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Another week of Greece

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The Greco-German crisis in 45 seconds. There is optimism over a deal being struck this week (at least according to Juncker of the EU). The good news is that there is optimism over a deal. The bad news is that this nonsense is going to drag on all week.
  • Greek bank deposit withdrawals reportedly accelerated on Monday – a reminder that politicians are not the only group that have a say in the durability of the Euro as a monetary union.
  • Europe is offering economic data (of a sort) in the form of the purchasing manager indices of business sentiment. The consensus is looking for a very modest pick-up in the data led by the service sector.
  • The US is offering durable goods orders data which contains a proxy for capital spending – although in modern times, what is capital spending? This is not the philosophical question of an economist having an existential crisis, but a genuine problem arising from the versatility of some consumer/investment technology.