Pros Say: The 4 Huge Financials Dangers of '09

Friday, 16 Jan 2009 | 4:47 AM ET

Global stocks were up Thursday after the U.S. said it would support Bank of America's purchase of Merrill Lynch with a $20 billion investment by the government and a promise to protect against losses on bad loans, removing a risk for investors. Experts highlight four perils that will dominate 2009.

The Perils of 2009

There are four macro risks that governments and businesses face this year, according to Jacob Ramsay, analyst for South East Asia & Pacific at Control Risks.

Bearish on the US Economy

The U.S. economy should see a gradual recovery in the second-half of the year, says John Calverley, head of research, North America at Standard Chartered.

Monetary Stimulus -- The Best Thing to Do?

Printing money will be a deliberate strategy by the Federal Reserve to try to stimulate the economy, says John Calverley, head of research, North America at Standard Chartered. He also tells CNBC why he thinks monetary stimulus is the best thing to do.

U.S.'s Recovery is Vital to Asia

It is more important for the Asia region to see the success of Obama's stimulus package than that of Chinese policymakers, according to Dariusz Kowalczyk, chief investment strategist at SJS Markets.

Best Way Forward for Asian Economies

Asian governments must try to boost domestic demand and not try to lift exports by depreciating their currencies, warns Kelvin Lau, global research economist at Standard Chartered.

Euro May Test Low of $1.20 by Spring

The European Central Banks's reluctance to make aggressive rate cuts will be detrimental to the economy and the euro, says Dariusz Kowalczyk, chief investment strategist at SJS Markets. He tells CNBC that the euro-dollar may test the low $1.20 by spring.

Sell into Euro Rallies

The euro is a "sell" on any sort of rally as Jeffrey Halley, senior manager of FX trading at Saxo Capital Markets thinks it may retest its December lows. He explains his bearish outlook.


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Europe Video

  • Jan Dunning, CEO of St Petersburg-headquartered hypermarket chain Lenta, says the situation in Ukraine has had no impact on the group, as consumer confidence remains unaffected in Russia.

  • Vincent Deluard, European strategist at Ned Davis Research Group, says the strong euro is a problem for the region's companies, especially for the large exporters.

  • European shares closed higher on Thursday as investors brushed aside concerns regarding Ukraine and focused instead on Wall Street earnings and the latest U.S. jobs data.