Growth is still very strong. Once you focus beyond the politics in Poland, you're actually quite pleased with what you see. |
Sharon's illness creates the risk of a political vacuum, leaving his party without a clear direction. It's definitely negative for the currency and we could see further weakness in the shekel. |
Something in Hungary has to change this year. It will either be forced by the financial markets or the government will do it voluntarily as a preemptive step. |
The economy will continue to do pretty well, after the very strong figures we saw in the fourth quarter. That gives the currency a chance to strengthen. |
The market will now worry about what concessions Law & Justice has had to make. There are also concerns about the change to central bank law. |
The problem that Sharon's exit could cause is that it raises questions about the prospects for peace across the Middle East. |