ftalphaville.ft.com/blog/2010/03 … downgrade/
Still, the euro is falling, making me cheaper in the international marketplace as my customer earns mainly in dollars and I charge in euros. Rock on Tommy.
Get on to him today YM. You don’t want him to have to post one-time extraordinary losses due to unhedged Euro exposures.
A falling Euro, may push up inflation and hence interest rates…final straw for the property hold out.
Mark
March 24, 2010, 7:06pm
4
I’m pretty sure most of the large Eurozone countries are quite happy to see the Euro plunge. Has anyone heard anyone in EU officialdom talk up the Euro recently? Or display any unhappiness about it? 1.33 versus the dollar is still on the high-side compared to the long illustrious history of the Euro.
ftalphaville.ft.com/blog/2010/04 … al-cut-it/
Can Portugal cut it?
Greece has agreed to find €24bn in fiscal savings in order to stave off default and get international aid back on track. Austerity is back in Athens, at last. Or so we hope.
Now how about Lisbon?
After all, Portugal was tipped as the next Greece long before its sovereign ratings were cut two notches to A- by S&P this week, sparking fears of another Club Med collapse.
Running the numbers on its own fiscal austerity plans in a note on Friday, Goldman analyst Nick Kojucharov has given us a chance to see if that’s a risk.
And, well, the plan is good in theory, as Kojucharov notes:
On the face of it, the fiscal consolidation envisioned in Portugal’s latest Stability and Growth Program is reasonably aggressive (6.6ppt over four years), and is designed to reduce the deficit back below the 3% Maastricht limit by 2013, and to stabilise the debt-to-GDP ratio at around 90% by 2012.
But in practice…
Two thirds of savings will be made through slashing spending, including cuts to wages and welfare. The tough stuff, in short. But — not for a while:
Thats what I thought in the UK but 2 years on we have inflation, a falling currency and ‘rising’ house prices.
Will the Euro fall faster than prices?
A 10% fall in prices with a 20% fall in the Euro will leave you worse off.
Welcome to the UK circa 2008.
