Everything Is Coming Apart In Europe, Deal Breakdowns Spell ‘Arbageddon’ For M&A Traders, Bull Stock Market Run Is Over?

Investmentwatch

Everything Is Coming Apart In Europe

FRANKFURT (Reuters) – Investors will gauge the strength of the euro zone’s fragile economy this week as escalating conflicts in Ukraine and Iraq darken the mood globally.

In stark contrast to the United States and Britain, which are growing strongly, economic output in the euro bloc is likely to have all but ground to a halt in the three months to June. Its star economy, Germany, is losing momentum and Italy is sliding back into recession.

“The United States and the United Kingdom are going to be among the fastest-growing economies both this year and next,” said James Knightley, an economist with ING. “In Europe, the situation seems to be going into reverse.”

The growing sanctions fight between Russia and the West over Moscow’s backing of rebels in Ukraine and U.S. air strikes to block Islamist militants in Iraq are also upsetting the markets.

Read more: http://www.businessinsider.com/r-europes-fragile-economy-put-to-test-as-ukraine-iraq-sour-mood-2014-10#ixzz39zbXo3IA

Deal breakdowns spell ‘arbageddon’ for M&A traders

On a day some traders dubbed “Arbageddon,” hedge funds that bet on big corporate takeovers, known as arbitragers, suffered their worst rout in years after two deals fell apart and regulators indicated they may take steps to stymie others.

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