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Foreign investors alarmed by probable PASOK victory

14 September 2009 / 09:09:59  GRReporter
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This week the international stock exchanges regained their upsurge. In the US Dow Jones increased with 1.78% and closed with 9605.4 points, Nasdaq closed the week with 2080.4 points and an increase of 3,17%. S&P 500 closed with growth of 2.62% - 1042.8 points. The London FTSE 100 registered a growth of 3.62% and closed the week with 5026.9 points by marking record levels for the year. In Athens the index closed the week with 2527.1 points or a growth of 3.31%.

EU investors and economists are concentrated on the upcoming elections in Greece. Based on two researches, PASOK is leading with about 6% and the party has the chance to get majority in the parliament with 151 members. MARC and ALCO forecast 6.1% and 6.2% lead for the socialist party, respectively. PASOK is aided by the fact that bad economic news have occupied the interest of the media. It became clear this week that unemployment in Greece ahs increased with 1.3% and reached 8.6%.

If PASOK wins the elections, all plans for the privatization of Thessaloniki Water Supply will stop. This is what Georgios Papandreou stated at a press conference in Thessaloniki this past week. The PASOK leader also said that if he takes the power, the party will require more management power over OTE from Deutsche Telecom. This is not good news for foreign investors and for lowering the budget deficit, according to foreign media.

Other economy news: the new Bulgarian government started impressing western economists. Wall Street Journal published a first page leading article, which praises the new minister of economy and former World Bank banker Simeon Dyankov. The newspaper refers to the speed, with which the government decreased expenses with 15% and melted the budget deficit from $412 million in July to %76.5 million in August. Wall Street Journal also notes that Bulgaria managed to avoid two-digit economy shrinkage, as it happened with Latvia and Lithuania.

Petrol price increased for a second consecutive week, due to the weakening dollar and the decreasing US reserves and closed at $71.94. Despite the growth throughout the past weeks analyzers claim that a price around $70 is good for the world economy. According to many, higher but more stable prices are better than the instability we witnessed during the past year - jumping to $147 and falling to $32 per barrel only for few months time.


Tags: NewsEconomyStock news Athens Greece Elections in Greece
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