View more on these topics

‘Two-speed euro needed in debt crisis’

Economic parameters such as interest rates must be set at two levels in the eurozone to accommodate weaker economies if it is to survive the sovereign debt crisis, according to Standard Chartered.

Last week, the Greek government approved an austerity package to deliver £28bn of savings over the next five years through cuts in public spending and tax increases.

It will need to stick to the plan to get future tranches of €110bn in loans offered by the European Union and the International Monetary Fund, which it needs to service its €340bn debt.

At the British Bankers’ Association international banking conference, Standard Chartered chief economist Gerard Lyons said Spain, Ireland, Portugal and Greece will not be able keep up with stronger Northern European economies.

He said a “two-speed euro” is essential, where economic par-ameters can be set at two levels to accommodate weaker econ-omies. He said:

“The core countries have decided the core must remain intact and if the periphery wants to remain, it will have to play by the core’s rules. If that means social instability and higher unemployment, the periphery cannot stay in.

“We need to deal with the reality of the situation rather than kicking the can down the road. I would say we need a two-speed euro if we are serious about this.”

Lloyds Banking Group chief economist Trevor Williams says the Greece rescue will give European leaders the chance to develop plans for future crises.

He says: “The template used to rescue Greece will have to be used in a similar exercise for Portugal and Ireland, who cannot pay their debts back either.”


Jupiter launches global energy fund

Jupiter has launched the Jupiter global energy fund. The fund is managed by resources specialist Derek Pound and invests primarily in companies involved in the exploration, production, transmission or distribution of energy, in addition to those developing new technologies. Benchmarked against the MSCI World Energy Index, the fund will be free from market restrictions and […]

Abbey launches seven day deal at 3.35%

Abbey for Intermediaries is to launch another key account exclusive product which is available for seven days only. It is a fee-free two-year fixed rate at 3.35 per cent up to 70 per cent loan-to-value. The lender is also reducing rates by up to 0.2 per cent on some of its 75 per cent LTV […]

Ex-Gartmore duo joining Eden

Eden Financial has recruited former Gartmore fund managers Dan Roberts and Leigh Himsworth. Himsworth will take on the CF Eden UK select opportunities fund and the company intends to launch a global equity income vehicle for Roberts later in the year. They will work alongside ex-M&G chief executive Ed Rosengarten, who joined the wealth manager […]

Bond firms set to cut fund duration

Bond managers are cutting the duration on their funds in anticipation of an uplift in the UK economy towards the end of the year. Henderson head of fixed income John Pattullo, who manages the £1.1bn strategic bond fund, says he expects to move to a one-year duration within two years. He says: “The duration is […]

India Election Update

What a difference six months makes. Speaking in September last year, we had warned of ‘excessive pessimism’ afflicting the market’s perception of India. Since then, responsible central bank policy from the Reserve Bank of India (RBI), alongside improving global growth, has meant that India’s macro environment is strengthening quickly. The current account deficit has shrunk, inflation is falling and the government has embarked on a heavy dose of much needed fiscal consolidation. As a result, the rupee has been one of the strongest global currencies this year while the market has touched all-time highs, rallying by more than 20 per cent (GBP) since September. This begs the question: are we now in a period of ‘irrational exuberance’? Not yet.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm