Greece

EU warns euro may disappear as political, economic risks rise

The excellent new Spielberg movie, Bridge of Spies, vividly captures the building of the Berlin Wall in 1952.  It also reminds us of the excitement when the Wall fell, and European borders reopened after 47 years. Now, Europe’s borders are closing again, pressured by vast Syrian refugee movements and terrorist massacres. France, Germany, Austria and Sweden have […]

EU warns euro may disappear as political, economic risks rise Read More

Q2 results highlight continued uncertainty over outlook

The chemical industry continues to be the best leading indicator we have for the global economy. Whilst stock markets were continuing to move higher during H1, its depressed level of capacity utilisation was signalling that the economy was far more fragile than generally realised. Company results for Q2 reflect this concern. Of course some, tied […]

Q2 results highlight continued uncertainty over outlook Read More

Greece introduces capital controls; IMF says it needs to default

This morning, Greece introduced capital controls.  People can only withdraw €60/day ($65) from their bank accounts.  The government has also called a referendum on Sunday, after Eurozone talks on a new bailout package collapsed. The key issue is that Greece will never be able to repay its debts.  These are currently estimated at €322bn ($365bn) […]

Greece introduces capital controls; IMF says it needs to default Read More

Greece and the Eurozone head for showdown over debt issue

We all learnt one crucial lesson from Syriza’s victory in the Greek election last week – voters can halt the European Central Bank (ECB).  Or in other words, protest coalitions can trump elite consensus.  In places like Spain and France, this effect may not work through immediately, but it is being absorbed. Thus Greece and the Eurozone crisis […]

Greece and the Eurozone head for showdown over debt issue Read More

“Disaster is still some way off” for Cyprus, as Germany prepares to vote

Back in April, the blog suggested that capital controls might remain for rather longer in Cyprus than the “few days or weeks” suggested by the central bank.  And a month later, the bank was still unrealistically claiming they would be lifted “as soon as possible”. Today, the blog’s own view that they could be in place “for […]

“Disaster is still some way off” for Cyprus, as Germany prepares to vote Read More