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Broadgate: Market News 30/1

30 January 2012

Recently economists and analytics worldwide have been comparing the crisis in US and EU a lot. In the USA the debt pressure has lowered a bit but so insignificantly that comparing to its growth between 2000 and 2008 hardly deserves any special attention. As for most European countries the debt has increased. So it is quite reasonable to assume that the post-crisis syndrome might continue for a decade or even longer. Events in different states on both sides of Atlantic are developing in accordance with different scenarios because of peculiarities of each specific country.

Last week was full of events. Mainly the attention was drawn to negotiations about the Greece debt and the FOMC decision about interest rate. The Federal Open Market Committee of the federal Reserve System of the USA decided to leave interest rate in the country without any changes. Bernanke also stated that if necessary incremental measures can be taken to stimulate the economy.
In Europe there were announcements that Greece would reach the agreement with private investors about partial debt relief very soon. Nevertheless there is not much optimism about the further development of the current state in Europe amid the investors. The head if IMF announced on Friday that she is not quite positive about the situation around Greece. Besides there is a serious concern about the situation in EU in general.

The information set out herein has been obtained from various public sources and is published by way of information only. Broadgate Financial can accept no liability of any sort in relation thereto and readers should obtain their own verification of any statement before making any decision which may have any financial or other impact.

Neither the information nor the opinions herein constitute, or are they to be construed as, an offer or a solicitation of an offer to buy or sell investments.

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