Description:Â Commodity currencies under pressure along with global growth Source:Â Marketwatch.com Date: 10/07/2011 Link:Â http://www.marketwatch.com/story/canadian-dollars-drop-may-outpace-aussie-krone-2011-10-05?link=mw_home_kiosk Questions for discussion: Why have so-called commodity currencies fallen? Do you agree with the forecasts presented in this report? How can company financial managers and investors mitigate their risk in these times?
Posts Categorized: Economic Analysis
Toyota Said to Tell Partsmakers to Cut Prices
Description: Toyota Motor Corp. (7203), Asia’s biggest carmaker, is telling parts suppliers in Japan to slash prices or face being replaced by overseas rivals as the yen’s value appreciates, four people involved with the discussions said.. Source: Bloomberg.com Date: 10/07/2011 Link: http://www.bloomberg.com/news/2011-10-07/toyota-said-to-tell-partsmakers-in-japan-to-slash-prices-as-yen-advances.html Questions for discussion: Explain the connection between the value of the Japanese currency… Read more »
A Divide Over Valuing Greek Debt
Description: Dexia, BNP Paribas, and Société Générale are resisting pressure from regulators to accept more losses on their holdings of Greek government debt amid criticism they haven’t written down the bonds sufficiently. Source: Businessweek.com Date: 10/06/2011 Link:  http://www.businessweek.com/europe/a-divide-over-valuing-greek-debt-10062011.html Questions for discussion: Summarize the accounting problems facing these banks. What are the possible solutions? How would… Read more »
Market undergoing huge change
Description: Believe it or not, the stock and bond markets are behaving in a way that, with only one exception at the depths of the 2008-2009 credit crisis, they have not since 1958—53 years ago: The stock market’s dividend yield is now above the interest rate on the 10-year Treasury note Source: Marketwatch.com Date: 09/30/2011… Read more »
Where bond traders hunt for yield
Description:    With low Treasury yields, the BlackRock CIO of Fixed Income says asset-backed securities are one place to look for higher yields Source: CNNMoney.com – video report Date: 09/20/2011 Link: http://money.cnn.com/video/markets/2011/09/20/mkts_blackrock_bond_yield.cnnmoney/ Questions for discussion: Summarize the forecasts presented in this report and how Blackrock bond traders are serving their clients. Do you agree with the… Read more »
Copper, coal: crystal balls for the global economy
Description: Copper, coal and other industrial commodities can be great tools for predicting economic prospects and right now they’re offering a gloomy outlook, but a closer analysis shows a glimmer of hope as the world struggles to avoid recession. Source: Marketwatch.com Date: 09/23/2011 Link: http://www.marketwatch.com/story/copper-coal-crystal-balls-for-the-global-economy-2011-09-23?siteid=nwtwk Questions for discussion: Summarize the predictive nature of commodities, as… Read more »
The silver lining in the emerging markets rout
Description: Emerging markets have been caught in the global contagion sparked by the European debt crisis. But these economies still have something most others don’t: Growth in local demand for goods and services. Source: Fortune.com Date: 09/23/2011 Link:Â Â http://finance.fortune.cnn.com/2011/09/23/emerging-markets/?iid=SF_F_River Questions for discussion:Â Summarize the critical points made in the article. Do you agree with the… Read more »
Yergin on Energy 2.0
Description:  Pulitzer Prize-winning author Dan Yergin says the global supply of oil and gas has risen in the last 20 years, defying the predictions of “peak oil” theorists. In the Big Interview with WSJ’s David Wessel, he looks at the world’s energy future. Source: Moneywatch.com – video report Date: 09/17/2011 Link: http://www.marketwatch.com/video/asset/yergin-on-energy-20/75F18B14-7BD4-45F5-A3E1-1CF6B4E28B1A Questions for discussion:… Read more »
Treasury 10-Year Yields Rise Most Since July on European Outlook
Description: Treasuries dropped, pushing 10-year note yields up the most in more than two months, after the European Central Bank coordinated with the Federal Reserve and other central banks to maintain liquidity for the euro area’s financial institutions. Source: Businessweek.com Date: 09/17/2011 Link: http://www.businessweek.com/news/2011-09-17/treasury-10-year-yields-rise-most-since-july-on-european-outlook.html Questions for discussion: Summarize the financial news reported. What is the… Read more »
In Europe, echoes of Lehman, with much bigger consequences
Description: What started as a sovereign debt crisis in Europe is slowly turning into a potentially disastrous banking crisis. It’s like watching a bad rerun of a movie with a worse ending. Source: Fortune.com Date: 09/16/2011 Link:Â Â http://finance.fortune.cnn.com/2011/09/16/european-banking-crisis/?iid=SF_F_Lead Questions for discussion: Summarize the critical points made in the article. How do you think this crisis… Read more »
