St. James's Place News
Greece stays on European course... for now
News that the pro-austerity New Democracy party has won a narrow victory in the Greek elections has been greeted with a collective sigh of relief by investors and EU leaders, although the respite has been short-lived. The test in the near term will be whether a new coalition government can negotiate easier bail-out terms; time will tell whether the government then holds during the inevitable prolonged period of austerity and recession. The path is unlikely to be straightforward but there is a sense that Europe is inching towards finalising its blueprint for the future.
Also in this week's bulletin...
- Markets remained unconvinced that the EU’s €100bn bail-out would be sufficient to put Spain’s ailing banking sector back on a firm footing, with the result that yields on Spanish government debt once more rose close to the threshold 7% level.
- Here in the UK, the Chancellor and the Bank of England announced a surprise £140bn lending and liquidity package in a bid to boost growth and spending.
View this week's Market Bulletin (PDF), which contains thoughts and opinions of St. James’s Place and our range of investment managers on the key issues affecting investors.
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