Posts Tagged ‘ s&p ’

S&P cuts Italy’s credit rating, outlook stays negative

Could this be putting pressure on the Italy finance ? I believe this could start another Euro crisis?

My blog on -Could Italy be next for EU bailout ? Strike 2 in new credit crunch .

S&P cuts Italy's credit rating, outlook stays negative.

Standard & Poor’s announced yesterday that it lowered Italy’s credit rating to BBB, only two levels above junk, on the back of expectations of weakening economic prospects and the nation’s impaired financial system.

In a statement late yesterday, S&P analysts said that even with unprecedented easing by the European Central Bank, real interest rates for non-financial companies in Italy exceeded the level before the financial crisis.

S&P said, “The rating action reflects our view of a further worsening of Italy’s economic prospects coming on top of a decade of real growth averaging minus 0.04 percent. The low growth stems in large part from rigidities in Italy’s labor and product markets”.

Moreover, the austerity measures had continued to deepen the Italy’s economic slump, even if they briefly enabled Italy to reduce its deficit to within European Union limits.

The Italian economy is headed for its eighth quarter of contraction and joblessness, the highest since at least 1977.

However, Economist Roberto Perli assured that, “This is still two steps away from junk, so that’s reassuring…I can see some short-term volatility but not a lot more than that

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S&P Smashes through all time high

Confident High , Markets are BOOMING ! But is the market getting slightly ahead of itself ? GDP growth is slower than expected , unemployment still quiet high and personal/ public debt is still high .
My
Opinion on this is the markets are all driven by human emotion ( greed , fear ) at the moment everyone want to join the party ! I personally have started to take profit , profit is only profit if you have it in your pocket .

Lets see what the 2nd quarter has in stall for us

The below article was from

Tony Evans , Tokyo

S&P Smashes through all time high.

28 Mar, 2013

S&P Smashes through all time high

The S&P 500 smashed through a half-decade-old record as stocks continued their strong rally today.

The push to record territory came in mid-morning trading, as the S&P 500 broke past its previous record close of 1565.15 on Oct. 9, 2007.

The push to record territory came in mid-morning trading, as the S&P 500 broke past its previous record close of 1565.15 on Oct. 9, 2007.

The rally in stock prices has been fuelled by recent reports showing the U.S. economy is recovering, albeit at a sluggish pace. And investors have concluded that the financial markets aren’t immediately threatened by a debt crisis and recession in Europe or by fiscal dysfunction in Washington.

“Confidence is being restored, not just among investors but among businesses and consumers,” says Jason Ware, market strategist at Albion Financial Group in Salt Lake City, Utah. “They’re feeling better about the world, the economy and the market… 2008 and 2009 were pretty difficult, but we’ve come a long way.”

A major driver of the stock market in recent years has been multiple rounds of stimulus by the Federal Reserve and other central banks around the globe. The Fed has pumped billions into the economy, keeping interest rates near record lows. That in turn has made traditionally safe investments like bonds less attractive, pushing investors into riskier assets such as stocks.

If you wish to find out more, speak to a deVere Financial Adviser today.

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