Tuesday, December 10, 2019

Financial Management for President Emmanuel Macron -myassignmenthelp

Question: Discuss about theFinancial Management for President Emmanuel Macron. Answer: There are significant events that are taking place in the financial markets which affect the yield. The election of President Emmanuel Macron led to the increase in the CAC index of France. The statistical rise was recorded as 4%, a figure which had never been realized in a period of nine years. Before Macron would be elected in the first round, the impact was a rise in the stock exchange. (Yago et al. 2013) Another event is the success of President Donald Trump who beat Hillary Clinton of the Democrat faction. Trump introduced the cut of taxes for both the corporations and individual investors. The influence of Trumps success is that the Dow plummeted by a record 257 units. (Maier 2014, p. 45-56) The last event is referred to as demonetization which was an effort by the central banks to eliminate fake currency. Its impact on the financial markets was that the BSE Sensex which is the benchmark entity almost collapsed by losing almost two points. The strategy adopted by the governments to eliminate high denomination notes led to the fall of Nifty which lost points to a tune of 541. (OLeary 2015, p. 102-110) The Australian total value of bonds is derived from various corporations which issue such bonds. For instance, the corporations and government agencies include Australian Commonwealth Government Bonds, Queensland Treasury Corporation, Treasury Corporation of Victoria, South Australian Government Financing Authority. There are many more entities which may not be mentioned in this discussion. However, their contribution will be envisaged in the total amount of bonds. In the year 2014, all these entities totaled the issued value of bonds to 495,058 million dollars. The percentages in terms of the Australian GDP are that they add up to 54%. The balance comparisons in the same year of 2014 was that the beginning of the year noted a 51%, the middle section of the year recorded 53% and the end year session recorded 54%. This has been steady improvement in terms of the total bond issuance in Australia. (Welch 2012, p. 211-222) The information concerning bond market is not easily available in the Australian country. This is attributed to a number of factors. For instance, Australia is a nation that is on the rise in terms of economic growth. It wishes to attain the status of countries such as China and the United States. As a consequence, much of its information concerning bond markets must be concealed so that the competing factors do not use the information against the objectives of the country (Yago et al. 2013). Basically, this is a strategy that Australia is using to penetrate the markets. Another reason why the information is concealed is because the country is on a course to improve its credit worthiness hence unfavorable bond market information would compromise its prospects to issue both international and local bonds. Ideally, a bond is a loan that is given to the country with the agreement that such amount of loan would be repaid at an agreed period of time. Australia needs that amount of capital to invest in its vast sectors. (Yago et al. 2013) References Maier, M.H. (2014). Debt Management: Insights and Tools From Selected Nations. Ft. Belvoir: Defense Technical Information Center. 20(4), 45?56. OLeary, D. (2015). Implications of the New Regulatory Order. Oxford: Oxford University Press. 34(11), 102-110 Welch, P.J. (2012). The little data book on financial development. Washington, D.C: World Bank. 59 (6), 211-222 Yago, G., Trimbath, S. (2013). Beyond junk bonds: Expanding high yield markets. New York: Oxford University Press. 56 (21) 344?349

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