Trichet and €750 Billion Rescue Package Get Thumbs-Down From Bloomberg Subscribers

Wednesday, June 09, 2010

A plurality of market participants do not place anymore trust into ECB President Jean-Claude Trichet. According to a quarterly survey by leading information provider Bloomberg 48% of those polled gave him an unfavorable rating, while 41 percent view him favorably. In January, Trichet received a 60 percent approval rating, with 27 percent regarding him negatively.
The dissatisfaction with the ECB head gets more pointedly in investors' perception of the Eurozone crisis.
73% of respondents said a default of Greece is likely and only 23 % say they expect the region’s almost $1 trillion rescue package to both keep the European monetary union together and prevent a debt default by a government. More than 40% expect Greece to leave the Eurozone.

More than 60 percent of those surveyed say they expect the euro to fall further against the dollar over the next three months.
European investors are more optimistic about the ability of their region to resolve its problems than were their counterparts elsewhere. Thirty percent of those polled in Europe say they expect the rescue package to succeed.
U.S. investors are the most pessimistic, with only 14 percent expecting Europe’s efforts to work. A quarter of investors in Asia are also in that camp.
Overall, 40 percent of investors worldwide say European defaults were possible even with the package, while another 35 percent see some countries dropping out of the euro zone.


Wikinvest Wire