Cuts by Merkel, Cameron Win Investor Plaudits in Bloomberg Poll

Merkel Tops Worldwide Favorability Rating among Political and Economic Leaders
  Cited in Survey with 68 Percent of Respondents, Cameron is Second with 65
                                   Percent

Business Wire

NEW YORK -- November 11, 2010

Measures by German Chancellor Angela Merkel and British Prime Minister David
Cameron to cut government spending and slash debt are making them standouts in
the eyes of global investors.

Merkel, 56, is viewed favorably by 68 percent of respondents in the latest
Bloomberg Global Poll, tops among a dozen world political and economic leaders
cited in the survey. Cameron, 44, is second with a 65 percent worldwide
favorability rating in the quarterly poll of 1,030 investors and analysts who
are Bloomberg subscribers.

The full story is online at:

http://www.bloomberg.com/news/2010-11-11/merkel-cameron-win-investor-plaudits-for-budget-cutting-in-bloomberg-poll.html

The leader of Britain’s Conservative Party scored even better in Europe, where
more than three-fourths of those questioned view him favorably. Cameron, whose
government raised the sales tax and imposed a levy on banks, last month
proposed the U.K.’s biggest budget cuts since World War II, with a goal of
eliminating 490,000 jobs and wiping out a record 156 billion-pound budget
deficit ($251 billion) by 2015.

In Germany, Merkel’s coalition passed a four-year package of budget cuts after
pushing through a constitutional change last year requiring the German
government to reduce net new borrowing. Merkel said Nov. 4 that lower spending
remains the government’s “absolute priority” even after tax-revenue
projections for 2010 to 2012 were raised.

Merkel also scores highest when poll respondents were asked to assess how the
policies of eight world leaders are affecting the investment climates in their
countries.

More than six of 10 investors and analysts questioned say they’re optimistic
about Merkel’s policies. In second place is Chinese President Hu Jintao, whose
polices are seen optimistically by 59 percent, followed by Cameron’s 51
percent.

Lagging behind, U.S. President Barack Obama’s policies were viewed with
optimism by 35 percent of the investors, followed by French President Nicolas
Sarkozy with 30 percent and Japanese Prime Minister Naoto Kan with 16 percent.

The Bloomberg Global Poll was conducted on Nov. 8 by Selzer & Co., of Des
Moines, Iowa, and has a margin of error of plus or minus 3.1 percentage
points.

More than six in 10 investors say Cameron’s austerity program is good for the
U.K. economy, almost three times the number who say his cuts are bad.

Standard & Poor’s last month said spending cuts had safeguarded Britain’s top
credit rating, which it said is no longer in danger of being downgraded.

Britain’s recovery is showing some signs of momentum. Gross domestic product
grew 0.8 percent in the third quarter, twice as fast as analysts had forecast.

The Bank of England’s quarterly forecasts yesterday suggested the recovery may
weather the government’s budget squeeze.

In Germany, unemployment dropped in October to the lowest since 1992, as the
government raised its forecast for economic growth to 3.4 percent, the fastest
pace since 1991. Business confidence in Europe’s largest economy climbed in
October to the highest level in 3½ years.

The benchmark DAX Index is up 12.8 percent this year, compared with the 7.5
percent advance for the U.K.’s FTSE 100 Index.

Merkel has declared that Germany must lead the euro area’s deficit-cutting
effort and has urged leaders of other governments to find ways to wean their
economies from stimulus spending.

Contact:

Bloomberg
Meghan Womack, +1 212-617-8514
mwomack4@bloomberg.net