Everyone following the news in Europe knows that the situation across the pond is replete with stories of failure to meet obligations, uncertainty, and intrigue. This not only applies to those interested in the economy, but also to soccer fans gearing up for the 2012 European Championships.
The Championships are set to begin this Friday in host countries Poland & Ukraine. Let’s take a look at what these countries have going on outside of the stadium to better help viewers understand the social undertones.
Poland VS Ukraine
Examining the fiscal and political situations in these countries one finds a number of parallels with the state of each nation’s soccer team.
We start with Poland and Ukraine, whose ineptitude in meeting its obligations as co-hosts of the tournament exemplifies the current state affairs on the continent. Ukraine has failed to construct the necessary amount of hotels to meet the demand of the millions of tourists that will be attending the tournament over the next month.
As the tournament approaches it now appears that neither country will make any money off the festivities but rather stand to lose $14-16 billion combined. If only a Greek bailout were that inexpensive…
Greece
Speaking of Greece, it was only eight short years ago that they won this tournament as fierce underdogs, beating host nation Portugal in the final and writing one of the better Cinderella stories in modern soccer. Believe it or not their economy was not too bad back then either, posting GDP growth of 4.6%. How long ago does that seem now? Well entering this tournament Greece finds itself with the longest odds at about 100-1 of any of the sixteen countries to lift the trophy. As you know, their economy isn’t so hot either as GDP shrunk by three percent over the past year and citizens are protesting over austerity measures. Maybe the Greeks can pull an upset and give its people a different reason to riot in the streets.
Italy
If cronyism and insider dealing are the hallmark of Italian government, the sleaziness has infiltrated the soccer culture in the country as well. In the last few weeks a match-fixing scandal has emerged that has implicated some of the captains and managers of Italy’s largest teams. The manager of the national team has gone so far as to say that it would be acceptable if Italy withdrew from the tournament as a result.
Germany
Perhaps there is a silver lining in all of this. The German economy has been revitalized over the last decade by reimagining itself as a manufacturing power to the point that it has carried the rest of Europe on its back. Similarly, the German National Team has experienced a resurgence over the same time period fueled by an injection of youth and a change of style. Just as the national team has finished in the top three of each of the last two major tournaments, the German economy has bounced back from the global recession as strong as any nation in the world.
Follow Dan’s Breakdown
Stay tuned over the next month for more commentary and to see who will come out on top.
Let’s Add Some Finance to the Mix
Here are the largest companies trading on US exchanges that originate from the companies mentioned above. Sadly, this excludes Poland and Ukraine.
Could a victory on the field lead to confidence in the local markets?
Use the Turbo Chart to Compare the Performance of the First Two Companies in the List to the S&P 500:
1. Coca-Cola Hellenic Bottling Company S.A (CCH, Earnings, Analysts, Financials): Engages in the production, sale, and distribution of alcohol-free beverages primarily in Europe. Market cap at $5.77B, most recent closing price at $15.74. GREECE.
2. National Bank of Greece SA (NBG, Earnings, Analysts, Financials): Provides diversified financial services primarily in Greece. Market cap at $1.12B, most recent closing price at $1.17. GREECE.
3. Costamare Inc. (CMRE, Earnings, Analysts, Financials): Owns and charters containerships to liner companies. Market cap at $888.86M, most recent closing price at $13.11. GREECE.
4. Eni SpA (E, Earnings, Analysts, Financials): Engages in the exploration, production, transportation, transformation, and marketing of oil and natural gas. Market cap at $77.78B, most recent closing price at $38.84. ITALY.
5. Telecom Italia SpA (TI, Earnings, Analysts, Financials): Provides fixed-line and mobile telecommunications, Internet, and media services. Market cap at $15.94B, most recent closing price at $8.20. ITALY.
6. Luxottica Group SpA (LUX, Earnings, Analysts, Financials): Provides luxury and sport/performance eyewear worldwide. Market cap at $14.54B, most recent closing price at $31.03. ITALY.
7. Siemens AG (SI, Earnings, Analysts, Financials): Operates in the industry, energy, and healthcare sectors worldwide. Market cap at $73.41B, most recent closing price at $80.30. GERMANY.
8. SAP AG (SAP, Earnings, Analysts, Financials): Provides business software primarily in Europe, the Middle East, Africa, the Americas, and the Asia Pacific Japan region. Market cap at $68.41B, most recent closing price at $55.69. GERMANY.
9. Deutsche Bank AG (DB, Earnings, Analysts, Financials): Provides investment, financial, and related products and services. Market cap at $32.87B, most recent closing price at $34.28. GERMANY.
(Written by Dan Connelly. Pricing data sourced from Finviz.)
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Analyze These Ideas: Getting Started
- Read descriptions for all companies mentioned
- Access a performance overview for all stocks in the list
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Dig Deeper: Access Company Snapshots, Charts, Filings
- Coca-Cola Hellenic Bottling Company S.A (CCH, Chart, Download SEC Filings)
- National Bank of Greece SA (NBG, Chart, Download SEC Filings)
- Costamare Inc. (CMRE, Chart, Download SEC Filings)
- Eni SpA (E, Chart, Download SEC Filings)
- Telecom Italia SpA (TI, Chart, Download SEC Filings)
- Luxottica Group SpA (LUX, Chart, Download SEC Filings)
- Siemens AG (SI, Chart, Download SEC Filings)
- SAP AG (SAP, Chart, Download SEC Filings)
- Deutsche Bank AG (DB, Chart, Download SEC Filings)
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