The first half of 2016 has been a roller-coaster for financial markets. A combination of uncertainties surrounding the U.K.’s vote to leave the European Union and weaker-than-expected corporate earnings results across the region means a tough second half looms.
European banks, in particular, have had a very tough six months as the shock and volatility around Brexit sent banking stocks south. Major European banks like Deutsche Bank and Credit Suisse saw their shares in free-fall after the referendum’s results were announced. In the U.K., RBS was the worst-hit, with its shares plunging by more than 30 percent since June 24.
The current uncertainty over when the U.K. will start the process of quitting the EU has banks on tenterhooks. But a source told CNBC that banks are “preparing for an economic nuclear winter situation.”
Going against the insane immigration policies of Germany and Brussels is costly.
CRACKS in the EU were deepening today as it emerged fines against favoured nations were being scrapped while other countries were expected to stump up punitive sums after slipping into debt.
Last week German Finance Minister, Wolfgang Schauble, is reported to have lobbied several commissioners not to impose fines of 0.2 per cent of GDP on Spain and Portugal after they failed to reduce their fiscal deficit to 3 per cent GDP.
Spain’s deficit stood at 5.1 percent last year and Portugal’s at 4.4 percent, and under Union rules both nations have failed to take “effective action” to bring them down.Continue reading →