EU Crisis: Domino Effect?

Politics

SCROLL TO BOTTOM FOR UPDATES

EU Crisis: The Domino Effect Explained

Global Markets A.O.10:40 ET

Gold 1316 +4.25%
Gold in GBP +17.5%
GBP 1.38 -7.2%
EU 1.11 -2.4%
FTSE 6215 -2.00%
SPX 2069 -2.0%
DOW -380 pts
Brent OIL 4876 -4.2%

What’s Next for the UK?

More uncertainty. If the nose dive of the GBP and the FTSE weren’t enough, major political uncertainty is now a focus.

PM Cameron has announced he will resign
Scotland’s First Minister has stated Scotland will seek its own referendum as the Scots voted to Remain
Ireland’s North and South are talking unification now because they also wish to remain in the EU.

It is becoming a possibility the UK will not survive in its current form

And the Rest of the EU?

The UK has emboldened nationalistic parties in several nations.

FRANCE- Pres Elect Le Pen had already said she would have a referendum on remaining “ in the decaying EU” when in office
ITALY’s anti-establishment 5-Star movement has called for a referendum on whether to keep the Euro.- Daily Express
- Luigi Di Maio, a vice president of the lower house of parliament, said: "We want a consultative referendum on the Euro.
DUTCH anti-immigration politician Geert Wilders said the Netherlands deserved a "Nexit" vote
The EU Parliament will have a special session next Tuesday

What Could it Mean?

The Euro could disintegrate in a domino effect as a return to nationalistic tendencies begins to reassert themselves in the wake of: the UK Exit, mandated Refugee quotas, and monetary policies that are impossible to maintain without fiscal unity. Or each nation that threatens to leave will be brought back to the table on terms more favorable to them. In effect a greenmail result which will keep the EU alive, but weaken the whole substantially

UPDATES HERE

GERMANY NOW MULLING ON CREATING AN "ASSOCIATED STATUS FOR UK- breaking up is hard to do?- 12;10 ET
ECB HANDS BANKS 399bb EUROS WITH PROMISE TO PAY FOR LOANS- promise by banks, financed by citizens- 12:10 ET
12% CHANCE OF A US RATE CUT- BLOOMBERG
ECB HANDS MONEY TO BANKS AND GUARENTEES THEIR LOANS- isnt that telling them to take more risk? 12:20
NIRP ON THE HORIZON FOR MORE BOND MARKETS- implying that when banks get bailouts they are being paid interest to take money 12:32
BORIS JOHNSONE IS 4/5 FAVORITE TO BE NEXT CONSERVATIVE LEADER- LADBROKES- we know how good odds makers are right?- 12:39
THE BOOKIES GOT IT WRONG- LADBROKES- and what were the odds of that?
EU banks get more money to cover losses at negative interest rates. so the ECB is paying banks to take loans- implies a loss of faith in currency no?
Dilbert weighs in on FIAT currency and economics- 12:44
JPM PUSHES FED HIKE CALL TO DEC FROM SEPT.-BBERG- because flipping from hike to ease overnight would hurt their credibility? 12:49
GOLDMAN RECOMMENDS GOLD AS A BUY TO CLIENTS- GS- after telling them to short it around $1200 in feb.- 1:01 ET