Brexit, the economy and house prices part 5

iro

Thrugelmir wrote: »

Nothing to do with a Brexit boost. Consumers suffered with the fall in the £

Italy has many problems. Leaving the Eurozone won't address many of them.

It will help bring down the EU though so all good.

iro

Soros Sees New Global Financial Crisis Brewing, EU Under Threat (Bloomberg)

A surging dollar and a capital flight from emerging markets may lead to another !!!8220;major!!!8221; financial crisis, investor George Soros said, warning the European Union that it!!!8217;s facing an imminent existential threat......

!!!8220;Everything that could go wrong has gone wrong,!!!8221; he said, citing the refugee crisis and austerity policies that catapulted populists into power, as well as !!!8220;territorial disintegration!!!8221; exemplified by Brexit. !!!8220;It is no longer a figure of speech to say that Europe is in existential danger; it is the harsh reality,!!!8221; he said....

Soros!!!8217;s proposed remedy for some of the ills facing Europe is an EU-funded Marshall Plan for Africa, worth about 30 billion euros ($35 billion) a year, which would ease migratory pressures to the continent. He also proposed a radical transformation of the EU, including the abandonment of the clause forcing its member states to join the single currency

!!!8220;The euro has many unresolved problems and they must not be allowed to destroy the European Union,!!!8221; he said.



My guess is that Soros is short of the Euro and whatever you think of his other 'activities' he has some track record of success on these things.

The value of his profit from the ERM is approximately equal to $35 billion (in current prices) so he can pay for that.

iro

So the 10 year Italian yield closes at 3.13% an increase of 47Bps on the day

The 10 year UK gilt closes at a yield of 1.19% a decrease of 13Bps on the day

An overall swing of 60Bps on the day to the Brexit currency.

Other club med basket case bonds all closed on higher yields.

If the ECB does not take action soon this will turn into a disaster for the Euro!

Very good news for the UK.

Thrugelmir

All hands to the pump.

EU proposes more spending on Italy, other southern states, less in east

https://uk.reuters.com/article/uk-eu-budget-funds/eu-proposes-more-spending-on-italy-other-southern-states-less-in-east-idUKKCN1IU1RF

Meanwhile further insight into the mentality within the Brussels inner sanctum.

EU budget chief hopes 'DRASTIC economic hit' will teach Italians NOT to support populists
EUROPEAN UNION Budget Commissioner Gunther Oettinger said he is hopeful that a "drastic economic impact" in Italy, caused by the ongoing political upheaval, will be a lesson to voters not to “hand power” to populist parties.

https://www.express.co.uk/news/world/966561/Italy-news-latest-financial-crisis-euro-Gunther-Oettinger-European-Union-populist-EU

Graham_Devon

Be interesting to watch Italy over the coming month. The EU can't keep imposing EU vetted puppets whenever they don't like democracy.

The German Budget Commissioners words show the true intention here.

iro

The German Reichs Commissioners....

Corrected that for you

Tromking

iro wrote: »

The German Reichs Commissioners....

Corrected that for you

I see the errant commissioner has been slapped down by Juncker and Tusk and has subsequently apologised.
These jokers are clueless, exercises in democracy on our continent are viewed as things to be punished rather than an indicator of the concerns of EU citizens. This attitude only exists because a democratic deficit is built-in to EU institutions. If this chap had been elected by the demos he wouldn’t have a dreamt of saying such a thing.

vivatifosi

Is anyone able to precis this FT article? I have passed my limit but it looks interesting. TIA:

https://www.ft.com/content/8edfb128-631f-11e8-90c2-9563a0613e56

Title is EU leaders squabble as Italy's political crisis deepens.

Moby

iro wrote: »

Already today UK Bond yields down 12Bps

Italian bond yields up 29Bps

A shift on the day in the spread of 41Bps

Wise money is flowing out of the EU/Eurozone to a safe haven AKA the UK.

The next election in Italy will set a course for Italy to leave the EU and we in the UK will welcome them into a world without Barnier et al.

The UK electorate, particularly, the 17.4 million Leavers are the wisest voters in the world.

:rotfl:wishful thinking. Says everything about Brexiteer attitudes, actually hoping for the victory of extremist politics in orde to destroy a hated institution, little realising everyone will suffer and those least able to protect themselves will suffer the most.

Tromking

Moby wrote: »

:rotfl:wishful thinking. Says everything about Brexiteer attitudes, actually hoping for the victory of extremist politics in orde to destroy a hated institution, little realising everyone will suffer and those least able to protect themselves will suffer the most.

.....and yours is a typically Remainer mentality.
People across Europe are voting for extreme parties for a reason.