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Wednesday, February 01, 2012

EURO CRISIS IS PROBABLY OVER - FUND MANAGER

France

Hugh Cuthbert, a top rated UK fund manager, says the euro crisis is probably over.

He believes that Europe now has the funding, and austerity, needed to end the 'sovereign debt' problem once and for all.

(http://www.trustnet.com/News/Research.aspx?id=305465 31 January, 2012)

Italy

On 30 January 2012, 25 countries at the EU summit endorsed the new Treaty on Stability, Coordination and Governance.

This means a promise to cap 'structural deficits' at 0.5 per cent of GDP, with fines of 0.1 per cent for nations that breach the limit.

The UK and the Czech Republic did not sign up to the treaty, but, David Cameron dropped his objection to the European Court of Justice taking control over such agreements.

Italy

Hugh Cuthbert believes that it is 'more than likely' that the end is now in sight.

He says: "We think measures such as the recently announced long-term refinancing option (LTRO) are what the market is looking for but in disguise.

"Banks have been given almost unlimited access to money at a cost of 1 per cent, they are then mandated to go out and buy sovereign debt.

"It is not just the ECB that is directly buying the sovereign debt, the banks are too. (This sees) banks cured and sovereign debt has a safety net put under it.

"I think the market has missed a trick there and that makes me positive about the future."

France

"In London, the FTSE 100 Index advanced 34 points to 5704.9 as traders were also hopeful Greece would receive its next tranche of its bailout funds later this week.

"Germany's Dax and France's Cac-40 made gains of 1% and 1.5% respectively." (Markets boosted by Greece optimism )

Stocks headed for best January since 1997

1 comment:

thetruthhurts said...

The more extravagant and bigger the lie the more likely that people will swallow it - a very basic point of presentation.
Call me a cynic but I wonder if in some mode or other this commentator Mr Cuthbert is on the EU/Goldman Sachs payroll, would be interesting to find out

 
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