(Reuters) - Grim. Serious. Terrifying. Nerve-rattling. These are the words some prominent American investors and strategists are using to describe the worsening debt crisis in the euro zone and its impact on the global economy. While growth has been slowing in China and the United States and companies warn about the effect on earnings, there is a mounting sense among the financial community that politicians and markets are operating on two completely different timelines. ...
Grim. Serious. Terrifying. Nerve-rattling. These are the words some prominent American investors and strategists are using to describe the worsening debt crisis in the euro zone and its impact on the global ...
Grim. Serious. Terrifying. Nerve-rattling. These are the words some prominent American investors and strategists are using to describe the worsening debt crisis in the euro zone and its impact on the global economy.
By Pater Tenebrarum:
Not Even Germany Can Pull It Up – Sixth Negative Quarter in a Row
The economic news from Europe isn't getting any better, in spite of the abatement of crisis conditions in the financial markets. Once again the news were "worse than expected", which has become standard operating procedure. Reuters informs us:
Shane Lofgren submits: In a past article, I wrote that stock prices were falling on nothing more than fear. The fundamentals of the global economy were sound, the EU was taking the least bad steps to resolve their sovereign debt issues and soon fear would turn into greed and stock prices would come roaring back.
MUMBAI: The Greek crisis is unlikely to have any impact on the Indian economy since it has only negligible exposure to the troubled Mediterranean island, fund managers said here today. "Despite what happened in Greece, the domestic market has not been affected since we have only negligible direct linkage with Greece," UTI MF Group President for Sales and Marketing Suraj Koeley told PTI. "Going forward, it will depend on how other EU nations like Spain and Italy in particular, which are more indebted than Greece, react to these developments," he said.
LONDON: Few parts of the world will remain unscathed by the plunging stock markets and economic slowdown rocking China, but the companies of Europe's soft underbelly may weather it best. Countries comprising the euro zone's periphery, such as Spain, Italy and Portugal, have relatively small exposure to the world's growth engine. Core countries like Germany, France and The Netherlands have much deeper links.
A financial crash in Russia; falling oil prices and a strong dollar; a new gold rush in Silicon Valley and a resurgent American economy; weakness in Germany and Japan; tumbling currencies in emerging markets from Brazil to Indonesia; an embattled Democrat in the White House. Is that a forecast of the world in 2015 or a portrait of the late 1990s?
Companies around the world are starting to share the exuberance that inspired investors last year.
As executives gather in Davos, Switzerland, this week for the World Economic Forum’s annual meeting, business confidence is rising, with a weekly gauge compiled by Moody’s Analytics Inc. at its highest level since the survey began in 2003.
This is an unedited version of my Sunday Times column from October 6, 2013.Newton’s Third Law of Motion postulates that to every action, there is always an equal and opposite reaction. Alas, as recent economic history suggests, physics laws do not apply to economics.