Positioning ahead of the Reserve Bank of Australia’s (RBA) interest rate decision is fairly straightforward this time around.
Two truths have been firmly established in The Great Recession. Central bankers will provide the liquidity necessary to maintain the solvency of the global financial community, and the European debt crisis is far from over. These facts mean that falling shares will lead to profit for investors.
As detailed in many previous articles, the euro zone debt crisis is far, far from being resolved. Earlier today, Greek Prime Minister Lucas Papademos stated that a third bailout package might be needed if measures instituted do not revitalize the economy.
Greece threatened March 6 to default on any bondholders who do not take part in this week’s 206 billion euro debt swap. European bank stocks did not react well.
Outsourcing jobs is an old story, but there’s something unusual in the Royal Bank of Scotland’s (RBS, quote) new plan to shift 215 jobs to India: the company says that it’s just going where the customers are. Which customers does the company mean, and why would a few hundred new employees be important in serving them?