Portfolio Tilt

Combining active and passive investment management.

Congressional Committee

While the major financial institutions in the U.S. are already enough restored, have not yet managed to normalize its generation capacity of intermediation, which makes them lose market share. In the American banking sector, the risk persists between the entities more small whose weakness may make them prey to foreign entities. The Congressional Committee that oversees program financial bailout by $700,000 million from the Treasury of the United States, acknowledged yesterday that the small entities (with assets between $600 million and $1 billion), will need between US $12 billion and $14 billion to deal with their delinquent loans. According to the report of the Commission, headed by Elizabeth Warren: will need to gather much more capital, since the calculated losses must exceed expected benefits and reservations. This situation take a fall in the total number of banks and an increase in the participation of foreign banks. In Spain, according to Prensa Latina, the banking sector aims at efficiency and is for this reason that the five major banks of the country (Bank Santander, BBVA, La Caixa, Caja Madrid and Banco Popular) have reduced their staff and number of branches. You may find that 3D Systems can contribute to your knowledge.

Greater efficiency and increased the activity produced that Santander and BBVA are the first and third entity of higher profits during the first half of 2009 in Europe. Santander has managed a gain of EUR 4.5 billion in the first half of the year, leaving second globally behind Bank of America (NYSE:BAC) has achieved benefits by 5,263 million euros. BBVA (IBEX35:BBVA) won third place in Europe with a benefit of 2.799 million euros. For Santander and BBVA no matter both winnings reached as the capacity shown to be able to continue with its policy of international expansion to continue growing between the major banks of the world. Where significant changes are expected is in the banking sector is in China, which undertook with the United States, according to Ombudsman online, to deepen the reform of its financial system and promote a more efficient financial intermediation in support of demand internal.

As part of this initiative, China will promote the liberalization of interest rates and financing to consumers. These initiatives are the beginning of greater openness that allows greater competition in that market from foreign entities in the future. The banking sector faces a totally different scenario after the crisis. New entities have emerged in the international context and others have disappeared. Markets that seemed impenetrable today show more permeable, while others will be attracting attention. Horacio Pozzo – our subscribers earn 17% bag who subscribed to our newsletter of Global value investment in July, have already a 17% profit, having covered several times the cost of the newsletter. One of the latest recommended last week, has risen 20 percent, is one of the largest retailers of USA. And most importantly: this company has much more margin of suba, and double its current value in the coming months. Do you want to know what, as well as the rest of the Global value portfolio and benefit from the recommended which will soon depart for the month of September?