The Italian government has raised almost $20 billion Euros this week after borrowing $7 billion Euros yesterday at about half the rate of the previous sale last month. Italy has seen their borrowing costs decline after the European Central Bank (ECB) has offered unlimited three year loans at a 1% rate. This is meant to encourage investors to invest these loans into higher yielding government bonds in order to help countries experiencing a debt crisis. In addition to the low interest rate loans being offered, rumors have circulated that that the ECB is investing in Italy as well. This is good news for Italy because the ECB’s involvement will create demand, lowering the interest rate, and will help Italy meet its rapidly approaching debt obligations. However, unless the new Prime Minister Mario Monti is able to spur the economy, the problem will not be solved; it will only delay the inevitable.
Italy Auctions $25.8 Billion of Bonds
http://www.bryantanalysts.com/2011/12/30/italy-auctions-25-8-billion-of-bonds/
Happy Holidays
The Bryant Analysts hope everyone has a great holiday season. We would also like to specifically thank those protecting our nation; domestically and abroad. Bring on 2012!
http://www.bryantanalysts.com/2011/12/25/happy-holidays/
When Will Markets Stop Trading on Headlines and Start Trading on Fundamentals?
On November 17th, fellow contributor Chris Bekel posted an article about Globalization’s effect on stock market volatility, and argued that the global markets have never been so interconnected. Upon reading Chris’ article, the first thing that came to mind was how closely the Dow Jones DJIA and FTSE 100 fluctuate between 9:30 and 11:30am (ET) while both exchanges are open simultaneously. Several days ago, Bloomberg released a stat saying that European and American markets have a correlation of 0.85.
http://www.bryantanalysts.com/2011/12/19/when-will-markets-stop-trading-on-headlines-and-start-trading-on-fundamentals/
JetBlue- Bryant Analysts Recommend Buy
The Bryant Analysts did a valuation of JetBlue’s common stock, using its financial statements and current economic data to determine our buy rating on the company. Over the last three weeks JetBlue’s stock price has appreciated 40.7%, from 3.59 on November 21, 2011 to $5.05 on December 9, 2011, due to news about American Airlines and their recent expansion in LaGuardia and Reagan airports.
http://www.bryantanalysts.com/2011/12/12/buy-jetblue-2/