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Slovenia, Portugal and Spain "have a long way to go"
Things may be looking up for the eurozone; the
bloc is out of its longest ever recession with Germany and France, the region's largest economies, returning to growth. But as TradingFloor.com
blogger Juhani Huopainen explains, there are other countries which still have a long way to go, in particular Slovenia, Portugal and Spain.
Slovenia saw its economy shrink by 0.3 percent in August, and has been "unofficially pressured by the European Union to apply for a bailout". Juhani says the country's banking system has been hit by "big losses". Its Government now has to prepare a credible reform program in order to avoid having to ask for help.
Secondly, Portugal is a concern for the Finnish writer. Its current bailout ends mid-2014 but according to Juhani, "it is not realistic that the country will be able to return to financial market by then". This means there is an "immediate need for some sort of financing" to help boost the country.
Finally, Juhani thinks it's "surprising" that markets are viewing Spain as a smaller risk than Italy, even though its current unemployment level is at an alarming 26 percent and despite the fact its banking system is "completely unsolved."
Juhani thinks this means markets are now starting to focus on growth, instead of balance sheet situations, when it comes to measuring risks.
Read more about Juhani's predictions here:
http://www.tradingfloor.com/traders/juhani-huopainen
01:42 minutes
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