Investment - Articles - The beginning of the end for the Euro crisis?


The beginning of the end for the Euro crisis By Rupert Watson, Head of Asset Allocation

 The eurozone has been battered by bad news for a long time but at last we are seeing some good news that looks like the first green shoots of recovery.
  
 Yesterday's news that Germany's Constitutional Court has rejected efforts to block a permanent euro-area rescue fund paves the way for the €500 billion bailout fund championed by Angela Merkel. However, this is just the latest of a number of bits of good news. Others include:
  
 -The European Central Bank will buy the short term debt of program countries in unlimited size
 -The Troika's (EC, IMF, ECB) confirmation that Portugal's reform and deficit reduction plans are on track
 -The IMF reiterating Ireland's ‘strong program implementation'
 -A further big rally in peripheral bonds. European bank equities are also very strong while Greek equities are up almost 50% since the end of May
  
 While economic data remains very weak this easing of tensions within the eurozone could lead to a better economic performance next year, which would have positive implications for deficit reduction plans and the global economy. We continue to think that the ECB's bond buying announcement last week will mark a significant turning point in the crisis. This is positive for the eurozone, the UK and the global economy and markets.

Back to Index


Similar News to this Story

Pledge to progress as £11bn invested in productive assets
The insurance and long-term savings industry is making positive progress towards its pledge to invest £100 billion into assets which contribute to eco
Changing aims of pensions drive interest in hedge funds
Aon has said that market volatility and wider macro-economic uncertainty is driving a surge in hedge fund investment from UK defined benefit (DB) pens
Bulls come out to play as earnings season moves up a gear
FTSE 100 climbs back above 9,000. BP to sell US wind assets. Reckitt agrees to sell Essential home for $4.8bn. US stocks reach record highs again. St

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.