Exit sentiment in EU members dangerous trend: BGC's Buick

As news of the European tremors trickle in, David Buick, partner, BGC explains to CNBC-TV18 from the ground about the situation across Europe. Though Spain had lit hopes last week, Buick said, the IMF's desperate scramble for a bailout package along with China and the US refusal to contribute beyond a limit has rattled investors' sentiments.

Buick also points out the emergence of sentiments of member-nations of the EU wishing to return to their own systems and says that this was a dangerous trend for a such a large economic entity steeped so heavily it debt. Below is an edited transcript of the interview on CNBC-TV18. Also watch the accompanying video. Q: Apart from the negative data indicated by the German PMI, developments in the French elections have not gone in Sarkozy's favour. What is the main reason for this sell-off seen today and how do you see it pan out?
A: There is no doubt that the European Union looks to be in complete turmoil again. Last week, Spain's funding dominated the agenda and issuance of their bills and bonds, which had obviously been seriously massaged by the ECB and the central banks.
This was followed by the weekend deliberations about the IMF managing to virtually double the bailout fund from USD 270 billion to around USD 800 billion. With an extra bit of input of USD 430 billion and the United States and China saying, "no thank you very much", the investors’ sentiment are really rattled.
This morning the situation was compounded by adverse headlines coming from Holland, where it looks like they are going to have general elections and very uncertain environment behind the French elections, where it becomes uncertain whether Michel Francois Hollande, a socialist with a particular and possible tinge of being anti-Europe, will form the next government  
I think what we are getting now, which is making everybody think incredibly uncomfortable, is that feeling from many of these constituent countries within the European Union wishing to return to their own nationalistic beliefs.
This is very dangerous for an economic unit that is so heavily in debt. This has really unsettled all the investors as a result of which Germany is down by nearly 3%, France by over 2% and United Kingdom's FTSE 100 is down by 1.7%.
The level of activity is pretty low, but market-makers are making very severe cuts because they feel uncomfortable with the environment.