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Curious if anyone has an opinion on market moving event potentials of the
big Boeing ruling on Wed' 7-23 ? Most I talked these past 2 weeks thought
Boeing/McD was a done deal (merger) and didn't even know of or think it
Europe's opinion was a big deal. It seemed obvious for the past few weeks
that the merger would be rejected by Europe and this still seems likely
despite Clintons late full court press to push it through.
The market moving potential obviously emanates from an extremely firm US
stance that socialist Europe should have no say so here, but the result could
be trade war "threats". This seems to be likely to escalate. Wouldn't this
scare financial markets ? Possible 'beggar thy neighbor' policies of the
1930's. I would not expect a full trade war to come to fruition, but doesn't
anyone think there is a real short term risk here - even if just for a day or
2. If market gets worried of the real risk then expectations seem to have
serious stock market risk. I would guess 1 to 2 % a day initially and 10 to
15% overall if it carries on and panics for a few weeks.
If EU caves in then new record highs implied by todays (7-22) move up will
likely continue. Just food for thought.
Any opinions ?
By the way it is amazing I think how Europe continues to move away from
fiscal soundness and pro growth policies.. Today France announced huge new
corporate tax increases. Europe has the most underworked - overpaid and
overtaxed workforce and yet despite huge capital outflows, foreign corp'
relocations and record unemployment and slow economies they continue to move
in the wrong direction. If they keep this up they will be in the dark ages
compared to US soon . Sorry if this offends anyone politically, but I think
it has a strong bearing on the longevity and altitude of our stk' mkt' and of
currencies and metals.
Kurt
Sunnen@xxxxxxx
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