Portugal's Progress Won't Guarantee Funding

By Shareholders Unite:A couple of weeks ago, we described no less than 13 risks that could each lead to an explosion of the European sovereign debt crisis. However, there is little noted progress as well. This helps, because the longer this progress lasts, the more efforts can be focused on the remaining risks.

Portugal, which is entering the last year of a three-year European Union aid program, will likely need further help from Europe at a time when core countries in the region, such as Germany, are fast losing enthusiasm about providing financing to ailing peripheral nations.

Portugal, which is entering the last year of a three-year European Union aid program, will likely need further help from Europe at a time when core countries in the region, such as Germany, are fast losing enthusiasm about providing financing to ailing peripheral nations.   The most likely solution to this problem, according to analysts at Credit Suisse, isn’t a second bail-out but instead that European institutions offer Portugal a credit line until the country can make a full return to debt markets.  

Officials from the EU and the IMF arrived in Lisbon to assess the country's progress in implementing a bailout program, amid signs austerity may be hurting the government's ability to meet budget deficit targets.

Last week John Derrick appeared on FOX Business to discuss the strong rebound in emerging markets so far in 2012 with Charles Payne. John explained that the global markets are currently in the early stages of a new easing cycle that began toward the end of 2011. John said central bankers and government officials are focused on increasing economic activity through policies such as low interest rates and higher money supply growth rates. Riskier assets such as emerging market equities and commodities have historically benefited from this type of environment.