Wall Street Webcasting Presents: “New Government in Greece Learns a Valuable Lesson”
Wall Street Webcasting has prepared and provided for you an exclusive broadcast of Wells Fargo Securities own, Rich Gordon. Gordon is highly recognized for his weekly narrates regarding the fixed income strategy at Wells Fargo Securities (NYSE:WFC). This week, Gordon describes the decline in the economic performance of Greece and the Euro.
Greece was unable to make their restructured debt service payments, and were forced to decide between defaulting and giving up the Euro or accepting the terms that were outlined by the previous government and accepting short-term funding and an extension. They chose the extension. Since the financial crisis, Greece’s GDP has dropped by almost 30%. Per-capita income, as a result, has shrunk.
The German Bund Yield Curve still has negative yields out to 5 years, and a 30 year yield at only 1%. Chairman of the Fed, Janet Yellen, will be delivering a testimony before Congress this week and will be answering questions regarding the timing of rate hikes, and the investment community will be paying close attention to her overall tone and choice of words. She will definitely announce that no matter what the fed does, it will be data dependent.
Wells Fargo economic analysts foresee 3 possible outcomes. They predict a 30% chance of no rate hikes at all, a 50% chance of one increase in rates during 2015, most likely at the September meeting, or finally, a 20% chance of more than one rate increase in 2015.
To hear a more in depth explanation of the weakening economic data in Europe, please tune into The Wells Fargo Securities latest video.
Please visit the following link to view the video:
Sorry. No data so far.