London (CNN) – As markets fall and economists talk up the prospect of a new recession, the end of this week will bring some welcome relief to investors who have seen $6 trillion wiped off global stocks in the past month alone.
Markets in Asia have lost 15% while shares in the U.S. are down between 5% and 9% as of Friday’s start of trading in New York. Yet it’s European stocks that have suffered the most –down nearly 20% year to date – reflecting persistent concerns that the eurozone is fast unravelling.
Scott Shellady, of ICAP U.S. in Chicago told us on the show “I have a European passport and I don’t know what it will be worth in 12 months time.”’ He adds the region could by then have “confederate money for all I know.”
Hong Kong, China (CNN) – I’m a guy who pretty much looks to the bright side of things. You know, that “glass is half-full, silver-lining” kind of guy. But reporting profusely – almost manically – on the volatility of Asia-Pacific markets these past few weeks, I have this knot in my stomach that tells me things will get worse before they get better.
You see, right after the 2008 global financial crisis, Asia-Pacific markets made significant gains against their U.S. and European counterparts. Case in point, throughout 2009, the Dow rose about 15% while the main indexes in Australia, Hong Kong, Korea and China rose from 30% to 75%.
In "Wall Street: Money Never Sleeps," Oliver Stone's fictitious financier Gordon Gekko famously pronounced "idealism kills every deal."
The pearls of Hollywood wisdom have rarely seemed more pertinent to the current market rout, after the leaders of France and Germany spectacularly failed to shore up confidence in the eurozone this week.
Then came the nail in the coffin: Morgan Stanley warned that the world's dithering politicians had pushed the U.S. and Europe "dangerously close" to a recession.
Two questions emerge: Are the world’s biggest economies heading towards a double dip? And if so, which will succumb first?
Kampala, Uganda (CNN) Along the Entebbe Road, that bustling, traffic-ridden street that links the airport to Uganda’s capital city Kampala, is a small hairdresser called “Obama Salon.”
The name conjures up an ode, a prayer, a little bit of wishful thinking on behalf of the salon owner, who no doubt wanted some of Barack Obama’s yes-we-can-do-it magic to wear off on this neglected avenue in Africa.
For the beleaguered residents of Kampala, a run-down city that tries hard to create some order out of the chaos of poverty, life remains hard. Food prices and transport prices continue to spiral higher and higher, making residents angry that those with so little have to pay so much for the basics.
It will not be like this for much longer, say the optimists.
Hong Kong, China (CNN) – Good economic news was lacking in Asia-Pacific this Thursday. With nothing to cling to, Japan’s Nikkei and Australia’s ASX 200 fell in morning trading. The Hang Seng and Shanghai Composite joined them down the slide in the afternoon. By the close, all major markets had fallen between 1% to 2%.
The strength of the Japanese yen hit export-related stocks hard, pulling the Nikkei down 1.25%. In early morning trade, the yen touched 76.41 to the U.S. dollar, creeping ever closer to its post-war record of 76.25. Toshiba and Hitachi were the biggest export losers all day, closing down 4% to 4.5%. As of 5pm Hong Kong time, the yen was trading at 76.61 to the dollar.
(CNN) – With people in the streets of India in support of graft-buster Anna Hazare, where does India rank among the world’s major economies in terms of corruption?
Moreover, is there a correlation between strong economies and good transparency?
The meeting of minds for Europe’s two largest economies basically produced few tangible results to solving the Continent’s ongoing debt crisis. The main outcomes: a “no” to increasing a European bailout fund, a “no” to Euro bonds and a “yes” to resubmitting a transaction tax proposal that had failed EU passage in 2010.
In Japan, the Nikkei closed down 0.55%. Major exporters Nissan, Toyota and Sony were heavyweights that dragged down the index, all falling between 1.5% and 2.5%. Honda throttled back to be the biggest loser of the Japanese export bunch, down 2.48%.
London (CNN)–Google's $12.5 billion acquisition of Motorola is a huge bet both financially - this being its biggest ever acquisition - and strategically.
Android, the operating system which Google built and developed to bring its money making services such as Search to the mobile phone, dominates the low-to-mid price smart-phone market.
It does this by offering phone makers such as Samsung and HTC powerful software to run on their hardware. With this set-up the phone makers do what they do well - make the phones - while Google provides the software.
By buying Motorola Mobility, a hardware company, they appear to be shifting away from that strategy.
So why do it?
London (CNN) - "The name’s bond, euro bond."
It may not have the same cache as 007 but the joint eurozone bond is fast emerging as the weapon of choice for tackling a debt crisis that has gripped the eurozone for the past 18 months, and brought some member states to the brink of disaster.
As French President Nicolas Sarkozy and German Chancellor Angela Merkel hold crunch talks in Paris this week, investors are betting the only way of calming the region’s markets now is to pool the bloc’s bonds.
For the lack of fiscal cohesion is the fundamental issue facing the 17 nations that share the euro.
Yes, they may have a monetary union but without the same budgetary rules the markets do not view them as one.
My BlackBerry Bold is back on my hip, vibrating away every time I get an e-mail, and I am relieved.
I have lived with and mostly loved a BlackBerry since the days following the 7/7 attacks on the London transport sector. That's when CNN rolled them out for reporters.
Since then I have used it for reference for live shots, for e-mailing of course, and to take photos – work and personal.
About Business 360
CNN International's business anchors and correspondents get to grips with the issues affecting world business, and they want your questions and feedback.