14th February 2017
Greek Bailout Review Brings Trouble
This week we welcome back an old friend, the Greek debt crisis.
The latest review of its bailout has stalled, with the Greeks wanting more debt relief and less reforms, the IMF wanting more debt relief and more reforms and the Germans wanting less debt relief and more reforms. The situation has become the international financing version of having one boat, some grain, a chicken and a fox. While that riddle has a single correct course of action, there are a range of options facing the Troika, and a small but significant number include Greece defaulting and exiting the Euro.
Elsewhere, away from the relative comfort of a possible disorderly breakup of the Euro, it’s been three weeks since the inauguration and President Trump shows no signs of slowing down. This week he picked a fight with federal judges and a clothing company that no longer wants to enrich members of his family. The most welcome news was a report that his team have been meeting in the dark because no one can find the light switches in the White House. We hope the nuclear launch codes are as well hidden.
Follow the link below to read last weeks Full Market Commentary.