Shipping Stocks Look to Rebound as Greece's Parliament Passes Austerity Deal
February 14 2012 - 8:20AM
Marketwired
Greek shipping stocks have been on the upswing this year after a
challenging 2011 on hopes of a global economic rebound. Greek ship
owners control 25 percent of the world tanker fleet. Shipping
accounts for 6 percent of Greece's GDP and generates 75 percent of
the country's estimated 400,000 jobs tied to maritime activities,
according to George Gratsos, president of the Hellenic Chamber of
Shipping. The Paragon Report examines the outlook for companies in
the Shipping Industry and provides investment research on Navios
Maritime Holdings Inc. (NYSE: NM) and Safe Bulkers Inc. (NYSE: SB).
Access to the full company reports can be found at:
www.paragonreport.com/NM
www.paragonreport.com/SB
At the start of the week, Greece's parliament passed a
controversial package of austerity measures, demanded by the
eurozone and IMF in return for a 130bn-euro ($170bn) bailout to
avoid default. The Parliament gave the government the authority to
sign a new loan agreement with the foreign lenders and approve a
broader arrangement to reduce the amount Greece must repay to its
bondholders.
According to a recent report from The New York Times, the new
austerity measures include, among others, a 22 percent cut in the
benchmark minimum wage and 150,000 government layoffs by 2015.
The Paragon Report provides investors with an excellent first
step in their due diligence by providing daily trading ideas and
consolidating the public information available on them. For more
investment research on the shipping industry, register with us free
at www.paragonreport.com and get exclusive access to our numerous
stock reports and industry newsletters.
With Greece's unemployment rate well above 20 percent, some
experts continue to question the health of the shipping industry.
Dimitri Papadimitriou, president of the Levy Economics Institute at
Bard College in Annandale-on-Hudson, NY, recently told CNNMoney
that "Greece is highly dependent on shipping from an employment
perspective. It's hard to be confident."
On the upside, Greek shipping's cooperation with China is
helping the industry weather the challenging economic storm. Last
year, China agreed in October to set up a 10 billion dollar fund to
help Greek shipowners buy Chinese-made vessels. "China has pledged
that the financing terms for Greek companies will be better than
those offered by any other bank in the world," Greece's Maritime
Affairs minister said.
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compensated by other third party organizations for advertising
services. We act as an independent research portal and are aware
that all investment entails inherent risks. Please view the full
disclaimer at http://www.paragonreport.com/disclaimer.
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