The global financial crisis has put a brake on the integration of central and eastern European economies into the European Union, but growth drivers remain intact and innovation is needed to re-start the process, according to a report from Eerste Group.
Sea-sick sailors know that the best place to be in turbulent waters is high up in the middle of the vessel, with fresh air and a view to the horizon. Unfortunately, for stock markets in Central and Eastern Europe (CEE), that was exactly where they were not, in 2012.
17.30: We end here Investment Europe’s blog on the aftermath of Greece’s latest federal election, with the hope you have found it both useful and informative. For more breaking news and analysis of macro and market events in Europe as they unfold, visit www.investmenteurope.net.
S&P’s new rating of European sovereign debt is outlined in the attached table.
Standard & Poor’s has downgraded the credit ratings of a raft of eurozone nations including Italy, Spain and Portugal as well as stripping France and Austria of their AAA status.
Embattled Greece tops the global table of the most risky sovereign credits in the world, as it has been for much of the past year, while Norway continues to head the least risky sovereign issuers, according to a report on liquidity metrics from CMA Datavision Bonds, which provides independent, intraday pricing on some 1,400 single name CDS and CDS indices.
Marcus Svedberg, chief economist for Swedish asset manager East Capital, says there is a pricing anomoly between the premiums on bonds and the discounts on equities in the CEE region.
Despite the Slovakian government failing to vote in favour of granting the European financial stability facility (EFSF) further powers, it is likely to approve the EFSF by the end of this week.
Slovakia, the last eurozone country left to ratify proposals to expand the critical European Financial Stability Facility, has markets on tenterhooks as the parliamentary vote was stalled by domestic policy wrangling.