Symbol Lookup
Register | Login

Pre Market | Dow Jones | Gold | Newsletters | Learn

Who Are The Economic Winners At The Sochi Winter Games?

Friday, February 7, 2014 3:59 PM

After all the news – positive and negative – and the media hype -- good and bad – the 22nd Winter Olympics are finally here and underway in the Black Sea resort of Sochi, Russia.

There's been a lot already written about the cost of these Winter Games – estimated at close to $60 billion, or about 25 percent more than what China reportedly spent on the 2008 Summer Games in Beijing.

In fact, Sochi is expected to be the most expensive Olympics, winter or summer, in history. And a report released Wednesday by Moody's (NYSE:MCO) rates the Sochi Games as Credit Neutral, “given that they are unlikely to give the provide the country with a macroeconomic boost in 2014.”

Related: What Companies Stand To Benefit From The Winter Olympics In Sochi?

In its report, Moody's notes that most of the Winter Games' economic benefits, such as boosts to infrastructure and the construction sector, have already been absorbed economically “and were mainly realized at the regional level.”

And while the Beijing Games were seen as a huge advertisement for China's emergence as a world power, Moody's believes whatever benefits Russia might get from hosting these Winter Olympics “have been undercut by the high cost of the event and other bad publicity.”

But the investors service says some economic winners are already coming out of Sochi, most notably the game's multinational corporate sponsors, including Proctor & Gamble (NYSE:PG) and General Electric (NYSE:GE).

Moody's says the Winter Games are Credit Positive for those sponsors, especially for media and telecommunications companies, giving the growing popularity of viewing the Olympics via the internet on computers, smartphones and other devices – all of which, Moody's says, provide those companies with new opportunities to “extend their advertising engagement.”

Some transportation companies are also expected to see a financial boost from the Winter Games, as are food and non-food retailers.

(c) 2014 Benzinga does not provide investment advice. All rights reserved.


FREE Options Trading Lessons
I'll show you how to unlock HUGE Gains with Options Trading
Let's make 2014 the year you get RICH!
Earnings Expectations For The Week Of July 28: Exxon, Pfizer, Twitter And Much MoreEarnings Expectations For The Week Of July 28: Exxon, Pfizer, Twitter And Much More
The earnings crunch continues, and reports so far have generally been encouraging. Among the many quarterly reports scheduled to hit the tape this week are those from Exxon Mobil , Pfizer , Proct...
Benzinga Weekly Preview: FOMC In Focus, As Earnings Season ProgressesBenzinga Weekly Preview: FOMC In Focus, As Earnings Season Progresses
The U.S. Federal Open Market Committee is set to have a two-day policy meeting next week against a backdrop of geopolitical tension and the U.S. earnings season. The Fed meeting has investors specul...
Stocks Hitting 52-Week HighsStocks Hitting 52-Week Highs
Lifepoint Hospitals (NASDAQ: LPNT ) shares reached a new 52-week high of $69.67 after the company reported a rise in its second-quarter earnings and raised its forecast for the year. Baidu (NASDAQ:...
UPDATE: Moody's Posts Better-Than-Expected Q2 ProfitUPDATE: Moody's Posts Better-Than-Expected Q2 Profit
Moody`s (NYSE: MCO ) reported upbeat second-quarter results and lifted its full-year revenue forecast. The New York-based company reported quarterly earnings of $319.2 million, or $1.48 per share, ...
Earnings Scheduled For July 25, 2014Earnings Scheduled For July 25, 2014
Aaron`s (NYSE: AAN ) is expected to report its Q2 earnings at $0.35 per share on revenue of $672.91 million. Xerox (NYSE: XRX ) is projected to report its Q2 earnings at $0.26 per share on revenue...
The 10 Most-Respected Corporate BrandsThe 10 Most-Respected Corporate Brands
Public respect for a corporate brand fluctuates based on any number of factors, from management changes to product offerings, which is why branding consultancy CoreBrand releases an annual report ...
Morgan Stanley Needs Better Entry Point For General ElectricMorgan Stanley Needs Better Entry Point For General Electric
In a report published Monday, Morgan Stanley analyst Nigel Coe reiterated an Equal-Weight rating and $28.00 price target on General Electric (NYSE: GE ). In the report, Morgan Stanley noted, “We ...
#PreMarket Primer: Monday, July 21: West Warns Russia 'For The Last Time'#PreMarket Primer: Monday, July 21: West Warns Russia 'For The Last Time'
After a Malaysian Airlines passenger plane was shot down in Ukraine on Thursday, tension between the West and Russia grew as accusations over who shot the missile flew between the Ukrainian government...
Investors Focus On Earnings Rather Than Geopolitical TensionsInvestors Focus On Earnings Rather Than Geopolitical Tensions
U.S. stocks rose as many questions remain unanswered following the crash of MH17 over the unstable region of Donetsk in Ukraine. U.S. intelligence sources speculated the plane was brought down by a ...
US Stock Futures Up Ahead Of Consumer Sentiment ReportUS Stock Futures Up Ahead Of Consumer Sentiment Report
Pre-open movers US stock futures traded higher in early pre-market trade, ahead of earnings and economic data. The Reuter`s/University of Michigan`s consumer sentiment index for July will be releas...

Loading Headlines...

Stock Market

Track the stock market today with the latest news and information on all things investing! Watch your stocks perform throughout the day and watch the breaking stock market news.

Feedback | disclaimer | privacy policy

Stock Market News

The Stock Market is ever changing. Keep up on your stock market news.

Stock Market Newsletters

Read up on your favorite stock market newsletters.

Learn the Stock Market

Sharper your stock trading skills with our stock market education section.