Will PIGS and a Darling go for a swim?

With Christmas approaching usually also the travelling activity for Markus is intensifying as around the end of November his strategy team tends to publish its outlook for the coming year and this entails many presentations and discussions with the clients. This time the strategists are pretty much bullish for Emerging European Equities in 2010 and expect a strong start into the year. Even though the past few weeks have rather brought up new risks and dark clouds on the horizon with the debt-troubles in Dubai and most recently downgrades of Greece and Spain as well as fears about more troubles within the PIGS the chief strategist is leaning out of the window with his strong call. Let’s hope he is not falling out.

While in London, there was also another big issue part of almost all discussions: The fact that the Chancellor of the Exchequer, Alistair Darling introduced on Wednesday a special one –off tax of 50% on bankers’ bonuses exceeding 25.000 GBP caused uproar with the financial industry. Given that the remuneration in London is pretty much biased towards the flexible part, i.e. the bonus, this represents a significant cut in the annual payment. This move not only upsets the employees but also could lead to some banks moving their investment banking operations away from London and harming its status as financial centre. Future will tell whether the waves calm down again or whether we will see an of exodus of bankers.

Markus seemed unimpressed by the special taxation and helped the UK economy by hitting the high street on Wednesday evening and spent a few pounds on apparel and electronics. Back in Austria Jakob made his first experience as free-diver on Thursday as this week’s baby swimming session included also diving. Even though our little one was a bit tired due to the lack of sleep the night before, he obviously enjoyed the short time under water and as far as we can judge, he is looking for more under-water-experience in the coming weeks.

Thursday night, before Markus came back home from London, Anja, Kerstin’s cousin who is living in Barcelona and her Italian boyfriend Gianluca arrived and they are staying with us for the weekend. The two are on holiday in Austria, have spent some time with Anja’s parents, followed by a few days skiing in Tyrol and a weekend in Vienna which all of us have been looking forward to already.

Jakob, Kerstin & Markus