All eyes will be on this Sunday’s all important Greek elections.Jim O’Neill, Chairman of Goldman Sachs Asset Management, will have one eye on the elections and the other on the Euro 2012 soccer tournament.
Indeed, the title of his latest Viewpoints note is Can We Watch Some Football Please?.
O’Neill offers his final thoughts on Greece ahead of the elections.
Will Greek people vote for the more centrist parties this weekend? Will Greece pull off two major surprises next week, and (1) beat Russia in football, and (2) cause a rally in European markets? I don’t know the answer to either, but it would be rather nice. The nation needs a lift.
Of course, that rally in the European markets would be a part of a rally in the global markets. He continues:
What I do suspect quite strongly, is that if Greece becomes an even bigger source of potential turbulence for world markets next week, policymakers will react. Last night, a G20 source was quoted as saying that G20 policymakers were preparing to add liquidity in the event of destabilizing forces coming from the weekend’s events. This is not surprising to me. It is very likely that the ECB would be part of this if necessary. And, as everyone searches for what the European authorities will likely do next, all I can add into the pot is that I think it will be something different than they have done before.
Indeed, many believe that should the pro-bailout, New Democracy party win, the odds of stability in Greece will improve. Should the anti-bailout, SYRIZA party win, then the odds of instability and also central bank intervention would improve.
We shall see.