Rachel Morarjee
The next domino to fall in eastern Europe? Not Hungary
With the events of the last week investors are asking themselves whether Hungary is the next Iceland. The Hungarian forint lost over 6 per cent yesterday before recovering a bit of lost ground today, while its stock market has also been hit hard.
For shareholders, European bank rescue no panacea
There is a light at the end of the tunnel, but for shareholders in European banks, there is still a lot of tunnel to get through.
JP Morgan analyst Kian Abouhossein says the risk of a liquidity driven default in the European banking sector has been quelled but the rescue package is better news for debt holders than equity holders,
Iceland casts a shadow over eastern Europe (and South Africa)
The shockwaves continue to ripple outwards. Iceland’s near-collapse could affect credit lines to Eastern Europe as European banks with exposure to Iceland have had to batten down the hatches, according to analysts at BNP Paribas.
Russia to slash oil tax
Some in America must be wishing their leaders would shut the stocks markets, while they put together a rescue package for Wall Street.
While the Russian stock market has been silent, the country’s finance ministry have pledged to slash oil taxes by 25 per cent by changing the way the duties are calculated,
Bonds back in favour as investors rush for cover
Nowhere to run, nowhere to hide. Well, almost. With equity markets in meltdown, investors are turning back to the bond market.
For the first time in 10 years the Merrill Lynch monthly fund managers survey found that fund managers were overweight bonds.