Posts Tagged ‘economic’

Belgium is technically fallen into recession in the second half of 2011. And furthermore, with an acceleration of baissse last quarter, quarter on quarter, according to the National Bank of Belgium.

Thus, the gross domestic product (GDP) contracted by Belgian 0.2% in the fourth quarter, while the decline was 0.1% the previous quarter. Across the past year, the increase was 1.9%, according to preliminary data of the Central Bank.

Recall that a recession is technically characterized by two consecutive quarters of contraction in economic activity.
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The goods we possess
The word comes from the Latin “patrimonium”, “what comes from the father.” The term applies to different fields. We talk about cultural heritage of a city, country or humanity, genetic inheritance of an individual or species.
Regarding the economic and financial field, the meaning has become larger than the only paternal inheritance. The heritage of an individual or family is the set of property on which he or she may claim a title or a right that can be sold. While the legacy remains a frequent source, was formed as a heritage from the goods which are acquired themselves.
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Economic growth is the form of L in Europe, North America U and V in Asia.
From a fundamental point of view, some European countries that have a high level of debt or an anemic economic recovery have reason to worry.

Traders speculators love this type of situation by speculating on the debts of countries and their banks.
Even if countries take all measures to meet budget cuts borrowing terms as is the case for Greece, the fact remains that excessive speculation can lead to the decline in basic situations. The risk of contagion is not only possible but it spreads in the euro area. Economists do not end more than revise downward the growth of countries in this economic bloc.
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The start of 2012 looks bleak. One need only look at the composition of the portfolios of new investment funds.

Fixed income and money guaranteed. The new year starts with new funds, but with little variety for categories more power in 2011. First of investor fear, the managers remain focused on the design of low-risk products.

Edmond de Rothschild just to launch a new corporate bond fund, called Edmond de Rothschild (EDR) Millésima 2016. The product invests in a diversified portfolio of corporate bonds, mostly classified as “investment grade” (investment grade). At most, 35 percent of assets may be invested in high yield bonds. In all cases, the assets will be issued by OECD, the G-20, the European Economic Area and the European Community. The product will expire in October 2016. By sector, relying mainly on the bonds ‘senior’ of industrial and financial companies, denominated in euros.
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In effect and imitation of other financial corporations, banks have widely speculated in the past two decades. Fortunately, thanks to tighter regulation in Canada, this training has had little impact on our banks here. However, U.S. and European banks have largely been involved in this excess of greed and lack of transparency, and have suffered the horrors of the risks associated with complex financial products that were designed by financial engineers, a job became popular a few years.
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The rating agency Fitch said Tuesday it would revise downward its estimate of the solvency of many of the 17 euro zone countries, including Italy and Spain, because of their debt and slower economic growth.

However, Fitch does not intend to withdraw immediately to France’s AAA, the highest score.

Fitch does not see the euro area exploded in 2012 but is concerned about the economic outlook and urged the European Central Bank (ECB) to become more involved in resolving the crisis, including by buying government bonds on financial markets .
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Volatility has created a set of potentially interesting investment opportunities, especially on the part of actions to those who invest in a long-term perspective in 2012, according to HSBC Global Asset Management.

In its latest global outlook, HSBC said that the outlook is uncertain, many investors converged on the “safe havens” in 2011, which propelled the price of gold to record highs and lowers bond yields government to their lowest levels in a generation.

Under these conditions, HSBC believes that equities offer the best value in 2012, although it must be expected that the short-term performance continues to fluctuate. “Many companies are financially strong, who have engaged in their austerity, and this strength allows for a continuous growth of dividends paid to investors,” the company said in its report on the global outlook.
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The year 2012 will be hard on the economic and financial plans on a global scale, particularly in Canada, but a glimmer of hope appeared for 2013, according to Francois Dupuis, Vice President and Chief Economist, Desjardins .

Why? Mainly because the sovereign debt crisis in the euro area “so aggravated” that contaminate many economies in the world. A view shared by Christine Lagarde, the executive director of the International Monetary Fund (IMF).

Thus, Canada can not, next year, to ignore the European crisis. While the economic situation deteriorates rapidly in Europe, “Canada will move slowly, but steady,” say analysts at Desjardins in their economic and financial forecasts.
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TD Bank has revised downwards its severe growth predictions for next year.

The institution now predicts that Canada’s economic growth will be only 1.7% against 2.5% for the global economy.

These forecasts more modest than those issued by the Bank of Canada or of economists that the federal government relies for its fall economic update.

New figures released by the TD mark a decline of two tenths of a point from its original forecast. The bank also cut 0.4 percentage points to its growth forecast for 2013, it now reduces to a timid 2.2%.
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Last May, the chief economist of the National Bank was ranked second best among forecasters about the Canadian economy by the same magazine.

The charts published in the December 2011 covers the announcements made over the past two years by 354 forecasters covering 11 countries and the euro area.
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