Economic recovery in Europe looks increasingly lopsided, with Germany and France spearheading growth while Spain and Ireland struggle. The Markit Eurozone Services purchasing managers' index fell in December to 54.2 from 55.4, though the sector did manage to expand for a 16th straight month. PMIs measure the activities of thousands of businesses. "There is some optimism with regards to the U.S. economy, but that is mixed with concerns over where Europe is going in the short- to medium-term," said Keith Bowman, equity analyst at Hargreaves Lansdown. Concerns remain on the U.S. side. Unemployment remains high, with the jobless rate expected at 9.7 percent in December, according to a recent Reuters poll. Growth in the ISM report's employment component in December slowed, which Barclays economist Nicholas Tenev said "casts some doubt" on the jump in private employment reported by ADP Employer Services. "If hiring were surging in this way, presumably there would have been some improvement in the ISM employment series," they wrote in a note to clients. euro, criza datoriilor de stat, euroscepticismul, monede nationale, renuntarea la euro, salvare euro, zona euro
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David, Hidroelectrica: Green energy, next bubble to burst
astăzi, 09:09 Autor: Roxana Petrescu
Mihai David, former general manager of Hidroelectrica, currently a member of the board of directors of the most valuable state-owned company, believes a new bubble is forming, after the financial crisis that broke out more than two years ago, with the peak of the new bubble to be reached during the next five to six years. Whereas the 2007 crisis was triggered by risky loans, exotic financial products and a highly overvalued real estate market, now the trigger could be the energy sector. More specifically green energy.
"The next bubble to burst will be energy, with green energy being first. The value of generation facilities is overrated and in five to six years we could see this bubble burst," David believes.
The factors that he bases his statement on are primarily the fact that investments in green energy are encouraged through a system of compensation in order to make them attractive, considering that green projects require rather expensive technology.
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