Despite the lack of an agreed plan of action out of the weekend meetings of the IMF and G20 Finance Ministers, there are encouraging indications that a more encompassing policy response to the eurozone debt crisis is currently under formulation. Reports suggest that leaders are tending towards a plan consisting of a haircut on Greek… [Read more]
The ‘epic crisis’ scenario which we outlined in a recent podcast appears to be in full swing. With much riding on the decisions policymakers make in the very near term, Business Monitor’s Chief Economic Strategist Tim Cooper and Head of Europe Country Risk & Financial Markets Mark Schaltuper believe that the probability of a Greek… [Read more]
Global markets are once again under pressure as eurozone policymakers continue to duck launching a sufficient policy response to the region’s debt crisis, despite encouragement to do so from US Treasury Secretary Tim Geithner. Another game of chicken between the Greek government and eurozone leaders is currently underway, with a decision over whether to disperse… [Read more]
In Business Monitor Online today, we carry two special features on Standard and Poor’s (S&P)’s downgrade of the United States’ credit rating to AA+ on August 5. In the first article, we answer the following questions: Why has the US credit rating been downgraded? What does it mean to be rated AA+ rather than AAA?… [Read more]
Although Greece is unsurprisingly receiving the lion’s share of investor attention over its fiscal crisis, other southern European countries are also worth watching. BMI has long warned about Italy’s enormous public debt burden – a sentiment echoed on June 17 by ratings agency Moody’s, which placed its Aa1 sovereign rating on review for possible downgrade…. [Read more]
Argentina’s future economic performance is highly dependent on the outcome of the October 23 Presidential election. With an opposition victory looking increasingly unlikely, my colleagues and I do not expect a dramatic about-turn, with President Cristina Fernández set to remain in charge. Although Argentina still has massive economic potential, significant risks exist. Why Is Argentina… [Read more]
(*Give or take a couple of centuries) While surveying the globe for key risks, I couldn’t help but notice that some of the world’s oldest countries are facing critical tests over the next decade that could redefine them for a long time to come. If handled successfully, the crises could give them a new lease… [Read more]
