NewsCase StudiesEvents

World Market Jeopardy Overshadows Presidential Inauguration

Also in the news...

Is Your Cultural Leadership Style Killing Your Team’s Potential? Cultural Training Workshops

Identifying the key leadership competencies your executives need in today’s competitive global environment includes intercultural skills. Organizations have to look for every advantage they can get. And understanding cultural differences in leadership and their impact on the bottom line gives them a competitive edge.

Visa Application Center in Mexico

From 1st July 2015, the UK visa application process for submission of biometrics will be carried out by VFS at a new Visa Application Centre (VAC).

Foundation of a GmbH

The foundation of a GmbH isn´t as easy as one might think. It is a time-consuming and formal procedure and without any professional assistance, it may be difficult for foreign companies to handle this procedure on their own.

Doing business in Pakistan

Pakistan export overview

Doing business in the Dominican Republic

Dominican Republic export overview

World Market Jeopardy Overshadows Presidential Inauguration

Back to News

In an ironic contrast to the biggest ever presidential celebrations, America saw its bleakest ever reading for an inauguration day, with the Dow Jones plunging by 4%.

Last Wednesday saw a drop in the world stock markets, generating fears that escalating bank loses will paralyse the global economy. The news lingered over the inauguration of Barack Obama like a slick thundercloud of realisation.

Worrying news that Western banks, such as Lloyds and Royal Bank of Scotland, are in irreparable jeopardy sent stock measures falling by over 4%. Optimism seemed delusional as Barack Obama made his inauguration speech promising to rebuild a broken United States. Investors, however, appeared more rational. They speculate that, regardless of good intentions, the new President simply wonÂ’t be able to offer a stimulus package effective enough to quickly save the American economy, let alone the rest of the world.

JapanÂ’s benchmark lost 2% in last Wednesday's remarkable drop in the market. Singapore, also, has cut its growth forecast for the year for a second time this month, stating that its economy is in danger of a 5% declination. Along with Japan and Hong Kong, Singapore is also suffering from recessional rigor mortis, with demand for exports abating.

The forecasts are especially hoary. BHP Billiton, the worldÂ’s biggest mining business based in Australia, revealed its intentions to cut 6,000 jobs (6% of employees worldwide) to align itself with current demand. Likewise, China-based insurance giant China Life speculated 2008 profits to be down 50% by that of 2007.

JapanÂ’s Nikkei 225 stock buoyancy sank 164.15 points (2%), whereas Hong KongÂ’s Seng Index suffered a 381.19 point drop (2.9%). Australia lost 1%, India 2% and Singapore 1.6%. Here in the West, however, the British FTSE was down 1.8%, the German DAX 2.2% and FranceÂ’s CAC-40 2.7%.

And finally, in an ironic contrast to the biggest ever presidential celebrations, America saw its bleakest ever reading for an inauguration day, with the Dow Jones plunging by 4%.

You are not logged in!

Please login or register to ask our experts a question.

Login now or register.