, tariff and trade measures
Business cycle at home or abroad.
Balance of trade
The balance of trade (or net exports, sometimes symbolized as NX) is the difference between the monetary value of exports and imports of output in an economy over a certain period. It is the relationship between a nation's imports and exports.[1] A favourable balance of trade is known as a trade surplus and consists of exporting more than is imported; an unfavourable balance of trade is known as a trade deficit or, informally, a trade gap. The balance of trade is sometimes divided into a goods and a services balance
Exchange-Traded Fund
Exchange-traded funds (or ETFs) are open ended investment companies that can be traded at any time throughout the course of the day. Typically, ETFs try to replicate a stock market index such as the S&P 500 (e.g., SPY), but recently they are now replicating investments in the currency markets with the ETF increasing in value when the US Dollar weakens versus a specific currency, such as the Euro. Certain of these funds track the price movements of world currencies versus the US Dollar, and increase in value directly counter to the US Dollar, allowing for speculation in the US Dollar for US and US Dollar denominated investors and speculators
Speculation
Controversy about currency speculators and their effect on currency devaluations and national economies recurs regularly. Nevertheless, economists including Milton Friedman have argued that speculators ultimately are a stabilizing influence on the market and perform the important function of providing a market for hedgers and transferring risk from those people who don't wish to bear it, to those who do.[16] Other economists such as Joseph Stiglitz consider this argument to be based more on politics and a free market philosophy than on economics.[17]
Large hedge funds and other well capitalized "position traders" are the main professional speculators. According to some economists, individual traders could act as "noise traders" and have a more destabilizing role than larger and better informed actors [18].
Currency speculation is considered a highly suspect activity in many countries.[where?] While investment in traditional financial instruments like bonds or stocks often is considered to contribute positively to economic growth by providing capital, currency speculation does not; according to this view, it is simply gambling that often interferes with economic policy. For example, in 1992, currency speculation forced the Central Bank of Sweden to raise interest rates for a few days to 500% per annum, and later to devalue the krona.[19] Former Malaysian Prime Minister Mahathir Mohamad is one well known proponent of this view. He blamed the devaluation of the Malaysian ringgit in 1997 on George Soros and other speculators.
Gregory J. Millman reports on an opposing view, comparing speculators to "vigilantes" who simply help "enforce" international agreements and anticipate the effects of basic economic "laws" in order to profit.[20]
In this view, countries may develop unsustainable financial bubbles or otherwise mishandle their national economies, and foreign exchange speculators allegedly made the inevitable collapse happen sooner. A relatively quick collapse might even be preferable to continued economic mishandling. Mahathir Mohamad and other critics of speculation are viewed as trying to deflect the blame from themselves for having caused the unsustainable economic conditions. Given that Malaysia recovered quickly after imposing currency controls directly against IMF advice, this view is open to doubt.
Large hedge funds and other well capitalized "position traders" are the main professional speculators. According to some economists, individual traders could act as "noise traders" and have a more destabilizing role than larger and better informed actors [18].
Currency speculation is considered a highly suspect activity in many countries.[where?] While investment in traditional financial instruments like bonds or stocks often is considered to contribute positively to economic growth by providing capital, currency speculation does not; according to this view, it is simply gambling that often interferes with economic policy. For example, in 1992, currency speculation forced the Central Bank of Sweden to raise interest rates for a few days to 500% per annum, and later to devalue the krona.[19] Former Malaysian Prime Minister Mahathir Mohamad is one well known proponent of this view. He blamed the devaluation of the Malaysian ringgit in 1997 on George Soros and other speculators.
Gregory J. Millman reports on an opposing view, comparing speculators to "vigilantes" who simply help "enforce" international agreements and anticipate the effects of basic economic "laws" in order to profit.[20]
In this view, countries may develop unsustainable financial bubbles or otherwise mishandle their national economies, and foreign exchange speculators allegedly made the inevitable collapse happen sooner. A relatively quick collapse might even be preferable to continued economic mishandling. Mahathir Mohamad and other critics of speculation are viewed as trying to deflect the blame from themselves for having caused the unsustainable economic conditions. Given that Malaysia recovered quickly after imposing currency controls directly against IMF advice, this view is open to doubt.
Swap
Option
A foreign exchange option (commonly shortened to just FX option) is a derivative where the owner has the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date. The FX options market is the deepest, largest and most liquid market for options of any kind in the world.
Forward
One way to deal with the foreign exchange risk is to engage in a forward transaction. In this transaction, money does not actually change hands until some agreed upon future date. A buyer and seller agree on an exchange rate for any date in the future, and the transaction occurs on that date, regardless of what the market rates are then. The duration of the trade can be a one day, a few days, months or years. Usually the date is decided by both parties.
Future
Foreign currency futures are exchange traded forward transactions with standard contract sizes and maturity dates — for example, $1000 for next November at an agreed rate [4],[5]. Futures are standardized and are usually traded on an exchange created for this purpose. The average contract length is roughly 3 months. Futures contracts are usually inclusive of any interest amounts
Algorithmic trading in foreign exchange
Electronic trading is growing in the FX market, and algorithmic trading is becoming much more common. According to financial consultancy Celent estimates, by 2008 up to 25% of all trades by volume will be executed using algorithm, up from about 18% in 2005.[citation needed]
An algorithmic trader needs to be mindful of potential fraud by the broker. Part of the weekly algorithm should include a check to see if the amount of transaction errors when the trader is losing money occurs in the same proportion as when the trader would have made money
An algorithmic trader needs to be mindful of potential fraud by the broker. Part of the weekly algorithm should include a check to see if the amount of transaction errors when the trader is losing money occurs in the same proportion as when the trader would have made money
Financial instruments. Spot
Spot
A spot transaction is a two-day delivery transaction (except in the case of trades between the US Dollar, Canadian Dollar, Turkish Lira and Russian Ruble, which settle the next business day), as opposed to the futures contracts, which are usually three months. This trade represents a “direct exchange” between two currencies, has the shortest time frame, involves cash rather than a contract; and interest is not included in the agreed-upon transaction. The data for this study come from the spot market. Spot transactions has the second largest turnover by volume after Swap transactions among all FX transactions in the Global FX market. NNM
A spot transaction is a two-day delivery transaction (except in the case of trades between the US Dollar, Canadian Dollar, Turkish Lira and Russian Ruble, which settle the next business day), as opposed to the futures contracts, which are usually three months. This trade represents a “direct exchange” between two currencies, has the shortest time frame, involves cash rather than a contract; and interest is not included in the agreed-upon transaction. The data for this study come from the spot market. Spot transactions has the second largest turnover by volume after Swap transactions among all FX transactions in the Global FX market. NNM
Market psychology
Market psychology and trader perceptions influence the foreign exchange market in a variety of ways:
Flights to quality
Unsettling international events can lead to a "flight to quality," with investors seeking a "safe haven." There will be a greater demand, thus a higher price, for currencies perceived as stronger over their relatively weaker counterparts. The Swiss franc has been a traditional safe haven during times of political or economic uncertainty.[12]
Long-term trends
Currency markets often move in visible long-term trends. Although currencies do not have an annual growing season like physical commodities, business cycles do make themselves felt. Cycle analysis looks at longer-term price trends that may rise from economic or political trends. [13]
"Buy the rumor, sell the fact"
This market truism can apply to many currency situations. It is the tendency for the price of a currency to reflect the impact of a particular action before it occurs and, when the anticipated event comes to pass, react in exactly the opposite direction. This may also be referred to as a market being "oversold" or "overbought".[14] To buy the rumor or sell the fact can also be an example of the cognitive bias known as anchoring, when investors focus too much on the relevance of outside events to currency prices.
Economic numbers
While economic numbers can certainly reflect economic policy, some reports and numbers take on a talisman-like effect: the number itself becomes important to market psychology and may have an immediate impact on short-term market moves. "What to watch" can change over time. In recent years, for example, money supply, employment, trade balance figures and inflation numbers have all taken turns in the spotlight.
Technical trading considerations
As in other markets, the accumulated price movements in a currency pair such as EUR/USD can form apparent patterns that traders may attempt to use. Many traders study price charts in order to identify such patterns.[15]
Flights to quality
Unsettling international events can lead to a "flight to quality," with investors seeking a "safe haven." There will be a greater demand, thus a higher price, for currencies perceived as stronger over their relatively weaker counterparts. The Swiss franc has been a traditional safe haven during times of political or economic uncertainty.[12]
Long-term trends
Currency markets often move in visible long-term trends. Although currencies do not have an annual growing season like physical commodities, business cycles do make themselves felt. Cycle analysis looks at longer-term price trends that may rise from economic or political trends. [13]
"Buy the rumor, sell the fact"
This market truism can apply to many currency situations. It is the tendency for the price of a currency to reflect the impact of a particular action before it occurs and, when the anticipated event comes to pass, react in exactly the opposite direction. This may also be referred to as a market being "oversold" or "overbought".[14] To buy the rumor or sell the fact can also be an example of the cognitive bias known as anchoring, when investors focus too much on the relevance of outside events to currency prices.
Economic numbers
While economic numbers can certainly reflect economic policy, some reports and numbers take on a talisman-like effect: the number itself becomes important to market psychology and may have an immediate impact on short-term market moves. "What to watch" can change over time. In recent years, for example, money supply, employment, trade balance figures and inflation numbers have all taken turns in the spotlight.
Technical trading considerations
As in other markets, the accumulated price movements in a currency pair such as EUR/USD can form apparent patterns that traders may attempt to use. Many traders study price charts in order to identify such patterns.[15]
Political conditions
Internal, regional, and international political conditions and events can have a profound effect on currency markets.
All exchange rates are susceptible to political instability and anticipations about the new ruling party. Political upheaval and instability can have a negative impact on a nation's economy. For example, destabilization of coalition governments in India, Pakistan and Thailand can negatively affect the value of their currencies. Similarly, in a country experiencing financial difficulties, the rise of a political faction that is perceived to be fiscally responsible can have the opposite effect. Also, events in one country in a region may spur positive or negative interest in a neighboring country and, in the process, affect its currency
All exchange rates are susceptible to political instability and anticipations about the new ruling party. Political upheaval and instability can have a negative impact on a nation's economy. For example, destabilization of coalition governments in India, Pakistan and Thailand can negatively affect the value of their currencies. Similarly, in a country experiencing financial difficulties, the rise of a political faction that is perceived to be fiscally responsible can have the opposite effect. Also, events in one country in a region may spur positive or negative interest in a neighboring country and, in the process, affect its currency
Economic factors
These include: (a)economic policy, disseminated by government agencies and central banks, (b)economic conditions, generally revealed through economic reports, and other economic indicators.
Economic policy comprises government fiscal policy (budget/spending practices) and monetary policy (the means by which a government's central bank influences the supply and "cost" of money, which is reflected by the level of interest rates).
Economic conditions include:
Government budget deficits or surpluses
The market usually reacts negatively to widening government budget deficits, and positively to narrowing budget deficits. The impact is reflected in the value of a country's currency.
Balance of trade levels and trends
The trade flow between countries illustrates the demand for goods and services, which in turn indicates demand for a country's currency to conduct trade. Surpluses and deficits in trade of goods and services reflect the competitiveness of a nation's economy. For example, trade deficits may have a negative impact on a nation's currency.
Inflation levels and trends
Typically a currency will lose value if there is a high level of inflation in the country or if inflation levels are perceived to be rising [. This is because inflation erodes purchasing power, thus demand, for that particular currency. However, a currency may sometimes strengthen when inflation rises because of expectations that the central bank will raise short-term interest rates to combat rising inflation.
Economic growth and health
Reports such as GDP, employment levels, retail sales, capacity utilization and others, detail the levels of a country's economic growth and health. Generally, the more healthy and robust a country's economy, the better its currency will perform, and the more demand for it there will be.
Productivity of an economy
Increasing productivity in an economy should positively influence the value of its currency. It affects are more prominent if the increase is in the traded sector [3].
Economic policy comprises government fiscal policy (budget/spending practices) and monetary policy (the means by which a government's central bank influences the supply and "cost" of money, which is reflected by the level of interest rates).
Economic conditions include:
Government budget deficits or surpluses
The market usually reacts negatively to widening government budget deficits, and positively to narrowing budget deficits. The impact is reflected in the value of a country's currency.
Balance of trade levels and trends
The trade flow between countries illustrates the demand for goods and services, which in turn indicates demand for a country's currency to conduct trade. Surpluses and deficits in trade of goods and services reflect the competitiveness of a nation's economy. For example, trade deficits may have a negative impact on a nation's currency.
Inflation levels and trends
Typically a currency will lose value if there is a high level of inflation in the country or if inflation levels are perceived to be rising [. This is because inflation erodes purchasing power, thus demand, for that particular currency. However, a currency may sometimes strengthen when inflation rises because of expectations that the central bank will raise short-term interest rates to combat rising inflation.
Economic growth and health
Reports such as GDP, employment levels, retail sales, capacity utilization and others, detail the levels of a country's economic growth and health. Generally, the more healthy and robust a country's economy, the better its currency will perform, and the more demand for it there will be.
Productivity of an economy
Increasing productivity in an economy should positively influence the value of its currency. It affects are more prominent if the increase is in the traded sector [3].
Determinants of FX Rates
The following theories explain the fluctuations in FX rates in a floating exchange rate regime (In a fixed exchange rate regime, FX rates are decided by its government):
(a) International parity conditions viz; purchasing power parity, interest rate parity, Domestic Fisher effect, International Fisher effect. Though to some extent the above theories provide logical explanation for the fluctuations in exchange rates, yet these theories falter as they are based on challengeable assumptions [e.g., free flow of goods, services and capital] which seldom hold true in the real world.
(b) Balance of payments model (see exchange rate). This model, however, focuses largely on tradable goods and services, ignoring the increasing role of global capital flows. It failed to provide any explanation for continuous appreciation of dollar during 1980s and most part of 1990s in face of soaring US current account deficit.
(c) Asset market model (see exchange rate) views currencies as an important asset class for constructing investment portfolios. Assets prices are influenced mostly by people’s willingness to hold the existing quantities of assets, which in turn depends on their expectations on the future worth of these assets. The asset market model of exchange rate determination states that “the exchange rate between two currencies represents the price that just balances the relative supplies of, and demand for, assets denominated in those currencies.”
None of the models developed so far succeed to explain FX rates levels and volatility in the longer time frames. For shorter time frames (less than a few days) algorithm can be devised to predict prices. Large and small institutions and professional individual traders have made consistent profits from it. It is understood from above models that many macroeconomic factors affect the exchange rates and in the end currency prices are a result of dual forces of demand and supply. The world's currency markets can be viewed as a huge melting pot: in a large and ever-changing mix of current events, supply and demand factors are constantly shifting, and the price of one currency in relation to another shifts accordingly. No other market encompasses (and distills) as much of what is going on in the world at any given time as foreign exchange.
Supply and demand for any given currency, and thus its value, are not influenced by any single element, but rather by several. These elements generally fall into three categories: economic factors, political conditions and market psychology
(a) International parity conditions viz; purchasing power parity, interest rate parity, Domestic Fisher effect, International Fisher effect. Though to some extent the above theories provide logical explanation for the fluctuations in exchange rates, yet these theories falter as they are based on challengeable assumptions [e.g., free flow of goods, services and capital] which seldom hold true in the real world.
(b) Balance of payments model (see exchange rate). This model, however, focuses largely on tradable goods and services, ignoring the increasing role of global capital flows. It failed to provide any explanation for continuous appreciation of dollar during 1980s and most part of 1990s in face of soaring US current account deficit.
(c) Asset market model (see exchange rate) views currencies as an important asset class for constructing investment portfolios. Assets prices are influenced mostly by people’s willingness to hold the existing quantities of assets, which in turn depends on their expectations on the future worth of these assets. The asset market model of exchange rate determination states that “the exchange rate between two currencies represents the price that just balances the relative supplies of, and demand for, assets denominated in those currencies.”
None of the models developed so far succeed to explain FX rates levels and volatility in the longer time frames. For shorter time frames (less than a few days) algorithm can be devised to predict prices. Large and small institutions and professional individual traders have made consistent profits from it. It is understood from above models that many macroeconomic factors affect the exchange rates and in the end currency prices are a result of dual forces of demand and supply. The world's currency markets can be viewed as a huge melting pot: in a large and ever-changing mix of current events, supply and demand factors are constantly shifting, and the price of one currency in relation to another shifts accordingly. No other market encompasses (and distills) as much of what is going on in the world at any given time as foreign exchange.
Supply and demand for any given currency, and thus its value, are not influenced by any single element, but rather by several. These elements generally fall into three categories: economic factors, political conditions and market psychology
Trading characteristics 3
Currencies are traded against one another. Each pair of currencies thus constitutes an individual product and is traditionally noted XXX/YYY, where YYY is the ISO 4217 international three-letter code of the currency into which the price of one unit of XXX is expressed (called base currency). For instance, EUR/USD is the price of the euro expressed in US dollars, as in 1 euro = 1.5465 dollar. Out of convention, the first currency in the pair, the base currency, was the stronger currency at the creation of the pair. The second currency, counter currency, was the weaker currency at the creation of the pair.
The factors affecting XXX will affect both XXX/YYY and XXX/ZZZ. This causes positive currency correlation between XXX/YYY and XXX/ZZZ.
On the spot market, according to the BIS study, the most heavily traded products were:
EUR/USD: 27%
USD/JPY: 13%
GBP/USD (also called sterling or cable): 12%
and the US currency was involved in 86.3% of transactions, followed by the euro (37.0%), the yen (17.0%), and sterling (15.0%) (see table). Note that volume percentages should add up to 200%: 100% for all the sellers and 100% for all the buyers.
Trading in the euro has grown considerably since the currency's creation in January 1999, and how long the foreign exchange market will remain dollar-centered is open to debate. Until recently, trading the euro versus a non-European currency ZZZ would have usually involved two trades: EUR/USD and USD/ZZZ. The exception to this is EUR/JPY, which is an established traded currency pair in the interbank spot market. As the dollar's value has eroded during 2008, interest in using the euro as reference currency for prices in commodities (such as oil), as well as a larger component of foreign reserves by banks, has increased dramatically. Transactions in the currencies of commodity-producing countries, such as AUD, NZD, CAD, have also increased.
The factors affecting XXX will affect both XXX/YYY and XXX/ZZZ. This causes positive currency correlation between XXX/YYY and XXX/ZZZ.
On the spot market, according to the BIS study, the most heavily traded products were:
EUR/USD: 27%
USD/JPY: 13%
GBP/USD (also called sterling or cable): 12%
and the US currency was involved in 86.3% of transactions, followed by the euro (37.0%), the yen (17.0%), and sterling (15.0%) (see table). Note that volume percentages should add up to 200%: 100% for all the sellers and 100% for all the buyers.
Trading in the euro has grown considerably since the currency's creation in January 1999, and how long the foreign exchange market will remain dollar-centered is open to debate. Until recently, trading the euro versus a non-European currency ZZZ would have usually involved two trades: EUR/USD and USD/ZZZ. The exception to this is EUR/JPY, which is an established traded currency pair in the interbank spot market. As the dollar's value has eroded during 2008, interest in using the euro as reference currency for prices in commodities (such as oil), as well as a larger component of foreign reserves by banks, has increased dramatically. Transactions in the currencies of commodity-producing countries, such as AUD, NZD, CAD, have also increased.
Trading characteristics
There is no unified or centrally cleared market for the majority of FX trades, and there is very little cross-border regulation. Due to the over-the-counter (OTC) nature of currency markets, there are rather a number of interconnected marketplaces, where different currencies instruments are traded. This implies that there is not a single exchange rate but rather a number of different rates (prices), depending on what bank or market maker is trading, and where it is. In practice the rates are often very close, otherwise they could be exploited by arbitrageurs instantaneously. Due to London's dominance in the market, a particular currency's quoted price is usually the London market price. A joint venture of the Chicago Mercantile Exchange and Reuters, called Fxmarketspace opened in 2007 and aspired but failed to the role of a central market clearing mechanism.
Trading characteristics 2
The main trading center is London, but New York, Tokyo, Hong Kong and Singapore are all important centers as well. Banks throughout the world participate. Currency trading happens continuously throughout the day; as the Asian trading session ends, the European session begins, followed by the North American session and then back to the Asian session, excluding weekends.
Fluctuations in exchange rates are usually caused by actual monetary flows as well as by expectations of changes in monetary flows caused by changes in gross domestic product (GDP) growth, inflation (purchasing power parity theory), interest rates (interest rate parity, Domestic Fisher effect, International Fisher effect), budget and trade deficits or surpluses, large cross-border M&A deals and other macroeconomic conditions. Major news is released publicly, often on scheduled dates, so many people have access to the same news at the same time. However, the large banks have an important advantage; they can see their customers' order flow
Fluctuations in exchange rates are usually caused by actual monetary flows as well as by expectations of changes in monetary flows caused by changes in gross domestic product (GDP) growth, inflation (purchasing power parity theory), interest rates (interest rate parity, Domestic Fisher effect, International Fisher effect), budget and trade deficits or surpluses, large cross-border M&A deals and other macroeconomic conditions. Major news is released publicly, often on scheduled dates, so many people have access to the same news at the same time. However, the large banks have an important advantage; they can see their customers' order flow
Non-bank Foreign Exchange Companies
Non-bank foreign exchange companies offer currency exchange and international payments to private individuals and companies. These are also known as foreign exchange brokers but are distinct in that they do not offer speculative trading but currency exchange with payments. I.e., there is usually a physical delivery of currency to a bank account.
It is estimated that in the UK, 14% of currency transfers/payments[10] are made via Foreign Exchange Companies.[11] These companies' selling point is usually that they will offer better exchange rates or cheaper payments than the customer's bank. These companies differ from Money Transfer/Remittance Companies in that they generally offer higher-value services
It is estimated that in the UK, 14% of currency transfers/payments[10] are made via Foreign Exchange Companies.[11] These companies' selling point is usually that they will offer better exchange rates or cheaper payments than the customer's bank. These companies differ from Money Transfer/Remittance Companies in that they generally offer higher-value services
Money Transfer/Remittance Companies
Money transfer companies/remittance companies perform high-volume low-value transfers generally by economic migrants back to their home country. In 2007, the Aite Group estimated that there were $369 billion of remittances (an increase of 8% on the previous year). The four largest markets (India, China, Mexico and the Philippines) receive $95 billion. The largest and best known provider is Western Union with 345,000 agents globally.
Investment management firms
Investment management firms (who typically manage large accounts on behalf of customers such as pension funds and endowments) use the foreign exchange market to facilitate transactions in foreign securities. For example, an investment manager bearing an international equity portfolio needs to purchase and sell several pairs of foreign currencies to pay for foreign securities purchases.
Some investment management firms also have more speculative specialist currency overlay operations, which manage clients' currency exposures with the aim of generating profits as well as limiting risk. Whilst the number of this type of specialist firms is quite small, many have a large value of assets under management (AUM), and hence can generate large trades
Some investment management firms also have more speculative specialist currency overlay operations, which manage clients' currency exposures with the aim of generating profits as well as limiting risk. Whilst the number of this type of specialist firms is quite small, many have a large value of assets under management (AUM), and hence can generate large trades
Retail foreign exchange brokers
There are two types of retail brokers offering the opportunity for speculative trading: retail foreign exchange brokers and market makers. Retail traders (individuals) are a small fraction of this market and may only participate indirectly through brokers or banks. Retail brokers, while largely controlled and regulated by the CFTC and NFA might be subject to foreign exchange scams.[8][9] At present, the NFA and CFTC are imposing stricter requirements, particularly in relation to the amount of Net Capitalization required of its members. As a result many of the smaller, and perhaps questionable brokers are now gone. It is not widely understood that retail brokers and market makers typically trade against their clients and frequently take the other side of their trades. This can often create a potential conflict of interest and give rise to some of the unpleasant experiences some traders have had. A move toward NDD (No Dealing Desk) and STP (Straight Through Processing) has helped to resolve some of these concerns and restore trader confidence, but caution is still advised in ensuring that all is as it is presented
Hedge funds as speculators
About 70% to 90% of the foreign exchange transactions are speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency. Hedge funds have gained a reputation for aggressive currency speculation since 1996. They control billions of dollars of equity and may borrow billions more, and thus may overwhelm intervention by central banks to support almost any currency, if the economic fundamentals are in the hedge funds' favor.
Banks
The interbank market caters for both the majority of commercial turnover and large amounts of speculative trading every day. A large bank may trade billions of dollars daily. Some of this trading is undertaken on behalf of customers, but much is conducted by proprietary desks, trading for the bank's own account. Until recently, foreign exchange brokers did large amounts of business, facilitating interbank trading and matching anonymous counterparts for small fees. Today, however, much of this business has moved on to more efficient electronic systems. The broker squawk box lets traders listen in on ongoing interbank trading and is heard in most trading rooms, but turnover is noticeably smaller than just a few years ago
Commercial companies
An important part of this market comes from the financial activities of companies seeking foreign exchange to pay for goods or services. Commercial companies often trade fairly small amounts compared to those of banks or speculators, and their trades often have little short term impact on market rates. Nevertheless, trade flows are an important factor in the long-term direction of a currency's exchange rate. Some multinational companies can have an unpredictable impact when very large positions are covered due to exposures that are not widely known by other market participants
[edit] Market participants
Unlike a stock market, where all participants have access to the same prices, the foreign exchange market is divided into levels of access. At the top is the inter-bank market, which is made up of the largest investment banking firms. Within the inter-bank market, spreads, which are the difference between the bid and ask prices, are razor sharp and usually unavailable, and not known to players outside the inner circle. The difference between the bid and ask prices widens (from 0-1 pip to 1-2 pips for some currencies such as the EUR). This is due to volume. If a trader can guarantee large numbers of transactions for large amounts, they can demand a smaller difference between the bid and ask price, which is referred to as a better spread. The levels of access that make up the foreign exchange market are determined by the size of the "line" (the amount of money with which they are trading). The top-tier inter-bank market accounts for 53% of all transactions. After that there are usually smaller investment banks, followed by large multi-national corporations (which need to hedge risk and pay employees in different countries), large hedge funds, and even some of the retail FX-metal market makers. According to Galati and Melvin, “Pension funds, insurance companies, mutual funds, and other institutional investors have played an increasingly important role in financial markets in general, and in FX markets in particular, since the early 2000s.” (2004) In addition, he notes, “Hedge funds have grown markedly over the 2001–2004 period in terms of both number and overall size” Central banks also participate in the foreign exchange market to align currencies to their economic needs.
forex 2
These spreads might not apply to retail customers at banks, which will routinely mark up the difference to say 1.2100/1.2300 for transfers, or say 1.2000/1.2400 for banknotes or travelers' checks. Spot prices at market makers vary, but on EUR/USD are usually no more than 3 pips wide (i.e., 0.0003). Competition is greatly increased with larger transactions, and pip spreads shrink on the major pairs to as little as 1 to 2 pips.
forex
Foreign exchange trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. This is largely due to the growing importance of foreign exchange as an asset class and an increase in fund management assets, particularly of hedge funds and pension funds. The diverse selection of execution venues have made it easier for retail traders to trade in the foreign exchange market. In 2006, retail traders constituted over 2% of the whole FX market volumes with an average daily trade volume of over US$50-60 billion (see retail trading platforms).[6] Because foreign exchange is an OTC market where brokers/dealers negotiate directly with one another, there is no central exchange or clearing house. The biggest geographic trading centre is the UK, primarily London, which according to IFSL estimates has increased its share of global turnover in traditional transactions from 31.3% in April 2004 to 34.1% in April 2007. The ten most active traders account for almost 80% of trading volume, according to the 2008 Euromoney FX survey.[3] These large international banks continually provide the market with both bid (buy) and ask (sell) prices. The bid/ask spread is the difference between the price at which a bank or market maker will sell ("ask", or "offer") and the price at which a market-maker will buy ("bid") from a wholesale customer. This spread is minimal for actively traded pairs of currencies, usually 0–3 pips. For example, the bid/ask quote of EUR/USD might be 1.2200/1.2203 on a retail broker. Minimum trading size for most deals is usually 100,000 units of base currency, which is a standard "lot".
Friday, July 10, 2009
Development
The first access to the mobile web was commercially offered in Finland in 1996 on the Nokia Communicator 9000 phone on the Sonera and Radiolinja networks. This was access to the real internet. The first commercial launch of a mobile-specific browser based mobile web service was in 1999 in Japan when i-Mode was launched by NTT DoCoMo.
Evolution of mobile web standards
The Mobile Web primarily utilises lightweight pages written in Extensible Hypertext Markup Language (XHTML) or Wireless Markup Language (WML) to deliver content to mobile devices. Many new mobile browsers are moving beyond these limitations by supporting a wider range of Web formats, including variants of HTML commonly found on the desktop Web.
Evolution of mobile web standards
The Mobile Web primarily utilises lightweight pages written in Extensible Hypertext Markup Language (XHTML) or Wireless Markup Language (WML) to deliver content to mobile devices. Many new mobile browsers are moving beyond these limitations by supporting a wider range of Web formats, including variants of HTML commonly found on the desktop Web.
Standards
The development of standards is one approach being implemented to improve the interoperability, usability, and accessibility issues surrounding mobile web usage.
The W3C Mobile Web Initiative is a new initiative set up by the W3C to develop best practices and technologies relevant to the Mobile Web. The goal of the initiative is to make browsing the Web from mobile devices more reliable and accessible. The main aim is to evolve standards of data formats from Internet providers that are tailored to the specifications of particular mobile devices. The W3C has published guidelines (Best Practices, Best Practices Checker Software Tool) for mobile content, and is actively addressing the problem of device diversity by establishing a technology to support a repository of Device Descriptions.
W3C is also developing a validating scheme to assess the readiness of content for the mobile web, through its mobileOK Scheme, which will help content developers to quickly determine if their content is web-ready. The W3C guidelines and mobile OK approach have not been immune from criticism. This puts the emphasis on Adaptation, which is now seen as the key process in achieving the Ubiquitous Web, when combined with a Device Description Repository.
mTLD, the registry for .mobi, has released a free testing tool called the MobiReady Report to analyze the mobile readiness of website. It does a free page analysis and gives a Mobi Ready score. This report tests the mobile-readiness of the site using industry best practices & standards.
Other standards for the mobile web are being documented and explored for particular applications by interested industry groups, such as the use of the mobile web for the purpose of education and training e.g. Standards for M-Learning Project
The W3C Mobile Web Initiative is a new initiative set up by the W3C to develop best practices and technologies relevant to the Mobile Web. The goal of the initiative is to make browsing the Web from mobile devices more reliable and accessible. The main aim is to evolve standards of data formats from Internet providers that are tailored to the specifications of particular mobile devices. The W3C has published guidelines (Best Practices, Best Practices Checker Software Tool) for mobile content, and is actively addressing the problem of device diversity by establishing a technology to support a repository of Device Descriptions.
W3C is also developing a validating scheme to assess the readiness of content for the mobile web, through its mobileOK Scheme, which will help content developers to quickly determine if their content is web-ready. The W3C guidelines and mobile OK approach have not been immune from criticism. This puts the emphasis on Adaptation, which is now seen as the key process in achieving the Ubiquitous Web, when combined with a Device Description Repository.
mTLD, the registry for .mobi, has released a free testing tool called the MobiReady Report to analyze the mobile readiness of website. It does a free page analysis and gives a Mobi Ready score. This report tests the mobile-readiness of the site using industry best practices & standards.
Other standards for the mobile web are being documented and explored for particular applications by interested industry groups, such as the use of the mobile web for the purpose of education and training e.g. Standards for M-Learning Project
Mobile Web
The Mobile Web refers to brower-based web services such as the World Wide Web, WAP and i-Mode (Japan) using a mobile device such as a cell phone, PDA, or other portable gadget connected to a public network. Such access does not require a desktop computer, nor a fixed landline connection.[1] The total number of mobile web users grew past the total number of PC based internet users for the first time in 2008 (source: Tomi Ahonen Almanac 2009).
However, Mobile Web access today still suffers from interoperability and usability problems. This is partly due to the incompatibility of the format of much of the information available on the Internet with mobile devices and partly due to the small physical size of the screens of mobile devices and other device limitations.
However, Mobile Web access today still suffers from interoperability and usability problems. This is partly due to the incompatibility of the format of much of the information available on the Internet with mobile devices and partly due to the small physical size of the screens of mobile devices and other device limitations.
Usage
1. If your mobile phone can access the Internet using one key, press MO.
2. If your mobile phone does not have this function, please choose the Internet option on your phone’s menu.
3. If you order this service on-line, then it will be available on the “My Monternet” page on the CMCC WAP website.
4. You may access “My Monternet” to use or cancel the service.
2. If your mobile phone does not have this function, please choose the Internet option on your phone’s menu.
3. If you order this service on-line, then it will be available on the “My Monternet” page on the CMCC WAP website.
4. You may access “My Monternet” to use or cancel the service.
Mobile Internet
Supporting Mobiles
Note
Opening and Canceling the Service
Standard rates
Usage
MMS: mobile newspaper products have fixed sending frequencies and time. When users when successfully receive the products with their mobiles through the MMS function, they can open and read the newspaper.
WAP: all mobile newspaper products are available on WAP websites for free.
SMS: users can acquire instant mobile newspaper products by sending SMS.
WAP: all mobile newspaper products are available on WAP websites for free.
SMS: users can acquire instant mobile newspaper products by sending SMS.
Product Features 2
MMS is a multimedia message service (MMS) launched by CMCC, supporting multimedia functions which include text, images, audio, video, and other multimedia data format information. Compared with the original SMS system, MMS is equipped with a wealth of color photographs, audio, animation, vibration and other multimedia content, in addition to basic textual information.
1) Both pictures and text: sports news with live photos, funny cartoons, photos, astrology, stars, dating, and multicolored animation games ... these are all available by MMS.
2) Instant: as long as you have a MMS camera phone, you can take pictures wherever and whenever, and save the picture to your mobile phone, or as a standby picture or Screen Saving image, or send it via GPRS to share the moment with families and friends.
1) Both pictures and text: sports news with live photos, funny cartoons, photos, astrology, stars, dating, and multicolored animation games ... these are all available by MMS.
2) Instant: as long as you have a MMS camera phone, you can take pictures wherever and whenever, and save the picture to your mobile phone, or as a standby picture or Screen Saving image, or send it via GPRS to share the moment with families and friends.
Canceling the Service
Accessing the Service
There are five ways to open the Mobile Newspaper service:
SMS: send SMS instructions to the appropriate number (e.g. send SMS XWZWB to 7000, then open “mobile newspaper- morning and evening posts”)
WAP: order different MMS products of mobile newspapers through WAP websites. Access will provided for all mobile newspaper subscribers through newspaper website on Monternet WAP.
10086 (or 12580): send SMS or dial 10086 (or 12580) to order mobile newspaper from the Customer Service hotline.
Service Hall: service halls in your local area can help you subscribe to mobile newspapers through their operating system.
WWW: users can log into the CMCC website (Chinese version) to open the mobile newspaper service.
SMS: send SMS instructions to the appropriate number (e.g. send SMS XWZWB to 7000, then open “mobile newspaper- morning and evening posts”)
WAP: order different MMS products of mobile newspapers through WAP websites. Access will provided for all mobile newspaper subscribers through newspaper website on Monternet WAP.
10086 (or 12580): send SMS or dial 10086 (or 12580) to order mobile newspaper from the Customer Service hotline.
Service Hall: service halls in your local area can help you subscribe to mobile newspapers through their operating system.
WWW: users can log into the CMCC website (Chinese version) to open the mobile newspaper service.
Product Features
China Mobile provides special services for the Beijing Paralympics
8th Sep, 2008
The Paralympics has brought thousands of athletes from the around the world to Beijing and China Mobile is ready to meet their special communication needs.
To assist people living with disabilities and to help China host the best Paralympics ever, China Mobile has designed and developed a variety of services to realise a high-tech and convenient Paralympics.
China Mobile is offering Beijing residents who are living with disabilities a special SIM card called the 'Ai Xin Card' (Love Heart Card) that features discounts and unique services that are sent directly to the user's mobile phone.
The Ai Xin Card not only provides discounts on airtime and text messaging it's loaded with other helpful features. With an Ai Xin SIM card users receive useful information such as health tips and news bulletins. The Ai Xin Card also allows users to recharge their China Mobile account by sending a simple text message.
China Mobile has also launched an audio version of its M-news service that allows people with visual impairment to listen to news reports that are sent directly to mobile phones twice daily. Customer handbooks at China Mobile's service centers, have also been printed in Braille.
China Mobile has selected its best service representatives to work at 18 competition venues and 16 other locations to provide on-site services.
China Mobile has also prepared special services at many of its service centers. At 104 China Mobile service centers around Beijing, people living with disabilities can receive one-to-one service. Sixty-one of these service centers are barrier free, providing wheelchair access into the centers, and at service desks, washrooms and other facilities.
China Mobile has assigned technical specialists who are duty around the clock to ensure it wireless communication network runs smoothly at competition venues and other key areas.
As well, China Mobile is providing 50 emergency communication vehicles and 14 mobile power generators to ensure a quick response to any emergency.
The Paralympics has brought thousands of athletes from the around the world to Beijing and China Mobile is ready to meet their special communication needs.
To assist people living with disabilities and to help China host the best Paralympics ever, China Mobile has designed and developed a variety of services to realise a high-tech and convenient Paralympics.
China Mobile is offering Beijing residents who are living with disabilities a special SIM card called the 'Ai Xin Card' (Love Heart Card) that features discounts and unique services that are sent directly to the user's mobile phone.
The Ai Xin Card not only provides discounts on airtime and text messaging it's loaded with other helpful features. With an Ai Xin SIM card users receive useful information such as health tips and news bulletins. The Ai Xin Card also allows users to recharge their China Mobile account by sending a simple text message.
China Mobile has also launched an audio version of its M-news service that allows people with visual impairment to listen to news reports that are sent directly to mobile phones twice daily. Customer handbooks at China Mobile's service centers, have also been printed in Braille.
China Mobile has selected its best service representatives to work at 18 competition venues and 16 other locations to provide on-site services.
China Mobile has also prepared special services at many of its service centers. At 104 China Mobile service centers around Beijing, people living with disabilities can receive one-to-one service. Sixty-one of these service centers are barrier free, providing wheelchair access into the centers, and at service desks, washrooms and other facilities.
China Mobile has assigned technical specialists who are duty around the clock to ensure it wireless communication network runs smoothly at competition venues and other key areas.
As well, China Mobile is providing 50 emergency communication vehicles and 14 mobile power generators to ensure a quick response to any emergency.
China Mobile becomes first mainland company to be selected to Dow Jones Sustainability Index
10th Sep, 2008
China Mobile Limited has been named to the Dow Jones Sustainability Index (DJSI), becoming the first company from mainland China to be selected to the prestigious index.
The DJSI captures the top 10% of the biggest 2500 companies worldwide based on long-term economic, environmental and social criteria.
China Mobile’s selection in the index’s September 2008 review was based on a variety of criteria including climate change strategies, energy consumption, human resources development, knowledge management, stakeholder relations and corporate governance.
Established in 1999, the DJSI is considered a prime reference standard for socially responsible investing.
The DJSI is made up of 320 of the world’s leading companies from 19 different ‘super’ sectors. Ten of the companies are in the telecommunications industry. Along with China Mobile, BT group and Vodafone are in this exclusive club.
Currently, there two Chinese companies on the DJSI, including Hong Kong’s mass-transit rail company MTR. China Mobile is the only company from mainland China to have ever been selected to the index.
A variety of criteria are used to assess companies that are selected to the DJSI including the company’s impact on the economy, society and environment.
China Mobile has persisted in balancing its development and growth with its social responsibility. In 2007, China Mobile published its first comprehensive social responsibility report. It detailed China Mobile’s guiding principles which are based on sincerity, honesty, humanity and respect for nature and life.
Over the last year China Mobile has instituted a socially responsible and professional management system that covers the entire company.
In China Mobile’s 2006 three-year plan the company adopted the DJSI’s appraisal system for sustainability and social responsibility to measure its own performance. At that time China Mobile set a goal of being selected to the index by 2009.
China Mobile’s selection in the 2008 review of the DJSI is an acknowledgment that the company has become a world leader in sustainable development and social responsibility. Selection to the index will be a strong motivating force for China Mobile as it continues its work in building an even greater socially responsible enterprise.
China Mobile Limited has been named to the Dow Jones Sustainability Index (DJSI), becoming the first company from mainland China to be selected to the prestigious index.
The DJSI captures the top 10% of the biggest 2500 companies worldwide based on long-term economic, environmental and social criteria.
China Mobile’s selection in the index’s September 2008 review was based on a variety of criteria including climate change strategies, energy consumption, human resources development, knowledge management, stakeholder relations and corporate governance.
Established in 1999, the DJSI is considered a prime reference standard for socially responsible investing.
The DJSI is made up of 320 of the world’s leading companies from 19 different ‘super’ sectors. Ten of the companies are in the telecommunications industry. Along with China Mobile, BT group and Vodafone are in this exclusive club.
Currently, there two Chinese companies on the DJSI, including Hong Kong’s mass-transit rail company MTR. China Mobile is the only company from mainland China to have ever been selected to the index.
A variety of criteria are used to assess companies that are selected to the DJSI including the company’s impact on the economy, society and environment.
China Mobile has persisted in balancing its development and growth with its social responsibility. In 2007, China Mobile published its first comprehensive social responsibility report. It detailed China Mobile’s guiding principles which are based on sincerity, honesty, humanity and respect for nature and life.
Over the last year China Mobile has instituted a socially responsible and professional management system that covers the entire company.
In China Mobile’s 2006 three-year plan the company adopted the DJSI’s appraisal system for sustainability and social responsibility to measure its own performance. At that time China Mobile set a goal of being selected to the index by 2009.
China Mobile’s selection in the 2008 review of the DJSI is an acknowledgment that the company has become a world leader in sustainable development and social responsibility. Selection to the index will be a strong motivating force for China Mobile as it continues its work in building an even greater socially responsible enterprise.
sms
Mobile Forex 2
Traders can use their web-enabled Mobile Devices, including phones and Personal Digital Assistants to connect to our proprietary wireless version of the DealStation™ to check rates & news, to monitor account status, and to place orders. We are particularly proud to be pioneers in this wireless evolution, which brings our clients even closer to the market.
MG Wireless Trading keeps traders connected to the market 24 hours a day, seven days a week, and from anywhere around the world. Here are some of the benefits of MG Wireless Solutions:
MG Wireless Trading keeps traders connected to the market 24 hours a day, seven days a week, and from anywhere around the world. Here are some of the benefits of MG Wireless Solutions:
MG Financial 2
MG Financial and its affiliates will not be held responsible for errors in transmission or connection failures to MG's wireless web services. Note that response time may vary due to connection speed, reliability, and system configurations. We encourage you to exercise additional caution while relying on MG wireless web services to deliver vital market information and to ask you to manage your accounts accordingly. The reader agrees not to hold MG Financial, and/or any of its affiliates, liable for decisions that are based on information received from these wireless services.
MG Financial
As a pioneer and innovator of the retail foreign exchange industry, MG Financial has long established itself as the premier provider of online trading services in the foreign exchange market, serving clients since 1992.
Early Mobile Telephone Technologies
ACTIVE FX INVESTORS
Analog and Digital Mobile Telephone Technologies
Mobile telephone systems are either analog or digital. In analog systems, voice messages are transmitted as sound waves. When you speak into an analog mobile telephone, your voice wave is linked to a radio wave and transmitted. In digital systems, voice messages are transmitted as a stream of zeroes and ones. When you speak into a digital mobile telephone, your voice wave is converted into a binary pattern before being transmitted.
Types of mobile search
Within the broad umbrella of mobile search (the ability to browse for mobile specific content), there are a range of services. Given the relative immaturity of the market, not all of these can be expected to become the industry standards.
Mobile optimized search engines - Most major search engines have implemented a mobile optimized version of their products that take into consideration bandwidth and form factor limitations of the mobile platform. For example, Yahoo has launched a product branded as Yahoo [OneSearch][2] and Google has launched a mobile friendly version of their search engine as well.
Mobile question and answer services - These services allow a user to text a question to a central database and receive a reply using text. A usage example would be a user that wants to know the answer to a very specific question but is not in front of his/her computer. Most mobile 'Q&A' services are powered by human researchers and are therefore a type of organic search engine. An example of such a service in the US is Question Mania [3], where every question is answered via text message, by a real person. A new approach by AskMeNow is to use Semantic Web technology to automate the process. Some emerging services such as MyHelpa in the UK address the perceived limitations of one-shot, reverse billed SMS messages by using VoIP to connect the Caller directly to the Human search agent.
Mobile directory search - This service is known by different names dependent on country and operator. It can also be known as 'Find My Nearest' or 'Mobile Yellow Pages' services. The basics of the services allow users to find local services in the vicinity of their current location. The services often use location-based technology to pinpoint exactly where the user currently is. An example of usage would be a user looking for a local cab or taxi company after a night out. Services also usually come with a map and directions to help the user. An example is the service offered by Yell in the UK which is powered by MobilePeople's technology. More details can be found in mobile local search.
Mobile discovery services These services offer users recommendations on what they should do next. An example would be recommending a user a similar ringtone to the one that s/he has just browsed for. They operate, in a mobile context, in a similar way to the recommendation engines provided by internet retail shops such as Amazon.com. An example of real usage is the Directory Enquiries (DQ) service operated by Orange in the UK. Callers to the Orange landline DQ service are given the business and residential numbers they have requested verbally by an operator. In addition, Orange sends the information in text format to the users mobile phone. The information contains a text reminder of the requested information as well as links to local businesses, services and other interesting information in the local area that the user has searched on.
Mobile navigation services - These services provide the indexing structure to the portals provided by mobile operators. They index the content already on the operators' portal but also provide users access to mobile specific content that is available outside the confines of the portal.
Dynamic Mobile Selection Interface Services - A new category of mobile search tool that is emerging is one in which a pre-selected set of possible search content is downloaded in advance by a mobile user and then allows for a final internet search step. An example of such search tools is the Worldport Navigator for the iPhone, which provides users with a push-button experience of selecting from thousands of human-screened and categorized Web selections in three or four seconds, without the need for text entry, search, result review, or page-scrolling.
Mobile optimized search engines - Most major search engines have implemented a mobile optimized version of their products that take into consideration bandwidth and form factor limitations of the mobile platform. For example, Yahoo has launched a product branded as Yahoo [OneSearch][2] and Google has launched a mobile friendly version of their search engine as well.
Mobile question and answer services - These services allow a user to text a question to a central database and receive a reply using text. A usage example would be a user that wants to know the answer to a very specific question but is not in front of his/her computer. Most mobile 'Q&A' services are powered by human researchers and are therefore a type of organic search engine. An example of such a service in the US is Question Mania [3], where every question is answered via text message, by a real person. A new approach by AskMeNow is to use Semantic Web technology to automate the process. Some emerging services such as MyHelpa in the UK address the perceived limitations of one-shot, reverse billed SMS messages by using VoIP to connect the Caller directly to the Human search agent.
Mobile directory search - This service is known by different names dependent on country and operator. It can also be known as 'Find My Nearest' or 'Mobile Yellow Pages' services. The basics of the services allow users to find local services in the vicinity of their current location. The services often use location-based technology to pinpoint exactly where the user currently is. An example of usage would be a user looking for a local cab or taxi company after a night out. Services also usually come with a map and directions to help the user. An example is the service offered by Yell in the UK which is powered by MobilePeople's technology. More details can be found in mobile local search.
Mobile discovery services These services offer users recommendations on what they should do next. An example would be recommending a user a similar ringtone to the one that s/he has just browsed for. They operate, in a mobile context, in a similar way to the recommendation engines provided by internet retail shops such as Amazon.com. An example of real usage is the Directory Enquiries (DQ) service operated by Orange in the UK. Callers to the Orange landline DQ service are given the business and residential numbers they have requested verbally by an operator. In addition, Orange sends the information in text format to the users mobile phone. The information contains a text reminder of the requested information as well as links to local businesses, services and other interesting information in the local area that the user has searched on.
Mobile navigation services - These services provide the indexing structure to the portals provided by mobile operators. They index the content already on the operators' portal but also provide users access to mobile specific content that is available outside the confines of the portal.
Dynamic Mobile Selection Interface Services - A new category of mobile search tool that is emerging is one in which a pre-selected set of possible search content is downloaded in advance by a mobile user and then allows for a final internet search step. An example of such search tools is the Worldport Navigator for the iPhone, which provides users with a push-button experience of selecting from thousands of human-screened and categorized Web selections in three or four seconds, without the need for text entry, search, result review, or page-scrolling.
Market Description
"Competition for the US mobile search market promises to be fierce, thanks to the large US online ad market and strong pushes by portals. By 2011, mobile search will account for around $715 million, or almost 15% of a total mobile advertising market worth nearly $4.7 billion", according to a leading market research firm. [1] Depending on a researcher's particular bias toward telecom, Web or technology factors, the published forecasts for global mobile search vary from $1.5 billion by 2011 (from Informa Telecoms & Media) to over $11 billion by 2008 (according to Piper Jaffray). [2]
Mobile Search is important for the usability of mobile content for the same reasons as internet search engines became important to the usability of internet content. Early internet content was largely provided by portals such as Netscape. As the depth of available content grew, portals were unable to provide total coverage. As a result internet search engines such as Google and AltaVista proved popular as a way of allowing users to find the increasingly specialist content they were looking for.
There is a similar situation developing in the mobile content industry. Given early adopter usage of mobile services, there has been a vast increase in the depth of content developed for mobile phones. There are now few large organizations that do not offer a mobile service of some sort. Most of the operators run their own portals that showcase the best available content. However, given the limitations of a mobile phones screen size and general navigability, most of available content that has been written for mobile users is effectively invisible to users. Research from Qpass suggests that less than 36% of an operator's portal is within 30 seconds navigation distance for the user - this being the expected time users expect to find content in.
The early deals are taking place as cell phone operators recognize that mobile Internet search is an inherently different business than its desktop counterpart. Whereas people might use a Web-connected personal computer to search for information about an 18th-century British author, they are more likely to use cell phones to find targeted information like news, weather and sports. Cell phones also offer much less space to enter in search terms and smaller screens to display results.
Some of the advancements by the major portals in Internet search, such as Google's famous page-ranking scheme, don't apply in the mobile world since people aren't searching for Web sites as much as answers to specific questions. Alltel's group president of operations, Kevin Beebe, says the Internet search giants aren't yet delivering the kind of results the mobile content industry wants. "What they're trying to do is take that core search capability and just jam it onto the phone," Mr. Beebe said. "That's probably not the right approach."
"Mobile search is a battle to define perhaps the most important new interface with the consumer," says John du Pre Gauntt, eMarketer Senior Analyst and the author of the new report, Mobile Search: Clash of the Titans. "Whoever cracks the consumer and commercial code for delivering and monetizing relevant answers for people on the go will secure a license to print money, at least for a time."
Mobile Search is important for the usability of mobile content for the same reasons as internet search engines became important to the usability of internet content. Early internet content was largely provided by portals such as Netscape. As the depth of available content grew, portals were unable to provide total coverage. As a result internet search engines such as Google and AltaVista proved popular as a way of allowing users to find the increasingly specialist content they were looking for.
There is a similar situation developing in the mobile content industry. Given early adopter usage of mobile services, there has been a vast increase in the depth of content developed for mobile phones. There are now few large organizations that do not offer a mobile service of some sort. Most of the operators run their own portals that showcase the best available content. However, given the limitations of a mobile phones screen size and general navigability, most of available content that has been written for mobile users is effectively invisible to users. Research from Qpass suggests that less than 36% of an operator's portal is within 30 seconds navigation distance for the user - this being the expected time users expect to find content in.
The early deals are taking place as cell phone operators recognize that mobile Internet search is an inherently different business than its desktop counterpart. Whereas people might use a Web-connected personal computer to search for information about an 18th-century British author, they are more likely to use cell phones to find targeted information like news, weather and sports. Cell phones also offer much less space to enter in search terms and smaller screens to display results.
Some of the advancements by the major portals in Internet search, such as Google's famous page-ranking scheme, don't apply in the mobile world since people aren't searching for Web sites as much as answers to specific questions. Alltel's group president of operations, Kevin Beebe, says the Internet search giants aren't yet delivering the kind of results the mobile content industry wants. "What they're trying to do is take that core search capability and just jam it onto the phone," Mr. Beebe said. "That's probably not the right approach."
"Mobile search is a battle to define perhaps the most important new interface with the consumer," says John du Pre Gauntt, eMarketer Senior Analyst and the author of the new report, Mobile Search: Clash of the Titans. "Whoever cracks the consumer and commercial code for delivering and monetizing relevant answers for people on the go will secure a license to print money, at least for a time."
Mobile Search
Mobile Search is an evolving branch of information retrieval services that is centered around the convergence of mobile platforms and mobile handsets or other mobile devices. The services allow users to find mobile content interactively on mobile websites, and mobile content shows a media shift toward mobile multimedia. Simply put, mobile search is not just a spatial shift of PC web search to mobile equipment, but is witnessing more of treelike branching into specialized segments of mobile broadband and mobile content, both of which show a fast-paced evolution.
Sleep and EEG effects
Sleep, EEG and waking rCBF have been studied in relation to RF exposure for a decade now, and the majority of papers published to date have found some form of effect. Whilst a Finnish study failed to find any effect on sleep or other cognitive function from pulsed RF exposure[37], most other papers have found significant effects on sleep[38][39][40][41][42][43]. Two of these papers found the effect was only present when the exposure was pulsed (amplitude modulated), and one early paper actually found that sleep quality (measured by the amount of participants' broken sleep) actually improved.
Whilst some papers were inconclusive or inconsistent[44][45], a number of studies have now demonstrated reversible EEG and rCBF alterations from exposure to pulsed RF exposure[46][47][48][49]. German research from 2006 found that statistically significant EEG changes could be consistently found, but only in a relatively low proportion of study participants (12 - 30%)[
Whilst some papers were inconclusive or inconsistent[44][45], a number of studies have now demonstrated reversible EEG and rCBF alterations from exposure to pulsed RF exposure[46][47][48][49]. German research from 2006 found that statistically significant EEG changes could be consistently found, but only in a relatively low proportion of study participants (12 - 30%)[
Mobile phones and cancer
In 2006 a large Danish study about the connection between mobile phone use and cancer incidence was published. It followed over 420,000 Danish citizens for 20 years and showed no increased risk of cancer.[22] The German Federal Office for Radiation Protection (BfS) consider this report as inconclusive.[23]
In order to investigate the risk of cancer for the mobile phone user, a cooperative project between 13 countries has been launched called INTERPHONE. The idea is that cancers need time to develop so only studies over 10 years are of interest.[24]
The following studies of long time exposure have been published:
* A Danish study (2004) that took place over 10 years and found no evidence to support a link.[22]
* A Swedish study (2005) that draws the conclusion that "the data do not support the hypothesis that mobile phone use is related to an increased risk of glioma or meningioma."[25]
* A British study (2005) that draws the conclusion that "The study suggests that there is no substantial risk of acoustic neuroma in the first decade after starting mobile phone use. However, an increase in risk after longer term use or after a longer lag period could not be ruled out."[26]
* A German study (2006) that states "In conclusion, no overall increased risk of glioma or meningioma was observed among these cellular phone users; however, for long-term cellular phone users, results need to be confirmed before firm conclusions can be drawn."[27]
* A joint study conducted in northern Europe that draws the conclusion that "Although our results overall do not indicate an increased risk of glioma in relation to mobile phone use, the possible risk in the most heavily exposed part of the brain with long-term use needs to be explored further before firm conclusions can be drawn."[28]
Other studies on cancer and mobile phones are:
* A Swedish scientific team at the Karolinska Institute conducted an epidemiological study (2004) that suggested that regular use of a mobile phone over a decade or more was associated with an increased risk of acoustic neuroma, a type of benign brain tumor. The increase was not noted in those who had used phones for fewer than 10 years.[29]
* The INTERPHONE study group from Japan published the results of a study of brain tumour risk and mobile phone use. They used a new approach: determining the SAR inside a tumour by calculating the radiofrequency field absorption in the exact tumour location. Cases examined included glioma, meninigioma, and pituitary adenoma. They reported that the overall odds ratio (OR) was not increased and that there was no significant trend towards an increasing OR in relation to exposure, as measured by SAR. [30]
In 2007, Dr. Lennart Hardell, from Örebro University in Sweden, reviewed published epidemiological papers (2 cohort studies and 16 case-control studies) and found that[31]:
* Cell phone users had an increased risk of malignant gliomas.
* Link between cell phone use and a higher rate of acoustic neuromas.
* Tumors are more likely to occur on the side of the head that the cell handset is used.
* One hour of cell phone use per day significantly increases tumor risk after ten years or more.
In a February 2008 update on the status of the INTERPHONE study IARC stated that the long term findings ‘…could either be causal or artifactual, related to differential recall between cases and controls.’[32]
* A self-published and non-peer reviewed meta-study by Dr. Vini Khurana, an Australian neurosurgeon, presented an "increasing body of evidence ... for a link between mobile phone usage and certain brain tumours" and that it "is anticipated that this danger has far broader public health ramifications than asbestos and smoking".[33] This was criticised as ‘…an unbalanced analysis of the literature, which is also selective in support of the author’s claims.’[34]
A publication titled "Public health implications of wireless technologies" cites that Lennart Hardell found age is a significant factor. The report repeated the finding that the use of cell phones before age 20 increased the risk of brain tumors by 5.2, compared to 1.4 for all ages.[35] A review by Hardell et al. concluded that current mobile phones are not safe for long-term exposure. [36]
In order to investigate the risk of cancer for the mobile phone user, a cooperative project between 13 countries has been launched called INTERPHONE. The idea is that cancers need time to develop so only studies over 10 years are of interest.[24]
The following studies of long time exposure have been published:
* A Danish study (2004) that took place over 10 years and found no evidence to support a link.[22]
* A Swedish study (2005) that draws the conclusion that "the data do not support the hypothesis that mobile phone use is related to an increased risk of glioma or meningioma."[25]
* A British study (2005) that draws the conclusion that "The study suggests that there is no substantial risk of acoustic neuroma in the first decade after starting mobile phone use. However, an increase in risk after longer term use or after a longer lag period could not be ruled out."[26]
* A German study (2006) that states "In conclusion, no overall increased risk of glioma or meningioma was observed among these cellular phone users; however, for long-term cellular phone users, results need to be confirmed before firm conclusions can be drawn."[27]
* A joint study conducted in northern Europe that draws the conclusion that "Although our results overall do not indicate an increased risk of glioma in relation to mobile phone use, the possible risk in the most heavily exposed part of the brain with long-term use needs to be explored further before firm conclusions can be drawn."[28]
Other studies on cancer and mobile phones are:
* A Swedish scientific team at the Karolinska Institute conducted an epidemiological study (2004) that suggested that regular use of a mobile phone over a decade or more was associated with an increased risk of acoustic neuroma, a type of benign brain tumor. The increase was not noted in those who had used phones for fewer than 10 years.[29]
* The INTERPHONE study group from Japan published the results of a study of brain tumour risk and mobile phone use. They used a new approach: determining the SAR inside a tumour by calculating the radiofrequency field absorption in the exact tumour location. Cases examined included glioma, meninigioma, and pituitary adenoma. They reported that the overall odds ratio (OR) was not increased and that there was no significant trend towards an increasing OR in relation to exposure, as measured by SAR. [30]
In 2007, Dr. Lennart Hardell, from Örebro University in Sweden, reviewed published epidemiological papers (2 cohort studies and 16 case-control studies) and found that[31]:
* Cell phone users had an increased risk of malignant gliomas.
* Link between cell phone use and a higher rate of acoustic neuromas.
* Tumors are more likely to occur on the side of the head that the cell handset is used.
* One hour of cell phone use per day significantly increases tumor risk after ten years or more.
In a February 2008 update on the status of the INTERPHONE study IARC stated that the long term findings ‘…could either be causal or artifactual, related to differential recall between cases and controls.’[32]
* A self-published and non-peer reviewed meta-study by Dr. Vini Khurana, an Australian neurosurgeon, presented an "increasing body of evidence ... for a link between mobile phone usage and certain brain tumours" and that it "is anticipated that this danger has far broader public health ramifications than asbestos and smoking".[33] This was criticised as ‘…an unbalanced analysis of the literature, which is also selective in support of the author’s claims.’[34]
A publication titled "Public health implications of wireless technologies" cites that Lennart Hardell found age is a significant factor. The report repeated the finding that the use of cell phones before age 20 increased the risk of brain tumors by 5.2, compared to 1.4 for all ages.[35] A review by Hardell et al. concluded that current mobile phones are not safe for long-term exposure. [36]
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