Market Intelligence - 14.06.11
Macroeconomics
The past two weeks delivered quite a number of news from the global markets, but the actual market movements were pretty limited in view of the importance of the facts delivered.
The most important ones were, in our opinion, the pretty weak numbers from the US economy and the ongoing bailout efforts of Greece in the EU. The labour market in the USA and consumer confidence were pretty low and increased the worries that the American economy could go into a recession again. The FED reconfirmed their position, to stimulate the economy with low interest rates and kept the levels at the record low levels, despite the rising concerns of many experts that this monetary policy is not going to solve the problems. The budget deficit of the USA is a major problem. The weak economy in combination with the role of the global police seems to be a bigger challenge than the economy can handle. The deep conflict of political opinion in America is preventing from a common and nationwide effort to turn the situation soon.
