Financial Business Research Report

This financial business report addresses three crucial events that happened in financial markets over the few last weeks and clarifies the effects of these events on international financial markets. The American largest vehicle manufacturer Ford Motor announced the shutdown of its production sites in Belgium and UK. This decision has a negative impact on the regional labour markets in Genk, the Flemish region of Belgium and Southampton as far as thousands of employees lost their jobs. Moreover, the government will have to increase budget spending on paying unemployment benefits for former workers. The decision to close plants was forced by the low demand for Ford vehicles in Europe along with the overall fall of demand for the car industry products. By means of the upcoming closure, Ford’s management plans to avoid 1,5 $ billion losses in two next years. In the domestic Northern America’s market Ford holds a leading position after General Motors; therefore, a wise investor can perceive the European fiasco of the company as its failure in the international arena, although it follows positive historical trend in the US market.

Whereas Ford Motor added a problem to the regional labour markets, the recent news from Spain reports the vast economic problems on a wider level. Recently, the unemployment rate crashed the 25% line. With the fiscal deficit, negative GDP growth, banking sector problems and unsuccessful governmental programs to improve the disturbing unemployment rate, Spain as the European 4th large economy is losing its positions. Investors are not satisfied with the current situation and see no possibilities to improve in the near future which results in high capital outflow from the Spanish financial market. Along with the Spain, the recession is in Greece, Italy, Portugal and Ireland. As the case stands, the European Union inclines to become an economical and political unity which faces tremendous problems and risks losing investors trust. So far, investors tend to switch their financial interests from the EU countries to the regions with more promising economies.  

The example of such regions is the Asia-Pacific zone. According to the issued report from Capgemini and RBC Wealth Management, the Asian-pacific region has more high net worth individuals than North America. The accumulation of wealth in the Asian countries is the positive sign for investors. This means that the region needs further development of financial markets, more sophisticated banking and insurance services, and overall highest demand for production. The switch of attention to the fast-growing Asian markets implies innovative opportunities for international business. First of all, the wealthy public needs more sophisticated products and services. Secondly, high GDP growth rate gives additional opportunities to traders at currency markets. Finally, the great number of HNWIs in the Asian-Pacific region is associated with the increased entrepreneurial activity, and, consequently, the improved possibilities in capital, commodities and futures financial markets.

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