“Smart Trade Group” – TraderChat – (UniCredit Warns On UK)…

Added: (Sun Mar 14 2010)

Pressbox (Press Release) - ‘Smart Trade Group’: Europe’s second largest bank says the UK is at risk of bond and currency crisis.

“Smart Trade Group”, the Asian-based broker, believes that concerns that Britain could replace Greece as the target of bond vigilantes and speculators are justified.

The firm cited a client note emanating from UniCredit, Europe’s second biggest bank, in which investors were warned that the UK faces a bond and currency crisis that could be more damaging that which afflicted Greece and the Euro.

The note added that it would be difficult for the UK’s tax structure to raise revenue quickly enough to instill investor confidence in the country’s finances.

“Smart Trade Group” has long maintained its view that the UK faces tough choices and a source said that, although many have yet to be seriously affected by the recent recession, it was undeniable that its predictions of harsh measures and civil discontent would come to pass.

This, “Smart Trade Group” analyst suggested, could take the form of severe cuts to the nation’s health services, a pay freeze for civil servants, hikes in income tax and VAT as well as increased duty on alcohol, fuel and cigarettes.

The “Smart Trade Group” added that civil unrest not dissimilar to those in Athens, Greece could begin as soon as the measures are announced probably some time after the general election this summer.