Focus Europe -
From Bleak House to Great Expectations

Table of Contents
Eurostress: From Bleak House to
Great Expectations ........................................... Page 03
France in stormy weather ................................ Page 05
Italy: political update ......................................... Page 11
Euro Sovereign Events: What to watch ........... Page 14
UK: Housing Market Update .......................... Page 16
Romania: The recovery inches forward ............ Page 21
Inflation ............................................................. Page 26
Rate Views ....................................................... Page 28

The meeting between the French and German heads of state last weekend
prompted an acceleration in the resolution process of the Euro sovereign
crisis. A “simultaneous approach”, dealing with Greece, the state of the
banking system and the support of the other ailing peripherals at the same
time is now concretely being fleshed out. A lot of questions remain pending
and the Europeans have a lot on their plate before the Council meeting on 23
October, but the momentum is clearly building.