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Portugal goes Greek

Published Wednesday, November 11th, 2015

Yesterday’s financial news was dull leaving the fact that Portugal has gone Greek as the most interesting topic. Communist, socialists and everyone else of an anti-austerity tendency banded together to win a vote of no-confidence against the interim conservative government which has led the country successfully through its bailout period.

Assuming the left-wing coalition takes power they are committed to lifting civil service salaries, increasing the minimum wage, increasing welfare benefits and reversing the privatisation programme. Yet another problem for the eurozone along with the possibility that the Spanish elections will produce another bombshell in December. Britain’s referendum tantrums must seem like an irritant with so many other problems to deal with.

Otherwise the financial news was dominated by China/Asia. Apple shares lost 3% after reports that it had cut iPhone component orders by 10%. The dollar index reached a seven-month high and the euro slipped to $1.0688, its lowest level since August. After poor trade and inflation data, China’s October factory output is reported at +5.6% against expectations of +5.8% and retail sales came in at +11% versus a forecast of +10.9%. Reuters Tankan index which measures Japanese manufacturing sentiment has fallen to its lowest level in over 2 years with the service sector also down.

to read the rest of the report, please click here

Posted by David Hufton