Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Tuesday, 17 September 06:57 (GMT -05:00)



Business And Politics News

EU and Eurozone Won’t See Disintegrating Shortly, Roubini Says


After the British referendum where the people voted for quitting the European Union, the market showed a rater reserved reaction to the news, weaker than expected. This is what Nouriel Roubini, an American economist and professor says. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics, an economic consultancy firm.
 

 

 

 

He compares the reaction to this period with the reaction to other 2 periods of instability in the global economy and financial system: last summer, when people were afraid of an economic crash in China, and January-February 2016, which was a period of poor economic data from China coupled with other major events.
 
Even though the news about Brexit shocked some market participants, this was a regional response to the unexpected news rather than a global one. European markets in general and British ones in particular were the most sensitive markets reacting to the Brexit. At the same time, the biggest share of volatility took place within the first week after the results of the Brexit referendum were announced. For the sake of comparison, the previous 2 periods of weakness were more considerable, they last for 2 months, a period of retracing stock markets around the globe.
 
The good news for the global economy and international financial markets is that the British economy accounts only for 3% of the global GDP while the Chinese economy makes up 15% of the global GDP! At the same time, the Chinese economy is responsible for over 50% of the global economic growth seen today.
 
After the Spanish parliamentary elections, we figured out that there were no reasons to expect any forthcoming disintegration of the European Union or the Eurozone. At the same time, after a change of power in the British government, there emerged a hope that the UK would still enjoy access to European markets, with inconsiderable limitations. However, the main thing was that investors finally figured out that because of the Brexit the world’s central banks would stick to even easier monetary policies. In reality, like in the previous 2 cases, the markets got all the necessary support from the regulators.
 
However, Mr. Roubini names some other potential factors that can aggravate the situation when coupled delayed risks for the international financial markets. The situation will get worse if the U.S. economy slows down its growth even more, especially when coupled with an economic recession in China, and lower commodity prices, especially crude oil.
 
The list of other challenges that Europe may face. The first thing is that if the Brexit is going to be really painful, Scotland and Northern Ireland may also start the procedure of quitting the UK to stay a part of the EU. If that’s the case, we may see the so-called domino effect, with Catalonia wanting to quit Spain . Denmark and Sweden may find themselves secondary EU members and start thinking about quitting the EU as well.
 
At the same time, the schedule of the forthcoming elections in EU countries also reminds us of dangerous games with unexpected outcomes. Still, Mr. Roubini doesn’t want to say that we should get ready for the disintegration of the EU in the near future. This may not even happen at all, if the political leaders of the European Union find more benefits of tighter cooperation within the scope of the EU.
 

 

Masterforex-V Academy reports that EURUSD may start a rally after breaking above 1,615.

 

You are free to discuss this article here:   forum for traders and investors

 

Text: Елена Клименко
Add to blog
Got a question? – Ask it here »
 

Fed Cuts Key Interest Rate For The First Time In 10 Years

The U.S. Federal Reserve is reported to have cut the key interest rate, which is something really outstanding since the Fed has done it for the first time since 2009.

Publication date: 11 August 03:05 AM

New Prime Minister Names Brexit Date

It seem that the new Prime Minister of the United Kingdom is really determined about everything related to the Brexit. The process is expected to start in later 2019. Boris Johnson's standpoint on the matter didn't come as a surprise to the international expert community, Market Leader reports. The thing is, he has been well-known for being an advocate ad big supporter of quitting the European Union in general, and doing so without a major agreement in particular, which is also known as the hard Brexit scenario. 

Publication date: 07 August 06:54 AM

Johnson Launches Hard Brexit Ad Campaign

Boris Johnson, who has recently been appointed new UK Prime Minister, is on his way to launch an ad campaign to promote the idea of quitting the EU the hard way, which is also known as the hard Brexit. For those of you who don't know, the hard Brexit scenario implies quitting the European Union without signing a major agreement.

Publication date: 31 July 11:43 AM

U.S-China Trade War Is Sponsored By Consumers

According to the IMF, consumers and producers are the biggest losers in the trade war between the United States and China. Despite growing duties, American companies are not in a hurry to move their production back to the USA.

Publication date: 12 July 01:19 AM

US-China Trade Conflict May Trigger Another Global Financial Crisis

Beijing and Washington are one step away from escalating their trade conflict. The confrontation may harm the entire global economy. Some experts belive that the trade war may also trigger another global financial crisis. At this point, the parties seem to have come to a standstill, which is why the chances of the conflict escalating into a move severe trade war are still growing.

Publication date: 18 June 10:18 AM

WTO Lowers Global Trade Growth Forecast

 WTO experts are reported to have revised their forecast for the pace of global trade growth. The renewed forecast names figures below the previous ones - 2,6% against 3,7%. It's also interesting to note that the previous forecast for 2018 failed to match the actual figures.

 
Publication date: 19 May 02:58 AM

How to Protect Investment Capital in 2019?

Existing political and economic risks are pushing international investors into thinking about the security of their investment capital. Chasing big profits becomes secondary to this kind of security.

Publication date: 31 March 11:26 AM

EU Comes Up With Workaround to US Sanctions

The representatives of Germany, France, and the UK have registered a company to let it trade with Iran despite the US sanctions. The company still needs to be approved by 28 EU members.

Publication date: 31 March 02:33 AM

Beijing and Washington are getting ready for the final talks

Publication date: 17 February 08:58 AM

US-China Trade War Reaches Next Level

Washington and Beijing have announced a new round of talks. International experts say that the trade war is indeed going to a whole new level.
Publication date: 08 January 10:17 AM