FREE Forex Trading Course
Deposit $250 in an FXCM Micro account and receive the DailyFX Power Course FREE OF CHARGE. FXCM Micro is a discount brokerage service offering super low spreads, 1k lot sizes, and flexible 400:1 leverage. Click below to learn more.
Currency trading involves risk of loss.
Leverage magnifies both gains and losses.
According to Ernst &Young, European countries hit the 10-year high of foreign investment projects and it will likely become stronger this year.
European foreign investment projects rose from 3,066 on 2005 to 3,531 last year thus benefiting Western European countries in UK. Regional Development Director Nigel Wilcock stated that "This numbers will be higher again for next year.”
The foreign investment projects last year in Germany, Spain, Switzerland and Italy had shown big increases. US had the largest project in Europe amounting at 28% in total. UK has been it’s biggest beneficiary as they won 30% of US funded projects.
This is due to large US software companies that include Electronic Data Systems Corp. (EDS), 3M Co. (MMM), and McKesson Corp. (MCK) who invested in the UK. India is the second most important source because 58% of India’s project in Europe goes to the UK.
Rankings however, fell in Poland, Czech Republic, Hungary and Russia because companies decided to look for low cost manufacturing plants.
Central and Eastern Europe might be having a long-term slow down in investments in manufacturing but it’s too early to say that, Wilcock said, more companies are already choosing China and India due to lower costs.
Although an increase in investments projects were focused to Eastern Europe, new offices had been opened by companies as well as plants in Czech Republic. These include HeidelbergCement AG (HEI.XE), Deutsche Lufthansa AG (LHA.XE), and Siemens AG (SI). These German companies were attracted to Eastern Europe because it was near their place.
15:34
Posted on Jun-29-2007
