Global Markets Archives - Page 15 of 55 - Money Morning - Only the News You Can Profit From
Resurgent Greek Debt Crisis Stokes Concern, Causes S&P to Lower Rating
Concern that the Greek debt crisis is far from resolved led Standard & Poor's to lower that troubled country's debt rating even deeper into junk territory yesterday (Monday).
The S&P cut Greece to B from BB- with a warning it could downgrade further.
"In our view, there is increased risk that Greece will take steps to restructure the terms of its commercial debt, including its previously-issued government bonds," S&P said in a statement.
A restructuring of the Greek debt could result in principal reductions of 50% or more, with the loss borne by the bondholders.
One year after a bailout intended to help the Greek government address its crushing debt – it owes more than 150% of its gross domestic product (GDP) – European Union (EU) leaders are worried Greece is not doing enough to fix its debt problems.
China's Economy Continues to Ascend – But Watch Out for Speed Bumps
Everyone knows that China's economy is hot. The only question is whether it may be a little too hot.
China posted yet another quarter of stellar economic growth in the first quarter of 2011, with its gross domestic product (GDP) growing 9.7%. However, analysts are worried about some of the side effects that have accompanied that growth- namely soaring inflation and the emergence of speculative bubbles.
Inflation in China hit a 32-month high in March, and the country's real estate market is beyond scorching.
Policymakers in Beijing insist they have the situation under control, and they've been trying to rein in liquidity and curb speculation to prove it. That's why China's economy, accustomed to double-digit growth, is only expected to grow 8% to 9% this year.
The Coming Bond Market Collapse: Three Ways to Dodge the Damage
We're on a collision course with the worst bond market collapse in decades.
The warning signs are as clear as day.
There's still time to dodge the damage – and even to profit – if you know what to look for.
But the time to make your move is now…
How to Profit if the Nigeria Elections Drive Up Oil Prices
Oil prices are on the rise for a bevy of reasons – soaring demand in emerging markets, the weak dollar, and a strengthening U.S. recovery, to name a few.
However, supply disruptions and civil unrest in the Middle East-North Africa (MENA) region in recent months have had the biggest impact on oil prices. Egypt, Libya and Yemen have all played a part in driving up oil prices, and now they're about to be joined by another volatile oil producer.
I'm talking about Nigeria.
Canada: Investing in the World's Safest Economy Can Put Profits in Your Pocket
When a March 25 "no-confidence" vote toppled the government of Canadian Prime Minister Stephen Harper, it also set the stage for a new general election.
This May 2 election will be Canada's third in five years and fourth in seven years. In light of the civil unrest in the Middle East/North Africa (MENA) region – not to mention the financial problems that continue to plague Europe – it would be understandable if global investors added Canada to the "do not invest" list.
But don't make that mistake: Our neighbor to the north remains one of the most stable big-market profit plays on the planet today.
Some investors even refer to it as the "world's safest economy." And with good reason.
Buy, Sell or Hold: Suncor (NYSE: SU) Energy Inc. Is an Oil Gusher with Limited Risk
If you are looking for a mining company that generates energy with its own diversified refinery division, wholly owned pipelines, and a retail gas station network, then Suncor Energy Inc. (NYSE: SU) should be at the top of your list.
Here are just a few reasons why:
- Suncor offers diverse and reliable production at a time when civil unrest in the Middle East has increased uncertainty in the energy market.
- It's leveraged to higher oil prices.
- It's transparent
- And it's reducing its debt.
There's no question about it: Suncor Energy Inc. is a "Buy" (**).
China's Highway System Growth Paves the Way to a Stronger Economy
What some have called "the worst traffic jam in human history" happened on the Beijing-Tibet Highway in August 2010. It trapped some drivers for more than 20 days and stretched more than 60 miles (97 kilometers).
The mess was so severe that local residents turned into vendors and profited from selling water, noodles and nuts to stalled travelers.
The cause of the auto standstill was thousands of trucks transporting coal from Inner Mongolia's coal fields to power plants in Beijing's suburbs to satisfy the country's surging electricity demand. The lack of railways connecting the two regions often results in trucks crowding highways, and excessive road damage from heavy vehicles blocks parts of the highway from maintenance.
BATS Global Markets to Challenge NYSE, Nasdaq for Stock Listings
Just as a wave of mergers and acquisitions among the world's major bourses has raised regulatory concerns, a feisty challenger, BATS Global Markets, has announced plans to enter the stock listings business by year's end.
As an Electronic Communication Network (ECN), BATS currently can conduct trades of stocks listed on other exchanges but has no stock listings of its own. As another primary U.S. market, BATS would compete directly with NYSE Euronext (NYSE: NYX) and Nasdaq OMX Group Inc. (Nasdaq: NDAQ) for listings of publicly traded U.S. companies.
Its timing couldn't be better. A merger proposed in February between the Deustche Börse AG and the NYSE Euronext would create an exchange nearly four times bigger than any rival. News of that deal drove Nasdaq to consider a counter-bid for NYSE Euronext, which if successful would leave just one U.S. listing market.
Supply Chain Disruptions from Japan Disasters Hit Auto, Electronics Industries
Companies both in Japan and around the world have begun to feel the sting of supply chain disruptions resulting from the catastrophic March 11 earthquake and its aftermath.
In addition to the damage done to factories in northeastern Japan by the quake itself, companies must contend with ruined roads, fuel shortages, and rolling power blackouts. Many companies are not sure when some of their facilities will be able to resume production, creating uncertainty for companies further down the supply chain.
"This is serious and it's still difficult to evaluate," Nissan Motor Co. Ltd. (PINK: NSANY) Chief Executive OfficerCarlos Ghosntold Bloomberg News. "You have the earthquake, you have the tsunami, rolling blackouts, and fuel shortages hitting at the same time, and they aren't only hitting the car manufacturers, but also the suppliers and the dealers."
Insurance Companies Likely to Survive – And Even Prosper – Following Japan's Earthquake
With estimates for insured losses from Japan's March 11 earthquake ranging from $12 billion to $35 billion, many investors have lost faith in reinsurance companies that have exposure to the stricken island nation.
But despite having to make some significant payouts, reinsurers ultimately may prosper from the disaster.
"Reinsurers typically benefit from a major disaster that's big enough to affect prices but not big enough to kill the industry," Karl Huber, a fund manager at Pioneer Investments in Munich, told Bloomberg Business Week. "That's the business of reinsurance."