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

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

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