Archive for the ‘ Europe ’ Category

Investors must brace themselves for six months of ‘Greek-led volatility’

Investors are being warned to expect “Greek-led volatility” for six months, by a leading global analyst at one of the world’s largest independent financial advisory organisations.

Tom Elliott, International Investment Strategist at deVere Group, which has $10bn under advice from 80,000 clients, makes his observations following yesterday’s elections. Anti-austerity party Syriza has emerged as the victor and has agreed to form a government with the rightwing anti-bailout Independent Greeks.

Mr Elliott comments: “Investors can expect Greek-led market volatility for at least six months until a Syriza-led government is better understood.

“The Euro will weaken – perhaps to parity with the dollar – over the next six months as investors seek ‘safe havens’ as other populist parties in the Eurozone are likely to rise in the opinion polls and echo Syriza with their demands to end austerity.

“The sliding Euro will further boost exporters who got a leg-up from last week’s shock and awe quantitative easing package unveiled by the ECB.

“Indeed, one of the ironies of the Euro crisis is that the more that Greece looks likely to cause problems for the single currency, the more Germany and the core economies benefit from resulting Euro weakness.”

He adds: “Despite Europe’s main share markets rising – after initial falls – and the Euro recovering somewhat today, the announcement that Prime Minister-elect Alexis Tsipras’s main coalition partner is the centre-right Greek Independents will generate more uncertainty, leading to more market turbulence. This is largely because the move will hinder Syriza’s negotiations with the Troika and, I suspect, hinder reform.

“I’d give it a 30 per cent chance that Tspiras is the new Lula da Silva, the leftwing modernizer of Brazil, with investors actually supporting the government after a rocky start; 40 per cent that it turns into a problem-ducking coalition government that doesn’t address long term structural problems but investors stick with it; and a 30 per cent chance that the coalition initiates some sort of socialist revolution.”

Mr Elliott concludes: “It is early days and the story is just beginning. However, what history teaches us is that what is happening in Greece politically will have far-reaching effects on the capital markets and will impact investor returns.

“The changing political landscape in Greece, and across Europe, is presenting numerous risks and opportunities for investors globally. As such, the shifting dynamics must be monitored carefully to be able to benefit from these opportunities and to mitigate the avoidable risks.

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Countries with highest and lowest life expectancies for people born in 2013 charted

Countries with highest and lowest life expectancies for people born in 2013 charted

If you want to have on average the longest life expectancy in the world then Monaco is the place for a child born in 2013 . The Lowest is Chad has the lowest life expectancy –

Below is the average across the world .

Rank

Country

(years)

Date of Information

1

Monaco

89.63

2013 est.

2

Macau

84.46

2013 est.

3

Japan

84.19

2013 est.

4

Singapore

84.07

2013 est.

5

San Marino

83.12

2013 est.

6

Andorra

82.58

2013 est.

7

Guernsey

82.32

2013 est.

8

Switzerland

82.28

2013 est.

9

Hong Kong

82.2

2013 est.

10

Australia

81.98

2013 est.

 

Oil, gold hit multi-month peak

Oil, gold hit multi-month peak.

The prices of oil and gold have been pushed to multi-month highs over concerns that the US will lead a military strike against the Syrian government.

Brent crude prices advanced 2.4% to a six-month high of $117.14 a barrel, extending Tuesday’s 3.3% surge – the biggest one-day percentage gain in nearly 10 months.

Gold climbed 0.8% to a more than three-month high after also gaining 0.8% on Tuesday.

But while the prices of oil and gold rose to their highest in several months, Asian equities fell to a seven-week low. An acute ‘risk-off’ mode also boosted the appeal of the Japanese yen, which held near a one-week high against the dollar and euro after having posted its biggest rally in more than two months.

Tokyo’s Nikkei share average sagged as much as 2.6% to a two-month low, while the yen was largely steady at 97.120 to the dollar and 129.90 to the euro after climbing more than 1% overnight.

US and European stocks were also impacted overnight, suffering their worst day since June. Investor nervousness was reflected in a nearly 12 percent jump on the CBOE volatility index, Wall Street’s so-called fear gauge, to a two-month high.

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COSTLIEST DESTINATION FOR EXPATRIATES

LUANDA, ANGOLA, TOPS MERCER’S 2013 COST OF LIVING RANKINGS, THE COSTLIEST WORLDWIDE DESTINATION FOR EXPATRIATES
Mercer has released its annual rankings of 214 cities based on their cost of living for expatriates. Relying on surveys that compare over 200 items in each city, it is the world’s most comprehensive report of its kind. It helps multinational companies and governments set compensation for their expatriate employees.

Rankings

1 Luanda, Angola
2 Moscow, Russia
3 Tokyo, Japan
4 N’Djamena, Chad
5 Singapore, Singapore
6 Hong Kong, Hong Kong
7 Geneva, Switzerland
8 Zurich, Switzerland
9 Bern, Switzerland
9 Sydney, Australia

You Tube video on rankings

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Eurozone recession could end this quarter

Eurozone recession could end this quarter.

Analysts are hopeful that the eurozone’s recession could end in the third quarter, after official data showed that the region’s businesses had returned to growth for the first time in 18 months.

The Markit eurozone Composite Purchasing Managers Index (PMI) recorded growth of 50.5 in July, up from an initial estimate of 50.4. Anything above the 50 mark signals growth. The sentiment survey of thousands of purchasing managers is widely seen as a reliable gauge of economic expansion.

The 17-nation bloc’s services sector rose to 49.8, up from an initial estimate of 49.6, while manufacturing surprised with a strong 50.3-point performance, pushing the combined measure into positive territory.

Job losses were the weakest in 16 months, as rates of decline eased in France, Italy and Spain, while Germany saw a modest return to job creation.

Rob Dobson, senior economist at Markit, said that the news confirmed a welcome return to growth for the eurozone economy at the start of the third quarter, raising hopes that the region could claw its way out of its longest-running recession.

For Europe, the strong figures offer a glimmer of hope that the six consecutive quarters of economic contraction may finally be ending.

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Who’s richer Germany / Greece /Spain /Cyprus ? The answer would surprise you

A great article in the UK Telegraph talking about the wealth in Euro largest economy .
Everyone during the financial crisis thought Germany should bank role the Euro , should they ?

ECB survey median net household wealth :
#just over €50,000 in Germany
#Greece the figure was just over €100,000
#Spain €180,000
#Cyprus over €260,000

GDP per head, then of course Germany comes out well ahead of Portugal, Greece, Cyprus, Spain and Italy. But in fact Germany is only just above the eurozone average.

Have a read of the article it will surprise you .

Tony Evans

The Germans are walking tall in the eurozone, but just how rich are they?

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On the meter: Taking a taxi in Greece and Japan

Great video on taking a taxi in both city’s .

BBC On the meter: Taking a taxi in Greece and Japan

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