While many agree that such a small sum is not nearly enough to restore confidence in Europe, Mr Roubini goes further and suggests that Spain’s current position is extremely unstable and the amount which the Spanish government is projecting as a figure to cut debt is far too small and next year it is likely that the Spanish will be asking for a bailout.
While it is not all gloom in Europe with Italy, Germany and the UK performing better than expected the danger of the debts of Spain and Portugal are very much apparent in the minds of investors.
The value of the Euro continues to decline against both sterling and the dollar. Meanwhile the Dollar goes from strength to strength. It’s position as a safe haven currency has been beneficial while uncertainty over the Korean peninsula continues.