May 20, 2011
Equity markets have opened weak today as the Euro and Greek bonds are back in the news, with both weak today. Greek 10 year bond yields soared 1.11% to 16.6% after Fitch cut Greece’s credit rating to four levels below investment grade. EU policy makers have been discussing a soft restructuring of the bonds, tantamount to a default. The Euro is also under pressure over concerns Greece’s problems may extend across the continent, and even drag down some of the more stable economies.
Investors in LinkedIn partied like it was 1999 yesterday as the stock rose almost 100% on its IPO. The company now boasts a $10 billion (+) market cap, levered off of $15 million in net income and $250 million in revenues over the preceding 12 months.
Barnes & Noble, which put itself up for sale last summer, has received a bid from Liberty Media for roughly $1 billion, a 20% increase from yesterday’s closing price.
The International Energy Agency warned that rising oil prices could “derail the economic recovery.” Here in the US gasoline prices have eased by $.10 this week as concerns about refinery damage from Mississippi flood waters have eased.
ECRI is saying that their long leading indicators are pointing to a peak in global industrial growth in mid-summer. According to ECRI, this downturn is being confirmed by commodity prices, ISM, and other short term leading indicators. They are discounting a second recession, saying it isn’t likely.
Have a great weekend
“Happiness is not a station you arrive at, but a manner of traveling.” Margaret Lee Runbek