FINANCIAL MARKETS

1. You were given one of these countries with a relevant stock market and Fixed Rate
   market: USA, UK, Germany, Greece, Singapore, Brazil, Mexico, Spain, France,
   Canada, China, Italy, Holland.
2. Identify its degree of the following variables over the past 20 years and draw
   relationships between:
3. Government debt and corporate debt vs GDP
4. length of government and corporate debt in years to maturity (ST 0-2 years, and
   LT 5, 10, 20, 30 years)
5. % of Eurobonds of the public and corporate debt of listed companies in the
   country’s stock exchange
6. Government bonds credit ratings on Fitch, Moody’s and Standard & Poor’s rating
   agencies, Bloomberg, Financial Times, Euronext
7. Foreign Exchange rate vs other main currencies such as, USD, Euro, GBP, JPY,
   and / or CHF
8. stock market performance vs interest rates and GDP growth, using country stock
   exchange index value (NYSE, DAX, CAC, MIL, IBEX, AEX, LSE, BOVESPA,
   Bolsa Mexicana, etc…)
   BCO221 – GLOBAL ECONOMICS Slide 3 [email protected]
   GROUP Exercise
   Team up in groups of 4 or 5 people
9. Assess the economic performance and sustainability taking into consideration
   the country GDP, government debt and corporate debt as well as performance
   of the stock exchange, interest rates and GDP groth
10. Do you need other information to complement your assessment? If so which
    one?
11. If you had the ability to decide which indicators to focus on, would you
    measure other variables than the variables that Governments, Financial
    Markets, Rating Agencies and International Organizations are currently
    measuring? If Yes, which ones? Why?, If No, why not?

Sample Solution