As Euro-debt contagion hits Italy the Euro is feeling further weight ahead of what is going to be a pivotal weekend for any chance of a recovery process.  Italian bonds will be sold (they hope), Greece has elections (again) and Spain will be looking to turn around their 10 year high bond yields (hopefully before they get over 7% today!

Times look as bleak as the weather has been in London and even that doesn’t last forever, but if there isn’t some sun for the Euro soon then we may have to ‘restructure’ as stimulus is not an easy option with such a big difference between the top and bottom countries in the currency.  €1.1 trillion has been spent on this round of bailouts in the last 6 months, maybe the plan needs to be ‘stop just throwing money at them’.

 

Posted by Jonathan Bristow | Account Executive