Archive for: eurozone crisis

A Greek Tragedy

A Greek Tragedy

Op-Ed by Steen Jakobsen, Chief Economist of Saxo Bank This is now officially a Greek tragedy. In many ways, it is relatively easy to understand why the result was a No from Greece. There is little to lose, as a Yes to more austerity hardly was a great choice for […]

 
 

European banks better positioned to manage ‘Grexit’: Moody’s

Moody’s says that European banks are better positioned to manage a Greek exit, though periphery banks remain vulnerable to risks During the course of 2015, the risk of Greece (Caa2, negative) leaving the European Economic and Monetary Union — so-called ‘Grexit’ — has escalated. Although a Greek exit is still […]

 
 

Merkel’s biggest test

Merkel’s biggest test

The election of Angela Merkel for a third term highlights lingering and new issues that she will face and how her legacy is defined by her agenda. That Angela Merkel has been elected for a third term shows she has enough traction and momentum within her country to lead it […]

 
 

Eurozone – The First Step into the Unknown

Eurozone – The First Step into the Unknown

With the approval of the EFSF funds by the IMF, there is a wave of cautious optimism in the financial markets about the prospects of the Greek economy moving forward. With smiles on their faces and shakes of the hand, leaders of the Eurozone plunged into unknown Greek bailout territory. […]

 
 

Nero’s Fiddle & the Italian Political Crisis

The Contenders : Luigi Bersani, Silvio Berlusconi, Beppe Grillo ,Mario Monti. Image Courtesy: www.dailywhat.org.uk

The recent elections in Italy have shown a deepening divide between the citizens and politicians of Italy. The political deadlock created despite a dramatic election that saw the 5-Star Movement of Beppe Grillo, a-comedian-turned-politician become the strongest party in the country — but left parliament with no clear majority. It […]

 
 

Dubai’s debt and Eurozone crisis

Dubai’s debt and Eurozone crisis

Last year was plagued by the talks of Eurozone crisis. The need to save and protect the Euro with the creditworthiness of many of its fellow states was required, and even though some form of aid was provided the crisis has still not been averted. On the other hand, a […]

 
 

Turkey: The solution to Eurozone crisis?

Turkey: The solution to Eurozone crisis?

Turkey’s bid to become a part of the European Union is taking longer than expected, but it may be a ‘blessing in disguise’ for eurozone countries. The fiscal crisis seen in eurozone countries after the worldwide financial crisis stalled growth in the weaker EU nations and now it seems that […]

 
 

Austerity: The bitter pill to swallow

Austerity: The bitter pill to swallow

It seems that the European countries are now seeing the A-word with disdain and retribution as they have rejected the ideas of limited government spending and more burdensome tax schemes again and again. The latest episode comes courtesy of Italy where the ballot box became the soap box for the […]

 
 

European solution for the fiscal cliff

European solution for the fiscal cliff

As soon as the deal was reached in the Eurozone crisis on Greece, there was a strong sentiment towards the realization that a deadline had been averted and a new life had been breathed into the Greek economy. There is a still a need to realize that this deal was […]

 
 

Bearish sentiment sets in

Bearish sentiment sets in

The last few days have not been good for the markets as bleaker and bleaker news seems to be hitting the equity, debt, commodity and even the foreign exchange markets. First of all, US is still trying to get in terms with the fiscal cliff and every market is looking […]

 
 

The Greek Debt Crisis Stakeholders: Then and Now

The Greek Debt Crisis Stakeholders: Then and Now

It seems like that even though the Greek debt crisis has been going on forever, the leaders are now finally getting to terms with the beast that is on their hands and they are now getting to terms with how to solve or even begin to solve this issue. After […]

 
 

The Asian Bond Bubble

The Asian Bond Bubble

There is a strong sentiment being felt in the market right now which says that as credit markets in the West see an outflow of funds due to deepening eurozone crisis and a floor on the interest rates, more and more funds are being directed to the Asian bond markets. […]

 
 

Dodd Frank faces fresh opposition

Dodd Frank faces fresh opposition

The Dodd-Frank Act was a bill introduced in light of the global financial crisis in order to reign in or at least have a supervisory authority over the financial industry to keep a close eye on the activities and limit trading which could cause another crisis down the line. In […]

 
 

EU grants Egypt aid worth $6.3bn despite anti-austerity protests in Europe

EU grants Egypt aid worth $6.3bn despite anti-austerity protests in Europe

The European Union announced on Wednesday it has approved a €5 billion ($6.3 billion) ‘support package’ to Egypt over a two year period to be disbursed through the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), each providing €2 billion ($2.54 billion). Egypt will receive […]

 
 

When is a regulation not a regulation?

When is a regulation not a regulation?

The EU seems to be working on a regulation which will spread around the risk that exists in the hands of a few. The crisis that took place in the US, termed “too big to fail”, occurred due to the fact that too much risk was concentrated in few hands. […]

 
 

Fiscal Cliff Solution: Easier Said Than Done

Fiscal Cliff Solution: Easier Said Than Done

One does not need to be the Fed Chairman or even have a doctorate in economics to know that the fiscal cliff is going to be bad. The simultaneous rise in taxes and the fall in government spending will have multiple effects on the economy and both will dry up […]

 
 

Eurozone Crisis and Germany: Has the Penny Finally Dropped?

Eurozone Crisis and Germany: Has the Penny Finally Dropped?

As Obama steps in to start his second term, markets take a tumble for the worst losing value immediately. The wave of optimism has been countered by a new wave of reality check which has been delivered by Mario Draghi who is the head of ECB. In his speech in […]

 
 

Cyprus’ EU bailout fund and the Russian mafia

Cyprus’ EU bailout fund and the Russian mafia

The need of the hour seems to be aid and assistance. With countries like Greece and Spain already seeing protests in their streets, there is a move to get it out as soon as possible to limit the damage that seems to be sweeping through the Eurozone. This all seems […]

 
 

G-20 Summit: The Backdrop

G-20 Summit: The Backdrop

The classic case of having your own cake and getting to eat it too is what England faces right now. For many years, even though New York and Europe collectively have had a certain financial prowess, London still is the epicentre of all financial activities taking place in the West […]

 
 

UAE banks not at risk from Western financial crisis: CEO

UAE banks not at risk from Western financial crisis: CEO

The CEO of a leading financial firm said on Sunday the UAE economy will be able to sustain the fallout of the deepening Western financial crisis. Sailesh Dash, CEO of Al Masah Capital Limited in Dubai, assured that the Emirati banks would not emulate an increasing number of European and American […]

 
 

Portugal imposes further austerity measures while Britain walks away

Portugal imposes further austerity measures while Britain walks away

As the European crisis goes on further, it seems things will get worse before they get any better. Analysts now say that there is a more than 50% chance that EU will dissolve and that the euro will cease to exist as a currency based on how things stand right […]

 
 

Is Germany coming to rescue Greece?

Is Germany coming to rescue Greece?

As the next round of talks get underway, it seems that Angela Merkel has to play the devil’s advocate in front of more than one crowd. The German Chancellor says she is willing to aid Greece in every way possible even though her stance has not been supported by her […]

 
 

The Chosen Few Keep Benefitting from LIBOR

The Chosen Few Keep Benefitting from LIBOR

LIBOR seems to have become from a benchmark to the most maligned word in the financial industry right now. From being set up by handful of banks a few months ago, it seems now that – even as investigation goes on into the matter – smaller groups of companies are […]

 
 

Middle East Business News Review – 9 October

Middle East Business News Review – 9 October

Today’s top business news from the Middle East and North Africa: UAE federal budget deficit hits $762m in H1- report The United Arab Emirates’ federal budget deficit has hit AED2.8 billion ($762 million) during the first half of this year, a top finance ministry official was quoted as saying on […]

 
 

European Union Parliament steps up against LIBOR

European Union Parliament steps up against LIBOR

Ever since the LIBOR rigging scandal broke out, there have been different people who looked to close the Pandora’s Box in one way or the other – from market officials who wanted a quick solution and substitution of the rate to legislators who wanted tighter restrictions on the financial markets. […]

 
 

Middle East Business News Review – 8 October

Middle East Business News Review – 8 October

Today’s top business news from the Middle East and North Africa: Etihad announces partnership with Air France-KLM Rapidly expanding UAE flag carrier Etihad Airways says it has struck a deal with Air France-KLM to market some of each other’s flights as the first stage of a larger strategic alliance. Alongside […]

 
 

Eurozone Crisis: The Luxembourg chapter

Eurozone Crisis: The Luxembourg chapter

European officials are set to meet this week in a series of meetings in order to get a hold of the Spanish component of the eurozone crisis as riots intensify in the country and there is a downward pressure on the currency as well. This situation is mimicking the circumstances […]

 
 

Middle East Business News Review – 5 September

Middle East Business News Review – 5 September

Today’s top business news from the Middle East and North Africa: Dubai Airport July passenger traffic registers 6% increase Dubai International Airport’s passenger traffic increased 6% from a year earlier in July, with monthly traffic surpassing 5 million passengers for the first time, Dubai Airports said on Wednesday. The airport, one […]

 
 

Qatar National Bank benefitting from Arab uprisings, expanding Middle East operations

Qatar National Bank benefitting from Arab uprisings, expanding Middle East operations

Qatar National Bank is taking advantage of European banks’ downsizing by extending its Middle East reach through acquisitions, a report said on Wednesday. According to a stock market filing on 30 August, the state-backed lender of Qatar, which is 50% owned by Qatar’s sovereign wealth fund, is in early talks to buy […]

 
 

Quantitative Easing – A Dry Run

Quantitative Easing – A Dry Run

In context to the recent developments in the economies around the world, there is a certain preference for monetary policy to be used in order to reach the economic goals deemed necessary and pending. Central banks are looking to inject the liquidity in the markets in order to stimulate any […]

 
 

How the markets see it

How the markets see it

The failed opportunities by European Central Bank and the Federal Reserve are pointing towards a track for necessitated action that has to be taken sooner rather than later. After last week’s inaction, there are growing calls everywhere for either of these bodies to give a much needed support to the […]

 
 

ECB in action or ECB inaction?

ECB in action or ECB inaction?

The markets are disappointed yet again as there seems to be a lack of action on the part of the Western central banks. By the way, I would like to mention here that I am not speaking from the point of view of a trader in oil or gold futures […]

 
 

Setting the new LIBOR rate

Setting the new LIBOR rate

Ever since the LIBOR manipulation scandal came to the foray, there were two main concerns that were raised which had to be considered in the aftermath. The first one was how deep rooted the scandal was and how much it damaged the system retrospectively. The benefits and profits enjoyed by the […]

 
 

Middle East Business News Review – 31 July

Middle East Business News Review – 31 July

Middle East Business News Review – A look at today’s important financial news and business updates from the Middle East and North Africa Global economic slowdown may still lead to oil price rise – report Global economic slowdown and a negative outlook towards major world economies will lead to a […]

 
 

Global economic slowdown may still lead to oil price rise – report

Global economic slowdown may still lead to oil price rise – report

Global economic slowdown and a negative outlook towards major world economies will lead to a decline in demand for oil but prices might still increase, a report published by a Kuwaiti institution said. The study added that despite current turbulences, prices are expected to witness improvement in Q3 of this […]

 
 

EU gives Morocco multi-million euro aid despite crisis

EU gives Morocco multi-million euro aid despite crisis

The European Commission announced on Monday it has approved a 2012 action plan for Morocco worth €112 million that will support the management and safeguard of forests and reform the country’s financial management and public administration sectors. The Commissioner for European Neighbourhood Policy said the new funds are a perfect […]

 
 

And then there were three LIBOR manipulators

And then there were three LIBOR manipulators

Barclays was the first bank to be named as the culprit in the recent LIBOR manipulation. However, it was expected that as the investigation would delve deeper and more names would come up. Recent investigations revealed executives at three banks who not only manipulated the benchmark rate but some of […]

 
 

Middle East Business News Review – 30 July

Middle East Business News Review – 30 July

Middle East Business News Review – A look at today’s important financial news and business updates from the Middle East and North Africa Dubai International Airport posts busiest ever first half traffic Dubai International recorded its busiest first half in its history with 27.9 million passengers transiting through its three […]

 
 

Saudi CEOs top earners in GCC

Saudi CEOs top earners in GCC

Executives based in the Kingdom of Saudi Arabia (KSA) earn the most with an average annual salary of $422,280 ($35,190 per month), a survey carried out by a regional business magazine revealed. The Gulf Business survey‘s findings are based on the incomes of chief executive officers (CEOs) who are responsible for […]

 
 

Impact of stimulus on the markets

Impact of stimulus on the markets

The world market saw steadying of oil prices after the gains they made over the last week. Crude saw its price above $90/barrel on Monday as there is a renewed belief in the stimulus expected to be announced in the US while there is still an impact from the euro […]