Investing and Global Finance News

Tag Archives: Greece

Greece and the EU Economy Crucial to Health of World’s Economy

EU countries and peripheral countries. Photo courtesy Nightstallion and Wikimedia Commons
EU countries and peripheral countries. Photo courtesy Nightstallion and Wikimedia Commons

Taken as a single country, the US economy is still the world’s biggest, with China coming in a very close second. However, as a single entity, the countries comprising the European Union actually surpass the size of the US economy, making it a key player in the world’s marketplace.

One economist, Joseph P. Quinlan, the chief market strategist for US Trust, pointed out just how important the EU is to the rest of the world.

“In nominal U.S. dollar terms, the European Union (plus Norway, Switzerland, Iceland) accounted for 25.4% of world output in 2014 according to data from the International Monetary Fund.  That was greater than America’s share (22.5%) and well in excess of China’s—13.4%,” said Quinlan.

The EU consumer is also doing well. The EU and several periphery countries accounted for 28.5 percent of all consumer spending in 2014. Compare that figure with 26.6 percent spent by US consumers and 15.6 percent spent by the combined emerging economies of Russia, India, Brazil, and China. Spending like that attracts companies to the region.

“Gaining access to wealthy consumers is among the primary reasons that US companies venture overseas, and hence the continued attraction of Europe to US firms,” wrote Quinlan.

The conclusion for Quinlan, and his message to the rest of the world: Although Greece might not have a direct impact on the US or world economies, the impact Greece’s troubles have on the EU should be of great concern to the rest of the world.

Former Greek Finance Minister Warns Harsh Cuts are Holding Back Economic Recovery

Former Greek finance minister and head of the Socialist party Evangelos Venizelos said on Tuesday that it will be “almost impossible” for Greece to cut back spending by €11.5 billion ($14.1 billion) over the coming two years, the amount its rescue creditors demanded as part of the bailout deal. Venizelos made his statement in a… Continue Reading

Stalled Economies Fueling Crashing Oil Prices

The deteriorating European debt crisis and the slowing United States economy are contributing to what is expected to be the largest monthly downslide in the price of oil in three years. Demand for oil will plummet, analysts say, fueling a downturn in oil which resulted in oil closing yesterday 20 percent lower than the year’s… Continue Reading

Asian Stocks React to Papademos Statement

Investors have been considering for a while now the possibility that Greece might walk out of the euro common currency in order to help them cope with the serious austerity measures that the international community is forcing on them as a condition for receiving international economic aid. A financial news service report has put some… Continue Reading

European Stocks Up as Bailout Talks Continue

European stocks are maintaining a six-month high, rising for a fourth day as China takes action to boost growth and EU officials work on another Greek bailout. TNT Express increased by an impressive 60% after turning down a significant offer from United Parcel Service, while TNT shareholder PostNL climbed 50% as well. Meanwhile, the Stoxx… Continue Reading

Meeting of Euro Big Banks

The big wigs met yesterday in Paris with the goal of making peace with Euro authorities vis-à-vis how investors will participate in the Greek sovereign debt reconstruction.   According to an article in The Financial Times, this is also meant to ease Greek’s burden as well as make the “banks’ original plan that would have seen… Continue Reading

When It’s All Just Greek to the Greeks

Troubled Times for Greek Finance; Not Happy Swiss The Greek economy is up the creek without a paddle.  As well, this is impacting the Swiss populace which is now sitting around watching this turmoil unfold.  The Greek parliament has just said yes for increased austerity in an effort to meet EU-IMF bailout terms.  This led… Continue Reading

Italy’s Got Wham’s Jitterbug

Instability in Italy’s Investments: Blame Game Greece They say that George Michael of Wham! fame had some Italian in him…or was it Greek? No matter since both countries seem to be in on this latest financial debacle. And that might not be so far from what’s happening with the Italian financial markets as of late.… Continue Reading

Greece’s Debt Crisis

Greece Causes Problems for Eurozone In a recent article, it was reported that Didier Reynders, Belgian’s Finance Minister, feels that Greece’s debt crisis is so bad that it could actually spread “as far as France.” He said that should Greece be the “first country to default,” people will start looking towards places like “Ireland, Portugal,… Continue Reading

Greece and Europe’s Crisis

Violence Emerges in Athens In an article by Louise Armitstead, it seems that Europe’s debt crisis is getting out of control in more than just financial ways. Just two days ago the Athens parliament was subject to a violent outburst while the capital’s politicians discussed “savage spending cuts.” The people outside were less than happy,… Continue Reading