NewsCase StudiesEvents

World Market Jeopardy Overshadows Presidential Inauguration

Also in the news...

Chinese students to help UK businesses

Chinese-speaking students are to be placed with UK companies to help them break into the Chinese market or find new investment

The Case For Tax Havens

There seems to be building publicity a case for so called Tax Havens which I totally agree with, but the label 'Tax Haven' is a poorly chosen description that causes the most emotional reaction from those and in particular politicians, who believe the citizens of the world should pay as much tax as possible to prop up free spending, inefficient and in some cases, corrupt Governments.

Free Seminars For Limited Clients

We are planning a series of free seminars at our office in Dorset limited for a maximum of 10 attendees per seminar.

Controlled Foreign Companies (“CFC”) legislation voted by the State Duma

A lot has taken place since the Russian President Vladimir Putin had called for the deoffshorization of the Russian economy in order to repatriate capital being channeled in offshore jurisdictions and to combat tax avoidance.

Opportunities for UK exporters in Latin America

Lord Livingston urged UK businesses to consider the opportunities for export to Latin America during 'Export Week' event in Bournemouth on 12 November 2014

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.