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By Beverly Chandler, Opalesque London:

In its mid-June publication Point of View, Banque Syz & Co reports that while the arrival of summer gives many reasons to rejoice, they could find little cheer in the recent news of the global economy.

The report says: "Falling activity indices in the United States, a revival of tension over Greece's debt and the continued increase in inflation in the emerging economies are all signals that encourage one to be vigilant at the beginning of the summer period."

Banque Syz believes that we shouldn’t yet throw out the beginning of the year prediction that global growth would continue at a rate higher than 4%, but feels that current economic signals indicate that risks have increased in recent weeks.

Safety margins are reduced in the face of these developments, the report says. "It is difficult for the western countries to envisage - if the need were to be felt - embarking on new stimulus plans. As for the central banks, they appear to have gone as far as they could in easing their monetary policy.

Caution is the word of the month for the bank. It is only logical, they believe, that risk aversion is increased which benefits bonds and certain currencies such as the Swiss franc or the yen that are considered to be a relatively safe haven.

Looking specifically at the outlook for equities, Banque Syz observes that May’s trends have continued into June, with the Greek saga and other economic activity news pushing equit......................

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