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Showing posts with the label Europe

RHBRI: Market Outlook & Strategy 2H2012

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In our view, the equity market will likely be stuck in a range-bound trading pattern for now, but will likely trend up as global economic uncertainties clear out towards the later part of the year. Investors’ key worries include : worsening of the euro-debt crisis that remains unresolved fears of China’s and India’s economies crashing down into a hard landing ; and the risk of US falling off the “ fiscal  cliff ”. External Volatility And Impending Election 2 Key Headwinds On the home front, the major event to watch out for is the impending general election that could also create volatility to the local bourse given the uncertain election outcome. Nevertheless, we believe the market will eventually trend higher towards end-2012, premised on: the ECB making a more decisive move to mutualise the debts of Eurozone governments; China policymakers ease policies substantially and its economic growth re-accelerates; US Congressional leaders co...

Euro 2012 Football Championship: Poland's Economy Scores

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It's football season again. This round we have EURO 2012 Championship which will kick off on 8th June 2012. Are you ready? Before that, let us look at the championship from financial perspective. Don't care who will win the championship, Poland already emerged as the winner financially. Why? The UEFA European Football Championship has taken place every 4 years since 1960. For the first time in history, Poland and Ukraine have scored the chance to co-host the Euro 2012 Football Championship. Despite high set-up costs for the two emerging economies, both countries are likely to experience long-term economic benefits. The Statistic and Requirements: Estimated 670,000 football fans will pack into the new stadiums Around 1.5million spectators at fan zones  only Minimum requirement capacity of 30,000 to 50,000 spectators for infrastructure and modern stadiums Sufficient parking possibilities, hospitality facilities, luxury hotels and training facilities was needed Required transpor...

Europe’s Woes Flood Wall Street—But Not the Economy? (May 2012)

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After months of buildup, Europe’s sovereign-debt crisis has finally wreaked havoc on the U.S. stock market, as a wave of anxiety has prompted a major sell-off on Wall Street. We’ve seen a dramatically “risk off” environment with the Dow Jones Industrial Average dropping 3.52% — the biggest one-week decline since November — and the S&P 500 falling 4.3% . Among the hardest hit stocks were small caps and tech, with the Russell 2000 and the Nasdaq Composite falling 5.4% and 5.3%, respectively. To further underscore the risk-off environment, the yield on the 10-year Treasury still appears to be searching for a bottom, finishing at 1.702%, but falling below 1.700% intraday this week — a modern-era low. Spring Swoon? History may not be repeating itself, but it certainly is rhyming. Like the spring of 2010 and the spring of 2011, investors’ fears are coming to fruition and we are once again experiencing a “spring swoon.” Stocks a...

The end of Europe’s liquidity crisis? (Dec 2011)

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Well, many people already bored with the on-going Europe debt crisis, and subsequently liquidity crisis. This is like what we have seen in 2008 when Lehman Brothers collapses, which drags down the whole financial systems globally through liquidity crisis. The different is between company and country. Maybe some of us doesn't know how this chain effects rattles the global markets. So, let us start here. The European Organisation chart of Debts The root of the problem plaguing the market right now is Europe debt crisis , where Greece and few other European countries were highly in debts. They just simply cannot generate enough revenue (taxes) to support the economy itself. So, they resorted to seek for funding via borrowing by issuing sovereign bonds to finance their day to day operations. However, the debt is piling up intensively after 2008 global financial crisis until recently. Because the government does not have money, their bonds may go into default. So, they were forced ...