A surging dollar and a capital flight from emerging markets may lead to another “major” financial crisis, investor George Soros, warning the European Union that it’s facing an imminent existential threat.
The “termination” of the nuclear deal with Iran and the “destruction” of the transatlantic alliance between the EU and the U.S. are “bound to have a negative effect on the European economy and cause other dislocations,” including a devaluing of emerging-market currencies, Soros said. “We may be heading for another major financial crisis.”
George Soros
Photographer: Jason Alden/Bloomberg
The stark warning from the billionaire money manager comes as Italian bond yields have jumped to multi-year highs and major emerging economies including Turkey and Argentina are struggling to contain the fallout from runaway inflation. Soros saved his gloomiest outlook for the EU.
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