Euro under pressure as investors bail out
Despite the fact that the European Union, the IMF and the Greek authorities confirmed a EUR110 billion bailout package at the weekend there has been more pressure on the Euro this morning. It is believed that many investors "bought on the rumour and sold on the fact" towards the end of last week. Even though it seems from the headlines as though the deal has been done and the money has been put to one side for the Greek authorities, it still has to be rubber stamped by members of the European Union with concern about how the French and German governments will react.
While many experts believe that the Greek debacle is now over and done with there is growing concern about the economic strength of other European nations such as Spain, Portugal and Ireland. It seems that many investors are now playing a game of "spot the next economy to collapse" and we could see sovereign debt from any of the above three countries come under pressure in the short-term. The EUR110 billion bailout will be funded by Euro zone members (EUR80 billion) and the International Monetary Fund (EUR30 billion) with the UK likely to be one of the largest contributors to the overall bailout package.
Share this..
Related stories
Central banks warned about complacency
A meeting of global leaders in Toronto has seen the emergence of a strongly worded warning to worldwide governments reminding them of the need to slash budgets and a future need to move base rates higher sooner or later. This warning is also aimed at central banks which are effectively independent operators who monitor local and global economies. So what does this warning mean? There is no doub...
Read MoreHas the death of the UK economy saved Gordon Brown?
On the back of the Glenrothes by-election victory many are now hailing Gordon Brown as the man who came back from the dead to reclaim his throne. Just six short months ago Gordon Brown was literally dead and buried with numerous knives in his back from those who believed he could trust and the UK voter having disowned him.
How ironic that the man who many believe caused the mess in...
UK government cuddles up to Tony Blair
The UK government is today mounting a vigorous campaign to push Tony Blair for the EU presidency despite the fact that many of his supporters within the EU appear to have disappeared. It is unclear why the UK government is being so proactive with regards to Tony Blair and the EU presidency because there is much documented friction between Gordon Brown and Tony Blair in the past.
The...
The UK economic collapse : lesson two
One of the main factors in the ongoing demise of the UK economy, and the worldwide situation, has been the fact that many financial institutions around the world were chasing a smaller and smaller profit pool and taking more and more risks. Sub-prime mortgage deals in the US were the spark which set the fire under economies around the world but in reality economies such as the UK already had their...
Read MoreBoxing Day sales are no more
More and more retailers in the UK are bringing forward their "Boxing Day sales" and in effect offering massive discounts and announcing massive promotions ahead of Christmas day. While it is common knowledge that the UK retail sector has been struggling for some time, each and every retailer in the UK is now trying to squeeze as much money as possible from consumers. We are seeing companies such a...
Read More