The blog of Prof. David Costa
Notes on: EU finance ministers (Task Force) meeting to discuss changes to EU budget rules
a) Despite the multi billions packages to rescue Greece and the Euro zone yields on the European troubled countries continued to raise during the summer (e.g. 9% Greek bonds vs a German one, 3 1/2 Ireland). While the spring panic about a possible short term default has now dissipated the question of long term solvency remains.
This is particu...
A mere glance at an apple store can reveal that consumer electronics seems unaffected by the global problems. As Friday, during the IFA in Berlin (biggest consumer electronics fair in the World), the tablet war is going to start investors could profit from unconventional ways to tap this interesting market.
Beside the obvious play of buying these successful consumer electronic products it is now possible to invest (directly or through a n...
a) The outcome of the upcoming stress test results have been partially anticipated. The Governor of the Bank of Italy, the French Minister of Finance and the Chairman of the British FSA are confident about their
respective results. Analysis predict that the TIER 1 capital ratio of 6% would be largely achieved by the European
Major banks.
b) Obviously a stress test, to be credible, need to report some bearable bad news too. Additional fund raising
might be needed by Greek banks, Spanish Cajas and some of the German Landesbanken.
(To be noted that representative of both Spanish Cajas and German Landesbank have recently declared their confidence in the results).
The important aspect is that the outcome shouldn't be too negative - this might have a negative impact on several Asian investors that might refuse to buy European bonds in the future. The results of the tests wi...
