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

Tuesday, July 31, 2012

ECB intervention hopes drive markets

Debt crisis: ECB intervention hopes drive markets higher - Telegraph: "European markets rose sharply amid mounting speculation of a dramatic intervention by the European Central Bank to arrest the crisis engulfing the region."

Spanish bail-out 'impossible’, experts warn - Telegraph: "A full-blown sovereign bail-out of Spain would be economically and politically impossible and cost up to €650bn (£510bn), an in-depth study has warned."

Germans 'better off without euro' - poll - Telegraph: "The majority of Germans believe the country would be better off without the euro, a poll suggested on Sunday, as the economy minister reiterated doubts over whether Greece can stay in the single currency."

GRAPHIC-Euro zone cross border bond holdings stable in Q2
Reuters
LONDON, July 30 (Reuters) - Euro zone banks' cross-border holdings in the region's bonds stabilised in the second quarter near their lowest levels in a decade, as the effects of the European Central Bank's one trillion euro long-term funding injection wore off.

No respite for battered euro zone economy
Reuters
BRUSSELS (Reuters) - Economic sentiment in the euro zone fell to near a 3-year low in July as the bloc's economy deepened its slump and businesses became more pessimistic. The 2-1/2 year debt crisis that spread from Athens - now struggling to stay in ...

Enter the ECB
Forbes
Despite these apparent limitations, the ECB has become a central figure in the crisis-fighting measures in the Eurozone sovereign debt crisis. The ECB first intervened in the market through the SMP, through which the ECB used existing funds to purchase ...

RPT-Euro zone crisis heads for September crunch
Reuters
Summer break first, then crisis looms large again. * Euro zone faces critical hurdles including Greece, Spain. * Dutch elections may complicate Greek talks. * Negotiations likely on further Greek debt write off. * Continued pressure for banking licence for bailout ...

Draghi must find way for eurozone's central bank to deal with crisis while ...
Washington Post
FRANKFURT, Germany — European Central Bank president Mario Draghi has already taken Europe's monetary authority into uncharted territory. Now, with the debt crisis in Europe threatening further disaster, he may have to push it even farther into the ...

No respite for euro zone as confidence falls again
Reuters
Morale weakens for fourth straight month in July. * Economic sentiment falls in Germany, France, Spain. BRUSSELS, July 30 (Reuters) - Economic sentiment in the euro zone fell again in July as the bloc's economy deepened its slump and factory managers ...

US, Germany Stress Cooperation to End Euro Crisis
ABC News
U.S. Treasury Secretary Timothy Geithner and his German counterpart stressed the need for coordinated action Monday in the face of the eurozone debt crisis and faltering global growth, but left open what joint steps Europe and the United States would take ...

Why a Euro-Zone Crisis Can't Be Avoided Very Much Longer
TIME
No one doubts that the ECB can provide short-term support for euro-zoneeconomies. But even so, most forecasters believe that the euro zone is heading for a crisis. And whatever form that crisis takes, the impact on the U.S. would be negative. So why did the ...

TIME

Eurozone crisis: strong rally falters as euro loses ground
The Guardian
The strong rally in Europe's financial markets in the wake of the European Central Bank's pledge to save the euro showed signs of running out of steam on Monday as investors raised doubts about the ability of the Frankfurt-based organisation to deliver on its ...

The Guardian

Geithner visit stirs hope for Eurozone | The Raw Story
By Agence France-Presse
The top US finance official meets his German counterpart and the head of the European Central Bank Monday, fueling hopes Europe is about to take decisive action to save the crisis-wrackedEurozone. US Treasury Secretary Timothy ...
The Raw Story

Euro crisis: Growing up hungry in Greece | MinnPost
By By Thodoris Skoulis and Charles McPhedran
ATHENS/PATRAS, Greece — Μarcos Efcarpos is only 10 years old, but he already knows what the euro crisis means.He lives with his single mother, an English teacher named Nena, in an apartment in the poor, waterfront neighborhood of ...
The Latest posts on MinnPost

Ryanair expects eurozone crisis to curb fare rises - Travel ...
Budget airline admits that fare increases will be 'restrained' this winter due to spending cuts and the eurozone crisisRyanair has admitted that fare increases will be "restrained" this winter due to spending cuts and the eurozone crisis, as the ...
eWallstreeter

Eurozone Confidence Weakens in July - 24/7 Wall St.
By Trey
orgThe European Commission announced today that its July economic sentiment indicator for the 17-nation eurozone fell to 87.9 from 89.9 in June. Economists surveyed by Dow Jones Newswires had forecast a reading of 88.9. The consumer ...
24/7 Wall St. - Market Wire

Mish's Global Economic Trend Analysis: Eurozone Retail Sales Sink ...
By Mike Mish Shedlock
Mish's financial blog covers global news and macroeconomic events regarding the world economy. The blog's primary focus is inflation, deflation, and hyperinflation topics, especially currencies, gold, silver, crude, oil, energy and precious ...
Mish's Global Economic Trend Analysis

Eurozone crisis knocks Greek tourist trade | World news | The ...
Tourism makes up 16.5% of the Greek economy, the largest single contributor with one in five Greeks employed the sector.
www.guardian.co.uk/.../eurozone-crisis-greece-tourist-trade

Monday, July 30, 2012

Euro zone crisis heads for September crunch

Euro zone crisis heads for September crunch
Reuters
BRUSSELS (Reuters) - Over the past couple of years, Europe has muddled through a long series of crunch moments in its debt crisis, but this September is shaping up as a "make-or-break" month as policymakers run desperately short of options to save the ...

ECB could take haircut on Greek bonds in 'last chance' plan - Telegraph: "Central banks across Europe are facing more huge losses under the terms of last-ditch efforts being made by EU authorities to keep Greece in the eurozone by slashing the country’s debt exposure." 

Only Mario Draghi's ECB can avert global calamity before the year is out - Telegraph: "Mario Draghi has promised the moon. The European Central Bank’s council had better deliver on his pledge this week. If it does not, the crisis will surely escalate out of control in August or soon after." 

Debt crisis: Germany's Angela Merkel and Italian PM Mario Monti vow to protect euro - Telegraph: "German Chancellor Angela Merkel and Italian Prime Minister Mario Monti have agreed to do everything to protect the euro zone and swiftly implement measures agreed by EU leaders in June."

Juncker: Euro zone leaders, ECB to act on euro - paper
Reuters
BERLIN/PARIS (Reuters) - The euro zone is at a decisive point and leaders will work with the European Central Bank (ECB) to demonstrate their commitment to the stability of the single currency, Eurogroup head Jean-Claude Juncker said in interviews with ...

Merkel and Monti pledge to do everything to protect euro zone
Reuters
BERLIN (Reuters) - German Chancellor Angela Merkel and Italian Prime Minister Mario Monti will do everything to protect the euro zone and swiftly implement measures agreed by European leaders in June, their governments said in a statement on Sunday.

Merkel, Monti: will do all to protect eurozone
Boston.com
BERLIN (AP) — The German and Italian leaders have pledged to do everything to protect theeurozone, adding to a string of assurances over recent days that Europe is determined to get a grip on the continent's debt crisis — but their governments again gave ...

Juncker: eurozone has no time to lose
Austin American-Statesman
FILE - In this July 4, 2012 file picture German Chancellor Angela Merkel, left, talks with Italian Premier Mario Monti during a bilateral meeting at Villa Madama in Rome. The German and Italian leaders have pledged to do everything to protect theeurozone, ...

Austin American-Statesman

Eurogroup chair sees decisions soon in debt crisis
Huffington Post
BERLIN — The German and Italian leaders issued a new pledge to protect the eurozone, while the influential eurogroup chairman was quoted Sunday as saying that officials have no time to lose and will decide in the coming days what measures to take.

Juncker: eurozone has no time to lose
Atlanta Journal Constitution
The German and Italian leaders have pledged to do everything to protect theeurozone, their governments said Sunday July 29, 2012 - further underlining European politicians' determination to get a grip on the continent's debt crisis, but again offering no ...

Atlanta Journal Constitution

Ireland Still Needs Euro-Zone Deal, Official Says
Wall Street Journal
DUBLIN—Ireland will need some sort of euro-zone deal to relieve its huge banking debts for it to make further progress toward securing a permanent return to capital markets, the head of the National Treasury Management Agency, the country's debt office, ...

Merkel, Monti: will do all to protect eurozone
Daily Herald
The German government says Chancellor Angela Merkel and Italian Premier Mario Monti have agreed they will do everything to protect the eurozone, and Monti will visit Berlin next month. Government spokesman Georg Streiter said Merkel spoke by phone ...

Uganda Ebola outbreak: patients flee hospital amid contagion fears :
By BobTuskin
The Guardian July 29, 2012. Ebola outbreak in Uganda claims at least 14 lives as health officials battle to stem spread of deadly virus. Terrified patients fled from a hospital in western Uganda as soon as news broke that a mysterious illness ...

Germany, France vow to do 'protect eurozone' - Daily News Egypt
By Daily News Egypt
Berlin (AFP) — The leaders of Germany and France threw their political support Friday behind ECB chief Mario Draghi's vow to do “everything” to protect the eurozone, after another brutal week of market turmoil. German Chancellor Angela ...
Daily News Egypt

Merkel Monti will do all to protect eurozone - St Louis - eWallstreeter
The German and Italian leaders have pledged to do everything to protect the eurozone, the German government said Sunday _ further underlining European politicians' determination to get a grip on ... Continue reading this article » ...
eWallstreeter

Eurozone crisis live: Mario Draghi vows to save the eurozone ...
José Manuel Barroso, European commission president, is in Athens to discuss Greece's progress with prime minister Antonis Samaras, while Mario Draghi and ...
www.guardian.co.uk/.../eurozone-crisis-greece-bailout-barroso

Saturday, July 28, 2012

Germany and France determined to protect eurozone

Germany, France: determined to protect eurozone
San Francisco Chronicle
FILE - In this May 15, 2012 file photo, German Chancellor Angela Merkel, left, talks to new French President Francois Hollande in Berlin. Merkel and Hollande said in a joint statement issued by the German government Friday, July 27, 2012 that their countries ...

San Francisco Chronicle

German, French leaders say they're determined to protect the eurozone, but offer ...
Washington Post
“Germany and France are deeply committed to the integrity of the eurozone,” the two leaders said in their statement. “They are determined to do everything to protect the eurozone.” To achieve that, they added, eurozone members and European institutions ...

Merkel, Hollande vow to 'do everything to protect' the euro
Los Angeles Times
After a telephone conference, German Chancellor Angela Merkel and French President Francois Hollande issued a statement reiterating their countries' commitment to “the integrity of theEurozone,” the 17 nations that use the euro. But the two leaders offered ...

Bundesbank Maintains Opposition to ECB Bond Buying
Wall Street Journal
German Chancellor Angela Merkel and French President Francois Hollande stressed Friday that they will "do everything" to defend the euro zone and urged all European institutions to "fulfill their obligations," as reports in the French press suggested the ...

S&P stands firm on Britain's triple-A rating - Telegraph: "Although Chancellor George Osborne will welcome the confirmation of Britain's top rating, he faces pressure both to get the economy expanding again as he sticks to the government's deficit-reduction plan." 

America's growth slows as consumer spending cools - Telegraph: "America’s economy slowed in the second quarter as consumers chose to increase their savings in the face of a deteriorating jobs market."

FOREX-Euro rallies after Merkel, Hollande vow support
Reuters
NEW YORK, July 27 (Reuters) - The euro climbed to a three-week high against the dollar on Friday as German Chancellor Angela Merkel and French President François Hollande spoke of their readiness to do anything to safeguard the euro zone. "Germany ...

Treasury Bonds Sell Off on Euro-Zone Hopes, US Data
Wall Street Journal
By Min Zeng. Treasury bonds suffered a broad selloff Friday as soothing words from several key policy makers in the euro zone encouraged investors to flock into stocks. Hopes of new policy actions rose after European Central Bank President Mario Draghi ...

US Stocks Surge on Report of Euro-Zone Plan
Wall Street Journal
European Central Bank President Mario Draghi is working to win over European policy makers on a plan to strengthen the euro zone's financial health, Bloomberg reported, citing two central-bank officials. The U.S. stock rally accelerated on the news, which ...

Dollar Slides Against Euro
Wall Street Journal
The Bundesbank on Friday said it remained opposed to any further bond purchases by the ECB but would be fine with purchases by the euro zone's rescue funds, Dow Jones Newswires reported. "If the better sentiment on the single currency is going to have ...

Germany, France Determined to do Everything to Protect The Euro Zone
Wall Street Journal
BERLIN--German Chancellor Angela Merkel and French President Francois Hollande on Friday pledged to do their utmost to protect the euro zone and said they were deeply committed to the integrity of the currency bloc. "Germany and France are deeply ...

Eurozone crisis live: Fresh hopes of ECB action cheer markets - as it happened
The Guardian
Speaking of Draghi...a story has hit the wires tonight that the ECB president will hold talks with Jens Weidmann (president of the Bundesbank) in the 'coming days' to hammer out a new raft of measures to address the crisis. According to Bloomberg News, ...

The Guardian

A novel take on the financial crisis - Fortune Features
By Fortune Editors
Fiction is sometimes better than fact. A review of A Fatal Debt, John Gapper's novelization of the fall of Wall Street. By Katie Benner, writer FORTUNE -- Few real-life events have produced as many villains, intriguing plot twists, and surprise ...
FORTUNE Features

Hitchhiker's guide to the intergalactic financial crisis | MacroScope
By Pedro da Costa
The opening passage of Hitchhiker's Guide to the Galaxy, Douglas Adams' cult book, is remarkably apropos for a world caught in seemingly perennial financial crises and turmoil.
MacroScope

JOHN TAYLOR: The Euro Crisis Is Only In The Second Or Third ...
By Matthew Boesler
Taylor said the world has only seen the "second or third inning" of the euro crisis because Europe is still only dealing with liquidity problems – not to mention the solvency problems and the "structural issues that are even beyond solvency" that ...
Business Insider

Euro Crisis Watch: Spain fire fighting on many levels | Video - Reuters
Euro Crisis Watch: Spain fire fighting on many levels (4:27). July 23 - As emergency workers tackle wild fires in Spain so investors are fighting fires on the ...
www.reuters.com/.../euro-crisis-watch-spain-fire-fighting-on?...

Greece back in euro zone spotlight | Video | Reuters.com
Greece has been thrust back into the euro zone spotlight, as the country prepares for international lenders to arrive in Athens. German politician, Alexander ...
www.reuters.com/video/.../greece-back-in-euro-zone-spotlight...

Friday, July 27, 2012

Sceptics abound on Mario Draghi's ECB bond 'bluff'

Sceptics abound as Mario Draghi's ECB bond 'bluff' electrifies global markets - Telegraph: "The euphoria is unlikely to last long unless the ECB comes through with concrete action after its pre-holiday meeting next week. Angel Gurria, head of the OECD, honed in on Mr Draghi's caveat, saying the legal constraints are the nub of problem. The ECB must "explore the flexibility of its mandate", he said. Others were blunter. Marc Ostwald from Monument Securities said Mr Draghi's words were "cheerleading bluster", while Gary Jenkins from Swordfish called them "a bluff to get through the summer". "Spain is very close to the precipice, and its pretty much game over already, " said Mr Jenkins. "Today's action was a short-covering rally. The real trick is get bond investors to come in alongside the ECB, and that is much harder." Markets have become sensitive to the risk of "subordination" after the ECB and other EU bodies refused to take losses on holdings of Greek debt. Private creditors suffered bigger haircuts as a result."

FOREX-Euro soars as ECB's Draghi pledges to save euro zone
Reuters
Euro rises 1 percent to two-week high versus dollar * ECB head: Will do whatever needed to save euro * Analysts wary of euro rally, Spanish yields near 7 pct By Wanfeng Zhou NEW YORK, July 26 (Reuters) - The euro headed for its best day against the ...

Loan, Deposit Data Underline Euro-Zone Split
Wall Street Journal
FRANKFURT—The European Central Bank cast more gloom over the euro zone's outlook Thursday, announcing another fall in lending to the private sector in June, as well as signs of increased deposit withdrawals from troubled banks in southern Europe.

Irish Minister: Confident of Euro-Zone Bank Debt Deal
Wall Street Journal (blog)
By Eamon Quinn. Ireland's Minister for European Affairs Lucinda Creighton said Thursday the government's plan to hold its first bond auction since its international bailout in 2010 shows growing confidence it will get some sort of break from the euro-zone to ...

US Stocks Join Global Rally as Draghi Hints Euro-Zone Support
Wall Street Journal
NEW YORK--Investors cheered comments from Europe's central bankers that showed support for the euro zone, driving stocks sharply higher and pushing down Treasury prices. The Dow Jones Industrial Average ran up 197 points, or 1.6%, to 12872 in ...

OIL FUTURES: Crude Rises on Defense of Euro Zone by ECB President
Wall Street Journal
Mr. Draghi's comments may indicate the ECB's willingness to restart bond purchases as Spanish government bond yields have hit all-time highs recently and Italy is facing contagionfrom that. Or he could be indicating that some other measures are in the ...

Euro zone banking union proposal seen in September: Barroso
Reuters
ATHENS (Reuters) - A proposal for a banking union in the euro zone will be made in early September, European Commission President Jose Manuel Barroso said on Thursday. "The Commission is working intensively towards the creation of a banking union.

US Stocks Surge as Draghi Calms Euro-Zone Fears
Wall Street Journal
NEW YORK--Europe's top central banker sparked a global rally in stocks after reassuring investors the Continent's central bank would be vigilant about holding together the euro zone. The Dow Jones Industrial Average futures recently climbed 206 points, ...

Which airports are more likely to spread contagion?
CBS News
(CBS News) Warning: If you're traveling through any of the airports listed below, you might want to bring some hand sanitizer and wash your hands frequently. A computerized model created by the Massachusetts Institute of Technology's department of civil ...

CBS News

US SMALL/MIDCAPS-Stocks rally after Draghi's euro-zone comments
Reuters
NEW YORK, July 26 (Reuters) - Mid- and small-cap stocks rallied on Thursday following comments from the European central bank chief that indicated aggressive actions would be taken to protect the euro zone from collapse. European Central Bank ...

US Stocks Rally as Draghi Affirms ECB Will Shore Up Euro Zone
Wall Street Journal
By Chris Dieterich. NEW YORK--Europe's top central banker sparked a stock rally after reassuring investors the Continent's central bank would be vigilant about holding together theeuro zone. The Dow Jones Industrial Average climbed 169 points, or 1.3%, ...

MPC keeps powder dry for worsening euro-zone crisis - The Nation
MPC keeps powder dry for worsening euro-zone crisis. The Bank of Thailand's Monetary Policy Committee, by keeping the key interest rate unchanged at 3 per cent, is saving its ammunition for worse to...
NationMultimedia.com - Business

Eurozone split close: Voice of Russia
By Sarah Johnston
Europe is sleepwalking into imminent disaster and unless there is a drastic change of course, it faces collapse with 'incalculable economic loss and human suffering'. That is according to a report from 17 leading economists., Sarah Johnston.
Voice of Russia, News

Hedge Funds Euro Zone Returns
By Theo O'Brien
Hedge Funds Euro Zone Returns. ... Now, as the markets are certainly in turmoil over the Euro Zone crisis, there has yet to be a clear winner in the hedge fund industry. The Economist asks why. Dejected hedge-fund managers blame political ...
Hedge Fund Blogger.com

Euro crisis: “This time it's really, really serious…” « Slugger O'Toole
By Pete Baker
European Commission President José Manuel Barroso is off to Greece for “a regular meeting” with Prime Minister Antonis Samaras. His first visit to Athens since June 2009. Meanwhile, the rising cost of Spanish and Italian Government ...
Slugger O'Toole

Eurozone crisis: ECB's Mario Draghi pledges to do whatever it takes ...
European Central Bank President Mario Draghi pledged today to do whatever was necessary to protect the eurozone from collapse, including fighting unreasonably high government borrowing costs.
FP Top Stories List

Eurozone crisis live: Markets tumble amid fears over Spain and ...
Spanish and Italian stocks were down almost 5% this morning after bond yields hit dangerous levels.
www.guardian.co.uk/.../eurozone-crisis-spain-bond-yields1

Thursday, July 26, 2012

Eurozone break-up is the shock the UK needs?

Why a eurozone break-up is just the sort of shock the UK needs - Telegraph: " . . even assuming the figures are a reasonable reflection of underlying realities, there’s something faintly irrelevant about this moment-in-time snapshot of UK economic activity given the hurricane about to sweep in from the Continent. To his credit, George Osborne, the Chancellor, didn’t attempt to cite the eurozone crisis by way of excuse, even though it is at least some part of the problem. One of the many reasons businesses won’t invest and consumers won’t spend is because they think, almost certainly rightly, that a nuclear bomb is about to go off in the heart of Europe that will cause a Lehman-style collapse in trade and economic activity. Curiously, Britain seems to be more affected by anticipation of this disaster than the eurozone itself, which in aggregate isn’t contracting as fast. That’s partly because of our oversized banking sector, which remains joined at the hip to Europe’s deepening banking crisis . . ."

Spanish two-year yields hit euro-era high - Telegraph: "Spanish two-year bond yields spiked above 7pc for the first time in the euro era, but later retreated on hopes that the ECB will boost the region's bailout fund."

Debt crisis: Greece's bondholders could face more losses, says Berlin - Telegraph: "One of Angela Merkel's close allies has raised the prospect of another round of write-offs on Greece's debt obligations."

Euro crisis weighs on German business morale
Reuters
BERLIN (Reuters) - German business sentiment dropped in July to its lowest level in more than two years, adding to signs that Europe's largest economy is losing momentum along with its immunity to fallout from the region's deepening debt crisis.

George Osborne under attack as Britain's recession deepens - Telegraph: "George Osborne faced calls from business leaders to do more to kick-start Britain’s economy on Wednesday after official figures showed that the country has fallen into the worst double-dip recession for more than 50 years."

Euro exit beats begging bowl, says Spanish elder statesman - Telegraph: "The regional leader of Asturias in Spain has become the country’s first major figure to call for a radical change of strategy and exit from the euro, unless monetary union is fundamentally reformed."

Sentiment Data Point to Weakness at Euro Zone Core
Wall Street Journal
Data published Wednesday suggest economic weakness in the euro zone are penetrating the currency bloc's "core" of stronger countries at a time when these same states could be called upon to provide more aid to the euro-zone's weaker states. Germany's ...

Euro crisis brings world to brink of depression
MarketWatch
Euro crisis brings world to brink of depression. Darrell Delamaide's Political Capital. Commentary: Parallels to 1930s' missteps unmistakable. July 24, 2012|Darrell Delamaide. WASHINGTON (MarketWatch) — Europe is a tinderbox waiting for a spark.

German Ultra-Long Funding Cost at Record Low
Wall Street Journal
Germany locked in record-low borrowing costs at an ultra-long debt sale Wednesday, its first auction since Moody's Investors Service lowered its ratings outlook on the euro-zone'sbenchmark issuer, as German debt still remains the safest bet for many ...

EURO GOVT-Bunds fall on talk of stronger ESM, poor auction
Reuters
LONDON, July 25 (Reuters) - German government bonds fell on Wednesday after an auction of long-term debt drew weak demand and on signs that euro zone policymakers may be opening up to the idea of giving the bloc's permanent rescue fund a banking ...

A Euro-Zone Firefighter Downgraded (and other Woes)
National Review Online (blog)
The new Spanish woes coincided with an announcement from Moody's Investors Service on Tuesday night that it was cutting the outlook on its triple-A long-term rating for the EU's temporary bailout fund, the European Financial Stability Facility (EFSF) to ...

FELDSTEIN: The Best Solution For The Eurozone Is A Super Cheap Euro
Business Insider
A lower value of the euro would reduce the prices of eurozone exports and raise the cost of imports, reducing or eliminating the current account deficits of the peripheral European countries, since about half of their trade is with countries outside theeurozone.

Business Insider

European economic downturn gathers pace
Huffington Post
Meanwhile, surveys showed demand for loans remained weak across the 17-country eurozone, suggesting no economic recovery is imminent, and business confidence continued to fall in Germany, Europe's largest economy and its pillar of growth – so far.

Gold rallies on guarded euro-zone optimism
MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures rallied 2% on Wednesday as some optimism regarding the euro zone's debt crisis emerged. Gold for August delivery (CNS:GCQ2) rose $31.90 to settle at $1608.10 an ounce on the Comex division of the New ...

Eurozone's crisis and property bubble threaten China's economy ...
By RT
China's economic growth faces significant risks due to the worsening situation in the eurozoneand the country's reliance on investment, the International Monetary Fund warned in a report.
News RSS : Today

Euro Crisis – No More Safe Havens | The Big Picture
By Josh Rosner
Euro Crisis – No More Safe Havens · Email this post · Print this post. By Josh Rosner - July 25th,... Euro Crisis – No More Safe Havens · Will the ESM to be granted a banking licence? ECB open to a bank license? 10 Tuesday PM Reads · Fed ...
The Big Picture

End of the Euro Crisis? Don't Bet on it | PRAGMATIC CAPITALISM
By Guest
The EZ crisis is once again on the march; Spain and Italy are under pressure. This column argues that policymakers are likely to fall back once again on a failed approach to avoid admitting past errors. Ultimately, however, EZ leaders will ...
PRAGMATIC CAPITALISM

How A Country Rationally Exits The Eurozone - Wall Street ...
Is there a real chance of Spain getting rid of the Euro, and introducing the new pesetas? Gonzalo Lira on the subject. We are about to experience the Euro Exit Crisis. The whole point of exiting the eurozone is because a country no longer has ...
eWallstreeter

German fears over eurozone sharpen as confidence falls- Full Story ...
By Newswires
German fears over eurozone sharpen as confidence falls (via AFP) Storm clouds gathered over Europe's top economy Wedn...
The Wall Street Examiner

How Finland keeps its head above eurozone crisis | Business | The ...
Finland's economy is dominated by services but it is competitive in manufacturing – and its revenues are bigger than its debt.
www.guardian.co.uk/.../finland-triple-aaa-rating-moodys-euro...

Wednesday, July 25, 2012

Europe is sleepwalking towards imminent disaster, warn top economists

Europe is sleepwalking towards imminent disaster, warn top economists - Telegraph: "The euro has completely broken down as a workable system and faces collapse with “incalculable economic losses and human suffering” unless there is a drastic change of course, according to a group of leading economists."

Debt crisis: Greece to run out of money by August 20 - Telegraph: "Greece may run out of money and go bankrupt by Aug 20, a British government analysis of the ongoing eurozone crisis has warned."

Debt crisis: Spanish bailout fears escalate as Catalonia eyes rescue - Telegraph: "Catalonia became the latest region of Spain to indicate it may need a state rescue, raising fears that a full-blown sovereign bailout is inevitable."

Debt crisis: as it happened - July 24, 2012 - Telegraph: "Jose Manuel Barroso, head of the European Commission, will visit Greece for the first time since the start of the crisis on Thursday as the country's prime minister said the economy could shrink by more than 7pc this year."

Germany Brushes Off Warning Over Rating
New York Times
The flurry of sudden meetings added to the crisis atmosphere in the euro zone, amid signs that Greece will not be able to avoid bankruptcy and an exit from the euro zone without additional aid, which its European partners are increasingly unwilling to give.

Euro crisis brings world to brink of depression
MarketWatch
... approved by the national Parliament last week even as the economy continues to contract, has led to new riots in the streets, pushing the yields on Spanish bonds above the 7% level deemed manageable, and increasing the likelihood of contagion to Italy.

FOREX-Euro at over 2-yr low vs dollar on euro zone data, outlook
Reuters
German, euro zone PMI data weaker, dims euro outlook * Moody's changes German rating outlook to negative * Troika visits Athens to relaunch economic plan * Spain bailout fears grow as yields stay elevated By Gertrude Chavez-Dreyfuss NEW YORK, July ...

FOREX-Weak euro zone data, Spain worries knock euro
Reuters
LONDON, July 24 (Reuters) - The euro fell against the dollar on Tuesday after weak euro zonedata fuelled concerns about slowing growth, even in Europe's largest economies, and it looked likely to extend losses on concerns Spain may need a full bailout.

Euro-Zone Business Output Falls
Wall Street Journal
Business activity in the euro zone contracted for the sixth straight month in July, a closely watched survey showed, with powerhouse Germany weakening and the government in Greece now predicting an even deeper economic recession for this year.

Germany, Netherlands Rating Outlooks Cut to Negative by Moody's
Bloomberg
The risks in the euro zone are “not new” and Germany remains “in a very sound economic and financial situation,” the Finance Ministry said. In counterpoint to Moody's, it cited the verdict of financial markets that have rewarded Germany with record low ...

Bloomberg

Euro Continues to Fall
Wall Street Journal
The euro fell to a fresh two-year low against the dollar Tuesday after business activity data flagged the growing risk of recession in the euro zone and as worries about debt troubles in Greece and Spain lingered. Speculation over possible Japanese ...

Germany Pushes Back After Moody's Lowers Rating Outlook
Businessweek
Chancellor Angela Merkel's government said Germany will remain Europe's haven during thefinancial crisis, pushing back against Moody's Investors Service's decision to lower the outlook on the country's top credit rating. The risks in the euro zone are “not ...

In Euro Zone, Debt Pressure Tightens Grip
New York Times
Signs that cracks in the euro zone are widening sent markets on the Continent down sharply on Monday, as doubts grew about Greece's ability to make good on its debt payments and Spain's economy — the region's fourth largest — was straining under the ...

New York Times

Eurozone PMI Still Weak - 24/7 Wall St.
By 247wallst
Source: nationsonline.orgResearch firm Markit issued its PMI data for the eurozone for July. Most of the news was bad, although economists were heartened slightly by the fact that the core figure was no worse than in May. On the other hand, ...
24/7 Wall St. - Market Wire

Eurozone debt crisis a drag on recovery and Obama's campaign ...
By Peter Schroeder
The quick reaction in the markets indicates Europe will continue to be dead weight on the U. S..
Top News

Josh Rosner: Eurozone Crisis – No More Safe Havens « naked ...
By Yves Smith
Past Eurozone growth, particularly in Germany, did not come from meaningful improvements in productivity, but rather on the back of household wage reductions and industry-friendly reforms to the labor market – the Hartz reforms – which ...
naked capitalism

Eurozone Danger Mounts As Spain Spins Out Of Control - Business ...
By Ambrose Evans-Pritchard
El Confidencial said the Rajoy team was thinking of “putting on the table” a possible withdrawal from the euro, a dramatic escalation in the game of brinkmanship between the eurozone's Latin bloc and German-led creditor core. “We would ...
Money Game

Barroso to visit Greece as eurozone woes continue | European Voice
barroso to visit greece as eurozone woes continue commission president to discuss bail-out conditions with greek prime minister; spanish and italian borrowing costs continue to rise.
European Voice - RSS

Tuesday, July 24, 2012

Eurozone in danger as Spain spins out of control

Eurozone danger mounts as Spain spins out of control - Telegraph: "Spain is battling to avert a fully-fledged sovereign rescue after borrowing costs spiralled out of control, with dangerous knock-on effects in Italy and Eastern Europe. The yields on closely-watched two-year debt surged by 78 basis points to a modern-era high of 6.42pc, leaving it unclear how long the country can continue funding itself. Italy’s two-year yields vaulted to 4.6pc. “We can’t keep going like this for another 15 days,” said Prof Miguel Angel Bernal from Madrid’s Institute of Market Studies. “The European Central Bank has to bring out its heavy artillery.” Andrew Roberts, credit chief at Royal Bank of Scotland, said the dramatic spike in short-term borrowing costs marked a key inflexion point in the crisis, replicating the pattern seen in Greece, Ireland and Portugal as they lost access to market finance. “We are fast approaching the endgame,” he said.". . . " 

Bank Watchdog Will Test Euro-Zone Nations' Flexibility
Wall Street Journal
FRANKFURT—The proposed creation of a single euro-zone bank supervisor is shaping up to be a test of the willingness of countries to give up national powers for the sake of the euro. The proposed creation of a single euro-zone banking supervisor is ...

Wall Street Journal

Fears over Spain's financial crisis flare up
Washington Post
Spain's financial crisis deepens as the country's 10-year bond yield soars to a euro-era high, and as the Bank of Spain announced that the economy shrank by 0.4 percent in the second quarter of 2012. Investors are worried that Spain will be forced to seek a ...

Nouriel Roubini's Euro-Zone 'Endgame' Scenario
Wall Street Journal (blog)
Nouriel Roubini, the NYU professor nicknamed Dr. Doom for accurately forecasting the 2008 financial crisis, has just made this Euro pronouncement on Twitter — and on a day like this, it has the air of plausibility. It does seem likely that the ECB will try some...

Wall Street Journal (blog)

Sterling down on euro zone woes as dollar shines
Reuters
The ban "has contributed to a further flow of capital to both the dollar and the yen," said Michael Derks, chief strategist at FxPro, who said the move added to concerns that the situation in the euro zone was deteriorating. Sterling lost 0.8 percent to hit a session ...

Euro zone confidence falls more than expected in July
Reuters
BRUSSELS (Reuters) - Euro zone consumer confidence fell sharply in July, the European Commission said on Monday, as households worried about rising joblessness, recession and government cutbacks in the 17-nation bloc. Consumer confidence fell to ...

New Eurozone Focus: Spain's Debt, Economy
Voice of America
Spain has the fourth largest economy in the 17-nation eurozone, but about a fourth of its workers are unemployed. Its economy also is contracting, not growing. In a new report, the central bank said the country's economy shrunk four-tenths of a percent in the ...

Voice of America

Eurozone: The Pain Is Mainly In Spain
Forbes
On Friday the markets started falling, Spain's bond yields started rising, as one of the Spanish regions, Valencia, announced that it needed a bailout. Something of a problem for the bailout needs to come from the Spanish government and they haven't got ...

OIL FUTURES: Crude Tumbles 4.2% on Renewed Euro-zone Fears
Wall Street Journal
Phil Flynn, senior market analyst for the Price Futures Group, a futures-trading firm, said recent headlines raised new doubts over the euro zone's viability, pushing aside geopolitical concerns that preoccupied the oil market last week. "Based on what we're ...

Euro Crisis: Dow Slides 200 Points On Spanish Debt, Greek Exit Worries
Forbes
Fresh crises in Spain and Greece weighed heavily on markets this morning, sending stocks sharply lower and raising borrowing costs across Europe to levels seen as unsustainable. In Spain, Catalonia was the latest of up to six regions in the country that say ...

Oil Slips on Eurozone Worries
Fox Business
Oil prices fell sharply on Monday as worries that Spain is headed for a bailout and the euro zonedebt crisis is spreading prompted investors to sell assets perceived as risky, boosting the dollar and U.S. debt. Brent crude fell more than 3 percent and U.S. ...

Think Again: The Eurocrisis - by David Gordon and Douglas Rediker
Foreign Policy (blog)
Perhaps most alarmingly, no one seems to have a plan, with British Prime Minister David Cameron warning that the eurozone must either "make up or break up" -- with the implicit threat that the latter is increasingly likely. COMMENTS (0) SHARE: Twitter ...

Euro-Zone Government Debts Hit Record
Wall Street Journal
The ratio of government debt to gross domestic product of the 17 euro-zone nations rose to 88.2% at the end of March, from 87.3% at the end of December, the European Union's official statistics agency Eurostat said Monday. That figure doesn't include funds ...

Doubts undermine euro-zone consumers' confidence
MarketWatch
By MarketWatch. Consumers in the 17 countries that use the euro became more pessimistic about their prospects in July, likely reflecting heightened concerns about the future of the currency area. The European Commission said its preliminary estimate of ...

ECB keeps bond buy program shut down
Reuters
The ECB has barely used its Securities Markets Program (SMP) this year despite a severe intensification of the euro zone debt crisis, which has seen Spain and Cyprus join Greece, Ireland in Portugal in the bloc's bailout club. Having briefly subsided last ...

Oil falls, pressured by Spain and euro zone worry
Reuters
NEW YORK, July 23 (Reuters) - Oil prices fell sharply on Monday as worries that Spain is headed for a bailout and the euro zone debt crisis is spreading prompted investors to sell assets perceived as risky, boosting the dollar and U.S. debt. Brent crude fell ...

Euro Crisis: The German Approach Is at Least Partially Correct
Huffington Post
Structural Reform in Europe is Key for the Euro's Survival. Germany has received scathing criticism from many experts for its approach to resolving the euro crisis. Germany has been trying to: limit/reduce government budget deficits and promote large-scale ...

Spain Blames Jitters On Doubts Over Euro-Zone Structure
Wall Street Journal
MADRID--Spain's Finance Minister Luis de Guindos said Monday that doubts over the euro zone'sstructure are to blame for market jitters driving a selloff of Spanish bonds and stocks, in comments that pile up pressure on the likes of the European Central ...

Greece Back at Center of Euro Crisis as Spain Yields Soar
Businessweek
Europe was plunged into fresh market turmoil as the first call for bailout aid by a Spanish region sent borrowing costs surging, while Spain and Italy reinstated a ban on betting on stock declines. Stocks and the euro fell as Catalonia joined a list of Spanish ...

OIL FUTURES: Crude Plummets on Euro-Zone Debt Worries
Wall Street Journal
The shift in global investor sentiment comes as Spain's borrowing costs soared to a euro-era record, which raised concern that Europe's fourth-largest economy could require financial help from its euro-zone neighbors. In addition, the European Central bank ...

Dow Jones Industrial Average Down 200 Points On Eurozone Crisis Fears
Huffington Post
LONDON -- Stocks took a battering while the euro slid to a two-year low against the dollar on Monday as fears over Europe's debt crisis returned to haunt markets. Spain is the epicenter of the current bout of fears, with investors increasingly concerned that the ...

Oil drops 3 percent as Spain, euro zone worries pressure
Reuters
NEW YORK (Reuters) - Oil prices fell 3 percent on Monday as worries that Spain is headed for a bailout and the euro zone debt crisis is spreading sent investors away from riskier assets to the perceived relative safety of the dollar and U.S. debt. Crude futures ...

US Stock Futures Drop Sharply as Euro-Zone Debt Fears Intensify
Wall Street Journal
NEW YORK--U.S. stock futures slumped sharply on heightened fears about the euro-zonesovereign debt crisis, sparked by concerns Spain was on the verge of needing a formal bailout. About 90 minutes before the open, Dow Jones Industrial Average ...

Eurozone banks try to plug collateral gap
Financial Times
The problems facing Spanish and Italian banks are no longer purely ones of liquidity but of capital. Locked out, in effect, of public debt markets as spiralling sovereign borrowing costs have hit bank bonds and sapped appetite among investors for their debt, ...

Oil falls, pressured by Spain, euro zone worries
CNBC.com
NEW YORK (Reuters) - Oil prices fell sharply on Monday, down a second straight day, as worries that Spain is headed for a bailout and the euro zone debt crisis is spreading prompted investors to sell assets perceived as risky, boosting the dollar and U.S. ...

GLOBAL MARKETS: European Stocks Seen Weaker; Euro-Zone Woes Escalate
Wall Street Journal
European stocks are expected to open lower Monday as worries about the euro-zone debt crisis escalate. Jonathan Sudaria at Capital Spreads called London's FTSE 100 to open down 47 points at 5605, Germany's DAX to start down 69 points at 6561 and ...

Euro-zone fears hit financials hard
MarketWatch
Italian and Spanish stocks tanked with banks dropping sharply Monday, as sovereign-bond yields skyrocketed amid renewed fears about the future of the euro zone and worries about debt problems in Spain and Greece. Trading in major Italian banks was ...

Spain carnage reveals rescue fund fig leaf
MarketWatch
FRANKFURT (MarketWatch) — Empty-handed European policy makers may have little choice but to turn to a reluctant European Central Bank to tame fears that Spain, theeuro zone's fourth-largest economy, may soon require a full-fledged sovereign bailout...

MarketWatch

OIL FUTURES: Crude Down As Euro-Zone Crisis Weighs
Wall Street Journal
LONDON--Crude-oil futures fell sharply Monday on worries over global demand for oil, as the euro-zone's sovereign debt crisis pushed down European stocks and the euro. "Focus is back on Europe, and there's a bit of a nervousness in the market," said Ole ...

Eurozone Woes Keep Stocks in Red
Morningstar.com
Fresh concerns rose about Spanish and Italian finances as reports surfaced that multiple Spanish regions are prepared to request assistance from the Spanish government. Spanish sovereign bond prices plummeted Monday, sending 10-year Spanish bond ...

EuroCrisis Intensifies as Spain Spirals Downward, Greek Impasse ...
By Yves Smith
It is increasingly difficult to find metaphors adequate to describe the pathological dysfunction among European leaders as their rigidities and biases make a full blown crisis look inevitable. While there was never going to be an easy path out of ...
naked capitalism

Euro Crisis Returns; Italian Shares Rocked; Short Selling Outlawed ...
By P.Au.L
LONDON (MarketWatch) — Italian and Spanish stocks tanked with banks dropping sharply Monday, as sovereign bond yields skyrocketed amid renewed fears about the future of the euro zone and worries over debt problems in Spain's ...
Peace . Gold . Liberty | Revolution

Hang Seng Down 3% as Contagion Spreads to China - 24/7 Wall St.
By 247wallst
Economic contagion has spread to China, as the markets there signal deep concern. The Hang Seng fell 3% overnight as the reality that Europe will undermine growth in the People's Republic set in. The recession in Europe has been joined ...
24/7 Wall St. - Market Wire

European Contagion: Ford In Deeper Trouble Than GM | The Truth ...
By Bertel Schmitt
While all eyes are on GM's hemorrhaging Opel, Ford is said to be even more affected by the European contagion. Ford could have to close at least one plant.
The Truth About Cars

Open Europe blog: Euro crisis meet German pensions
By Open Europe blog team
Under the headline “Euro crisis shrinks pensions”, Bild reports that the occupational pensions of 17 million Germans are threatened by a combination of the low interest rates on the government bonds of the remaining creditworthy nations ...
Open Europe blog

Eurozone banks also fear the US economy
By Sovereign Man
Anyone following current events are well aware of the ongoing European financial crisis and the gross insolvency of many European nations. In response to the crisis, Eurozone banks have been reducing their exposure to European ...
Sovereign Man: Offshore Business,...

Palestinian Financial Crisis Boosts Support for Hamas | GantDaily.com
By AHN
The Media Line Staff Gasa, Palestinian Territory (The Media Line) - The Palestinian Authority (PA) is suffering an intensifying financial crisis that is.
GantDaily.com

Gonzalo Lira: How A Country Rationally Exits The Eurozone
By Gonzalo Lira
The whole point of exiting the eurozone is because a country no longer has the money to finance its continuing operations. Insofar as Spain, Greece and possibly Italy, that moment will arrive shortly—possibly within days in the case of Spain.
Gonzalo Lira

EUR/CHF steady as euro zone worries soar. Pressure building on ...
By Gerry Davies
EUR/CHF sits at 1.2006. As one reader has just said SNB must be working very hard today. Yes indeedy!! Talk has it that there has been very decent.
ForexLive

EconomicPolicyJournal.com: Overnight Eurozone Meltdown
By Robert Wenzel
The most likely explanation is that it wants to keep the eurozone in crisis mode so that initiatives to push the EZ fiscal and banking sectors on the track towards a closer union maintains an accelerated pace. It should be noted that what is going ...
EconomicPolicyJournal.com

XE.com - UPDATE 4-Oil below $104 on eurozone fears
Oil prices dipped below $103 a barrel on Monday before retracing as investors sold off riskier assets and fled for the perceived safety of the dollar on fears that Spain will not be able to avoid a costly sovereign bailout.
XE Forex News

mainly macro: Playing with Fire in the Eurozone
By Mainly Macro
Playing with Fire in the Eurozone. Bloomberg quotes German Vice Chancellor Philipp Roesler as saying “What's emerging is that Greece will probably not be able to fulfil its conditions. What is clear: if Greece doesn't fulfil those conditions, ...
mainly macro

Commodities Sold as Euro Crisis Escalation, Asia Slowdown Fears ...
Crude oil followed stocks lower while gold suffered as haven flows buoyed the Dollar amid fears of an escalating Eurozone crisis and a slowdown in ... - This Story was added July 23 12 7:21 EDT.
ForexTV Forex News

Eurozone crisis saves Germany tens of billions - Yahoo! Finance
From Yahoo! Finance: Germany has emerged as one of the biggest beneficiaries of the Europeanfinancial crisis.
finance.yahoo.com/.../eurozone-crisis-saves-germany-tens-billi...

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