Experts are afraid of a new crash at the stock exchange!

It was certainly the biggest depression since the crisis in the 30’s but now we see a growing gap between the evolution of the stock exchange and the economic activity. The investors are too enthousiastic about the economic growth and when they will notice their mistake, professor Roubini expects a correction (a new decrease) of the stock exchange. Last week the stock exchange fell by 2% because the American production didn’t increase fast enough. Investors stay uncertain about a new growth and Michael Georghegan, magnate of the giant bank HSBC, is even more pessimistic, he doesn’t only see a new decrease at the stock exchange but also a further fall in the whole economy.

De Standaard

Matthias Goeminne

Boxing camp in Fortis Bank

Can you imagine to lose almost everything you own, to live with a lack of money and still stay calm and rational under these circumstances? Allow me to tell you that this is exactly what happened to quite a few shareholders from Fortis bank and insurance, when the shares plummeted to almost zero.
Some of the victims, overwhelmed with feelings of anger and disappointment and certain that they had been betrayed, couldn’t bear this situation any longer and therefore threatened and even physically attacked their investment advisors, who now live in a constant fear to go back to their work. But we mustn’t forget that ‘we shouldn’t fight a battle if we don’t gain anything by winning’, like Erwin Rommel once said.

Joost Dumeez

Down under interest rates rise

Interest Rates in Australia have been raised by the central bank to 3.25%, a rise by 0.25 percentage point. According to Glenn Stevens, the bank's governor, the rise is due to stronger economic conditions than expected. Australia's banking system has held up well, national banks avoided subprime lending with the result that some banks made profits during the financial crisis. Due to its financial health, Australia's trading position with China is flourishing, now being its largest trading partner.

source: The Economist

Joren Mertens

Fortis group selling Fortis Luxembourg

Fortis has decided to sell its activities in Luxembourg to a Swiss insurance group, La Baloise, for €23 million. Fortis recently stated that all of its activities are to meet certain criteria, such as being sizeable enough to considerably contribute to the bigger picture of Fortis’ insurance profits. In light of these criteria, they assessed that the €22 million that the Luxembourg division was earning in 2008 wasn’t good enough to keep.

Dimitri Martens

Source

How To Play A Recovering Economy

If we can believe Ben Bernanke - he claims that the recession is likely over - the moment has come to invest in high-end retail stocks.

In the last months, people had to adapt their consumer spendings because of the worldwide recession. But, if the economy recovers, people will be able to consume more money, with as result rising retail stocks. The Producer Price Index indicates that the sector is going in the right direction, maybe also you have to take your chance?

Koen Flament

Forbes

Puppy love between Kyoto and economic crisis

Thanks to the persisting recession, the world carbon dioxide emission, which accounts for about 63% of greenhouse gas emissions, could decline by 3% this year. A recent study of the International Energy Agency (IEA) revealed the surprising, pro-Kyoto news. According to Fatih Birol, an expert in economics of this organization, it would be the largest downfall in 40 years. An average year in normal economic conditions counts for a 3% increase instead of the predicted decrease. Apparently the economic crisis might have positive consequences after all!

http://www.tijd.be/nieuws/economie-financien/-CO2-uitstoot_tot_3-_lager_door_crisis-.8241249-600.art

Charlotte De Waele

Wanted; 53 billion euro

According to JP Morgan’s study which appeared in L’Echo, financial institutions need 53 billion euro to pay off their debts.

To confirm to the recommendations of Basel 2, financial institutions have to come up with 78 billion dollar, or 53 billion euro. This deficit is a global problem because we are talking about financial institutions in whole Europe; Germany, Ireland, France even Belgium. KBC Belgium needs 2.2 billion euro to be free of their debts, what JP Morgan can see happen in a period of 2 years.

Hannah Merki

http://www.hln.be/