PIIGS of Europe
Greece's mounting fiscal problems remain in focus, with investors today eyeing a possible bailout plan led by Germany and France.
Closing Bellshines the spotlight on the PIIGS (Portugal, Ireland, Italy, Greece & Spain) of Europe and discusses where the biggest risks are.
Audrey Kaplan, Senior Portfolio Manager of the Federated InterContinental Fund lays out the current 2010 situation for Greece:
- Needs to refinance more than 40 billion Euros debt due in the next few months
- Needs upward of 54 billion Euros financing in 2010
- Bailout figures may suggest a debt buyout or guarantee plan of 20 to 30 billion Euros
But Kaplan doesn't think this is just a Greek issue and here's why.
- Dozen largest companies less than half the size assets under management of Citigroup
- Greece's GDP less than 3% GDP of Eurozone
Aside from Greece, Kaplan thinks Portugal is in the next worst position of the PIIGS. She's currently only overweight Italy as it's sovereign credit "isn't as bad."
Meanwhile, David Riedel, President & Founder of Riedel Research Group does not think the Greek situation is going to be "resolved in a comprehensive and identifiable way." Riedel doesn't think the European Union can afford to bail out Greece as the situation in Spain and Ireland is more severe. His investment strategy - avoid the PIIGS and short the Euro and European banks.
Tune in to our discussion coming up at 4:40pm ET.
Later in the week, we continue with a look at the Greek crisis and contagion.
Tomorrow, we focus on Latin America with Citi's Global Emerging Markets Strategist Geoffrey Dennis.
On Wednesday, Is the Greek issue just a problem only for members of the EU? And can Britain stay on the sidelines, given it owns a fifth of Greek bonds? UK Secretary for Business Peter Mandelson joins us on the show.
And finally on Thursday, fears of a China collapse. JPMorgan's Jing Ulrich tells us if China is indeed at risk of a debt bubble.
Please watch Closing Bellthroughout the week as we go around the world in our Global series this week.
Liza Tan contributed to this article.
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