Sunday, 9 May 2010
UK election; not even a sideshow thanks to the German Election
Well it is a big deal in Germany, the people there like their savings and stable currency and do not want to jeopardise this for anyone else. In fact they have just voted in the largest state and Chancellor Merkel's party have lost.
This mean the EU bailout is again under pressure. The markets tomorrow are going to tank unless there is a big announcement tonight. Basically, the EU core needs to make like the bank crisis and bail out the PIGS or else we are in armageddon.
However, much like the bank crisis, this maybe a short term answer to longer term disaster.
Anyway, rest assured, no one in the markets it thinking about Cameron and Clegg, they will have a few days yet, albeit the FTSE is going to really struggle to stay over 5000 and UK Gilts are likely to go north of 4% yield.