Italy Banks Beware
The aftermath of Brexit continues to evolve. While the Dow Jones Industrial Average has hit an all-time high, it may be short lived.
Something else is unfolding in Europe that will put investors from around the world on edge, and it involves EU's fourth largest economy - Italy.
Italy's banking system in on the brink of collapse, primarily due to its public debt rate which currently stands at 135% of its GDP. Couple this data with Italy's devastating high unemployment rate, and you have all the ingredients to a five-star crisis that would cripple the EU and create a ripple effect across the global economy.
What does this mean for Mercer County, NJ small businesses? A lot. The industries which will be greatly impacted are financial services, food and coffee outlets, automotive and motorcycle establishments, fabric and fashion retailers, energy and petroleum distributors, and more.
Scopo is keeping an eye on Matteo Renzi and the EU publication of the July 29th "stress test" results of Italy's banking system. We do not expect it to be pretty, and this could create global investors to scramble and induce chaos.
Can Mercer County, NJ small businesses hedge their exposure and risk to Italy's economy? Absolutely. Contact Scopo today to discuss how a winning strategy can create positive results for your small business and learn why "Your Scopo is Our Scopo!"
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Joe Immordino, MBA