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

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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