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Hello, anandvy and Wale. This chat has been rescheduled. We will meet here tomorrow at 10 am. EDT (3pm London). Check your email for Bolaji's notification. See you tomorrow.
@Anand-and then late in the evening,when I checked I realised that I missed it…But then I saw the Follow-up mail from Bolaji saying its been postponed…Lucky Me!!!
Good morning or good afternoon/evening depending upon where you are in the world. My apologies for the mixed signals about the date of this Live Chat. We will begin in 10 minutes.
@Rich-sorry I got disconnected.I believe,that we should continue giving our 110% best every single day and not worry about the Global economic situation.
@Rich-Every single day there is some problem somewhere in the world.So should we be Glum everyday?No.I don't think so.Give your 110% and hope for the best.
Good afternoon and welcome to EBN's weekly Live Chat. Today, we will be talking with Jennifer Baljko, a long-term observer of events in the electronics industry and contributor to EBN. Jenn will be answering questions and commenting on economic events in the Euro-area with contributions from myself. Jennifer has been living in Europe for about 10 years and once worked with me at EBN before that. She travels regularly on the continent and can lend some insight into how events in the region are impacting the electronics industry. Welcome Jenn.
As usual, I would like to give Jennifer the opportunity to open the discussions with some general comments. I will also provide some insight from my end and then we will open up the discussion to everyone.
While Jenn is getting her opening comments ready, I want to ask that we stay on point. For many in the world today, the issue of what's happening in Europe affects many businesses, citizens and employees.
Many countries in the euros zone are carrying bad debts and the entire regional banking system is under scrunity. And, I think it will get worse before it gets better.
The region has been going through what's been described as “acute crisis” for a while. Recent policy decisions and fiscal measures haven't solved the debt and unemployment problems. The high unemployment means sales to the region are depressed, banks are tightening up lending and governments are also cutting expenses, which is putting a break on economic growth.
Many companies have warned that they are cautiously optimistic, but with China also slowing down, another long-term recession in Europe will impact consumer spending and corporate financials
Namely in companies that may have some investments tied to smart city development or medical/bio-tech sectors. Those seem to be some industries that have been slightly shielded from the worst brunt of the storm… but…
Some of Europe's biggest manufacturing companies aren't expecting a robust quarter. However, they've also expanded sales outside the region. This category includes companies like Siemens, Philips, Alcatel-Lucent, STMicroelectronics. Another group of companies that is hurting are American and Japanese companies that generate large portions of their sales from the region.
Thank you everyone for holding your comments and questions until now. I invite you to chime in. Remember, this is a discussion and not a Q&A so feel free to pose questions and answer any with suggestions.
1. In today's global scenario the Automobile and Electronics are the two major economic health indicators. How is Europe's present condition in these sectors?
2. Are the europe's problems compounded because of the loosly coupled strcuture of the EU?
@Jacob, The link I provided earlier addressed your question. However, some European countries, like even the U.S. have been living beyond their means. Governments could not continue to borrow and lenders were querying the ability of these countries to repay bonds.
@Anandvy, The recently held elections will have limited impact. The main mover in Europe is Germany and that's where we should pay the greater attention. If the German Constitutional Court rules against the recent fiscal agreement struck by Angela Merkel, bondholders will start fretting again and this could impact even larger economies like France.
@Jennifer-I had a question-How much of this slowdown in Europe is Self-inflicted and how much is a result of Slowdowns in China and the US? Could you please give us a Percentage wise breakup? Thanks
And, governments and individuals have lived beyond their means. Spain is a perfect example of that, and that is coming due now… but, it's a price we are all going to have to pay somehow.
@ALL I think will be two ways for the Euro zone :the failure , and we will not see euro coin again or the success and we will see a very powerful Europe (Euro Zone) .
@Tirlapur, Interestingly enough. Europe is already stabilizing to some extent due to the agreement I referred to earlier. At least, governments are beginning to evaluate the extent of their indebtedness while they are also finding out what exactly lenders are willing to accept. This clarity was not there until the recent crisis. If the agreement unravels there will be more problems.
tech4people – I dont have an exact percentage on what part is self inflicted and what part is directly related to China. That would be based on a company by company, nation by nation comparison, I think
@Jennifer/Bolaji/all: It is really fascinating trying to deep understand the origin of Europe's financial crisis; knowing the past could help in planning better the future. Any thoughts? Jennifer told earlier ” it is a mess “, but what was the real cause in principle?
@Anna, over the last few years prediction had that recession would ease off by year 2012. Alas!!! Not immediate but when? what other areas do you think major european firms should focus on?
@Rich, Thank you for bringing up Poland. I believe that many observers continue to focus primarily on the core EU nations. They've not paid enough attention to the fringe and newer member states most of which don't have the debt burdens of their richer neighbors.
I agree with Bolaji. the EU election won't have a big deal. Germany's is shaping the direction of austerity and recovery.. Much will depend on them and local elections there
There's a lot of talk if the EU and the euro was a mistake. I don't think it was. I think it was created in roaring bull times and has never withstood an extended bad time.
Jen, simlarlly one crisis happened in Dubai and the neighbouring ountries had pulled money for Dubai banj and the issue had solved to an extant, a similar move can be expected from EU countries
I don't think some of the numbers countries are held accountable to were good targets to set (debt vs GDP growth. Because they were based on the strongest country's economic models, not realtistically on how the weaker ones could attain that.
I agree with Jennifer. The advantages EU and Euro brought to the economies were great. We cant just make an opinion based on the last few years of recession.
There's a project initiative scheme launched by a group investors and currently backing with Sunderland football FC in Uk. Project called – Invest in Africa. what effect would this kind of strategy have on Europe?
Some of the solutions I started to touch on in recent blog and comments. Starting to move the conversation away from austerity only and more towards growth is critical.
Stringent laws will not facilitate high tech firms and skilled employees. People need a relaxed environment for growth. Europe I feel has too many regulations.
George Soros-The man who broke the bank of England(England's central bank) and ensure England would never be part of the Euro Currency Union.Now England should send him a Thank You Card!!!
People were thinking to replace dollor with Euro as the global currency but this euro-crisis has given more strength to dollor and the euro is diminishing against euro.
@mfbertozzi, I believe history is a part of the problem in Europe. In fact, some of the fundamental problems date back to the end of World War 11. This is addressed in the book “Postwar: A History of Europe Since 1945″ by Tony Judt. The problems include the ownership of commercial institutions and banks by governments, which then used this to win elections by paying hefty social compensations that the state could not really afford. The debt mountain has been building for quite a while.
This is especially the case for countries like Italy and Spain. In the case of Greece, it won the right to join the EU plus hefty payments from Brussels that allowed the government to build a large bureacrazy that couldn't be supported from very low taxes. To finance this they had to borrow.
@prabhakar: different cultures and different local languages has nothing to do with it. The common language for all is English, that doesn't present any difficulty.
@AnnaYoung: just a thought to share about EU and UK; feeling is that quite huge distance in terms of decisions on economy is still in place, despite the geography, UK is in Europe but still away from EU, is only a feeling from people living in West-Central Europe?
@Tech4people, England already sent George Soros “a thank you” card. He made a huge profit betting against the sterling. But the British were not going to give up the pound anyway. It is attached to the monarch, which they rail often against but won't give up.
Although the relationships with research universities is not as strong as we would see in Boston or Silican Valley, where schools, governments and private sector are innovating together.
@Bolaji, the royal family is a huge attraction for tourists and something that reinforces the history of the country. If they gave it up, they would lose a key component of their unique identity.
@Bolaji: thx, very appreciated; like you, I am convinced the gap goes back many years ago, but I am also quite aligned to thesis from economists about most recent recession happened.
@Prabhakar, Europeans may have a “laid back” lifestyle if eating launch not at your desk is what you mean but that shouldn't be the reason for the problem. Having shops closed for lunch and on Sundays hasn't hurt Germany.
Also, there are few start-up techies exist in Europe and the few and upcoming ones have difficulty in getting funds. And if they do tax regulation would sent them packing after a while.
There is a lot of talk about countries wanting to exit the EU. I don't how how wise that it, but I do think the currency has long been overvalued, and the fact that it dropped to a two-year low may help things like exports, but I can't say I'm a big fan of stripping the euro as a long term solution. It sounds more like a band-aid solution to me.
@AnnaY: thx, I agree with you, I hope Union and UK will work closer in trying to solving or mitigate the impact, for outlining a shared recovery plan (if exists…)
Bolaji, i think tourism sector can fetch more earnings, even in crisis time. most of the EU countries are geographicall good to attract outside tourist peoples
@Wale, The smaller businesses in Europe are suffering the impact of outsourcing to China also. During a recent visit, I found a contract manufacturer in Switzerland that has innovative processes but which is also finding itself struggling to expand operations because of competition from the Far East. It has struggled but it is surviving and proving it is possible to manufacture in Europe.
Someone asked about the laid-back lifestyle. I don't think that's completely fair. I know a lot of people are are working two or three jobs right now to make ends meet, and many people who are working 10-12 hour days. Somewhere in recent history, a 10-hour day has become the norm, and I think Europeans are staunch defenders in saying we'll work hard, but there's more to life than working all day
MF, recovery plan is inevitable. its just taking a lot longer to implement. Europe is a largest economy, the governments can't afford to allow things slide
Need to copy Germany and have long term growth plans supported by companies and govt and not be at the whim of quarterly eranings targets to pacify investment banks
Jacob – yes tourism is a good thing and is a life-saver for many economies right now, but it's not enough. There has to be an investment in high-skill labor and more entrepreneurial endeavors… that's lacking in large parts of Europe since, like in the US, lots of things were shppped off shore.
@Jacob, Yes. If you are traveling today in euro-currency countries you are likely to get a lot of value for your dollar. The euro dropped again today but only because it is now seen that U.S. employment conditions might start to improve soon.
To those in Europe: Can high-tech do anything separate from the government/finanical bodies to help itself, or are there restrictions (unions?) that make this difficult?
@Bolaji/Jennifer/all: [part-1] the thesis is thatthe collapse ofLehmanin 2008 (which had grantedlinesofcredit evento those who wereable torepayand sellingfinancial productswith alimitedwarrantyto European banks),has beenthe sourceoffinancial difficulty.
anandvy – yes, I think the euro will drop a little more as the next round of austerity measures play out. When I first came here in 2002-2003 it was about 1.15. At it's peak, I think it was 1.60 against the dollar… I'd have to check that, but yeah, I think it will be on a roller coaster ride for a while longer
@Flyingscot, many Germany firms are operating outside Europe especially Africa they have got massive engineering projects embarking upon there my country a case study.
@Tech4People, Thanks for bringing up the global implications of events in Europe on other regions. In additon to falling sales to the region, many foreign customers of companies in Europe cannot get the same financing conditions they used to get because their European partners don't have the ability to grant them extended payment terms.
@Barbara Yes the only solution is to invent, it is the only way As I have seen austerities measurements doest help , think that Angela doesnt understand well.
Hi Barbara – your question on fragmentation is a good one. You'd think a crisis would cure that, but really what's happening is showing how the strong companies pull all the strings, and this is not a union of equals.
@Wale, to encourage growth, the government is opening refinancing option to help stabilize the European banking system. This will allow for a longer term repayment plan with a lower rate in place.
But then again, maybe the notion of equals was far-fetched to begin with. That said it can't be denied that many good things have been created under the notion of regional unity.
@all: the financial institutions in the US are no example to follow, yet Barclay's in now having problems. Is Asia the only place left, or have we just not heard about abuses there yet?
@Rich, Europe is actually still the world's biggest economic region. The purchasing power of the people (despite high debts) is very high and demand for necessary services and products has stabilized. The complaints about sales in Europe is that they aren't as high as they used to be but if you manage GE, Microsoft, Apple, HP, Dell, Lenovo, SAP, Intel, Samsung, HTC, Nokia, name the company, you want to be in Europe.
@prabhakar: Maybe some you have seen take two hours for a lunch break but work later hours or don't take more breaks. It's relative. You can't really generalize for a couple of people.
@Bolaji/Jennifer/all: [part-2] after Lehman crack, some Govs have had to provide a funds policy,in order to avoid the crack of major national banks, increasing this way public debt till a gap which will be very hard to fill. Right now, this is the status of Spain, Greek, Italy, Irland a in part also France and a few countries in the Eastern region.
@Barbara, Wait until the shoe drops in China! If you look at valuations of Chinese companies on Hong Kong Stock Exchange and Beijing exchange you may be scared. Investors know there's money to be made in China but they are wary of the opacity.
It's this wretched cycle where every is squeezing every last dime out of costs, but beyond government and changes in regulations, companies need to start being more creative about how they fund projets. I don't where they'll get the money from, but wanting for EU governments to fix this crisis won't be adequate.
@wale,there's a long term scope recovery plan. The consensus within Eurozone is to combine the austerity measure with some sort of stimulus to protect economic growth.
@mfbertozzi, That's certainly a part of the puzzle for Europe. National governments have had to recapitalize financial institutions in France, Ireland, Germany, Spain. Remember, this happened elsewhere too, though.
In France the month of August is when everybody moves out of cities and heads for the beaches and industry apart, even the hotels are closed. That is a laid back life style
Susan – yes, some people in parts of southern Europe have long lunches…many, many others do not. It's an unfair generalization. Many are working under American models of business, and are almost at the poimnt where they have to bring brown lunch bags and eat at thier desk.
@tech4peopple Possibly, but I do know of people with gov't jobs in the US who also get a great deal of vacation, not necessarily 3 months, but quite a few weeks plus unlimited sick days (hey, Verizon workers got that too) and days like Lincoln's birthday
only if we are united and only if we stop accusing each other for the fault we will surpass the crisis otherwise I dont think will be Eurozone in the coming years …..
@Bolaji: I am scared already. I don't have a lot of insight into Asia, except that China can control its economy to a greater degree than ROW. Yet, it operates on self-interest alone. And that isn't working, if I understand correctly. Has China figured out we all swim or sink in a global economy?
Just recent news showed that Europe is incesting heavily in new technoligies in incubation. Does it indicate a long term hope to come out of this current crisis?
@Jennifer the European model of the long lunch was based on the tradition of the midday meal constituting dinner and the fact that people used to live close enough to where they worked to be able to go home then. In warm countries, it was also a time to break from the peak heat of the day to return later when it was cooler. However, as many people commute further today, it's not practical for many. In Israel some businesses used to close in the middle of the day, but I don't know if they still do.
@Barbara, China knows we all swim or sink together but that's not an open policy of the government. They'll push the rest of the world to the edge and be there with a helping hand to ensure we don't drag them down. Selfless actions won't determine winners and this is about winning even if it isn't a zero-sum game.
@Nemos: Now it's quite unlikely that Sweden will join the EuroZone, as it's marching toward the first cashless economy in the world. It doesn't make sense to join now.
@Wale: (innovation) it is a good point, we don't forget Northen Region is on the top for broadband and mobile and recently in the Central Europe has been launched “post-digital future” that is exactly the way for combining electronics and phisical objects working together.
@Flyingscot, UK will not join the euro-currency. Period. It will jeopardize their economy and threaten London's status as the world's financial capital. You'll be amazed how much a country like the U.K. benefits from having trillions of dollars in investment flow through London daily.
The interesting thing about all this is that everyone is wanting to blame someone for the crisis and want one big country to the world, whether it's the US, China or Germany. Folks, we're in a global economy… tech industry especially wanted a global market, so now it's funny to me to think that only one or two or three economies willl bouy the rest.
When China hits a recession, what is the world going to do? Act the way the EU is? If so, we're going to be having this same web chat in a couple years.
@Wale/@Bolaji/all: we could also outline just a few days ago Italian scientist @CERN has explained boson Higgs discover and the physical scientist Mr Federico Faggin (which has invented which has invented the microprocessor) is candidate to the Nobel.
@Everyone, Over the next few weeks as high-tech companies announce results starting next week EBN bloggers and contributors will be examining the results to sift out the impact of Europe on the sector. We will also review forecasts to determine expectations. See: earnings calendar.
Jenn: agreed. Finger-pointing is a waste of time, yet the politicians have to look “tough” to their constituents. The last time the global economies pulled together in the interest of survival was WW2, adn even then it was an “us” vs. “them.” There is always a devastating loser. And it doesn't seems like we have evolved much–now, the weapon of choice is currency and exports.
Jacob – i think it will take a while before see recover. I think conversations need to move more towards growth. If some of the EU central banking things can be better addressed and bank can start making loans to small businesses and approving corporate innovation, I think we could see some ripples of positive growth next year this time. But, honetsly I don't know. Everyone is being swallowed into this austerity pit (at least here in Spain)
@Prabhakar, Europe's strengths include the following: A large population, educated and highly motivated workforce, strong residual household wealth, developed infrastructure that continues to entice companies, transparent and reasonably good law system, stable political system, democractic governments, innovative systems and the ability to absorb investments.
Like Bolaji said… earning seasons is coming up. I'm expecting to hear more of the same stuff we've been hearing for the last few quarters. I hope I'm proven wrong.
Also dont forget that behind numbers are always people, for example in Greece now everyday people commit a suiside because of the austerities measurements.
@All-In a lot of ways,I think Europe's problems are self-inflicted.If they just get out of the Common Currency and go their seperate ways in the space of 6 months-1 year their problems will be solved through Inflation
@All-On the other hand in China's case its a question of handing more control over to the People-something which is anathema to the way the Communist party is run today.So their transistion will have to be more violent and painful.
Europes old glory – the main attraction for the tourists is being given tough competion by the countries in Asia – Singapore, Thialand, Malaisia with the new modern style tourist attractions.
If Europe could revive its toursim industry!
Country like Singapore is making its daily bread partly on tourim
@All-and people also tend to forget that China has another problem-Horrible Demographics!!! Thanks to their one child policy it is going to increasingly quickly run out of employees!!!
OH, FYI on the earnings thing… I know some of the major European tech companies will be reported week of Jul 23… I'll likely cover some of them in my weekly blog post.
@ALL : Also dont forget that behind numbers are always people, for example in Greece now everyday people commit a suicide because of the austerities measurements.
@Hospice, Europe is still the world's largest market. They don't have the largest population. China does but in terms of purchasing power, Europe is bigger than any other region.
@RichK: absolutely yes, definitely; we don't forget WWW was born @ CERN, grids archicteture for current smart networks/cities/homes were born @ CERN, I am confident similar events will happen again, they could boost also current crisis on jobs.
Barbara – Good question – what have we learned today…. I'd say we are still trying to figure what the heck is going on here. That folks are following it closely, and everyone's knocking wood for better days ahead =)
Hmm- would I invest in retirement funds now here or anywhere… Bolaji did I see that question somewhere. I prefer my grandmother's investment strategy – put money in a can under your bed. =)
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Hi all…
Hi anandvy a bit early I think 😉
Hi All.
Hi Wale, Welcome
Thanks Nemos. You welcome!
Hello, everybody. Testing, and coming back in a bit.
Hello, SF!
Hello Suzan welcome, Hi HH
Hello, Nemos!
@All: The chat has been cancelled. PLease check your email.
ooo yes,
This Live Chat has now been rescheduled for Thursday July 12 at 10.00 a.m. EDT
In case someone didn't read Jennifer's blog on the topic, here it is for a quick warm up before the live chat: http://www.ebnonline.com/author.asp?section_id=1061&doc_id=246966&
@SF: This Live Chat has now been rescheduled for Thursday July 12 at 10.00 a.m. EDT
Hi, @HH, and @Nemos
@Suzan we will meet at the same place Tommorow 😉
You mean this chat has been postponed?
How do you know?
yes
I just received email from Bolaji
@SF: Pease check your email
Let me check. I didn't see anything a couple of minutes ago
@SF: I meant, “Please check your email”
Thanks. Yes, I see Bolaji's email now.
See you tomorrow!
Well, so let's meet again tomorrow at the same time, and same bati channel.
Have a lovely day, everyone! See you tomorrow.
😉
Hello everyone…
Oops! See you tomorrow guys. Have a nice time, bye!
Hello, anandvy and Wale. This chat has been rescheduled. We will meet here tomorrow at 10 am. EDT (3pm London). Check your email for Bolaji's notification. See you tomorrow.
Everyone: As we are all here we can take the opportunity to go to the boards and see what's new today. See on the boards.
Wow! how is it that everyone at EBN gets super-charged for the event 24 hours in advance!!!
Hi all
@tech, actually this chat was scheduled for yesterday but then got postponed…
Hi , all nice to meet you again
@ANAND-Yes,I realized that.
@Anand-Its quite funny,I actually was away from my PC the entire day.So i missed the short annoucement from Bolaji!!!
@Anand-and then late in the evening,when I checked I realised that I missed it…But then I saw the Follow-up mail from Bolaji saying its been postponed…Lucky Me!!!
@tech :)…so you settled in US ?
@Rich, I agree with you…economic problems are never ending
@Anand-Actually I am a consultant,so I travel a lot!Can't say I am settled in any one place-Europe,US,India,Middle East and Africa all open!
@Rich-You are right!You know what I think?
Good morning or good afternoon/evening depending upon where you are in the world. My apologies for the mixed signals about the date of this Live Chat. We will begin in 10 minutes.
Hi, everyone!
Good morning Bolaji, I think the crowd is not big today.
OK, Bolaji!
@tech, would like to talk to you later, you on linkedin ?
Hello All!
Welcome Jennifer
Hi everyone
Hi everyone!
Good morning everybody
Hi Wale
Hello Rich
Hi all..
@Rich-sorry I got disconnected.I believe,that we should continue giving our 110% best every single day and not worry about the Global economic situation.
Hi WaqasAltaf
@Rich-We need to do be the most positive when things are the gloomiest around us.[I guess that's the Salesman in me talking]
Good Morning everybody
@Anand-Sure!Will chatup.
Hi, Jen!
@Rich your responses are always funny…:)
@Rich-Every single day there is some problem somewhere in the world.So should we be Glum everyday?No.I don't think so.Give your 110% and hope for the best.
Hi Jacob and Hospice
Hello everyone.
Hi Anna
Hello, WaqasAltaf
Hello, Anna and all the others here already!
Glad you guys can join. Apologies for the confusion yesterday. Part of it was my fault. Calendar collison. But glad everyone's here today.
It's not likely we can be glum with Rich around.
@Rich-Yes,but then most of the Community here at EBN does not fall in that category! Does it?
Hi Anna, welcome
we have a packed house today..
Welcome again to today's Live Chat. We will start in about two minutes.
Hi WaqasAlf
Welcome, Ariella, Anna!
Hia Ariella
welcome bolaji
Hi HH
Hi Wale
Hello, Hospice
Welcome @ALL
10:00 AM.
Good afternoon and welcome to EBN's weekly Live Chat. Today, we will be talking with Jennifer Baljko, a long-term observer of events in the electronics industry and contributor to EBN. Jenn will be answering questions and commenting on economic events in the Euro-area with contributions from myself. Jennifer has been living in Europe for about 10 years and once worked with me at EBN before that. She travels regularly on the continent and can lend some insight into how events in the region are impacting the electronics industry. Welcome Jenn.
Good morning All
Hello!
Welcome Jennifer…
hi everyone
As usual, I would like to give Jennifer the opportunity to open the discussions with some general comments. I will also provide some insight from my end and then we will open up the discussion to everyone.
Bolaji thanks for the warm welcome.
welcome Jenn
Hello to everyone !
Hi Jennifer
@Jennifer welcome
I'm been mostly living in Spain, but like Bolaji said, have been around the region for a while.
Where should we start… it's a big topic.
The greece?
While Jenn is getting her opening comments ready, I want to ask that we stay on point. For many in the world today, the issue of what's happening in Europe affects many businesses, citizens and employees.
I'll start with an obvious statement. Europe's a mess.
Has the recently held EU elections solved the problem?
I think EU financial crisis started from Greec
Hold the Hi and Hello and your comments for a while Please.
News yesterday coming out of Spain is grim at best. More austerity measures and little talk of growth stimulus will bang up the region even more.
Please hold the questions for a short while. The introductory comments won't be long.
Thank you Nemos
As Jenn said, Europe is a mess. That mess has been building up for a while. It is hurting businesses and exporters especially.
Yes, Greece is a starting point, but problems have been brewing long before Greece' headlines made global news
Many countries in the euros zone are carrying bad debts and the entire regional banking system is under scrunity. And, I think it will get worse before it gets better.
We're on the edge of earnings season, and like past quarters I'm not expecting any novel insight.
The region has been going through what's been described as “acute crisis” for a while. Recent policy decisions and fiscal measures haven't solved the debt and unemployment problems. The high unemployment means sales to the region are depressed, banks are tightening up lending and governments are also cutting expenses, which is putting a break on economic growth.
Jenn, What is the expectation as far as earnings?
Many companies have warned that they are cautiously optimistic, but with China also slowing down, another long-term recession in Europe will impact consumer spending and corporate financials
Bolaji – you're right about brakes on economic growth
As far as earnings, I think we'll see pockets of hope.
For those interest in diving in deeper into how events in the rest of the world and Europe are shaping up, please see the IMF World Economic Outlook.
Namely in companies that may have some investments tied to smart city development or medical/bio-tech sectors. Those seem to be some industries that have been slightly shielded from the worst brunt of the storm… but…
Some of Europe's biggest manufacturing companies aren't expecting a robust quarter. However, they've also expanded sales outside the region. This category includes companies like Siemens, Philips, Alcatel-Lucent, STMicroelectronics. Another group of companies that is hurting are American and Japanese companies that generate large portions of their sales from the region.
Hard to know how long that will last… govts are cutting hospitals and capital/public works projects, so nothing is a sacred cow.
jen, whats the reason for crisis in EU
Any thoughts on what industries will be hardest hit and what ones will weather better?
jen, whats the reason for crisis in EU
Thank you everyone for holding your comments and questions until now. I invite you to chime in. Remember, this is a discussion and not a Q&A so feel free to pose questions and answer any with suggestions.
1. In today's global scenario the Automobile and Electronics are the two major economic health indicators. How is Europe's present condition in these sectors?
2. Are the europe's problems compounded because of the loosly coupled strcuture of the EU?
Eurostat has a new report out today on Industrial production… haven't read it just yet, but here's a link
http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/4-12072012-AP/EN/4-12072012-AP-EN.PDF
EU crisis dates back to 10 /12 ears ago Jacob
Jennifer what is the impact of recently held EU elections on the crisis ?
@Anna Do you poinpoint a particular cause around the year 2000?
bolaji, i think MNCs can survive because of their global presents
@Jacob, The link I provided earlier addressed your question. However, some European countries, like even the U.S. have been living beyond their means. Governments could not continue to borrow and lenders were querying the ability of these countries to repay bonds.
Bolaji – do you want to start answering some of the questions…
@Jennifer how long it will take for the European economy to stabilize ?
@All what do you think about the Future of Europe ?
With Peugeot auto company announced cut in jobs today, things not looking good. What do you think would happen to techy industries?
It's hard to pinpoint one exactly moment in time when the EU crisis took on such heat
Jen, thats a global crise and i think their after most of the countries survived
Nemos, I think the future of EU will get better. But not immediately
Banks need to start lending to smaller high tech companies
Like Anna said, it started many years ago in many pockets around Europe and bew up when the US fell into recession.
@Boaji The governments are doing what many individuals do — living on credit without considering income limits
@Nemos, hard to predict. Uncertainty remains the certain thing to happen…
It's a combination now of debt, a banking crisis, high unemployment and very little projected growth.
@Anandvy, The recently held elections will have limited impact. The main mover in Europe is Germany and that's where we should pay the greater attention. If the German Constitutional Court rules against the recent fiscal agreement struck by Angela Merkel, bondholders will start fretting again and this could impact even larger economies like France.
@Jennifer-I had a question-How much of this slowdown in Europe is Self-inflicted and how much is a result of Slowdowns in China and the US? Could you please give us a Percentage wise breakup? Thanks
@Wale: That is a sad news for Peugeot Citroen employees, isn't it?
Sorry I got kicked out by my computer
And, governments and individuals have lived beyond their means. Spain is a perfect example of that, and that is coming due now… but, it's a price we are all going to have to pay somehow.
if the crisis persist like this, what would be the impact on industries, especially with local industries
@ALL I think will be two ways for the Euro zone :the failure , and we will not see euro coin again or the success and we will see a very powerful Europe (Euro Zone) .
@Tirlapur, Interestingly enough. Europe is already stabilizing to some extent due to the agreement I referred to earlier. At least, governments are beginning to evaluate the extent of their indebtedness while they are also finding out what exactly lenders are willing to accept. This clarity was not there until the recent crisis. If the agreement unravels there will be more problems.
tech4people – I dont have an exact percentage on what part is self inflicted and what part is directly related to China. That would be based on a company by company, nation by nation comparison, I think
My question is whether the whole “EU” thing was a mistake.
Jennifer, If you were to give advice on what EU should do to come out of this crisis, what would be your advice?
@rich Poland is out of the Euro zone
Here now.
@Jennifer/Bolaji/all: It is really fascinating trying to deep understand the origin of Europe's financial crisis; knowing the past could help in planning better the future. Any thoughts? Jennifer told earlier ” it is a mess “, but what was the real cause in principle?
@Anna, over the last few years prediction had that recession would ease off by year 2012. Alas!!! Not immediate but when? what other areas do you think major european firms should focus on?
@Susan, hello
Greetings, SF!
@Jennifer is the crisis in europe helping countries in Asia to show their dominance ?
@Rich, Thank you for bringing up Poland. I believe that many observers continue to focus primarily on the core EU nations. They've not paid enough attention to the fringe and newer member states most of which don't have the debt burdens of their richer neighbors.
I agree with Bolaji. the EU election won't have a big deal. Germany's is shaping the direction of austerity and recovery.. Much will depend on them and local elections there
@HH what it was a mistake ? I think it was the best think I have ever see
@mfb-The real cause of Europe's mess(atleast according to Barroso) is Amhttp://www.youtube.com/watch?v=OvPc8jVYoOcerica.
LOL!!!
There's a lot of talk if the EU and the euro was a mistake. I don't think it was. I think it was created in roaring bull times and has never withstood an extended bad time.
@Jennifer do you think eventually Greece will come out of EU ?
@rich it is 2 different things :Europe ,and Euro zone, poland is in Europe but not part of the euro zone
@mfbertozzi, I'll give your question a shot.
Jen, simlarlly one crisis happened in Dubai and the neighbouring ountries had pulled money for Dubai banj and the issue had solved to an extant, a similar move can be expected from EU countries
HH, I think the EU thing is not a mistake. The main problemwas that due consideration was not given to a common fiscal policyeconomic status
@Nemos: I agree. But many people start thinking the contrary
I don't think some of the numbers countries are held accountable to were good targets to set (debt vs GDP growth. Because they were based on the strongest country's economic models, not realtistically on how the weaker ones could attain that.
@Nemos Yes, not all countries in Europe participate. As I understand it England did not join.
I agree with Jennifer. The advantages EU and Euro brought to the economies were great. We cant just make an opinion based on the last few years of recession.
There's a project initiative scheme launched by a group investors and currently backing with Sunderland football FC in Uk. Project called – Invest in Africa. what effect would this kind of strategy have on Europe?
So what are some of the solution. I'd love to hear where you think solutions lie.. I have a couple of ideas.
@Ariella , indeed
http://www.youtube.com/watch?v=OvPc8jVYoOc
Sorry-I meant Barroso claims America is responsible for Europe's mess!
@Ariella: England didn't join what?
are the different cultures and different languages of EU members creating hurdles in having a unified face of EU in front of the world?
Some of the solutions I started to touch on in recent blog and comments. Starting to move the conversation away from austerity only and more towards growth is critical.
@tech4people: thx for the link, get back to you soon.
Prabhakar absolutely not
@Susan The Euroean zone an dthe adoption of the euro
@Susan, technically England is part of Europe but not Euro Zone. I think
@Susan-England did not join Euro Currency Union;that was primarily thanks to George Soros!!!
@ Jennifer
Stringent laws will not facilitate high tech firms and skilled employees. People need a relaxed environment for growth. Europe I feel has too many regulations.
UK is part of European Union but is not in the Euro
George Soros-The man who broke the bank of England(England's central bank) and ensure England would never be part of the Euro Currency Union.Now England should send him a Thank You Card!!!
People were thinking to replace dollor with Euro as the global currency but this euro-crisis has given more strength to dollor and the euro is diminishing against euro.
There are pockets of investment happening … FET and FP7, which are putting money aside for R&D
@mfbertozzi, I believe history is a part of the problem in Europe. In fact, some of the fundamental problems date back to the end of World War 11. This is addressed in the book “Postwar: A History of Europe Since 1945″ by Tony Judt. The problems include the ownership of commercial institutions and banks by governments, which then used this to win elections by paying hefty social compensations that the state could not really afford. The debt mountain has been building for quite a while.
This is especially the case for countries like Italy and Spain. In the case of Greece, it won the right to join the EU plus hefty payments from Brussels that allowed the government to build a large bureacrazy that couldn't be supported from very low taxes. To finance this they had to borrow.
@prabhakar: different cultures and different local languages has nothing to do with it. The common language for all is English, that doesn't present any difficulty.
waqasAltaf – you're right… I think much of the legal and business rules here need to change.
Jen, i read that some of the EU contries have plans to not use Euros
@ tech4people
Lolz @ thankyou card. Well England isnt performing that well too; esp when it comes to attract hightech firms.
Europian people have a laid back life style as far as my working in France goes. could this be at the root of high rate of unemploymentin EU?
Including the way the venture capital community engages with start-ups
@WaqasAltaf, you pinpointed one of the issues mitigating against Europe economy. there's need to put relaxation on some of the regulations.
@AnnaYoung: just a thought to share about EU and UK; feeling is that quite huge distance in terms of decisions on economy is still in place, despite the geography, UK is in Europe but still away from EU, is only a feeling from people living in West-Central Europe?
@tech4people It seems that England doesnt like much the Europe …..
The VC community here is different than Silicon Valley… they get involved in more later stages
@Waqas-That's true but believe me,their problems would have been worse if they were part of the Euro Union!
@Tech4people, England already sent George Soros “a thank you” card. He made a huge profit betting against the sterling. But the British were not going to give up the pound anyway. It is attached to the monarch, which they rail often against but won't give up.
@ Susan
Europe has too many languages but it still does well due to single currency and relaxed visa issues.
@Nemos there may be something to that
@Nemos-Whether u like it or not,most of England's Exports go to the Eurozone today,so what happens in Europe immediately affects England.
@Ariella: England keeps the Sterling Pound as its currency. Other European countries haven't adopted the Euro either, like Sweden, Norway, Denmark…
Although the relationships with research universities is not as strong as we would see in Boston or Silican Valley, where schools, governments and private sector are innovating together.
MF. The problem in Europe does refect on UK's economy aswell
Ok, catching up.. give me one second.
Any movements from EU communities for overcome this crisis
@Wale: it's not technically, The U.K. does belong to Europe, even thought it hasn't adopted the Euro. that's a different story.
@Bolaji, the royal family is a huge attraction for tourists and something that reinforces the history of the country. If they gave it up, they would lose a key component of their unique identity.
@Bolaji: thx, very appreciated; like you, I am convinced the gap goes back many years ago, but I am also quite aligned to thesis from economists about most recent recession happened.
@Prabhakar, Europeans may have a “laid back” lifestyle if eating launch not at your desk is what you mean but that shouldn't be the reason for the problem. Having shops closed for lunch and on Sundays hasn't hurt Germany.
@tech4peole sure, what happens in one place affect another in a global economy — even if you do maintain your own currency.
@Jacob, I think there are protests in Spain against the some of the government initiatives.
It's a shame people in living in central Europe feel that way
Also, there are few start-up techies exist in Europe and the few and upcoming ones have difficulty in getting funds. And if they do tax regulation would sent them packing after a while.
@tech4people The politicians of England doesnt help the situation , and most of the sales heading in Europe
Hi all. Been offline 3 days–a hap-py to be back!
@Bolaji-Yeah I agree,u shud c the Jubilee Celebrations in England this year.MASSIVE!!!
@mfbertozzi, Could you share your understanding of what economists are saying in Europe about the reasons behind the current problem?
There is a lot of talk about countries wanting to exit the EU. I don't how how wise that it, but I do think the currency has long been overvalued, and the fact that it dropped to a two-year low may help things like exports, but I can't say I'm a big fan of stripping the euro as a long term solution. It sounds more like a band-aid solution to me.
@Barbara, welcome back…
@AnnaY: thx, I agree with you, I hope Union and UK will work closer in trying to solving or mitigate the impact, for outlining a shared recovery plan (if exists…)
Welcome back, Barb!
Bolaji, i think tourism sector can fetch more earnings, even in crisis time. most of the EU countries are geographicall good to attract outside tourist peoples
@Wale, The smaller businesses in Europe are suffering the impact of outsourcing to China also. During a recent visit, I found a contract manufacturer in Switzerland that has innovative processes but which is also finding itself struggling to expand operations because of competition from the Far East. It has struggled but it is surviving and proving it is possible to manufacture in Europe.
Someone asked about the laid-back lifestyle. I don't think that's completely fair. I know a lot of people are are working two or three jobs right now to make ends meet, and many people who are working 10-12 hour days. Somewhere in recent history, a 10-hour day has become the norm, and I think Europeans are staunch defenders in saying we'll work hard, but there's more to life than working all day
@All-Btw The European financial Crisis is having massive effects in India today
http://articles.economictimes.indiatimes.com/2012-07-11/news/32619668_1_bench-strength-utilisation-rates-new-recruits
@Prabhakar: What do you mean? Why laid back life style?
Hi Jenn and Bolaji: It seems to me the EU is still very fragmented: isn't a crisis enough to get it to pull in the same direction?
@Jennifer, what future holds for Euro currency now if many nations decide to opt out of European union?
That's right, The European Union and the EuroZone are two different things.
MF, recovery plan is inevitable. its just taking a lot longer to implement. Europe is a largest economy, the governments can't afford to allow things slide
@Jennifer, euro is already close to 1.2 against the dollor. Do you think it has the potential to go below 1.2 levels ?
Need to copy Germany and have long term growth plans supported by companies and govt and not be at the whim of quarterly eranings targets to pacify investment banks
Jacob – yes tourism is a good thing and is a life-saver for many economies right now, but it's not enough. There has to be an investment in high-skill labor and more entrepreneurial endeavors… that's lacking in large parts of Europe since, like in the US, lots of things were shppped off shore.
Susan,
I have seen people taking 2 hours lunch break!
@Rich
who is “lounging around the sauna “?
@Jacob, Yes. If you are traveling today in euro-currency countries you are likely to get a lot of value for your dollar. The euro dropped again today but only because it is now seen that U.S. employment conditions might start to improve soon.
Yes, I agree with all what @Jennifer said about the “laid back ife style” in Europe.
Anand, If some of the countrie opted out of Euro, then i think it may come down below the mark of 1.2
To those in Europe: Can high-tech do anything separate from the government/finanical bodies to help itself, or are there restrictions (unions?) that make this difficult?
@Bolaji/Jennifer/all: [part-1] the thesis is that the collapse of Lehman in 2008 ( which had granted lines of credit even to those who were able to repay and selling financial products with a limited warranty to European banks ) , has been the source of financial difficulty.
anandvy – yes, I think the euro will drop a little more as the next round of austerity measures play out. When I first came here in 2002-2003 it was about 1.15. At it's peak, I think it was 1.60 against the dollar… I'd have to check that, but yeah, I think it will be on a roller coaster ride for a while longer
May be the day is not far when Chinese Yuan will replace US dollar
high tech needs investment and banks are not lending
@prabhakar: having a healthy life style is not the same as having a laid back life style. Sometimes people confuse those two.
@Flyingscot, many Germany firms are operating outside Europe especially Africa they have got massive engineering projects embarking upon there my country a case study.
@Tech4People, Thanks for bringing up the global implications of events in Europe on other regions. In additon to falling sales to the region, many foreign customers of companies in Europe cannot get the same financing conditions they used to get because their European partners don't have the ability to grant them extended payment terms.
@Prabhakar: (Might be off topic). China has her own problems
@Barbara Yes the only solution is to invent, it is the only way As I have seen austerities measurements doest help , think that Angela doesnt understand well.
@mfb-Is it true that everyone in the Government Sector in Italy gets 3 Months off as Summer Vacation?
Hi Barbara – your question on fragmentation is a good one. You'd think a crisis would cure that, but really what's happening is showing how the strong companies pull all the strings, and this is not a union of equals.
@Mfb-Man,if its true,I would love to work for the Italian Govt.
@Wale, to encourage growth, the government is opening refinancing option to help stabilize the European banking system. This will allow for a longer term repayment plan with a lower rate in place.
But then again, maybe the notion of equals was far-fetched to begin with. That said it can't be denied that many good things have been created under the notion of regional unity.
@all: the financial institutions in the US are no example to follow, yet Barclay's in now having problems. Is Asia the only place left, or have we just not heard about abuses there yet?
Why not US is coming forward to solve the EY economic crisis? They are politically as well as economically supposed to the world Super power today.
@tech4people Or you could just become a teacher and get the whole summer off, as well as a winter and spring break.
@Rich, Europe is actually still the world's biggest economic region. The purchasing power of the people (despite high debts) is very high and demand for necessary services and products has stabilized. The complaints about sales in Europe is that they aren't as high as they used to be but if you manage GE, Microsoft, Apple, HP, Dell, Lenovo, SAP, Intel, Samsung, HTC, Nokia, name the company, you want to be in Europe.
That's all we need. US running Europe (heehee)
@Barbara, Asia has its own problem…problem in asian countries is of governance and corruption.
@Anna, has that really helped in boosting the economy?
We can't underestimate the power that's been lost becuase of the banking problem.
@Jenn: The US has ther same issue–states vs. feds, but at least there are executive powers that override this. Does the EU have anequivalent?
@prabhakar: Maybe some you have seen take two hours for a lunch break but work later hours or don't take more breaks. It's relative. You can't really generalize for a couple of people.
@Bolaji/Jennifer/all: [part-2] after Lehman crack, some Govs have had to provide a funds policy,in order to avoid the crack of major national banks, increasing this way public debt till a gap which will be very hard to fill. Right now, this is the status of Spain, Greek, Italy, Irland a in part also France and a few countries in the Eastern region.
@anandvy: agreed.
Sales are falling, bank aren't lending money, and innovation can't be funded on good thoughts and fairy dust.
@Ariella-In the US,its only the School system-If i heard it rite,in Italy everyone in the Public sector gets 3 months off in sumer.
@Barbara, Wait until the shoe drops in China! If you look at valuations of Chinese companies on Hong Kong Stock Exchange and Beijing exchange you may be scared. Investors know there's money to be made in China but they are wary of the opacity.
@Barbara, countries like India are facing severe shortage of water because of lack of monsoon.
@prabhakar: in south Europe people tend to have long breaks at lunch time and work until late afternoon or evening- @Jennifer can confirm this.
It's this wretched cycle where every is squeezing every last dime out of costs, but beyond government and changes in regulations, companies need to start being more creative about how they fund projets. I don't where they'll get the money from, but wanting for EU governments to fix this crisis won't be adequate.
EU leaders use to remind US officials that they don't have any lesson to receive from the US in terms of economical crisis management
@wale,there's a long term scope recovery plan. The consensus within Eurozone is to combine the austerity measure with some sort of stimulus to protect economic growth.
@mfbertozzi, That's certainly a part of the puzzle for Europe. National governments have had to recapitalize financial institutions in France, Ireland, Germany, Spain. Remember, this happened elsewhere too, though.
One thing Europe is bad for is bureaucracy
In France the month of August is when everybody moves out of cities and heads for the beaches and industry apart, even the hotels are closed. That is a laid back life style
@tech4people: I am not there, but I'm sure it does not.
@Rich, “internet of things” and big data. what do you think?
Susan – yes, some people in parts of southern Europe have long lunches…many, many others do not. It's an unfair generalization. Many are working under American models of business, and are almost at the poimnt where they have to bring brown lunch bags and eat at thier desk.
@Jennifer, so how to solve this financial crisis ? Is there any solution to come out of this crisis ?
@ Wale, for example, a long term plan is to restucture pension liabilities to coexist with montery policies to encourage growth
@tech4peopple Possibly, but I do know of people with gov't jobs in the US who also get a great deal of vacation, not necessarily 3 months, but quite a few weeks plus unlimited sick days (hey, Verizon workers got that too) and days like Lincoln's birthday
only if we are united and only if we stop accusing each other for the fault we will surpass the crisis otherwise I dont think will be Eurozone in the coming years …..
I think people should come out and start purchasing and stop being conservating so that it improves the overall sentiment.
@Ariella-Yeah those were the good ol' days when everyone had defined benefit pension plans.
@Jenn, What are the likely growth areas in high-tech in Europe? I know one area is internet connectivity where they seem to be far ahead of the U.S.
@Bolaji: I am scared already. I don't have a lot of insight into Asia, except that China can control its economy to a greater degree than ROW. Yet, it operates on self-interest alone. And that isn't working, if I understand correctly. Has China figured out we all swim or sink in a global economy?
Nemos, I agree. The Eurozone leaders too recognizes this too
I would also add productivity enhancement applications
Also Countries like Sweden,England etc should join the euro zone
@Rich, “in terms of Europe”. yes
is any plan for MNCs in EU to pull more money for a better position in EU countries
“The crisis hasn't started with u s”, Eurozone leaders use to say
Moving away from the lifestyle issues, I'm going to follow the Asia- Europe thread for a while.
Just recent news showed that Europe is incesting heavily in new technoligies in incubation. Does it indicate a long term hope to come out of this current crisis?
@Jennifer the European model of the long lunch was based on the tradition of the midday meal constituting dinner and the fact that people used to live close enough to where they worked to be able to go home then. In warm countries, it was also a time to break from the peak heat of the day to return later when it was cooler. However, as many people commute further today, it's not practical for many. In Israel some businesses used to close in the middle of the day, but I don't know if they still do.
UK will not join Euro until countries like Greece and Ireland pull their weight. it is a very complex and difficult problem to solve.
@Barbara, China knows we all swim or sink together but that's not an open policy of the government. They'll push the rest of the world to the edge and be there with a helping hand to ensure we don't drag them down. Selfless actions won't determine winners and this is about winning even if it isn't a zero-sum game.
I mean to say investin – not incesting – sorry for the typo
@Nemos: Now it's quite unlikely that Sweden will join the EuroZone, as it's marching toward the first cashless economy in the world. It doesn't make sense to join now.
@Nemos, if they have great economic benefits in joining Euro zone they would have probably done. Not only them – Norway too.
@Wale: (innovation) it is a good point, we don't forget Northen Region is on the top for broadband and mobile and recently in the Central Europe has been launched “post-digital future” that is exactly the way for combining electronics and phisical objects working together.
@Barbara-The Mother of all Economic Crashes is coming-From China!!!
@Bolaji, has China stopped manipulating its currency against dollor ?
@Flyingscot, UK will not join the euro-currency. Period. It will jeopardize their economy and threaten London's status as the world's financial capital. You'll be amazed how much a country like the U.K. benefits from having trillions of dollars in investment flow through London daily.
Yes, @Ariella. That's right.
@mfbertozzi, i agree with your assertion.
Yes thats it is true, but Eurozone now needs their help . Solidarity it is the key , dont see everything with economic terms
@All-Highly,Higly recommended article on China's Crash in Barron's magazine
online.barrons.com/article/SB50001424053111903857104577467200405790354.html
The interesting thing about all this is that everyone is wanting to blame someone for the crisis and want one big country to the world, whether it's the US, China or Germany. Folks, we're in a global economy… tech industry especially wanted a global market, so now it's funny to me to think that only one or two or three economies willl bouy the rest.
@Jennifer: Exactly. It's an unfair generalization, just like all the generalizations.
I think Europe is indicating a good and compelling starting point for investment.It is ideal for a long term investors.
When China hits a recession, what is the world going to do? Act the way the EU is? If so, we're going to be having this same web chat in a couple years.
@Rich-I agree.Its amazing,how much people expect from china nowadays!!
@Rich, i think majority of the European nations do. With Nokia struggling that's helping the situation either.
How is US going to get out of its debt mountain.
@Jennifer-Yeah.China is in worse shape than even Europe today.
Jen, any idea how EU can overcome the current crisis
@Nemos: Sweden is stopping printing money. Why should they bother in start printing yet a new currency for a little while?
@Flyingscot-PRINT,PRINT,PRINT
tech4people – thx for the link. will check it out.
What could be called as EU's strength , which can help it wather the current crisis?
@Rich Sorry — struggling that's not helping the situation I meant.
@Wale/@Bolaji/all: we could also outline just a few days ago Italian scientist @CERN has explained boson Higgs discover and the physical scientist Mr Federico Faggin (which has invented which has invented the microprocessor) is candidate to the Nobel.
@Everyone, Over the next few weeks as high-tech companies announce results starting next week EBN bloggers and contributors will be examining the results to sift out the impact of Europe on the sector. We will also review forecasts to determine expectations. See: earnings calendar .
@tech4people….I agree they will print and devalue their debt then tell the RoW to stuff it.
@Bolaji, thanks for the earnings calender. It would be easy to follow the results.
Jenn: agreed. Finger-pointing is a waste of time, yet the politicians have to look “tough” to their constituents. The last time the global economies pulled together in the interest of survival was WW2, adn even then it was an “us” vs. “them.” There is always a devastating loser. And it doesn't seems like we have evolved much–now, the weapon of choice is currency and exports.
@Bolaji: thery interesting link.
Jacob – i think it will take a while before see recover. I think conversations need to move more towards growth. If some of the EU central banking things can be better addressed and bank can start making loans to small businesses and approving corporate innovation, I think we could see some ripples of positive growth next year this time. But, honetsly I don't know. Everyone is being swallowed into this austerity pit (at least here in Spain)
@Prabhakar_deosthali, good question. I like that!!!
@Prabhakar, Europe's strengths include the following: A large population, educated and highly motivated workforce, strong residual household wealth, developed infrastructure that continues to entice companies, transparent and reasonably good law system, stable political system, democractic governments, innovative systems and the ability to absorb investments.
Like Bolaji said… earning seasons is coming up. I'm expecting to hear more of the same stuff we've been hearing for the last few quarters. I hope I'm proven wrong.
Also dont forget that behind numbers are always people, for example in Greece now everyday people commit a suiside because of the austerities measurements.
@RichK: I agree, I am convinved it will happen.
@All-In a lot of ways,I think Europe's problems are self-inflicted.If they just get out of the Common Currency and go their seperate ways in the space of 6 months-1 year their problems will be solved through Inflation
@Bolaji, today Infosys declared its results (IT giant in India). The Q2 guidance is not at all optimistic and expectedly stock fell 10% today.
@All-On the other hand in China's case its a question of handing more control over to the People-something which is anathema to the way the Communist party is run today.So their transistion will have to be more violent and painful.
Jen, what about the investment opertunities in EU
Rich Eu strength is the common market.
Whoa, something strange just happened.
@Rich, i want to challenge this – natural resources?
Europes old glory – the main attraction for the tourists is being given tough competion by the countries in Asia – Singapore, Thialand, Malaisia with the new modern style tourist attractions.
If Europe could revive its toursim industry!
Country like Singapore is making its daily bread partly on tourim
The whole chat is cycling through again….Bad computer!!!! Argh! Waiting to see the latest comments….
@Bolaji: Is that the listing of EU current strenghts? I am not sure the still have a large population and an educated and highly motivated workforce.
@Jennifer what strange thing happened ?
@All-and people also tend to forget that China has another problem-Horrible Demographics!!! Thanks to their one child policy it is going to increasingly quickly run out of employees!!!
@Prabhakar, isn't that what we called global economy?
OH, FYI on the earnings thing… I know some of the major European tech companies will be reported week of Jul 23… I'll likely cover some of them in my weekly blog post.
@ALL : Also dont forget that behind numbers are always people, for example in Greece now everyday people commit a suicide because of the austerities measurements.
@Hospice, Europe is still the world's largest market. They don't have the largest population. China does but in terms of purchasing power, Europe is bigger than any other region.
@HH, they do. highly motivated workforce but too many stricter regulations …
@Jennifer: refresh your browser to get the latest posts again
@Jenn: I am sure this is my fault…Ihave a black cloud hanging over every computer I touch this week
It will be long before China faces manpower crunch. They are so much overpopulated!
@RichK: absolutely yes, definitely; we don't forget WWW was born @ CERN, grids archicteture for current smart networks/cities/homes were born @ CERN, I am confident similar events will happen again, they could boost also current crisis on jobs.
@Bolaji/Wale: I see!
@Bolaji-I agree.Europe has many inherent strengths in place that people tend to overlook.
So…what have we learned today?
Hi – chat is cycling comments randomly sometimes they are old news and sometimes new ones…..I wish it would stop.. I feel like I'm in a time warp….
We have learned that lively discussion is always fun.
@Jenn, You've been a trooper and we are about to wrap up anyway. A standing ovation for Jenn please.
Jenn: It's me. I am the Black Plague of PCs.
@Barbara: knowing the past for planning better the future.
Barbara – Good question – what have we learned today…. I'd say we are still trying to figure what the heck is going on here. That folks are following it closely, and everyone's knocking wood for better days ahead =)
WAY TO GO JENNIFER!
@Prabhakar, yes overpopulated and well edcuated —yet you see them every studying.
@Barb: I've learned that the eurozone crisis is far to be over and some countries may have to leave the euro boat
I have learned I will never, ever take my PC for granted again.
Need to run….thanks everyone and bye
@Barbara, we learnt Europe is in deep mess and its hard to come out of it.
@Everyone, a Quick Poll. Would you invest retirement funds in Europe today and if not, which continent gets your dough?
Bolaji – did you just ask for a standing ovation? Thanks. Right back to you. Applause to everyone on the call. Thanks for joining us.
Jen, Thanks for sharing your insight about EU and the crisis
Asia for me!
YES Bolaji YESSSS
@Bolaji, I wont invest in Europe. I will invest it in India because Fixed deposits fetch cool 10% returns.
I will watch for the response. In the meantime, thanks to everyone and especially Jenn's computer for not tripping up in the first five minutes.
@Rich, I promise the IRS isn't watching this space. You can be upfront with us!
Hmm- would I invest in retirement funds now here or anywhere… Bolaji did I see that question somewhere. I prefer my grandmother's investment strategy – put money in a can under your bed. =)
Good Tirlapur! you get higest interest rate in India!
@Bolaji-Retirement funds would be split between US,Europe,Indonesia,Brazil and India.
@tirlapur where are you from ?
@Nemos from India.
Jenn-Not a bad idea-I hear the Greeks are past masters at this!!!
In the meantimes, don't forget to invest in Africa
@Bolaji: why not?
Thank you all and have a great weekend. Don't forget to chime in on all the blogs. We love to hear from you.
@Jennifer: Thanks for today.
@Bolaji my son (who has yet to earn money) declares that gold bars are the best investment
tech$people ? what ?
Bye all.
Thanks, Bolaji, Barb and Jen
@Jennifer , Bolaji thanks for hosting this chat.. Really informative.
@mfbertozzi, Yes, it is for me, by the way.
Bye all
In my opinion EU should stay together and fight the crisis and not break away!
Thanks, Jennifer, Bolaji, and Barbara, and a good weekend to all!
Hi all: Didn't see my last post: kudos to Bolaji for many things. Thanks Jenn, and to all our readers.
@Ariella, Your son is smarter than many of us.
Thanks Bolaji. And thanks again everyone. See you in the blogsphere. Have a good week/weekend.
@Ariella-Dont get too excited abt Gold,Just like FDR any new AMerican Govt can straightaway steal your Gold!!!
@Ariella: that's nice. 🙂
Thanks everybody, Bolaji, barbara, and Jennifer
Bye!
See you, all!
@Jennifer/Bolaji/all: many thanks for your time. See you in the blog soon. Bye!
@Ariella-I highly recommend u read up on Executive ORder 6102 and what FDR did with Gold Owners.Not good stuff!
Thank you Bolaji and Jennifer
@tech you on skype ?
tech$people it is not nice to speak like that …..
@tech4… Being a bit positive doesn't hurt.
@rich read what he wrote with bold letters …..
@Anand-yes I am.
User ID-ashish.ulhas
tech4people where are you from ?
me either 😉
@Nemos-Everywhere and nowhere
!!!
but you are open mind person why you say comments like that “ask the greeks …”
ok bye all , see you on the msg – Boards
Respect Greece, people, the land of some of the great Philosophers that have existed in the world in all times.
@Nemos-Yes.I am.Its gud to be open always!
Hi everyone
Hi everyone, i cant read any activity going on here