Dean on CNBC 11 January 2013: A New Year, A New Europe

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A New Year, a New Europe
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The ECB decision to keep interest rate unchanged underlines the great improvement in the Eurozone both in terms of Government and banks financing.

With good results from the Spanish auction and the Italian financing costs at the lowest in 3 years we now see confidence getting back to Europe. This will make 2013 a year of slow but firm European recovery.

Given the overall financing improvement the announced OMT, that was certainly very important to reach this point, will probably not even need to be deployed. This is pretty much what investor wants: to know that the ECB will be ready to intervene if needed and ensure a lower fragmentation among the various European Economies.

Financing for banks (e.g. through the recent issues Intesa and Banco Bilbao) has also considerably improved.

Throughout 2012 I maintain a positive outlook for Europe and I can only reaffirm this for 2013.

European Challenges
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Despite the great financial improvements several challengers remains: while Draghi pointed out that full employment is not within the ECB mandates the high unemployment in some European economies (especially youth unemployment) remains a big challenge for some European economies. We have also not yet seen a full improvement in lending which limits the potential of new investments, job creation and consequentially growth.

What European Governments needs to do is implement a set of measures to reduce unemployment and boast growth: a real challenge if combined with austerity !

Opportunities
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With interest rates at record lows and an increase of money supply equities remain among the most interesting asset classes for 2013. In terms of regional focus European companies with exposure and growth in emerging or higher growth markets remain attractive.

I would still recommend some allocation to Gold as a hedge toward the increasing money supply.

In Short
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– Europe will have a slow but firm improvement in 2013
– Lending conditions should improve and support the European recovery
– European-based companies with exposure to higher growth economies are still a good investment opportunity for 2013
– Gold remains interesting as an hedge but volatility is to be expected

Dr. iur. David Costa

David Costa is Dean of Faculty and one of the founders of Robert Kennedy College. In his capacity as Dean, Dr. Costa oversees the faculty review process and several of the academic programmes of the college. Dr. Costa holds a Dr. iur. (Doctor Iuris, Doctor of Law) degree from the University of Basel, Switzerland where he researched the law and regulations related to synthetic investment products. Dr. Costa lectures in the area of Investment Law and Money Management, and is a frequent guest on business television channels such as CNBC Europe and Bloomberg Television.

5 Comments

  1. SLIMI Mohamed Abderrezak

    Hello,
    I am very interest to your program and scientific recheche for economic stimulus and florisante avantagieuse.
    I am economist by training and expert éconoimie of transport.
    I am available to start work recheche in your school.

    Very cordilalement.
    Mr SLIMI

  3. Paulina Lucas

    Hello,

    What the procedures do i need to follow if i need to join your college and to take my education on line?

    Thanks

    Paulina

    • Mihai Secasiu

      Dear Paulina,

      The first step would be to apply for the programme you are insterested in, and you’ll be contacted by someone from the admission team.

      To apply go to: https://college.ch/apply, click on the programme you are insterested in and then fill the application form.

      For any questions feel free to contact us by email team at rkc dot edu or phone: +41 844 007 007.

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