Over the last few days we’ve seen many will they/won’t they headlines regarding the proposed tie up between Fiat and stricken US car giant Chrysler. Obviously one of the main parties in these deals are the unions. You can bet that Fiat are after some significant cost savings as far as salaries are concerned. Indeed we’ve just seen that the main German Union IG Metall has said that Fiat doesn’t fulfil its criteria as a potential investor for GM’s Opel division. With few potential other suitors lined up, the unions may have to concede a lot of ground or end up with the prospect of GM and Chrysler seeking bankruptcy.
Eur/Usd has been repelled by offers at 1.3080 and as a bit of shine is taken off US equity futures. Now trading at 1.3050 the market focus now sitches to US Jobless Claims data. Expectation centre around 635k after the 610k reading last week.
