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

Wednesday, June 13, 2012

Euro zone bailout for Spain - the technicalities

Euro zone bailout for Spain hobbled by technicalities
Reuters
While a positive move in principle, the euro zone's offer to lend Spain up to 100 billion euros ($125 billion) to recapitalize its banks could even worsen its problems because of growing doubts about the wisdom of holding Spanish debt.

Debt crisis: Spanish borrowing costs hit euro-era high - Telegraph: "Spain's borrowing costs hit their highest peak since the birth of the euro, as bond markets punished eurozone sovereigns amid continuing concerns over Madrid’s bail-out and a Greek exit." 

Debt crisis: Bundesbank scuppers all talk of EU banking union - Telegraph: "Germany's central bank has shot down EU proposals for a European banking union, warning categorically that eurozone liabilities cannot be shared without a fundamental shift towards fiscal and political union." 

IMF's Lagarde urges euro zone to take "decisive steps"
Reuters
WASHINGTON (Reuters) - The head of the International Monetary Fund called for "decisive steps" by European policymakers to deal with the region's financial crisis and said carbon taxes could deliver more revenues for countries worldwide with budget ...

Fears rise over EU handling of debt crisis
Financial Times
The yield on Spanish benchmark 10-year debt hit 6.8 per cent just days after eurozone finance ministers agreed a €100bn bailout package for the country's banks. The move was accompanied by rising bond yields in countries deemed less risky, ...

Euro zone mulls 'Grexit' capital control
Business Standard
European finance officials have discussed limiting the size of withdrawals from ATM machines, imposing border checks and introducing euro zone capital controls as a worst-case scenario should Athens decide to leave the euro.

Eurozone concerns weigh on sentiment
Financial Times
But sharply rising eurozone “peripheral” sovereign bond yields speak to the market's nervousness that Madrid's €100bn may not be sufficient to address the bloc's chronic debt crisis. Spain's 10-year bond yields have hit a euro-era record above 6.8 per ...

Hamish McRae: Eurozone's in turmoil. Everywhere else in limbo
The Independent
The eurozone mess has got even worse. We have had Spain's approach to the eurozoneauthorities for a bailout of the banks and we know that help in some form will be forthcoming because it has to be. But the early signs are that there will have to be a ...

Greece eurozone exit script denied
The Independent
The European Commission denied today that it was preparing a "script" for Greek exit from theeurozone. In the build up to a crucial Greek general election vote on Sunday which could decide the country's financial future in the euro club, ...

Eurozone crisis live: Spanish bond yields soar as bailout gets thumbs down
The Guardian
In its latest financial stability review it said eurozone tensions had risen since April but were lower than at the end of last year. It saw three key risks: falling bank profits; excessive deleveraging by banks; and a potential aggravation of the debt ...

The Guardian

Euro zone crisis hitting air transport-BAA
Reuters
"The impact of the euro zone crisis is still being felt with sharp falls in passenger numbers to the worst affected countries and reduced cargo traffic," said BAA chief executive Colin Matthews. Last week's bailout of Spain's banks, beset by bad debts ...

EU 'could limit withdrawals from ATMs' if Greek exit tips eurozone into crisis
Daily Mail
By Adrian Lowery European Union officials have discussed measures to stop mass withdrawals from cash machines, a report claimed today, if a Greek exit were to tip the eurozone into a deeper crisis. Finance officials have also discussed imposing border ...

Daily Mail

Germans wary of financial burden they bear for rest of euro zone
Globe and Mail
Any solution to the euro crisis – which this weekend pushed Spain to ask for a continent-wide rescue for its banks – will be expensive for Germany, though nowhere near as expensive as the collapse of the euro or one of its larger member states.

Globe and Mail

Euro zone worries limit gains in euro, shares
CNBC.com
LONDON (Reuters) - European shares and the euro edged higher in choppy trading on Tuesday as reports of official preparations for a possible Greek exit from the euro zone and rising skepticism over the Spanish bank bailout plan limited demand for ...

ECB Says Euro Zone Needs Banking Union
Wall Street Journal
By BRIAN BLACKSTONE FRANKFURT—The European Central Bank repeated its call for a common banking union to shore up the euro zone's financial system, even as Germany's central bank warned such proposals are "premature" and risky. The ECB's No.

Euro zone crisis hitting air transport: BAA
Chicago Tribune
LONDON (Reuters) - Economic turmoil in the euro zone is hitting air transport, with fewer people travelling and less cargo moved between Britain and crisis-hit nations like Greece and Spain, British airports operator BAA said on Tuesday.

EU: Greece Contingency Talks Exist, But No Exit Plan
Wall Street Journal
By Frances Robinson BRUSSELS--Discussions are taking place within the European Commission on contingency plans for a Greek exit from the euro zone, a spokesman for the European Commission said Tuesday, but he denied that an actual exit plan exists.

How do mothers cope with the euro crisis?
BBC News
By James Melik Reporter, Business Daily, BBC World Service Politicians have been struggling to find a permanent solution to the financial crisis afflicting the eurozone, and have yet to come up with one that all the member states can agree upon.

BBC News

Oil weakens with euro zone crisis, ample supplies
Reuters India
By Julia Payne | LONDON (Reuters) - Crude oil futures fell close to $97 a barrel on Tuesday, extending losses on fears the euro zone debt crisis will worsen and hurt the global economy, threatening demand growth, while OPEC is seen likely to keep ...

Fitch: Disorderly Greek Euro-zone Exit Could Hurt Core Countries
Fox Business
Core euro-zone countries may have to increase their spending to help more indebted countries to limit contagion effects were Greece to leave the euro, a senior director at Fitch Ratings said Tuesday, ahead of key elections this weekend that are likely ...

Euro Zone Won't Break Up, but It's in for a Rough Time – Ghosn
Wall Street Journal (blog)
By Chana R. Schoenberger The euro zone's monetary union will stick together through the current turmoil, but the next three to four years will be difficult economically for the region, said Carlos Ghosn, the chief executive of auto makers Renault and ...

EC preparing secret plans for Greek euro exit
Telegraph.co.uk
Legal advice on capital controls, including limits on withdrawals from Greek bank accounts, and emergency border restrictions, has been provided by the European Commission to eurozone governments drawing up plans for Greece to leave the euro.

Telegraph.co.uk

Eurozone's banking union blown up
BBC News
The thing about a formal banking union for the eurozone, of the sort recommended by Jose Manuel Barroso, President of the European Commission, is that it is a covert or backdoor form of fiscal union (see today's FT for more on this).

European financial crisis tempers gold price gain
BusinessWeek
By SANDY SHORE The price of gold rose slightly Monday after a rescue loan for Spain did little to alleviate investor concerns about a long-term solution to Europe's financial crisis. Gold for August delivery topped $1600 an ounce early Monday but ended ...

Oil down on global impact of eurozone crisis
Reuters
Optimism over a bailout for Spain's troubled banks faded because of concerns about the package's impact on public debt, while uncertainty surrounding elections in Greece on Sunday compounded worries the financial crisis in Europe will deepen.

Financial crisis erases two decades of accumulated prosperity of US families
Economic Times
WASHINGTON: The recent financial crisis left the median US family in 2010 with no more wealth than it had in the early 1990s, erasing almost two decades of accumulated prosperity, the Federal Reserve said Monday. The median family, richer than half of ...

I will keep Greece in the eurozone and restore growth
Financial Times
By Alexis Tsipras Lest there be any doubt, my movement – Syriza – is committed to keeping Greece in the eurozone. President Barack Obama was right when he said last Friday: “Let's do everything we can to grow now, even as we lock in a long-term plan to ...

Eurozone crisis: Global euphoria over Spanish bank bailout fizzles out
Economic Times
The deal, struck by eurozone finance ministers over the weekend, was also seen as a temporary solution that does not address the question of how to kick-start growth in theeurozone's fourth-largest economy. "This is a classic case of the market ...

Nikkei retreats as euro zone doubts creep back in
Reuters
The benchmark index rose 2 percent on Monday as investors welcomed the euro zone'sdecision to provide Spain with 100 billion euros to shore up its banks, but the euphoria was short-lived. " Yesterday was just a quick rebound driven by day traders who ...

Euro zone crisis dents BAA airport traffic
Reuters UK
LONDON (Reuters) - British airports operator BAA said the euro zone crisis had dented traffic numbers from UK airports to Greece, Spain and other European countries suffering worsening economic conditions. The owner of London Heathrow - Europe's ...

OpEdNews - Article: Contagion Affects Europe
Europe keeps sinking deeper into financial crisis. Eurozone straightjacket rules force 17 dissimilar countries to live by one size fits all diktats. Flawed planning preordained eventual disaster.
OpEdNews

Denmark and Norway were the PIIGS of the Scandinavian Currency ...
By Lars Christensen
As the euro crisis continues speculation of an eventual break-up of the euro also continues. There are numerous examples in monetary history of currency unions breaking up. One is the breakup of the Scandinavian Currency Union in 1924.
The Market Monetarist

Blogoir: Appalling Eurozone Analysis
We mere voter-taxpayer drones have no real idea of what is needed to save the Eurozone or indeed us, given the startling multi-dimensional mess the whole system has created. Suffice to say that those who got us into the mess want to be ...
blogoir

Eurozone Unsettled Through This Week - Zacks.com
By Sheraz Mian
Are we seeing a vote of no confidence in the size and nature of the deal itself or a reflection of the lack of details that the market craves?
Zacks Investment Research - All...

Financial Crisis in “real time” – U.S. media silent « Northeast ...
By Director
Oh, and you haven't seen network news coverage about the rioting in Spain due to their financial crisis? Economist Hal Dunham, a guest on hour two of last night's Hagmann & Hagmann Report, just returned from Europe on business but ...
Northeast Intelligence Network

Forex - NZD/USD higher, euro zone worries remain By Forexpros
By Forexpros
Forexpros - The New Zealand dollar was higher against its U.S. counterpart on Tuesday, after positive New Zealand house price data, but the kiwi remained under pressure as optimism linked to Spain's financial bailout continued to wane.
Forex Pros RSS News Feed | Forex News

CHART: Eurozone Bailouts Are Horrible At Lowering Local ...
By Sam Ro
Indeed, 3 of the last 4 eurozone bailout announcements were followed by an extended period of higher interest rates relative to the German rate. From Thomson Reuters chart god Scott Barber: euro bailout. Scott Barber / Thomson Reuters ...
Business Insider

Mexico: Expect Action on Euro Crisis at G20 Summit – ABC News ...
By Newswires
Al-Arabiya Mexico: Expect Action on Euro Crisis at G20 SummitABC NewsMexican President Felipe Calderon says leaders of the world's largest economies wi...
The Wall Street Examiner

NetRight Daily » Contagion
By Bill Wilson
No More Bailouts By Bill Wilson — All hopes that the European sovereign debt crisis might be contained to the periphery were dashed on June 10 as European leaders agreed to a €100 billion bailout loan to Spain to recapitalize its banks.
NetRight Daily

Now Show Eurozone analogy: “Not the Englishman, they had a row ...
By Mick Fealty
If the Eurozone crisis consistently confounds you, here's a great extended analogy from this week's Now Show on BBC Radio Four… It breaks off before the end, but it is great nonetheless… Tags: Comedy, eurozone, eurozone crisis ...
Slugger O'Toole

XE.com - Swiss see better 2012 growth, euro crisis risk
The Swiss government raised its 2012 growth forecast on Tuesday, saying robust domestic demand was helping to offset the ill effects of the strong franc on exports, though a worsening of the euro zone crisis had the potential to hamper ...
XE Forex News

Dutch FinMin: Situation in euro zone far from stable | ForexLive
By Jamie Coleman
There is considerable urgency Tell it like it is, brother De Jagaer.
ForexLive

George Osborne: Britain's economic recovery is being killed by euro ...
"The solution in the eurozone doesn't have to be a full-blown United States of the Eurozone, but if it is to be successful it is likely to include most of the ...
www.guardian.co.uk/.../osborne-euro-crisis-killing-economy

Who Will Take First Swing at Euro Crisis—Fed or ECB? - US - CNBC
Traders are handicapping which central bank will come out swinging first — and the odds right now are not on the European Central Bank.
www.cnbc.com/.../Who_Will_Take_First_Swing_at_Euro_Cri...

Mort Zuckerman: Can the Eurozone Survive? - Yahoo! Finance
From Yahoo! Finance: Europe stands on the edge of an abyss, its most dangerous financial crisis since the 1930s. Greece, Spain, and Italy are the closest to ...
finance.yahoo.com/.../mort-zuckerman-eurozone-survive-171...

3 Eurozone Stocks That Aren't as Scary as You Think (SI, TEF, TOT)
The Motley Fool - The troubles in the eurozone are dominating the news, but it may be time to take a closer look at these three European stocks.
www.fool.com/.../3-eurozone-stocks-that-arent-as-scary-as-yo...

Eurozone crisis: India prepares 'contingency plan' - The Times of India
Manmohan Singh's govt blames Europe's woes for the slowdown in Asia's third- biggest economy, although economists say Indian policy inertia is also to blame.
timesofindia.indiatimes.com/articleshow/13851435.cms

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