An Ateneo Graduate School of Business Advantage
Dark clouds loom ominously in Europe. With the Greece debt problems still at hand, the concern is the Italian debt amounting to Euros 1.9 trillion or $2.5 trillion. The European leaders agreed to lend to IMF $259.99 billion to help the struggling countries (roughly l0% only of Italian debt). They have encouraged other non European countries to do the same. Asian capital markets and that of US showed rebound because of fewer job loss in the USA ever (since May 2008 only 366,000 - that is still a lot!!) Other good news: oil price went down to $95.00 per barrel (down from $l00.00+ last week)
However Fitch downgraded several American and European banks: Bank of America Corp, BNP Paribas, Citigroup, Deutsche Bank AG and Goldman Sachs group. Barclays and Credit Suisse went down from A to -AA. Long term ratings of A were maintained on JPMorgan Chase and Co, Morgan Stanley, and UBS. Societe Generale is A+
What do you think of these developments? Are they worrisome? What can be done to soften the impact of these development locally?
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