Portugal prime minister's resignation made easy to reach them in front of bail out package like Greece and Ireland. There main 5 opposition parties probably could give him a chance to pass the austerity budget. But who wants to give up chance, everyone is hungry for power and show their muscles. Now this showing of power is not only to gain political positions but also what is going on in Middle East & North Africa, Politics for Oil. In past, many times we saw this true ugly picture of some human figures. Seeing this, sometime I cannot differentiate between the wild animales of Africa and so called our educated modern human society. Shame on us. Not only US but also country like Hong Kong, Singapore and Australia stop the shipment from disaster area of Japan.Though Japan’s export for February saw an increase of 9%. But I do not think things are going to turn their economy so easily. Japanese people have to suffer more in coming days but as they are popular for, they are goin…
I will not forget today easily not because the radiation leak but its effect in Japanese stock exchange which cause its a huge sell-off. At one time I saw Nikkei was down more than 14%, quite large! The uncertainty radiation effects all the markets around the world, I have not seen any market which is positive today –
Japan’s natural disaster badly effected the market too. Last Friday it couldn’t able to do this because news came late, but today it shows the reaction, indexes were more than 6% down. But markets in other parts of Asia are not much effected with this.
Looking at the bad intentions of people as what is happening in gulf region our Nature mother is also revenging us by creating this huge earth quake and tsunami in Japan. Look like nature is trying to say us be a good human by leaving cruel intentions, concentrate your own work and don’t interfere in other’s work, let others to decide what they want. Again these rating agencies are creating panic about European debt problem. Moody’s this week downgrade Spain’s debt and cut Greece rating suspecting debt default. Though Greece’s increasing Credit default swap & rising yield of Portuguese and Ireland’s bond are matter of concern but situation are not so panic as they are again trying to create. I think someday will come when people are going to overlook these agencies. This week Euro leaders have increased the power of their Rescue Fund by enabling it to buy the primary market debt, this may help them to some extent.
Markets are not getting down much but the problems are creating such an environment that everybody is expecting market will be crashing tomorrow. Some are seeing this Egyptian & Libyan crisis are just beginning, story is some where else. So if political situations go this way we not only see the real story but we can also see the stock indexes at 2003 level. Because now Euro zone problem is again rising. Borrowing cost in Portugal is getting too high and some experts are feeling that Portugal is going with the same situation which Ireland & Greece had to go before they were bail out. Though some are saying that Spain is handling the matter quite well and it may come out from this situation. But there is too much expectation of rising interest rate in euro zone, and the situation in UK is not improving. On the other part of the world there is same inflation story and rate hike problem, but as I told in previous week that investors are not much worried about it.