Salient to Investors:
Juergen Michels at Citigroup says a huge amount of unanswered questions remain in Europe and the journey back to growth and reduced debt is very long.
Jacques Cailloux at Nomura International said politicians act for their own good and their countries’ good rather than the greater good of Europe – if this continues the markets will test the sovereigns again.
Andrew Benito at Goldman Sachs said the more Spain digs in its heels, the more Germany may seek harsher terms and add to existing tensions.
Tobias Blattner at Daiwa Capital Markets said the need to quell a contagion effect will likely leave Italy under pressure from governments and investors to sign up for help if Spain does. If something happens to Greece, you want Spain and Italy under the umbrella.
Erik Nielsen at UniCredit said even if the next chunk of a 240 billion-euro package for Greece is released, the remaining funding gap is unlikely to be cut by fiscal measures amid a fifth year of recession. Greece will remain in limbo during the next six to 12 months, and crunch time is more likely to start next year.
Jennifer McKeown at Capital Economics still believes a limited euro-zone break up will commence in the coming months.