It is all go in the global economy, Greece stays in the Euro for now, with a miraculous win for the centre right but that wafer thin majority will mean political stagnation within Greece itself (and maybe no government formed again) and this means that no matter what happens Greece will miss and continue to miss all set economic targets – So the ECB and IMF can throw as much money as it likes at Greece it will not make a dent. The difference is that Greece can now leave the Euro on terms set by Germany and other members if need be.
Meanwhile Spain is paying the price of being seen to add $100bn of debt onto a debt mountain. In actual fact, the Greek result is the worst possible outcome in the long term. Uncertainty reigns supreme; the status quo continues and the blinkers to reality will go back on. The slow run on Spanish and Greek banks will continue (slowing but still billions per day), and the can is kicked down the road for the German elections to become the next flashpoint.
Europe is not alone: The political blinkers also remain on in India.
India cannot continue to operate an un-level playing field in its support of Air India. The government there has the power to create an aviation big bang by opening-up the market to foreign direct investment and at the same time stripping down Air India to a manageable size and selling it off (the latter being a five year task at least). The former, as it is proposed at 49% presents no investor with a realistic option, it is not enough. Alas weakness is the order of the day. But in the midst of this, SpiceJet is planning to raise funds: “Various investors, including some PE funds, have approached SpiceJet, and we are in talks with them. As of now, we have not finalised any deal, but if everything goes well, we may enter into a mutually beneficial deal,” said a SpiceJet spokesperson, while refusing to name any of the potential investors. Interested parties include Blackstone, Bain Capital and KKR, according to a number of local sources.
Commenting on a possible investment by foreign carriers recently, SpiceJet confirmed: “Some foreign carriers have expressed interest in picking up stakes in SpiceJet if the government changes its policy in this regard.”