Sunder’s List

statue of Dino Rapondi in la Sainte Chapelle d...

Photo credit: Wikipedia

It’s Greece all over again. Only this time, its Spain! Western stocks down across the board: Stoxx 50 -3%, Germany -2.4%, France -3.1%, Italy -5.1%, Spain -2.9%, U.K.-2.2% (lowest mark since January), US –1.7%.

Spain remains the biggest concern for market participants with renewed questions about its banking sector and worries that the new government will fail to meet important fiscal targets. Spain’s central bank chief added to those concerns on Tuesday telling a conference in Madrid that Spanish banks may need additional capital if the recession deepens. The unemployment rate is nearly 23% and the economy is back in recession. It is due to contract 1.7% this year (FT)

And when there’s so much uncertainty in the global economy, our very own Indian government is busy destroying the few businesses that actually in this country: The PNGRB’s order on Indraprastha Gas [stockquote]IGL[/stockquote] would cut tariffs by nearly 60% and not only impact its future profitability, but will also deal a body blow to the company considering that the cut is going to be with retrospective effect. (ET)

The Bollywoodization of Hollywood or the Hollywoodization of Bollywood? DreamWorks Studios got a new lease on life as Reliance Entertainment [stockquote]RELMEDIA[/stockquote] agreed in principle to continue financing the company. (NYT)

The new generation of Asian millionaires are giving some bankers fits, demanding high returns, trading fast, frequently switching to rivals or spreading their money among several companies. While clients in the West want to increase their wealth, they also are concerned with keeping what they have by sticking to conservative investments, and focusing on estate- and tax-planning strategies. In Asia, clients also tend to be first generation rich, who want to make more money, rather than preserve it. They seek, as one banker said, “private brokers not private bankers.” (WSJ)

Good luck and be careful out there!

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