the pressure is increasing

[martin]

the pressure is increasing for portugal to take the cash (wonder where all the other eu cash has gone???)


see here

http://news.yahoo.com/s/ap/20110110/ap_ ... l_crisis_5

[alf1956]

does anybody have any views on how this could affect portugal ?

[EMM]

If Portugal is able to borrow on the money markets at lower rates because it has the support of the ECB then it will not have to adopt such a high tax regime.

The down side is that the ECB will insist on even more cuts in Public services and major projects.

[Matryx]

If Portugal is able to borrow on the money markets at lower rates because it has the support of the ECB then it will not have to adopt such a high tax regime.

The down side is that the ECB will insist on even more cuts in Public services and major projects.

Which is what is going to happen in Ireland. Swap your sovereignty for a bale-out.

[EMM]

The rate portugal has had to pay on its latest 10year bond auction has reached record highs.
This has resulted in a fall in the Euro as the markets once again see a lack of firm ECB policy.
The pound has risen , back over E1.18.

[cereza]

Bond prices across the world have gone up and the Portugal rate has not caused a massive stir on the FX markets. The European sovereign debt crisis has taken somewhat of a back seat for the moment and the main concerns surround Sterling and the USDollar. In the US, Treasury Bond rates are increasing which is causing some Dollar weakness. In the UK many economists are calling for and expecting interest rate rises from the BOE which has led to the Pound strengthening. Even though the BOE left rates unchanged today some expect them to go up sooner or later. There is an opposite view that increasing interest rates can only damage the economy and that such a move is uneccesary since inflation will slacken off naturally. Personally I subscribe to the latter view and I'm happy to change up my pounds at around 1-18 to 1-20 to the Euro as I don't see the pound maintaining these levels. Opinions are divided for the moment.

[EMM]

Reuters currency pages today carried at least 3 reports on Euro selling due to concerns over ECB policies and Eurozone soveriegn debt.
News on sterling was broadly positive as was dollar.

[cereza]

Against the USDollar the Euro has rallied about 5% since the so called Portuguese Crisis of early January - nothing much has changed in the ECB policies in the interim period and there was nothing new today. Reuters is only one of many sources of information and like all of them they try to put a handle on every days movements.Todays major items were the BOE rate decision and the unexpected drop in initial jobless claims in the US.