By S.Suren
Yes, it’s about the economy. After almost a year in recession, are we beginning to see some signs of improvement ?
With the economic environment stabilizing for 2 worst hit sectors in the UK, things there could be looking up, though not a recovery at least the economy for these sectors have begun to stabilize.
It has been mentioned by many experts that Japan’s economy could be the first to look up. The signs for these are beginning to show in the Nikkei. The Nikkei 225 was up 0.4% and the Japan's industrial output rose in May for the third straight month indicating improvement in its manufacturing sector, but this does not necessarily indicate that it’s an improvement; experts say we are still a long way away from that.
There seemed to have been a recovery in the Asian stock markets as indicated by a 35% rebound in the MSCI Asia-Pacific Index, and the investment banks in Asia have seen a rise in fees in the second quarter which rose 37% over the last quarter to their highest quarterly level in a year.
We could perhaps interpret these as good signs of things to come. Let’s just hope that everything turns back to normal again, and then make sure that a framework is setup for trading of financial instruments and avoid having the entire world economy depend on the inability of a few organizations to practice proper trading of their financial instruments.
But then if we had read the signs from the first time it happened, this wouldn’t have happened again...so whats to say it won’t happen again..maybe not as a direct consequence of “Toxic Debt” but perhaps something even more noxious!!
Peace out!!
Figures as at 29th June 2009.
suren@erparena.com
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