ATHENS: Recent developments in Europe and China pose important questions for investors. They test two widely held faiths: the first is the ‘whatever it takes’ commitment to the euro among Europe’s leaders; the second is the ability of the Chinese authorities to control their economic destiny.
Through the crises of recent years, investors have comforted themselves with these two beliefs, but the Greek bailout negotiations and China’s heavy-handed efforts to stabilise the stock market give pause to reconsider these beliefs.
