Posts Tagged ‘ Cyprus ’

Crimea Annexation; the implications for global capital allocation

March 27, 2014
By
Crimea Annexation; the implications for global capital allocation

  Around geopolitical events, political posturing is generally the short-term focus for all parties involved, and markets, but the longer-term implications are often unrelated to what is obvious in the short-term. The despotic approach of Vladimir Putin, and his “damn the torpedoes” approach to dealing with market/economic consequences exacerbates this effect. A fascinating take on the longer-term consequences of Putin’s bravado is detailed in the Journal of Foreign Affairs.  Recent actions are presented as a negative for Russia and a positive for the Ukraine. While this will take several years to validate/invalidate, the article is provocative and provides at least a partial justification for financial markets (outside Russia/Ukraine) to come to terms with the annexation issue, and largely ignore it. Perhaps Ukraine/Russia geopolitical issues become 2014’s version of last...

Read more »

Greek Stock Market Surges on M&A

August 29, 2011
By
Greek Stock Market Surges on M&A

The Greek stock market is having a melt-up this morning, with the largest gains in 20-years. The index as a whole is up 14%, which isn’t bad for those who managed to get long Greek equities on Friday. And for more adventurous and daring sorts, the Cypriot stock market is up 18.5% this morning; Cyprus is leveraged to Greece. The rally comes based on two of Greece’s largest banks (the 2nd and 3rd largest) agreeing to merge to bolster assets. EFG Eurobank Ergasias and Alpha Bank have commenced merger discussions and have been halted from trading. Cypriot banks rallied 20%+. The largest bank in Greece is National Bank of Greece – in case you were wondering (up 30% today). This is swell and all and I already sense what the cynics...

Read more »