Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

HSBC Says Oil Replaces Greece as Threat to Economy, Assets

Don't Miss Out —
Follow us on:

March 2 (Bloomberg) -- Soaring oil prices have displaced Greece’s sovereign debt as a threat to global economic growth and financial markets, HSBC Holdings Plc, Europe’s largest bank by market value, said.

“With Greece disappearing, at least temporarily, from the headlines, investors have quickly found a new source of anxiety thanks to the recent surge in oil prices,” HSBC Chief Economist Stephen King said in a note today. “If the trend persists, a fragile economic recovery in the developed world could quickly be derailed and inflation could return to emerging markets.”

Brent crude surged to as much as $128.40 a barrel yesterday, the highest since July 2008. Brent for April settlement slipped 1.2 percent to $124.67 on the London-based ICE Futures Europe exchange at 12:48 p.m. today.

Equity investors should “take insurance” by becoming overweight in energy stocks while foreign exchange investors should favor the currencies of oil-producing nations such as Norway, Malaysia, Brazil and Russia, he said.

To contact the reporter on this story: Stephen Voss in London at sev@bloomberg.net

To contact the editor responsible for this story: Stephen Voss in London at sev@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.