"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Wednesday, December 21, 2011

Top business story of 2011: The euro zone mess

Top business story of 2011: The euro zone mess
CBS News
As the year came to a close, banks and investors nervously watched Europe's political and financial leaders scramble to prevent the 17-nation euro zone from breaking apart. Several of the other biggest business stories of the year highlighted the ...

PIMCO's Bill Gross: Today is a Santa Claus rally! Prepare 4 record cold winter, solstice upon us. Eurolnd wl not go away. China lurks. US not an island. (twitter)

Eurozone turmoil poses 'serious threat' to Irish economy
Financial Times
By Alan Beattie in Washington The turmoil in the eurozone is posing a serious threat to Ireland's efforts to stabilise its debt burden and return to healthy economic growth, according to the International Monetary Fund. In its latest report on the ...

German business morale rises, defies euro zone gloom
Reuters
Domestic demand helped the German economy grow a healthy 0.5 percent in the third quarter, but investor morale has since soured as a convincing solution to the euro zone debt crisis remains elusive, fuelling expectations of a slowdown going into the ...

Euro Crisis Will Persist And Cause Severe Market Volatility, Fitch Says
Forbes
Fitch Ratings agency is anything but optimistic about the Eurozone debt crisis in its latest bi-annual global Sovereign Review and Outlook report. In fact, the agency says its likely the crisis will persist and severe market volatility as politicians ...

Eurozone: It's Working, the Carry Trade is Working, Euro Saved!
Forbes
Does the market now love the idea of fiscal union, of austerity forever more in the eurozone? Think that the labour productivity mismatch has been solved? No, of course not, what is happening here is a direct result of the banks being encourage to fill ...

Bank 'taking eurozone precautions'
The Press Association
The Bank of England is making preparations to support UK banks in the event of a break-up of theeurozone, deputy governor Charlie Bean has confirmed, describing the present state of the single currency area as a "worrying situation". ...

Euro Zone Needs 'Special Attention,' IMF's Lagarde Says
BusinessWeek
20 (Bloomberg) -- International Monetary Fund Managing Director Christine Lagarde said the euro zone needs “special attention” to prevent the contagion from its debt crisis sweeping through the global economy. “These are challenging times for the ...

Euro Zone May Hurt Australia Even More Now
Wall Street Journal (blog)
By Nicholas Hastings The euro zone may pose more of a risk to Australia and the Aussie than even the Reserve Bank of Australia admits. Minutes of this month's rate-cutting meeting show the central bank had the euro zone debt crisis very much in mind. ...

Eurozone crisis hits US mortgage securities
Financial Times
Asset sales by banks under pressure in Europe have hit prices for securitised mortgages in the US, indicating that the effects of the eurozone crisis are widening. Rather than selling distressed assets in their home markets, there are increasing signs ...

Euro crisis threatens global growth: RBA
Sydney Morning Herald
Efforts to contain the crisis hit another hitch yesterday, when Britain refused to contribute its £25 billion share to the latest €200 billion rescue fund for the euro zone. In contrast to Europe, the Reserve said there were ''no signs of strain'' in ...

Respite Could Be Brief for Euro-Zone Debt
Wall Street Journal
By EMESE BARTHA Euro-zone government-bond markets, which have experienced a tumultuous year, may get a brief lull over the year-end holidays, but the pain is almost certain to begin again in January and could be severe if leaders are unable to restore ...

Osborne rocked by warning that Britain could be stripped of AAA credit rating ...
Daily Mail
By Hugo Duncan George Osborne was last night rocked by a warning that Britain could be stripped of its gold-plated credit rating due to the crisis in the eurozone. Leading ratings agency Moody's said the UK's coveted AAA score was safe for now with a ...

Daily Mail

Euro-Zone Gloom, Fed Buying Lead Treasurys Higher
Wall Street Journal
By Cynthia Lin Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Treasury prices meandered higher Monday as the euro zone's credit crisis continued to haunt investors who are geared up to switch into holiday mode. Trading activity has tapered off notably in ...

Euro zone weakness may affect Asia-Pacific banks: S&P
Hindu Business Line
Non-performing loans and credit provisioning are likely to increase, especially in banking systems exposed to high inflation, such as in India and Vietnam, as Euro zone weakness dampens global and regional growth, said credit rating agency Standard ...

Hindu Business Line

Stocks rally on eurozone news and US data
Financial Times
This was followed by a well-received €5.6bn auction of Spanish short-term debt, which reduced fears about sovereign funding difficulties across the eurozone. Spanish 10-year yields are down 10 basis points to 5.07 per cent, and consequently perceived ...

Financial Times

Canada PM Discusses Euro-Zone Crisis With Incoming Spain Leader
Wall Street Journal (India)
OTTAWA (Dow Jones)--Canada's Prime Minister Stephen Harper spoke Tuesday with the incoming prime minister of Spain, Mariano Rajoy, about the need for concerted actions among euro-zonepolicymakers to address the region's financial crisis, according to ...

Blame a Banking Glut for the Financial Crisis
Wall Street Journal (blog)
A secondary parallel imbalance formed in the euro-zone, where Germany took the role of China while countries at the periphery played the US, with Ireland and Spain mirroring the American housing bubble and consumption boom. But Hyun Song Shin, ...

HK Shares End Flat As ECB Comments On Euro-Zone Economy Weigh
Wall Street Journal
... Kong shares ended flat Tuesday as concerns the death of North Korean leader Kim Jong Il would destabilize the Korean Peninsula receded, while disappointment over comments from European Central Bank President Mario Draghi on the euro zone weighed. ...

Graphic: EU treaty and Eurozone crisis deadlock explained
Telegraph.co.uk
In the last two weeks David Cameron has vetoed the latest EU treaty and George Osborne has ruled out contributing British money to a €200bn fund to stabilise the Eurozone area. But is Britain really the lone holdout of Europe? By Conrad Quilty-Harper, ...

Viability of Euro Zone Is in Doubt, Spanish Banking Group Says
Bloomberg
The crisis facing the euro zone is severe enough to put the bloc's survival into doubt, while Spain's economy is in a “critical” situation, the country's banking association said. “The euro-zone crisis has acquired an extraordinary seriousness to the ...

Roubini: Euro Zone 'in Denial', US Postpones Reforms
CNBC.com
Noted economist Nouriel Roubini, credited for predicted the financial crisis, made a plea to policymakers to take tough action needed to address current economic problems, in an article published on the Financial Times website. "The euro zone has been ...

Euro Crisis Is Worse Than 2008
Seeking Alpha
Many pundits have compared the current crisis in Europe with the 2008 financial crisis in America. They tend to say things like "this is going to be like 2008" or "this may be as bad as 2008." What these pundits fail to see is that this crisis will ...

Financial Crisis Litigation & China Home Prices Cooling Off
NewOak Capital Market Outlook
“Lawsuits continue to be filed in connection with the financial crisis,” says James Frischling, President & Co-Founder of NewOak Capital. The circular nature of the suits could leave many scratching their heads in the search for accountability. ...

NewOak Capital Market Outlook

Eurozone Crisis May Affect M&A Activity In M'sia
Bernama
By Dalila Abu Bakar KUALA LUMPUR, Dec 20 (Bernama) -- 2012 promises to be a year of uncertainty if the economic crisis in the eurozone is anything to go by. Economists and fund managers say due to the current economic situation in Europe and also in ...

The Sarko Trade: Will Banks Double Down On PIIGS Debt?
Seeking Alpha
French President Nicolas Sarkozy has suggested that the availability of unlimited funding by the ECB solves the PIIGS sovereign debt problem since PIIGS banks can use the generous central bank funding to purchase the PIIGS debt of their respective home ...

Economic 'good tidings' brighten eurozone gloom - The Local
Two leading sentiment indicators in Germany released good news Tuesday, bringing a touch of Christmas sparkle to the pall of gloom currently enveloping the eurozone.
The Local - Germany's news in English

Eurozone Data Takes a Backseat to Uncertainty
By Barbara Zigah
(eToro Blog) With the markets focusing almost entirely on the Eurozone debt crisis and its related headlines, economic data takes a backseat, almost.
eToro Blog

Early Warning: Eurozone Construction Output Falling
By Stuart Staniford
As of October. However, in fairness, that last little jog down is no bigger than similar jogs down in Jan 2010 and at the beginning of 2011 - and those proved to be transitory. So, while this is consistent with other indicators that the Eurozone is in ...
Early Warning

Eurozone raises €150bn to boost IMF lending | European Voice
eurozone raises €150bn to boost imf lending uk refuses to contribute now; says it will consider in context of g20.
European Voice - RSS

Bill Gross: Today is a Santa Claus rally! Prepare 4 record cold winter, solstice upon us. Eurolnd wl not go away. China lurks. US not an island. (twitter)

What the Euro crisis means for taxpayers, U.S. economy | Hawaii 24/7
By Karin
Testimony of Treasury's Deputy Assistant Secretary Mark Sobel delivered Friday, Dec. 16 in front of the House Oversight and Government Reform Subcommittee on TARP, Financial Services and Bailouts of Public ...
Hawaii 24/7 | Hawaii247.com

German Confidence Lifts Euro Zone Stocks; DAX Soars 2.77%
By Forexpros
Forexpros – European stocks surged higher on Tuesday on rising German confidence numbers, surprisingly positive U.S. housing data and a better than expected Spanish note auction. After the close of European trade, the EURO STOXX 50 ...
DailyMarkets.com

Indirect Euro-zone QE at Play? | Forex Crunch
By Yohay
Spain had a winning streak of bond auctions. It managed to sell more bonds than expected and with falling yields. One reason is the high hopes for the new government, set to assume power soon. Yields rose towards the elections and have ...
Forex Crunch

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