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

Monday, April 9, 2012

Europe may be heading back into debt storm

Europe may be heading back into debt storm
The ECB injected roughly one trillion euros ($1.3 trillion) into eurozone banks at auctions in December and February, helping to ease concerns banks would face a funding crunch. Some of this cash ended up in the sovereign bond markets, helping reduce ...


Eurozone in recession, India slows
Times of Malta
Eurozone businesses floundered in March and growth among Asian firms cooled, but data last Wednesday portrayed a resilient US jobs market last month, underscoring widening fault lines in the global economy. Sagging orders kept eurozone businesses in ...

Eurozone finance ministers pledge more ESM support
Times of Malta
Eurozone finance ministers agreed to lift Europe's firewall to be better prepared in the eventuality of a reawakening of the region's financial turmoil. In an official statement they said “the current overall ceiling for the European Stability ...

Brussels' austerity drive must be stopped if eurozone is to survive
The Guardian
Looking back over 2012, it was clear where it had all started to go wrong for theeurozone. Markets had rallied strongly in the first two months of the year following the decision by the European Central Bank in late 2011 to provide cheap three-year...

The Guardian

Spain heads to financial crisis, possible rescue
Taipei Times
Spain, sucked back into the center of the eurozone debt crisis, is headed toward a financial crunch next year that may force it to seek international help, analysts warn. Alarm has spread on the financial markets over Spain's rising public debt, ...

Spring brings opportunities — but eurozone carries risks
Mail Tribune
The eurozone may have taken a back seat to March's performance headlines, but its potential to blunt and blight the global recovery remains a real and present danger. China, where the toll of the eurozone is more apparent due to China's greater export ...

Eurozone: Long road ahead for consolidation
New Europe (blog)
Capital markets and European Commissioner Ollie Rehn aired similar warnings last week over the Eurozone's sovereign debt problem. In detail, Madrid was forced to pay higher interest rates for an issue of government bonds, while Rehn said that the ...

Banks, Once More Buying Bonds, Are Seen as Vulnerable
New York Times
Conditions are not as bad in the euro zone as they were just a few months ago. Prime Minister Mario Monti of Italy has calmed market worries by putting into place a 30 billion euro austerity plan to cut a debt load of 120 percent of gross domestic ...

China's growth to be slowest since the global financial crisis
The Australian
THE growth of the Chinese economy is expected to reach its slowest point since the globalfinancial crisis, as authorities deliberately restrain the Asian powerhouse. First quarter GDP figures published this week are likely to show growth has eased ...

Debt issuance boost for European economy
Financial Times
The amount of debt raised this year is also more than double that of 2006 – before the financial crisis. The jump in issuance, sparked by the emergency financial injections of the European Central Bank, may prove critical to the eurozone economy as it ...

Non-eurozone exports boost trade-led recovery hopes
The Independent
David Page, a senior economist with Lloyds Bank Corporate Markets, said: "The eurozone is currently 40 per cent of our exports but five years ago it was 50 per cent. If we continue at this pace it could be a down to a third of total exports.

Japan, China may bolster IMF funds to stem eurozone crisis
The Japan Times
As for their IMF plans, Tokyo and Beijing said in February they were prepared to support efforts by the Washington-based global lender to address the eurozone's debt crisis, with Azumi visiting Beijing for talks with Xie and Chinese Vice Premier Wang ...

The prize for European political illiteracy
Financial Times
By Wolfgang Münchau Ihave often referred to the macroeconomic illiteracy of the eurozone'seconomic policy establishment. Equally, if not more irritating is the political and legal illiteracy of economists who deal with eurozone issues.

Spain's woes to 'intensify' in 2013
Massive lending by the European Central Bank at rock bottom rates to banks in theeurozone had secured Spain's liquidity and mitigated the impact of Spain's economic and fiscal woes, he said. But greater danger lay ahead. "The risks are expected to ...


Now is the time Indian companies should be pumping up their investments ...
Business Standard
From the Eurozone trouble and the ripple effect of the Arab revolution, to the issues relating to corruption and protests against nuclear power plants back home - India Inc is facing a new era of risk. An air of concern surrounds global players ...

Ernst & Young: economic growth to pick up
New Europe
According to Ernst & Young's Eurozone Spring Forecast (EEF) forecast, GDP growth will slow to 0.7% in Luxembourg in 2012 from just over 1% in 2011, reflecting weakening exports of financial and business services against the backdrop of the ongoing ...

Ben Chu: It's not Spain nor Italy spooking the markets, but punishing austerity
The Independent
But what became clear last week is that, just as with Mark Twain, reports of the death of theeurozone sovereign debt crisis have been much exaggerated. Investor nerves over sovereign debt have returned. Spain is a particular concern for markets.

G20 cannot prop up Europe's fiscal system
But even with the latest boost to the Eurozone financial stability funds, the markets have made it clear that they are not convinced the authorities have enough resources to deal with any widespread debt crises. Spain's borrowing costs, for example, ...

Rajoy prepares "strong action" against the specter of bailout - World News
San Francisco Luxury News
He went to Greece, with Portugal and Ireland: the difference is that this time about Spain, the fourth largest economy in the eurozone: big game, the contagion effect would be devastating. Investors retake the storyline, partly because it suits them: ...

Italy: sink or swim?
Malta Independent Online
Thus many analysts concur that Italy's survival is vital if the eurozone is to avoid catastrophe. While much fuss has been made about the fragile survival of the twice-bailed-out Greek economy, it fades into insignificance compared to Italy's massive ...

Global crunch hits big city projects
New Zealand Herald
By Bernard Orsman The global financial crisis is starting to hit Aucklanders in the pocket with talk of a $12.4 million top-up for the Auckland Art Gallery upgrade and private investment shunning the much-hyped Wynyard Quarter. The Auckland Art Gallery ...

Banks test 'CDOs' for trade finance
Financial Times
JPMorgan is among several banks that have begun testing investor appetite for the trade finance equivalent of collateralised debt obligations – the derivative products blamed for compounding the financial crisis – in an attempt to boost lending ...

FII investment in stocks falls to 3-year low in FY12
Times of India
Destimoney Securities' Managing Director and CEO Sudip Bandyopadhyay said, "Eurozoneworries have pushed the Indian market into risk aversion mode and other emerging countries are performing better than India, so FIIs are staying away from our market.

Measuring Up Citigroup and Bank of America
New York Times
Both giants were forced to turn to the government for help in the wake of the financial crisis in 2008, and both have chief executives who have spent much of their tenure cleaning up the messes they inherited. Both companies have also had to issue ...

International Forecaster April 2012 (#2) - Gold, Silver, Economy + More
Gold Seek
Lagarde is on a political junket with the aim of raising an additional $500 billion for the IMF, money that will be used for future Eurozone bailouts and other financial crises, or so they say. The speech was delivered 64 years to the day after ...

Agencies at odds over new ratings
Financial Times
By Nicole Bullock in New York Credit rating agencies are sparring in public over new ratings as they seek to enhance reputations damaged during the financial crisis. Rating agencies were criticised for giving triple-A ratings to complex securities ...

Expected influx of unemployed Europeans may change pay scales in the Gulf
More than 17.1 million men and women in the euro zone were out of work in February, 162000 more than a month earlier and 1.48 million more than a year ago. (File Photo) By Al Arabiya More Europeans are expected to come to the oil-rich Gulf region as ...


Recruiters to give trading updates
The Press Association
Michael Page International and Hays will provide trading updates on Wednesday and Thursday respectively and have previously warned that the eurozone debt crisis and uncertainty in the banking sector have taken their toll. The economic picture has been ...

Fears rise over oil's impact on world recovery
So the eurozone crisis may have calmed down (for now), but adrenaline junkies should have no reason for complaint. The general view is that the oil price is being driven by the supply story at the moment, particularly the interruptions to Iran's output ...


Expecting A Steel Producer Rally In The Second Half Of 2012
Seeking Alpha
There was no new recession in the US in late 2011 and the European sovereign credit mess did not devolve into a repeat of the 2008-09 financial crisis. An improvement in the outlook for global growth has helped drive a modest uptick in global steel ...

Spain tires of penitence even amid the Lent processions
The Guardian
Ministers insist the only way Spain can maintain its credibility in the markets is to meet the harsh demands of the eurozone's other finance ministers who have demanded Spain slash its deficit. Spain's finance minister, Luis de Guindos told the Wall ...

The Guardian

Hey Joe Get Over It …They Won't Throw the Euro-Baby Out with the Bathwater
The Market Oracle
... unnatural alliance between the state and the private sector which created the US housing bubble, which created a multi-trillion hole in the balance sheets of US and incidentally, Euro-zone and British, banks, pension funds and insurance companies.

Resurrection for the euro
Malta Independent Online
Unfortunately, recent events involving serial crisis bailouts, debt default and acute stress on the debt management ability of key eurozone countries has put the euro on reverse course. It has become a source of division between EU states and ...

HCL continues to have a good run in Europe
Business Standard
Despite the euro zone crisis, HCL Technologies, India's fourth-largest information technology services company, has seen a huge success in Europe in the past year in clinching deals. Watchers say the share of Europe in its overall revenue in 2011 ...

Why more Europeans coming to UAE for jobs could lower salaries
Emirates 24/7
As the euro zone unemployment rate hits all-time high, the number of candidates looking to come to the UAE and the region has gone up. This may be good news for employers who are looking for a bigger pool of talent, but will it depress salaries of ...

Spring brings opportunities — but eurozone carries risks ...
BOSTON — Spring has sprung early around my neck of the woods, if not in the Rogue Valley, and with it the green shoots that portend flourishing growth.
MailTribune.com Headlines: Business

Sober Look: Eurozone's banks cutting dollar businesses
By Walter Kurtz
It is important to note that the decline in the Fed's Liquidity Swap Facility does not necessarily mean an improvement in the strength of Eurozone's financial institutions. It is simply an indication that European banks will never again rely on US ...
Sober Look

The financial crisis is far from over, the international context ...
By Leilah
The financial crisis is far from over, the international context demands a strong leader, and the intense debates about health care and taxes are not to be taken lightly either. The Democrats have an easy mission as they don't need to choose a ...
Self Improvement Tips

The suffocation of unsustainable global debt – Total global debt is ...
By mybudget360
It is apparent with the financial crisis that the global markets are tied together by large banks and interconnected trade. A problem in the largest market should be unsettling and the unemployment rate in the European Union is now at a 15 year ...
My Budget 360

Structural diversity in social contagion
The concept of contagion has steadily expanded from its original grounding in epidemic disease to describe a vast array of processes that spread across ...

Euro Zone Needs a Divorce: Roubini - Business News - CNBC
Like a marriage that no longer works, the euro zone should accept its fate, split up and get divorced, according to Roubini Global Economics.

Guest Post: The Eurozone X-Factor | ZeroHedge
Submitted by Finance AddictThe Eurozone X-FactorWhatever one thinks about Lord Wolfson's euro-skeptical meddling, it certainly has been entertaining.

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