sail-world.com -- Collinson FX Market Commentary: November 27, 2012 - Fiscal Cliff looms
Collinson FX Market Commentary: November 27, 2012 - Fiscal Cliff looms
Tue, 27 Nov 2012
Collinson FX market Commentary: November 27, 2012
Click here to find out how to get CollinsonFX's free iPhone app
Stocks opened the new week in the US lower with growing doubts about evasion of the fiscal cliff. Politicians are toying with the fiscal cliff with many seeing tax rises and cuts to defense as more than just palatable, attractive even.
Democrats are expected to be divided over this and a grand coalition of post-election euphoria is disappointing quickly. Obama may hobble an agreement but taxes will rise and entitlement spending will continue to spiral out of control. In Europe, EU members failed to agree on the new seven year budget but all managed some successful photo opportunities. EU Finance Ministers gathered to approve the release of the next tranche of the Greek Bailout.
Debt has overwhelmed the country with GDP contracting thus preventing the servicing of existing debt at discount interest rates. The next step will be an interest rate moratorium followed by debt write downs. This is a broken state and the continued support is untenable but preferable to the collapse of the single currency. The EUR trades below 1.3000 while the GBP holds 1.6000. In the US the Dallas Fed's Manufacturing Activity Index contracted 2.8 and the Chicago Feds Activity Index also fell 0.56.
Economic data will not be great short term and Political procrastination should ensure a return to global recession by the new year. Doha Global Climate Change should sort out the Earths warming by taxing the richer nations providing some relief. It is working well in Australia with the largest global Carbon Tax reducing temperatures to sooth the populace!
Commodities remain steady with the AUD holding above 1.0400 and the KIWI just under 0.8200.
Disclaimer: The details expressed in this website and accompanying documents or transmissions are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Collinson Forex Ltd accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the information contained or related to this site.
Multihull Solutions
Multihull Solutions is Australia and New Zealand’s premier offshore and cruising catamaran and trimaran specialist, offering sales and servicing of the world’s finest multihull brands.
[More info]
http://www.multihullsolutions.com.au
OziOpti
OziOpti is all about 'getting kids in boats' and the Australian company supporting the introduction to of the world’s most popular junior sailing yacht, the 'International Optimist Dinghy' [More info]
http://www.oziopti.com.au
Performance Sailcraft Australia (Asia Pacific)
Laser builder Performance Sailcraft Australia has taken on the successful RS Sailboat range from Britain, and is now licensed to build and distribute all of the RS range in the Asia Pacific region. [More info]
http://www.lasersailing.com.au
Sealink Magnetic Island Race Week
Entries for the fourth annual Sealink Magnetic Island Race Week have opened! 4 days of racing, 5 days of fun – that is what you can look forward to from 3-7 September at Magnetic Island. [More info]
http://www.magneticislandraceweek.com.au
VicSail Sydney
Vicsail Sydney Pty Ltd, launched into the Australian sailing fraternity in 1983 and has been sailing strong ever since. At Vicsail, “We Sail the Boats We Sell”. [More info]
http://www.vicsailsydney.com.au