Weekly Review on Economics and Finance
July 4, 2019
The rate of Commerce bank continues to decline and the expected capital requirements do not seem to be sufficient. And how a small bank has managed to use social media efficiently and other exciting topics are here in our overview :
Business and enterprise
Banking industry is losing more jobs than in crisis year 2009
The global financial industry is expected to cut more than 200,000 jobs. In particular, the announced job cuts at the major banks will have a disastrous impact on this year’s balance sheet. With all banks having to reduce their costs, job losses will be even higher than in 2009. How many jobs will be lost at the individual banks, explains Wirtschaftsfacts .
Investors lose confidence in government bonds
Already the unfortunate headlines of the past few weeks contributed to the fact that not only investors, but also every average person, lost confidence. The spreads on government bonds of all European countries have increased dramatically in comparison to Bunds. France has to pay nearly 2 percent more than Germany, Spain 4.5 percent, Italy well over 5 percent. How confidence in the financial markets could return, analyzes Blickblog .
Stock exchanges and investment
Positive development of the Campion Minerals share expected
A Preliminary Economic Assessment study indicated initial signs of a rise in the price of Canadian iron ore explorer and developer. According to experts, the new study could lead to an increase in resources in the planned extraction pits, a reduction in production costs and an increase in planned annual production. Which second factor could also have a positive effect on the share price, explains Björn Junker .
Commerce bank rate is falling
The price of Commerce bank fell to a record low of 1.12 euros in the Xetra. The rumor that the bank needed a capital requirement of another 2.3 billion, could have been the trigger. The balance sheet stress test now showed that there is a capital shortfall of 5.2 billion, instead of 2.9 billion euros as expected. Nevertheless, the CEO Martin Blessing announced that no state aid is needed. Börsenblog explains how Commerce bank can cope with these requirements on its own.
Money market and currencies
Eurobonds are considered a rescue for the euro crisis
Many states in Europe agree that only through Eurobonds can the debt crisis be overcome. It is expected that they would calm the market in the short term, but one must also bear in mind that they convey the wrong signals in the medium and long term. For example, the indebted countries in Europe will not continue their structural reform with the same intensity if they are able to borrow cheaply again through Eurobonds. How high the interest rates of the individual states are and why the eurobonds can not be a permanent way out of the debt crisis, analyzes economist blog .
German mark for Germany
This has indicated in a conversation with the dpa that he expects a quick entry to the euro from the UK. In contrast, the honorable Member said that the Minister of Finance would rather focus on resolving the crisis and listening more to what his citizens want. Because more and more want the reintroduction of the D-Mark. Many see that they were better off economically than with the euro. But why the longing for the D-Mark is not just about the means of payment, explains Blognition .
Finance and Banking in Web 2.0
Regional Bank is starting to use social media
Many regional banks argue that they are too small to use social media. Not the Raiffeisenbank Hersbruck. She also has only 155 employees and 17 offices. Nevertheless, in the beginning of 2010, she created a blog, which can be found on the homepage, to get more contact with the customers. What has happened since then and how far this bank is increasingly using social media.