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

Friday, May 11, 2012

Spanish banks need €100bn

Spanish banks need €100bn amid international aid warning - Telegraph: "Spanish banks need €100bn (£80.2bn) of extra capital which is “likely” to require international aid, analysts have warned, as Madrid prepares another attempt to rescue its financial sector alone. . . . " 

It’s too late for Germany to save the euro - Telegraph: "Despite belated gestures from Berlin, the single currency cannot survive if and when Greece leaves it. . . . "

The Left’s anti-austerity message is delusional - Telegraph: "It may be beguiling voters, but the Left in the Labour Party and across Europe is refusing to acknowledge harsh economic truths. . . . "

Riskier Euro-Zone Bonds Recover A Touch, Outlook Still Gloomy
Wall Street Journal
LONDON (Dow Jones)--Riskier euro-zone government bonds Thursday recovered a touch from their worst levels in two weeks after Greece's European partners agreed to give the country part of a previously agreed loan. But gains were likely to be limited ...

Greek Officials Slam Euro Zone Loan Decision
Wall Street Journal
By COSTAS PARIS AND ALKMAN GRANITSAS ATHENS—The euro-zone's decision to withhold part of a scheduled loan payment to Athens is "unjustified" and may further anger Greek voters ahead of an expected new round of elections in June, senior officials from ...

No Sign of Financial Crisis at Postwar Art Sales
New York Times
NEW YORK — Big money continues to pour over postwar and contemporary art. At Sotheby's Wednesday evening sale, 46 works of the 57 that were on offer sold for $266.6 million. Gigantic prices were paid for paintings by the most famous artists of the ...

No appetite for Greece to leave euro zone: EU official
BRUSSELS (Reuters) - There is no desire among euro zone member states for Greece to leave the currency bloc, and no appetite on Greece's part either, a senior EU official said on Thursday. Speaking to journalists ahead of a meeting of euro zone finance ...

Euro zone yet to tackle root problems-UBS's Weber
By Sarah White and Huw Jones LONDON May 10 (Reuters) - Former Bundesbank head Axel Weber warned on Thursday that policymakers had yet to truly tackle root problems in the euro zone, including Spain's troubled banking system. Weber said a hard default ...

Bundesbank steels for higher inflation, ECB ready to act
* Bundesbank prepares for inflation above euro zone average * Bundesbank position highlights diverging price pressures * ECB says ready to act to contain upside price risks * Survey sees firm near-term prices, pressure easing in 2013 By Andreas Framke ...

Euro Zone Crisis Deals Damaging Blow to Gold Prices
MarketWatch (press release)
Bullion prices fell below $1600 an ounce Tuesday amid fresh concerns of a euro zone debt crisis. "Absent new monetary stimulus, gold doesn't make sense. When people are fearful of the fiat currencies eroding their wealth, that's when gold catches its ...

Norway fund cutting euro zone sovereign holdings-paper
FRANKFURT (Reuters) - Norway's $610 billion oil fund will cut its exposure to euro zonesovereign debt to below 39 percent of its overall bond holdings, in part because it feels it was discriminated against in Greece's debt swap, the fund's head told a ...

Yes, Germany Might Boost Inflation. Here's How
The newspaper story says this would be “part of an economic rebalancing in the euro zone that would boost the international competitiveness of countries worst hit by the region's debt crisis.” This leads to two questions: Is it true, and how could it ...

Euro zone carry trade has limited shelf life
Reuters Blogs (blog)
The carry trade is not sustainable for banks or governments, which are already dangerously entwined. Unless foreign investors make a return, new buyers like the ECB or the euro zonebailout fund may have to step in.

Confirmed: Eurozone mobile data roaming costs to fall
By David Meyer May. 10, 2012, 6:07am PT 1 Comment Terrific news for anyone living in the EU — the cost of voice, text and now data use while travelling within the continent is about to fall drastically. With 578 votes to 10, the European Parliament ...

Europe can't help Greece unless it helps itself: Germany
Financial markets, spooked by the risk of a disorderly Greek default spreading turmoil, steadied as Spain's move to clean up its banks and the release of a key payment to Athens eased immediate concerns about the euro zone.

Francois Hollande threatens to block eurozone's new financial treaty
Francois Hollande has threatened to block the eurozone's new financial treaty unless Germany agrees to renegotiate its stringent austerity measures. By Bruno Waterfield, and Henry Samuel The new French president wants the treaty, seen as crucial to ...


Eurozone crisis live: Greek government negotiations grind on
The Guardian (blog)
While Greece is special case as is so often pointed out by Eurozone politicians, an exit from the Eurozone sets a precedence and may stoke contagion fears. I liked Mr Schaeuble comment regarding any prospect of the terms agreed by the Troika and Greece ...

The Guardian (blog)

Eurozone Uncertainty Increased as Spanish Banks at Risks
(IBTimes) - Concerns over the situation in the Eurozone remained and the focus shifted to the Spanish banking sector. Wall Street slumped in early trading session before rebounding. The DJIA and the S&P 500 indices slipped -0.75% and -0.67% ...

NYMEX-Crude steady below $97; Greece payment eases euro zone fears
The board of the European Financial Stability Facility agreed on Wednesday to make a payment of 5.2 billion euros in emergency aid to Greece, overcoming opposition from some euro zonemember states. * US crude oil inventories rose 3.65 million barrels ...

Euro zone split as Germany dynamic, France weak: OECD
PARIS (Reuters) - Economic activity in the euro zone is diverging, with Germany leading a group of economies showing slightly more positive signals while France and Italy are posting sluggish activity below long-term trends, the OECD said on Thursday.

China Stops Buying Eurozone Debt
Wall Street Pit
Like the Chinese buying eurozone government debt. I explained this all previously, but for those of you new to class, the eurozone is China's largest export destination. Did that surprise you? I bet you thought it was the US But no, it's the eurozone.

METALS-Copper off 3-week lows; euro zone woes cap gains
Gains, however, were capped by surprisingly weak import and export growth in China, which raised some doubts about growth prospects for the world's second-biggest economy, as well as the political and financial woes in the euro zone.

Eurozone worries continue
The eurozone worries continue and now Spain is having to prop up its banking sector as it injects cash into its third largest lender. It's a reminder that the state of Spain's property market is in serious trouble following the boom years back in the ...

How the euro zone will try to bring Greece back into line
Washington Post (blog)
The Peterson Institute's Jacob Funk Kirkegaard — who I'm hoping will let me call him J. Funk — games out how the euro zone is likely to respond to the recent elections in Greece: When faced with this type of electoral upset in small member states, ...

US Stocks Rise As Euro-Zone Fears Recede
By Chris Dieterich NEW YORK -(Dow Jones)- The Dow industrials were poised to break a six-session losing streak as a potential breakthrough by Greek political leaders eased concerns about the country's exit from the euro zone. The Dow Jones Industrial ...

Merkel warns allies to stick to euro crisis, Afghan deals
By Kate Millar (AFP) – 3 hours ago BERLIN — Chancellor Angela Merkel made a clarion call Thursday for Germany's partners to stick to commitments on fighting theeuro crisis and on Afghanistan's future in the face of a French change of tack.


Italy presses Germany for more crisis flexibility
Chicago Tribune
MORE ACTIVE ECB ROLE Speaking at the same conference, Bank of Italy Director General Fabrizio Saccomanni called for the European Central Bank to be more active in fighting the euro zone crisis, a rare push by one of the bloc's central bankers that ...

Brent holds above $113, Greece payment eases euro zone fears
Euro zone govts agree to 5.2 bln euros payment to Greece * US crude stocks up 3.65 mln bbls last week - EIA By Francis Kan SINGAPORE, May 10 (Reuters) - Brent crude held steady above $113 on Thursday, as news that Greece will receive its latest debt ...

Euro Lifts Off Lows, as Euro Zone Stress Abates
"We're entering a new chapter of concern for the euro zone and it's not one that can be resolved in the near future," said Tom Levinson, currency strategist at ING, who expected sellers to stamp out any short-covering rallies in the common currency.


Markets ready for Greece exit from euro zone
A: The market volatility is understandable from the potential destruction from Greece and worries about contagion effects that could have on other countries. The markets are in term with the developments. Q: Is the market preparing for Greek exit?

The Coin Analyst: The Euro Crisis, Currency Wars, and the Outlook for Precious ...
CoinWeek (blog)
By Louis Golino on May 10, 2012 9:20 AM by Louis Golino for CoinWeek Many analysts regularly predict the break-up of the euro zone and even of the European Union, but in reality neither development is likely, especially in the near future.

CoinWeek (blog)

Euro zone approves Greek emergency payment, elections impasse continues
Buenos Aires Herald
Euro zone governments kept Greece afloat after agreeing a payment of 5.2 billion euros (4.17 billion pounds) from the region's bailout fund, despite opposition from some member states following the Greek election results.

Hollande won't let Berlin deter his growth drive
Hollande met Eurogroup President Jean-Claude Juncker in Paris as he tries to rally European partners to support his push to change the focus of euro zone policy. The Socialist will travel to Germany on Tuesday hours after his inauguration as president ...

Economist's View: "From Financial Crisis to Stagnation"
By Mark Thoma
The heterodox view: From Financial Crisis to Stagnation: The Destruction of Shared Prosperity and the Role of Economics, by Thomas Palley: Many countries are now debating the causes of the global economic crisis and what should be done ...
Economist's View

China Stops Buying Eurozone Debt
By Chuck Butler
Chuck Butler discusses China's decision to stop buying Eurozone debt alongside various currency moves against the US dollar and the prices of oil and gold.
The Daily Reckoning

How Germany Ate the Eurozone - Blogging Blue
By Phil Scarr
It wasn't profligacy by the Eurozone periphery, it was the massive trade imbalances created by cheap credit in the periphery and the export engine of the Germans. Germany's economy was driven by extracting cash from the periphery. Nothing ...
Blogging Blue

By Lance Roberts
The battle lines have been drawn as the next evolution of the crisis in the Eurozone will likely be determined in the next 12-18 months as austerity runs up against the socialist agenda. The problems are real and the solutions are evident.

Specter of Greek exit from eurozone emerges in Brussels | Brèves ...
By Deutsche Welle
With Greece struggling to form a government and the winner of recent elections calling for an end to austerity, officials in Brussels are starting to discuss what they long feared: a Greek exit fro...
LEAP 2020

Goldman Sachs' Eurozone Exposure Revealed - Business Insider
By Lisa Du
Comparatively, GS has decreased their PIIGS exposure quite a bit compared to last year. The bank had a gross exposure of $3.43 billion compared to $4.16 billion last year. Net exposure was $1.58 billion, compared to $2.46 billion as of ...
Business Insider

Eurozone Crisis: The ECB's Long-Term Refinancing Operation Has ...
By Ron Rimkus, CFA
Since the European debt crisis began some three years ago, it has taken many twists and turns. In December of 2011, the European Central Bank (ECB) initiated the Long-Term Refinancing Operation (LTRO) — which is the European ...
Enterprising Investor

Bond market vigilantes rule across the eurozone « Charles Rowley's ...
By charlesrowley
Bond market vigilantes rule across the eurozone. Voters across much of the eurozone – France, Portugal, Italy, Spain, Ireland and Greece in particular – may be venting their wrath against the strictures of fiscal austerity. They may truly believe ...
Charles Rowley's Blog

Euro zone split as Germany dynamic, France weak: OECD | Reuters ...
By Newswires
(Reuters) - Economic activity in the euro zone is diverging, with Germany leading a group of economies showing slightly more positive signals while France ...
The Wall Street Examiner

XE.com - UPDATE 2-Norway's national fund cuts euro zone debt ...
Norway's $610 billion oil fund has cut its exposure to euro-denominated debt to below 39 percent of its overall bond holdings, the fund told Reuters on Thursday.
XE Forex News

Greek Political Turmoil Raises Concerns of Eurozone Exit | Europe ...
The political turmoil in Greece over the creation of a coalition government is raising concerns anew that the country could become the first to exit the 17- nation ...

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