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Broadgate: Market News 10/2

10 February 2012

The European Central Bank’s has decided to effectively cut off Greece from support; relieving the potential burden threatened by Greece’s breakdown while tied to the rest of the Eurozone.  After 4 days of discussions, Greek politicians accepted several strong austerity procedures in hopes to avoid total economic failure.

Also attending the meeting, several Euro Zone finance ministers also came to the conclusion that the budget would need to be cut by an extra 325 million Euro.

The rejection of the proposal to inject the Greek economy with a booster of 130 billion Euro is a sign of the Euro Zone’s impatience with the ineffective and argumentative Greek politicians and their inability to bring a fiscal policy into law.

Meanwhile, investors are likely to come to an agreement in the near future to take a loss of 70% on their Greek bond holdings; possibly helping the situation of the Greek economy.

Other Eurozone countries to receive bailouts include Portugal, which received 78 billion Euros.

The information set out herein has been obtained from various public sources and is by way of information only. Broadgate Financial can accept no liability of any sort in relation thereto and readers should obtain their own verification of any statement before making any decision which may have any financial or other impact.

Neither the information nor the opinions herein constitute, or are they to be construed as, an offer or a solicitation of an offer to buy or sell investments.