Tristan Hanson, head of asset allocation at Ashburton, says more certainty about European and US growth prospects is required before equity indices break out of their trading ranges of the past year and a half.
The statement on Spain by the Eurogroup – the group of euro area finance ministers – is repeated here in full.
German parliamentarians have voted by 496 to 90 in favour of the second EU/IMF bailout for Greece even though one of its chief proponents, German chancellor Angela Merkel, said there was “no 100% guarantee” it would succeed.
The reform of the Italian economy is critical to the survival of the euro. But success also depends on external factors out of the Italians’ control.
President of the Eurogroup and prime minister of Luxembourg Jean-Claude Juncker (pictured) has stated the European Financial Stability Facility (EFSF) will meet its lending capacity target of €440bn.
Herman Van Rompuy, president of the European Council, defends the decisions made by the majority of euro area leaders at the December 9 summit, while acknowledging the negotiation of an intergovernmental treaty to make the fiscal compact binding “will not be easy”.
Herman Van Rompuy, president of the European Council, underlines the key agreements made at the first session of the European Council, including a new approach to private sector involvement and a fiscal compact for the eurozone.
Europe’s leaders need to follow just three steps to secure the stability of the beleaguered eurozone, Giles Keating, head of global research at Credit Suisse Zurich, told delegates at the Association of the Luxembourg Fund Industry’s (Alfi) November conference.
Credit ratings agency Moody’s has given the European Financial Stability Facility (EFSF) 10-year €3bn benchmark bond an Aaa rating.
Systemic risk in the Eurozone has not been priced into equities and if the Eurozone breaks up, equity valuations could drop another 20-30%, said Patrick Moonen, senior strategist at ING Investment Management.
Jubilatory headlines are dominating the British media but the French press has adopted a more sober tone on the deal clinched by Eurozone leaders on October 27 amid fears that seeking investment from China will lead to negative repercussions for the Eurozone.
Paris-based Conviction Asset Management is seeking to capitalise on market fears by investing in Italian, Spanish and Irish bonds, even though its managers think risks posed by European sovereigns are higher than those facing its beleaguered banking sector.