The market is building in a risk premium because of the uncertainty surrounding the election -- once we get that out of the way, all other things being equal, the euro will probably bounce.

It highlights the weakness of Blair's leadership and increases the risk on UK assets but like most political events of the past year, the impact is likely to be short-lived,

It highlights the weakness of Blair's leadership and increases the risk on UK assets but like most political events of the past year, the impact is likely to be short-lived.

There's uncertainty within the insurance industry, as companies are currently unwilling to take the risk of another company's business and infrastructure. There also have been plenty of rate increases, so there is not as much pressure to grow through acquisition.

The release of the uncertainty one way or another should have positive implications for the equity risk premium which has risen sharply in 2002 and 2003.

This uncertainty about what Microsoft is going to do with the cash has been hanging over the stock for a couple of years. A buyback would be a signal that management is optimistic with the price of its own stock.