Markets decline over French and Greek voter rejection of austerity measures.
With Europe, the largest economy in the world, effectively in recession, and with voters rejecting more austerity measures (Sarkozy is the 11th European leader ousted since 2008), markets around the world have tumbled.
Previous good news about increased U.S. demand for goods has been shrugged off by investors.
Showing posts with label Europe. Show all posts
Showing posts with label Europe. Show all posts
Tuesday, May 8, 2012
Monday, January 16, 2012
Tough Year Ahead
To no one's surprise, 2012 is predicted to be a difficult year. Unemployment is up, deficits are huge and political dithering over austerity measures in Europe is likely to continue.
Few are holding their breath that the U.S. can get unemployment down or reduce the deficit by any meaningful amount. Factor in the continuing crisis in Greece and Italy and it is going to be a rough year for everyone.
Even Canada, which has weathered the storm relatively well, is not likely to escape unscathed. Prime Minister Harper has warned that 2012 will require 'tough economic choices'.
The economic recovery is looking less like a recovery and more like a Global Recession.
Few are holding their breath that the U.S. can get unemployment down or reduce the deficit by any meaningful amount. Factor in the continuing crisis in Greece and Italy and it is going to be a rough year for everyone.
Even Canada, which has weathered the storm relatively well, is not likely to escape unscathed. Prime Minister Harper has warned that 2012 will require 'tough economic choices'.
The economic recovery is looking less like a recovery and more like a Global Recession.
Thursday, February 24, 2011
Libyan Unrest Hits U.S. Dollar
The U.S. dollar may no longer be the 'safe haven' of old. The continuing crisis in Libya, as well as fears of unrest spreading throughout the Middle East has caused investors to seek safety outside the U.S. Specifically, the Euro, once a risky currency (due to the ongoing debt crisis in parts of Europe), is now considered (relatively) safe.
Oil prices have risen on speculation Libya has lost as much as 2/3rd of its oil production. Oil is hovering close to the $100/bbl mark.
Meanwhile, the Canadian Dollar is currently trading over par with the U.S. dollar. Given that the Oil prices are rising and investors are fleeing the U.S. dollar, the Canadian dollar will likely remain high for quite some time.
This does not bode well for Canadian exporters who are being hit both ways: reduced sales in the U.S. and higher production prices at home due to higher Oil prices.
If anything, this should be a wake up call for Canadian manufacturers. Improved efficiencies will be necessary if they wish to remain competitive.
Oil prices have risen on speculation Libya has lost as much as 2/3rd of its oil production. Oil is hovering close to the $100/bbl mark.
Meanwhile, the Canadian Dollar is currently trading over par with the U.S. dollar. Given that the Oil prices are rising and investors are fleeing the U.S. dollar, the Canadian dollar will likely remain high for quite some time.
This does not bode well for Canadian exporters who are being hit both ways: reduced sales in the U.S. and higher production prices at home due to higher Oil prices.
If anything, this should be a wake up call for Canadian manufacturers. Improved efficiencies will be necessary if they wish to remain competitive.
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