Geopolitical Situation Worsens

The Malaysian Airlines tragedy has reminded everyone of the conflict in the Ukraine while the situation in the Middle East is a complete mess. Aside from the massive loss of life, the most concerning aspect from an economic and market perspective is that the West and Russia (who are making new friends in the East by the way) are moving further apart. The fuelling of anti-Russian sentiment by Western governments via the media and the imposition of sanctions only serves to make a bad situation worse. There is a little bit of ‘keep your friends close but keep your enemies closer’ needed with Putin, who apparently took three days before accepting a call yesterday from UK Prime Minister David Cameron. Overall, I believe the latest events have merely highlighted Europe’s weaknesses on the geopolitical stage with a cacophony of voices from individual member states rather than a unified and strong single European voice.