BEST of the BROKERS June 18, 2012 EDF Exane BNP Paribas has raised its rating on the energy group from “neutral” to “outperform” with a higher target price of €22. The broker thinks that now French elections are over, the new government will be careful not to worsen EDF’s financial position, ensuring a stable dividend and less risk of a sudden regulatory [...]
UK market’s euphoria over Greek vote is short-lived as crisis lingers June 18, 2012 UK equities closed slightly higher yesterday, slipping off one-month highs as initial euphoria after Greek elections reduced the chances of an imminent euro exit quickly gave way to the realisation that the region’s crisis is still far from resolved. Greek conservatives secured a narrow victory over the radical left at the weekend, increasing the likelihood [...]
US tech stock rally stymied by debt fears June 18, 2012 THE Nasdaq advanced yesterday, propelled by a rally in Apple and other big-cap tech stocks, but fears Europe’s debt crisis is in danger of worsening limited broader gains. Positive analyst comments lifted both eBay, up 4.5 per cent to $42.49, and Groupon, up 10.8 per cent at $11.15. Apple accounted for about half the Nasdaq’s [...]
Reflections on the causes of crises from one of America’s top bankers June 18, 2012 PUBLIC policy decisions are being made based on a myth. The misunderstanding driving this myth is that deregulation of the financial industry in the US, combined with greed in financial markets, caused the financial crisis and the continuing recession. And the root of this economic misconception is philosophical. In fact, the crisis and recession are [...]
Selling off unproductive assets is liberating music to a capitalist’s ears June 18, 2012 AFTER close to six years of marriage, my wife and I have finally merged our CD collections. As we don’t own a CD player, we realised that we didn’t need two copies of many albums we both own. Plus, she assured me that, if we get divorced, I would get to keep them anyway. I [...]
Greece’s election will only forestall eventual tragedy June 18, 2012 MANY people are asking what the Greek election result represents: a turning point? The end to questions over Greek membership of the euro? A light at the end of the tunnel? Unfortunately, none of the above. The result of the Greek election, although broadly viewed as the best possible outcome, does not fit any of [...]
Will Socialist victory in the French legislative elections lead to effective economic reform? June 18, 2012 YES Emma Reynolds On Sunday, French voters gave Francois Hollande an outright majority in the national assembly. The French President has already changed the dynamic in Europe, away from an exclusive focus on austerity, towards a commitment to create jobs and growth. Hollande’s success was based, in part, on the fact that he offered a [...]
RAPID RESPONSES June 18, 2012 Grexit postponed [Re: Greece jumps out of the fire and straight into the frying pan, yesterday] Many of the reform measures in the Memorandum of Understanding haven’t been implemented and never will be. Part of Greece’s debt could be paid off by privatising the power utility, the two major ports and the railways. Unions, however, [...]
Why traders should not worry about Europe’s plight June 18, 2012 AS THE European markets shrug off another short-lived rally, it is not just the frequency with which the Eurozone is hit by bad news that is striking, but also the speed with which the European markets move from each brief rally to a return to their downward trend. News that Greece’s pro-bailout parties had won [...]
MARKETS LOOK TO THE FED FOR ITS NEXT POLICY MOVE June 18, 2012 Last Friday, equity markets were rallying on rumours that central banks were preparing for coordinated action, should the majority of Greek voters make the “wrong” decision and back the anti-bailout party, Syriza. Yesterday, the major indices gave up early gains following the news that Syriza came a close second to New Democracy. After all, although [...]
