A lot of my mates are Greek (Hi Melbourne) but they’re not as indecisive as George Papandreou.
Only days after the Greek PM called for a controversial referendum on the latest euro bail out deal, he’s changed his mind and dumped the vote.
Why? Because at the G20 summit in Cannes the leaders of other more powerful European nations threatened to withdraw their support for Greece and bankrupt the nation if it went ahead.
Papandreou wanted a referendum because a win would have given him a mandate for the tough austerity measures. But that would have been months away, and the markets can’t wait for months. Plus as far as Europe was concerned, a deal was done.
So as Papandreou battles to keep his job, Europe continues to battle, but with a little help. The European Central Bank cut interest rates overnight, with its new President, Mario Draghi making the surprise move.
Wall Street u-turned on the news, finishing stronger.
But there was one company that didn’t; streetwear brand and “The Situation’s” (Jersey Shore) favourite, Abercrombie & Fitch. A&B reportedly offered to pay The Sit to stop wearing A&B clothes because it didn’t match its brand image. Maybe it should have pursued the issue. A&B shares slumped 20 per cent after the retailer said it sees a slowing trend in Europe. I think the Jersey Shore trip to Italy didn’t help either.