Sell in May and Go Away” is the oldest rule in stock market investment. This week has certainly provided further support for it: • The major Western stock markets are down c8% • The major emerging markets are down between 4% – 13% • Crude oil prices are down 13% This May panic may well […]
Chemicals and the Economy
The Greek carriage hits the buffers as the ‘slow motion train wreck’ continues
The blog remains amazed, and worried, by the inability of many of those reponsible for the global financial system to provide the necesary leadership during the current Crisis. They seemingly failed to grasp in March 2008 that Bear Stearns’ bankruptcy was a clear sign that a major global financial crisis was around the corner. Equally, […]
Eurozone, IMF, offer €45bn aid package to Greece
After 3 months of agonising, it seems that a €45bn ($61bn) aid package will be offered to Greece. The Eurozone will offer €30bn, with a further €15bn coming from the IMF. Greece’s GDP fell 2% in 2009. Experts now forecast a 4% fall this year. The government plans higher taxes, lower spending, and a 10% […]
Eurozone unemployment hits 10%
The rate of unemployment is an important leading indicator for chemical industry demand. It measures the number of people who currently don’t have much spare cash to spend on discretionary purchases. And when the jobless rate is rising, it also impacts the spending patterns of those still in work, as they often choose to save […]
Capital controls could hit chemical companies
CFO’s have a lot to think about currently. Volatility is rising in currency and oil markets. Plus credit risks on previously safe ‘sovereign’ debt markets are also increasing. Today, for example, there are new concerns that investors in Dubai World’s $22bn debt may lose 40% of their investment. Equally, current problems in the eurozone over […]
Germany calls Greece’s problems “tip of the iceberg”
Financial crises take time to mature. Yet until the end is nigh, apologists will insist that nothing needs to change. Thus valuable time is wasted. Last year, Iceland was the obvious example of this problem. Now it is Greece, a eurozone member. Back in January, S&P had downgraded Greece’s bonds, due to debt concerns. And […]
Eurozone under pressure
Early last year, the blog flagged up a warning from Gillian Tett in the Financial Times that Iceland could go bankrupt, as its banks were “too big to rescue”. Yet at the time, the United Nations had listed it as having “the highest standard of living of any country” in the world. Unfortunately, however, Iceland’s […]
German and Spanish economies turn down
I noted last month that German industrial production fell 2.4% in May, and that Chancellor Angela Merkel was expecting ‘a significant fall’ in economic growth for 2009. This fall now seems to be already underway. Industrial output fell by a further 2.9% in June, and for the seventh month in a row – the longest […]
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