🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

FACTBOX-Five risks to watch in Europe, M.East, Africa

Published 10/01/2009, 09:54 AM
Updated 10/01/2009, 09:57 AM
TEL
-

By Peter Apps, Political Risk Correspondent

LONDON, Oct 1 (Reuters) - Ireland's EU treaty vote, uncertain politics across western and emerging Europe, a new standoff with Iran, investor security issues in Turkey and Russia and drought in Africa could all affect markets in the coming months.

Below are five risks to watch in Europe, Middle East and Africa.

IRISH LISBON TREATY VOTE

Irish voters go to the polls for a second time on Oct. 2 over the European Union's Lisbon Treaty. Economists polled by Reuters see the treaty sailing through but were surprised last time and anti-government sentiment sparked by the economic crisis is seen affecting the vote. At worst, a second rejection from Ireland could spark a crisis that could paralyse the European Union and briefly impact regional financial markets including the euro. A "yes" vote would shift attention to whether the Czech Republic and Poland would sign the treaty and whether British opposition leader David Cameron would try to block it with a referendum if he wins power next year.

To see recent Reuters stories on the Lisbon Treaty vote, click here

EUROPE: POLITICS AND SPENDING CUTS

Germany's election may be out of the way but coalition wrangling there remains key to policy. Greek Prime Minister Costas Karamanlis is looking to a snap election on Oct 4 for a fresh mandate, but looks set to lose to rival socialists. Outright victory for either side would be viewed as generally positive for markets but the vote could well fail to yield an outright winner, possibly leading to a short-lived government and delayed reforms. Across Europe, collapsing tax revenues and rising spending have left governments needing to rein in budget deficits through cuts. Romania's government collapsed on Thursday, potentially jeopardising reforms and an IMF programme, while politics is also seen potentially stymieing policy changes in Poland, Latvia, Hungary and the Czech Republic.

For five risks to watch in Western Europe, click here

NUCLEAR STAND OFF

Iran's dispute with the United States and other major powers over its nuclear ambitions could come to impact oil prices and regional markets if it continues to escalate. Iran opened talks in Geneva on Thursday with the United States and five other major powers demanding immediate access to a newly declared enrichment facility. If the Geneva talks fail, the United States may seek tougher international sanctions or impose unilateral measures, while any U.S. or Israeli military action could prompt retaliation against oil export routes through the Gulf.

For the latest stories on the stand off, click here

For five risks to watch for the Middle East, click here

INVESTOR SECURITY IN RUSSIA, TURKEY

Two cases are focusing attention on investor security in Russia and Turkey. Norwegian telecom Telenor remains locked in a Siberian court battle to avoid losing its stake in Russian mobile operator Vimpelcom. Safety of investment in Russia has long been considered a key issue but some analysts had suggested risks were largely limited to the mining and energy sector. Meanwhile, in Turkey a $3.2 billion fine on Turkey's largest media group Dogan Yayin has ignited concerns over press freedom and investment climate as well has attracted criticism from the European Union.

For five risks to watch in Eastern Europe, the CIS and Turkey click here

EL NINO HITS AFRICA HARDEST

Despite the hype about mining booms and free-market reforms, most sub-Saharan countries remain heavily reliant on farming for food, exports, employment and economic growth but a developing El Nino weather pattern in the Pacific could jeopardise that. Forecasters predict it could bring crisis to both eastern and southern Africa in the form of drought and floods producing shortages and hardship. That could in turn boost political risks and unrest on the world's poorest continent.

For the latest stories on the El Nino effect worldwide, click here

For five risks to watch in Africa, click here

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.