A recent report, published by the European Commission, revealed that corruption costs the EU roughly $120 billion a year. That's around 1% of economic output. Where is the corruption and where is it squeaky clean? Erin Ade reports.
Famed investor and author Jim Rogers is a bull on China and Asia. He sees a shift in the economic importance of Asia, and has even relocated his family to Singapore - to be a part of it! But right now the emerging markets are a big concern. Erin was keen to get Jim's view on the crisis in emerging markets and she certainly does. Jim also gives his view on the US, European, Japanese and Chinese economies -- and the Gold Standard.
In the 'Big Deal,' Erin and Boom Bust producer Edward Harrison discuss money. What exactly does the pyramid on the back of a dollar bill symbolize? And where does a pound or a dollar really derive its value? Erin and Edward explain.
Rogers said he had added to Chinese financials stocks as a longer term bet.
‘Maybe we will have more problems in that area coming soon and so don’t jump right in. Five to ten years from now, I do think though that we will have some staggering opportunities,’ he said.
While Rogers is pessimistic on the long term outcomes of Abenomics for Japan’s currency and debt levels, he sees stock opportunities in Japan’s recent law passed on allowing individuals to invest in tax-free accounts.
'People are going to invest with the names they know,' he added, commenting on the stock Nippon Telegraph & Telephone, that he recently added to the portfolio.
Jim Rogers is buying Russian stocks for the first time in over four decades, the chairman of Rogers Holdings and internationally renowned investor has announced.
Speaking at Skagen New Year Conference in London, Rogers said the recent high profile releases of political prisoners and Pussy Riot members were welcome developments for Russia.
However, investor sentiment towards the stock market is quite different, he said.
'In 46 years I have never held a Russian stock but I have come to the conclusion that Russia is now one of the most hated stock markets and there are good opportunities there right now,' said Rogers.
Together with more ‘civilised’ policies at the Kremlin, Russia looks attractive as an investment case due to the fact that is one of the few emerging markets with a convertible currency and no big debt, said Rogers.
Rogers, who is usually based in Singapore, now owns the Moscow Stock Exchange and Aeroflot, a Russian airline company.
This latter position reflects a general wider preference for airline names, which includes positions in Scandinavian carrier SAS and Thai group NOK Air.
Jim Rogers, a high-profile American investor, still believes North Korea is one of the most promising investment spots in the world.
Speaking at road shows in Europe this month, he said he is willing to bet all of his money on the communist nation, according to the Voice of America.
"Another country in Asia that I'm extremely optimistic about, I'll put all of my money there if I could, is North Korea," Rogers said in Britain Tuesday.
He is apparently not optimistic of the North Korean economy itself; North Korea is under strong U.N. sanctions.
But he expects the sharp appreciation of North Korea's assets in the event of reunification with South Korea.
Rogers claimed there are some positive indications from the North under the leadership of Kim Jong-un, 31, who was educated in Switzerland.
"I'm extremely excited and optimistic about what's happening in North Korea. There's virtually no way for me as an American, especially, to invest there, but if I could I'll put all of my money there," he said at an event in Norway on Jan. 8.
He characterized a visit by several former NBA players to Pyongyang as a "symptom of the changes that can never have happened" under former North Korean leader Kim Jong-il.
Last year, Rogers openly said North Korea, along with Myanmar, should be attractive to global investors.
Critics question the seriousness of his public comments, however.
He has reportedly bought lots of commemorative gold coins from North Korea in an apparent bet the impoverished nation will collapse not in the distant future and the value of the coins will soar.
"I would prefer silver to gold. I am not buying either at the moment. Silver is down 60% from its all-time high, gold is down 30-35% from its all-time high. But iwon;t buy just because they are down," says Jim Rogers.
On the last trading day of 2013, the yellow metal slipped to a six-month low, making for its biggest annual decline in 32 years.
The reason is attributed to rising prospects for global economic recovery, which is making investors switch to riskier assets.
After seeing a bull run over the past 12 years, the metal shed 28% in 2013, with the US Federal Reservedeciding to begin the tapering of its 85-billion-dollar-a-month easy monetary policy. This undermines an investor's rationale for holding the metal.
On Friday, gold prices fell by Rs 80 to Rs 29,970 per ten grams in the national capital, as stockists sold against sluggish demand at prevailing higher levels.
Silver also declined by Rs 200 to Rs 44,600 per kg on lack of buying support from industrial units and coin makers.
In Mumbai, gold of 99.9 and 99.5 per cent purity dipped by Rs 55 each to Rs 29,880 and Rs 29,730 per ten grams, while silver lost Rs 400 at Rs 45,000 per kg.
Traders said stockists selling on sluggish demand at prevailing higher levels, mainly kept pressure on the two commodities.
On the domestic front, gold of 99.9 and 99.5 per cent purity fell by Rs 80 each to Rs 29,970 and Rs 29,770 per ten grams, respectively, while sovereign held steady at Rs 25,000 per piece of eight grams.
Similarly, silver ready declined by Rs 200 to Rs 44,600 per kg and weekly-based delivery by Rs 300 to Rs 44,500 per kg.
Silver coins, however, continued to be asked at last level of Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces.
There are huge shorts that have developed in precious metals as you know. So, it's overdue for a rally. We had a big drop in 2013. Everybody got negative, everybody got short. So, we are going to have a rally," says Commodities Guru Jim Rogers.
"After the rally, the year will see it going down again and hopefully finally we will make a nice bottom and we can buy gold again," he says.
"Veteran investor Jim Rogers believes the global equity market 'party' will come to a nasty end - but before it does, look to Chinese government spending for clues on the best investment opportunities."