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Let's bring in young Randolph I HS he is the -- global insight director of foreign risk country analysis.
Yeah honest and hard to focus on Europe because of Japan because the Middle East the market is saying is we tried to show our viewers things are worse now than ever.
In some respects they yeah these guys have been -- -- -- in some ways.
I am like -- good dramas the latest -- -- as he points out is that Portugal.
The government the government -- who was a minority socialist government.
Went to parliament -- on this -- -- of these new austerity measures.
We will resign.
Now the opposition of cool that golf.
So they're bigger risk that these -- the guys that have to execute -- put it to put into practice.
What that hands -- for cutting that deficit and with the the government so.
No weak and uncertain about whether -- to be that this is just added to the risk premium the yields.
Must always say when Portugal -- but also I didn't.
We're supposed to get a vote today from Portugal on -- austerity measures we didn't get that may happen tomorrow.
Now we -- there's some talk that maybe the Portuguese prime minister could step down.
I mean if their government fails in Portugal is -- an automatic sign that they like Greece and really like Ireland.
Are now gonna have to go to the European Central Bank which is effectively Germany and France.
Well yes I mean look at it this way and then you need -- government to execute.
Any well designed plan.
If you haven't got a government you don't have well -- plan.
Just makes things less but there is a safety net of Portugal Portugal's -- -- update.
An existing mechanism allows full Portugal to and to the the bailout package based.
And through these through the bailout package.
If -- -- this just adds to anxiety about the future.
Meanwhile in the background you've got the trying to cobble together a more prominent mechanism.
But markets have been braves skeptical about that because it actually involves then.
Further down the line yet 2013.
Should be financial stress continual -- -- continue to 2000 team.
Then they think he he -- we.
-- the private investors will be involved.
In the blood and Sharon which means handcuffs I don't think that it like that they're already signaling that ligament.
I listen I know Greece and Portugal and Ireland to peripheral nations their economies and their debts.
Aren't that big in the grand scheme we've -- over that numerous times but at the same point.
Yes -- -- number a small countries together pretty soon you've got some big numbers we've talked about how the Germans are increasingly unwilling.
To provide help to countries that they largely believe.
Are responsible for their own problem.
Yeah I mean.
Germany it's -- situation with -- -- and it's an and it has said basically in -- That that the buttons -- And -- the risk taking the risk but insurance should be bold principally by the countries affected.
A job nobody wants very limited liability.
When it comes to year as Tennessee's.
And it it it says that you know.
That the countries Spain Ireland Greece Portugal have to head.
Address that credit does is he's had known whether public that all through the through the banking system.
I mean -- wouldn't provide limited liability but having said that it isn't that long time interest to keep the whole show that the so in the -- on the record.
You know they they are big supporters of members to these peripheral come down and I want -- see -- -- Bottom line is this Portugal or Greece or Ireland default by the end of this year we're structure whatever you want to call it haircuts.
That they went to fulfill that there's a safety net for them to just the boy and a technical defaults.
But the -- is he still is.
Moments I mean the fact that you've got slower growth or no growth on the -- -- Strong growth in -- that in the sense that got us that's still threatens the -- -- project beyond Randolph might just global insight always a pleasure to get your timing on thank you.
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