The euro has been on a nice rally since January when it hit a year low of 1.2657 it is currently trading at (EURUSD=X) 1.3448. Fear of the European crisis has subsided somewhat. The dollar has been trading lower against the euro, franc and the pound.
The dollar has rallied against the Japanese yen from the beginning of the month when the yen traded at 76.1789 currently (USDJPY=X) trades at 81.00.
The dollar has been breaking down against the Swiss franc since January when it had a year high of 0.9754 now the (USDCHF=X) trades at a low 0.8957. Although the euro has enjoyed an upward movement against the dollar the franc has continued to rise on the euro trading at (CHFEUR=X) 0.8299. The market may be signaling the crisis is still a threat.
The sterling has recovered from its January low 1.5314 there are signs the economy is picking up in the UK and that they will not see a double dip, the (GBPUSD=X) is currently at 1.5872.
The Canadian dollar has been on a downward movement this whole week trading at (USDCAD=X) 0.9995 while crude oil WTI has been on a violent upward ride to trade at 109.62.
From what we learned last summer news from Europe can change the market in a heartbeat and the longer the European crisis goes unresolved the more people start to panic, there may be some correction on these pairs as we move ahead.
Japanese Finance Minister Jun Azumi stated the following at the G20 meeting in Mexico: "The economy is somewhat picking up in the world as a whole, including Japan, and we want to put an end to the Europe crisis in the early spring and to accelerate the global economic growth."
Sunday, February 26, 2012
Sunday, February 19, 2012
The Global Economy
During the last 12 months the Dow (DJI) reached a low of 10,655.30 points in October of 2011and hit a high of 12,949.87 last Friday. Will the Dow hit 13,000 next week? Does this rally have a little more juice left?
How healthy is the global economy?
According to the World Bank our GDP makes up 23.52% of the world economy. Our unemployment rate has gone down to 8.3% and our consumer confidence is at 61.10. Our inflation rate is at 2.90% and our interest rates at 0.25% which has been punishment for anyone that is staying conservative and not investing.
The Eurozone's GDP makes up 20.09% of the world economy. The Euro Area's unemployment rate is at 10.40% consumer confidence is at -20.7. Their inflation rate is at 2.00% and their interest rates are at 1.00%. The Euro Stoxx 50 reached a 12 month low of 1995.01 points in September 2011 and a high of 3013.09 points in February of 2011 the index is currently at 2520.31 points.
China's GDP currently makes up 9.48% of the world economy. Their unemployment rate is at 4.10% and consumer confidence at 97.00. China's inflation rate is 4.50% and their interest rates are at 6.56%. The Shanghai Composite Index which is a major stock index reached a 12 month low in January of 2148.45 points, it currently trades at 2357.18. The world seems to be counting on China to continue its healthy growth yet some believe it will slow down a bit. General Electric (GE) which has operations in China believes the slow down will be manageable and will not have a strong effect.
The FTSE 100 the major stock index for the U.K. is currently trading at 5095.07 and their unemployment rate is at 8.40% with consumer confidence of -29.00. Their inflation rate is at 3.60% and interest rates of 0.50%. The U.K. is going through tough times right now, about 40% of them believe the Eurozone will break up on the other hand in the U.S. about 20% believe the Euro will cease to exist.
The Nordic countries have not been spared Sweden has an inflation rate of 1.90% and has abandoned interest rate increases for the rest of the year as the European debt crisis has spread like cancer moving now towards the north. The slow growth predicted for the year has led the Swedish to start saving more and to start consuming less. The failure of European leaders to put an end to the debt problem has affected even the strongest economies in Sweden. Problems in the Eurozone has lowered demand for Swedish exports. Sweden which is home to some of the biggest companies in Europe will see those companies begin to trim down their workforce to adjust to the weaker economy.
Can the U.S. and China hold the house down? Europe appears to be in a recession, will our growth and that of smaller countries like Brazil be enough to avoid a global economic slowdown?
It is expected that European finance ministers will approve a 130 billion euro bailout for Greece to avoid a default.
How healthy is the global economy?
According to the World Bank our GDP makes up 23.52% of the world economy. Our unemployment rate has gone down to 8.3% and our consumer confidence is at 61.10. Our inflation rate is at 2.90% and our interest rates at 0.25% which has been punishment for anyone that is staying conservative and not investing.
The Eurozone's GDP makes up 20.09% of the world economy. The Euro Area's unemployment rate is at 10.40% consumer confidence is at -20.7. Their inflation rate is at 2.00% and their interest rates are at 1.00%. The Euro Stoxx 50 reached a 12 month low of 1995.01 points in September 2011 and a high of 3013.09 points in February of 2011 the index is currently at 2520.31 points.
China's GDP currently makes up 9.48% of the world economy. Their unemployment rate is at 4.10% and consumer confidence at 97.00. China's inflation rate is 4.50% and their interest rates are at 6.56%. The Shanghai Composite Index which is a major stock index reached a 12 month low in January of 2148.45 points, it currently trades at 2357.18. The world seems to be counting on China to continue its healthy growth yet some believe it will slow down a bit. General Electric (GE) which has operations in China believes the slow down will be manageable and will not have a strong effect.
The FTSE 100 the major stock index for the U.K. is currently trading at 5095.07 and their unemployment rate is at 8.40% with consumer confidence of -29.00. Their inflation rate is at 3.60% and interest rates of 0.50%. The U.K. is going through tough times right now, about 40% of them believe the Eurozone will break up on the other hand in the U.S. about 20% believe the Euro will cease to exist.
The Nordic countries have not been spared Sweden has an inflation rate of 1.90% and has abandoned interest rate increases for the rest of the year as the European debt crisis has spread like cancer moving now towards the north. The slow growth predicted for the year has led the Swedish to start saving more and to start consuming less. The failure of European leaders to put an end to the debt problem has affected even the strongest economies in Sweden. Problems in the Eurozone has lowered demand for Swedish exports. Sweden which is home to some of the biggest companies in Europe will see those companies begin to trim down their workforce to adjust to the weaker economy.
Can the U.S. and China hold the house down? Europe appears to be in a recession, will our growth and that of smaller countries like Brazil be enough to avoid a global economic slowdown?
It is expected that European finance ministers will approve a 130 billion euro bailout for Greece to avoid a default.
Monday, February 13, 2012
General Electric and Microsoft Join Forces
Monday morning Microsoft Corporation (MSFT) and General Electric (GE) announced that they will join forces to take on the world of healthcare with a joint venture by the name of Caradigm. The new company will launch later on this year. Both companies are working on breakthrough technologies as mentioned earlier on one of my blog posts "Changing Medicine" together they will bring changes to the hospital experience for years to come.
GE is working on smart medical rooms to monitor patients and staff to improve performance as well as save lives. MSFT is working on avatars in a medical setting to interact with patients as a healthcare worker might do. It is known that as the avatar interacts with hundreds of patients it will improve its ability to diagnose what may be wrong with patients just as good if not better than a healthcare employee. Both are futuristic projects but can become a reality in our lifetime and change the inpatient/outpatient experience.
The aging population make up a large amount of the expenditures in healthcare. An enormous amount of baby boomers make up our population and this makes healthcare the place to be. Why not invest in healthcare through innovation and breakthrough? Both stocks are up after the announcement.
GE is working on smart medical rooms to monitor patients and staff to improve performance as well as save lives. MSFT is working on avatars in a medical setting to interact with patients as a healthcare worker might do. It is known that as the avatar interacts with hundreds of patients it will improve its ability to diagnose what may be wrong with patients just as good if not better than a healthcare employee. Both are futuristic projects but can become a reality in our lifetime and change the inpatient/outpatient experience.
The aging population make up a large amount of the expenditures in healthcare. An enormous amount of baby boomers make up our population and this makes healthcare the place to be. Why not invest in healthcare through innovation and breakthrough? Both stocks are up after the announcement.
Subscribe to:
Posts (Atom)