Wednesday, 9 May 2012

Happy Europe Day

On this day 62 years ago Robert Schuman called on his native France, Germany and other European countries to pool their coal and steel production as "the first concrete foundation of a European federation". That day is remembered as the day the European Union was born.  This one may be remembered as the beginning of the end as discussions between the Greek radical left coalition, Syriza, and the so-called pro-austerity centrist groups, New Democracy and PASOK about forming a government seem set to be brief. The euro continues to drift lower reflecting a looming confrontation between the creditor nations who demand austerity legislation and the Greek people who will have no government to pass it.

Source: Datastream/Brewin Dolphin
Germany meanwhile posted its fourth highest current account surplus of all time following a very robust performance from German exports and yesterday’s forecast beating German industrial production figures.  France’s trade balance was not as bad as expected. So it’s not all bad news…particularly if you’re German.

Source: Datastream/Brewin Dolphin

Guy Foster 
Head of Portfolio Strategy

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