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China slows

Published Tuesday, October 21st, 2014

The new week has begun calmly. Stock market bulls in the US may be disappointed that there was not a strong follow through from Friday but their markets did settle up on the day. The same cannot be said for Europe where investors were much more cautious, even though the ECB began its covered bond purchase programme.

The German DAX lost another 1.5% in response to a Bundesbank prediction of little or no growth to the end of the year. They expect the year to end on a “modest note”. The UK was treated to the company of Jose Manuel Barroso, the outgoing President of the European Commission, and he created quite a stir.

He introduced a badly needed dose of reality into the emigration debate by reminding anyone who would listen that the free movement of people is a fundamental principle of the EU, which cannot be changed without the agreement of all 28 members. David Cameron will therefore not achieve his proposed changes.

This is actually a statement of the obvious, although you would not think so from the debate taking place in the UK. What was more interesting was his claim that Britain would be making “a historic mistake” if it were to exit because it would lose influence and power in the world. He was supported in this position by a myriad of diplomats, politicians and ex-ambassadors. The problem is that they care about power and control outside of the UK which is what their careers are built on. The general public cares about having power and control over our own affairs and does not want to sacrifice one for the other, as demanded by the EU.

to read the rest of the report, please click here 

Posted by David Hufton