The unemployment rate of young people in some parts of Greece is almost 75 percent, which is significantly higher than the unemployment level of other states in Southern and Northern Europe, based on data released by Eurostat on Wednesday. According to Eurostat, the total youth unemployment rate in Greece was 55.3 percent in 2012, more than double the 22.9 percent average unemployment rate in the European Union (EU). Data showed that Western Macedonia in...
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After a decade long rally, gold recorded its biggest two-day drop in 30 years during April. What triggered this sudden decline? Is this precious metal in bubble or is inflation going to revive its status as a safe haven asset? See the Great Gold Rout infographic from Saxo Capital Markets and have your say. The Great Gold Rout infographic 'Get ValueWalk's Daily Edition By Email and Never Miss Our Top Stories'
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The web is filled with reports that Greece is recovering, but is it really improving a report from Bloomberg evaluates. Positive News For Greece In good news, euro area’s finance ministers have agreed to provide the bailout funds amounting to 7.5 billion euros ($9.6 billion) to Greece of which 4.2 billion euros were issued over the weekend and the balance will be released in June, provided the country fulfills some conditions. Following the...
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When the European Union, or its successor, the European Economic Community, was created, it had the most noble of goals in mind. To end centuries of war and bring about economic prosperity for every country within the Union. And on the whole the European Union has largely succeeded in achieving many of its main objectives. Still, if there is one black spot on the European Union’s resume, and that is the creation of the...
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India move aside. Frigoglass SA sold its 250 million euro debut bond deal tight on Monday, amid growing confidence from investors about Greece. This is part of a growing trend of Greek Junk Bonds attracting foreign investors. Greek Junk Bonds and Yields Frigoglass is the Greek maker of drinks fridges with large operations in Africa. Its five year senior high yield notes traded up nearly two points on Tuesday. Frigoglass’ 250 million euro ($324.3 million)...
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Some of the big hedge funds worldwide are attracted to investing in the banking sector of Greece, with hopes of generating high returns according to Financial Times correspondent Sam Jones. Investment management firms had been active in pursuing different opportunities in Greece to make money by purchasing corporate and government debt as well as stocks. The leading hedge funds that will help recapitalize Greek banks include Farallon Capital, York Capital Management, QVT Financial, and...
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Greek government bonds are again in demand. This time these bonds are recommended by a debt strategy team at Morgan Stanley (NYSE:MS), says a report from WSJ by Katie Martin. In a client forum last week, Paolo Batori, bank’s global head of sovereign strategy told that Greek bonds are “one of our top fixed-income trades of the year.” The point made by the team did appear a bit awkward. Awkward not because the Greek...
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Billionaire George Soros argues that the European sovereign debt crisis has transformed the European Union from a voluntary association of equal states to a creditor-debtor relationship. The creditors are the northern nations, such as Germany, and the debtors are the overleveraged nations such as Greece and Italy. In the current state, the debtors have to impose austerity measures on their countries to pay for their debts. Unemployment rate for youth in Spain and Greece...
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With these large banks like Danske Bank you have a definite problem: Crossholding – where A owns B that owns C which owns A. That is one way of pumping up equity. This extends to loans where A lends B etc. and guarantees. As to assets you don’t have a clue: They depend on the state of impairment. That is why the Basel III rules prescribe somewhat objective measures for what a “bad” loan...
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Hedge funds are actively pursuing all investment avenues in troubled Greece. Money managers have expressed interest in buying up not only Greek government debt and shares in Greek equities but also corporate debt. Hedge funds buying up Greek debt According to Wall Street Journal, a recent example was set in the debut debt offering of Hellenic Petroleum where investors were so hungry for high yielding debt that in the end the company was able...
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Greece’s largest lender, National Bank of Greece (ADR) (NYSE:NBG), on Monday approved a 9.75 billion euro ($12.7 billion) share offering. Greece’s top four lenders, including the National Bank of Greece (ADR) (NYSE:NBG), need 27.5 billion euros to replenish their capital after severe losses incurred during the country’s debt crisis. The new capital is required to restore the bank’s solvency ratios to levels required by the country’s central bank. Shares of National Bank of Greece (ADR)...
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