The US Economy is in trouble! (February 2008)

Job growth is faltering, consumer confidence plunging. The fallout from the worst housing slump in a quarter-century grows. Wherever you look, the signs are unmistakable that the US economy is in trouble.

The drumbeat of bad news since last fall has caused PYTHEAS to consider a recession more likely now.

The US economy entered into a recession path in December and it will pull out of the downturn in June, aided by the rebate checks that begin going out in May. If problems worsen for the financial industry, hard hit by the housing downturn, then Washington will rush through a second rescue measure because nervous politicians will not want to be seen as dawdling before the November elections.

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Russia - Financial Markets Overview (January 2007)

As anticipated, 2006 was an active year for equity issuance by Russian firms, and 2007 is expected to be even bigger, with an estimated total of US$31.6bn in issuance next year from an estimated US$20.1bn in 2006.

Russian firms are being prompted to issue equity, both in the form of initial public offerings (IPOs) and secondary issues, in order to raise capital for development, fund overseas acquisitions and, by listing abroad, hedge against rising domestic political risk in the run-up to the 2007-08 election season. The state has also needed to raise funds so as to finance its increasing control of key “strategic” sectors of the economy, notably energy.

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