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

Saturday, September 29, 2012

France unveils tough budget, Spain's Rajoy wins time

France unveils tough budget, Spain's Rajoy wins time
Chicago Tribune
Socialist President Francois Hollande's 2013 budget amounts to France's toughest belt-tightening for 30 years as the debt crisis takes its toll on the euro zone. Related; France unveils tough budget, Spain's Rajoy wins time · French President Francois ...


Bloomberg LP Senior Economist Joe Brusuelas and New York University's Ann Lee speak with Bloomberg's Matt Miller about the concerns that keep them up at night as investors. They speak on Bloomberg Television's "Bloomberg Rewind." (Source: Bloomberg)


Randy Warren, chief investment officer at Warren Financial Services, talks with Bloomberg's Scarlet Fu about results of Spanish bank stress tests and investors seeking the safety of U.S. Treasuries. He speaks on Bloomberg Television's "Lunch Money."

Euro Zone Has Stream Of Positive News -Irish Finance Minister
Wall Street Journal
DUBLIN--Irish Finance Minister Michael Noonan said that a stream of positive news is emerging on the euro-zone debt crisis, including hopes that loan losses in Spain's banks to be published later Friday will be lower than some "pessimistic" estimates.

Investment Banking Fee Income Falls To Financial Crisis Levels On Europe Woes
Huffington Post
LONDON, Sept 28 (Reuters) - Global investment banking fees in the third quarter fell to their lowest since early 2009, according to data from Thomson Reuters and Freeman Consulting, as the euro zone debt crisis continued to unsettle markets and disrupt ...

ECB Plans Spur Bumper Month of Euro Corporate Bond Sales
Wall Street Journal (blog)
Companies selling bonds in euros clocked up the second highest month of new issuance in September after the European Central Bank set out plans to stave off aeuro-zone collapse. Corporate borrowers outside the financial ... Funding costs for Europe's ...

Wall Street Journal (blog)

Former Merkel Minister Chosen to Oppose Her
Wall Street Journal
Mr. Steinbrück's appeal with non-SPD voters comes from the credibility he earned fighting the financial crisis as Ms. Merkel's finance minister. He is the author of Germany's debt-brake, the central instrument in Ms. Merkel's fiscal pact to align euro...

Wall Street Journal

Energy fuels euro inflation but ECB rate cut still on
Reuters
Inflation fell steadily from 3 percent in November 2011 to stabilize at 2.4 percent in May, June and July, as the euro zone economy slowed sharply as a result of the sovereign debt crisis. But it rose again for the first time in 11 months in August due ...

US Stock Futures Fall on Worries Over Euro-Zone Economy, Debt
Wall Street Journal
NEW YORK--U.S. stock futures traded lower, with concerns over the euro-zone economy and sovereign debt issues putting the market on track to end a strong month and quarter on a sour note. About 90 minutes ahead of the open, Dow Jones Industrial ... In ...

Italy's south heading for economic meltdown - Telegraph: "Italy's blighted south is heading for social and economic meltdown as a result of job losses, a massive exodus of people and "industrial desertification", according to an alarming new report."

French budget and Spanish bank stress tests: as it happened, September 28, 2012 - Telegraph: "Spain has revealed that it needs almost €60bn to shore up its battered banking sector, as France's 2013 budget shows that a new 75pc tax rate will raise just €200m in extra revenue next year."

Copper gains on Spain relief, ends quarter up 7 percent
Reuters
LONDON (Reuters) - Copper rose on Friday, gaining 7 percent this quarter, after debt-laden Spain unveiled a budget that reassured investors the euro zone crisis had inched closer to resolution. Spain's detailed timetable for economic reforms and ...

Will the Euro Zone's Bailout Firepower Ever Be Enough? - EU - CNBC
The ESM is one of the key tenets of euro zone leaders' attempts to fight the debt crisis which threatens to spread its tentacles ever further. It's expected to come ...
www.cnbc.com/.../Will_the_Euro_Zone_s_Bailout_Firepower...

Friday, September 28, 2012

Spain PM Rajoy's New Austerity Plan for Spain


Spain PM Rajoy's New Austerity Plan for Spain

Spanish rescue may throw crisis spotlight on Italy
Reuters
LONDON (Reuters) - Italian government bonds risk being thrown back into the spotlight of the euro zone debt crisis once Spain decides to request aid and secures central bank support for its debt. A partial bailout for Madrid would probably trigger the ...

Spain must leave the euro - Telegraph: "Mario Draghi's promise to do “whatever it takes” to save the euro never did look like inducing any more than a temporary lull in the storm; still less did the German Constitutional Court’s thumbs up to the European bail-out fund and the trouncing that eurosceptic parties received in the Dutch election."

Onus on Euro-zone States to Solve Crisis, Says Buba
Wall Street Journal
Mr. Weidmann also said Wednesday that he opposed the ECB's involvement in a possible Greek bailout. "First and foremost, the solution to the euro-area debt crisis lies with the member states," said Mr. Dombret, who is responsible for financial ...

Euro recovers from two-week lows, buoyed by Spanish budget
Reuters
The euro rallied from two-week lows against the dollar and yen on Thursday after Spain unveiled a 2013 budget viewed as a step in the right direction, easing worries that the region's debt crisis was worsening. Spain, the euro zone's fourth largest ...

Debt crisis: Spanish budget - as it happened, September 27, 2012 - Telegraph: "Spain announces more austerity measures in its 2013 budget in a bid to avoid a full sovereign bail-out, as the government agrees to tap €3bn from a reserve fund to pay pensions next year."

Copper rises on China demand hopes, euro zone a dampener
Reuters
Gains in base metals were capped by worries about the euro zone debt crisis and uncertainty about a bailout for Spain. Spain will announce a series of economic reforms and a tight 2013 budget on Thursday, aiming to avoid the political humiliation of ...

Debt crisis: Francois Hollande to be tested as he unveils France's toughest Budget for 30 years - Telegraph: "President Francois Hollande faces a double test of confidence - by his electorate and the bondmarkets - as he unveils the toughest and most ambitious French Budget in three decades on Friday."

Spain's rising debt costs eat up austerity gains - Telegraph: "Spain has pushed through €40bn of fresh austerity measures in the teeth of recession, despite violent protests across the country and separatist crises in Catalonia and the Basque region that threaten to break the country apart."

Gold creeps higher; euro zone worries weigh
Reuters
SINGAPORE (Reuters) - Gold edged up on Thursday after three days of losses, but anxiety over theeuro zone debt crisis continues to weigh on the market, as it has lifted the dollar and weakened oil prices. FUNDAMENTALS. Spot gold edged up 0.1 percent ...

UPDATE 1-Euro zone confidence falls in Sept, inflation expectations rise
Reuters
By Jan Strupczewski. BRUSSELS, Sept 27 (Reuters) - Euro zone economic sentiment defied expectations of stabilisation and again fell sharply in September, underlining the economic gloom brought on by the sovereign debt crisis as the euro zone sinks into ...

ECB's Weidmann Says Banking Union Can't Cover Legacy Debts
San Francisco Chronicle
Weidmann's comments come after finance chiefs from Germany, the Netherlands and Finland said this week that direct recapitalization of banks by the euro area's permanent bailout fund should be a last resort and that legacy debts should remain the ...

FOREX-Euro recovers from two-week lows, buoyed by Spanish budget
Reuters
Greece's international lenders are at loggerheads over how to respond to its debt crisis, threatening more trouble for the euro in the coming weeks. A Moody's review of Spain's ratings is also expected this week. A cut could take the country below ...

Brent steady above $110 on supply woes, euro crisis caps gains
CNBC.com
SINGAPORE (Reuters) - Brent futures held steady above $110 on Thursday on renewed worries over supply disruptions from the Middle East, while the escalating debt crisis in the euro zone reinforced concerns about demand and capped gains. Uncertainty ...

Nikkei set to drop as euro zone fear rears again
Reuters
"There are growing concerns that the euro zone debt crisis is worsening again," said Masayuki Doshida, senior market analyst at Rakuten Securities. "The ECB's plan to buy bonds was an excellent one but it will be completely meaningless if they don't ...

FACTBOX-Euro zone debt crisis: upcoming events - Yahoo! News ...
'FACTBOX-Euro zone debt crisis: upcoming events' on Yahoo! News Maktoob. Sept 27 (Reuters) - Following are forthcoming events relatedto the debt crisis in ...
en-maktoob.news.yahoo.com/factbox-euro-zone-debt-crisis-u...

NewsDaily: Euro zone confidence falls in September, inflation ...
Euro zone economic sentiment defied expectations of stabilization and again fell ... the economic gloom brought on by the sovereign debt crisis as the euro zone ...
www.newsdaily.com/stories/bre88q0fd-us-eurozone-sentiment/

Gold falls on euro zone fears, options expiration - Business - Stocks ...
... YORK (Reuters) - Gold edged lower after choppy trade on Tuesday, on selling related to an option expiration and renewed fears about the euro zone debt crisis.
www.msnbc.msn.com/.../gold-falls-euro-zone-fears-options-ex...

Thursday, September 27, 2012

Stocks slide on renewed Europe debt fears, Spain yields jump


Sept. 26 (Bloomberg) -- On today's "Street Fighter," Citigroup Institutional Clients Group's VP Carlos Gutierrez, TF Market Advisors' Founder Peter Tchir and Scout Investments' Portfolio manager Michael Stack talks about the impact of the European debt crisis on the markets. They speak on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Stocks slide on renewed Europe debt fears, Spain yields jump
Reuters
NEW YORK (Reuters) - World shares fell sharply and the euro slipped to a two-week low on Wednesday as growing opposition in Europe to measures aimed at resolving the euro zone's debt crisis unnerved investors already skittish about the weak outlook for ...

FTSE 100 loses £23.2bn as Spain fears rock European markets - Telegraph: "The FTSE 100 lost £23.2bn on Wednesday as mounting concerns over Spain and fresh strike action in Greece sent European investors heading for the exit."

Spain's crisis flares again as AAA club scuppers bank rescue deal - Telegraph: "Spain's debt crisis has returned with a vengeance after Germany, Holland and Finland reneged on a crucial summit deal and scuppered hopes of direct eurozone help for Spanish banks."

Not even the great economists of history can get us out of this fix - Telegraph: "To think that central bank money-printing offers a largely pain-free way out of our economic difficulties is sadly deluded. Carried to extremes, it ends in hyper-inflation, and in any case, in an era of low growth and the progressive loss of Western employment to technology and foreign competition, it does nothing for living standards. Wages may lag prices for years to come. Friedman offers some plausible solutions, but even he cannot magic away the consequences of years spent living high on the hog. One way or another, a price has to be paid." 

Greek general strike and debt crisis - as it happened, September 26, 2012 - Telegraph: "European markets slump as protesters take to the streets of Greece in a general strike and Spanish yields hit 6pc over austerity protests."

PRECIOUS-Gold inches up on stimulus support; euro zone weighs
Reuters
Euro zone debt crisis returns to spotlight; euro sluggish * Gold investment interest boosts; SPDR holdings hit record * Coming up: U.S. new home sales; 1400 GMT (Adds comments, details; updates prices) By Rujun Shen SINGAPORE, Sept 26 (Reuters) ...

Debt crisis: Spanish GDP falling at 'significant pace' - Telegraph: "Spain's recession is deepening with economic output sliding at a "significant pace" in the third quarter of this year, the Bank of Spain warned on Wednesday."

Reuters
If a way is not found to break the link between sovereigns and their banks, the euro zone will forever be in an uphill struggle to get on top of the crisis since government finances will always be saddled with vast amounts of bad banking debt ...

ECB will not fill Greek budget gaps, says Bundesbank president - Telegraph: "The European Central Bank will not fill potential financing gaps in Greece's budget, Governing Council member Jens Weidmann said on Wednesday."

Oil falls below $110 on euro zone crisis
CNBC.com
Text Size. LONDON (Reuters) - Brent crude oil fell more than $1 per barrel to below $110 on Wednesday, weighed down by a stronger dollar, worries over growth and the euro zone debt crisisas Greece faced its biggest anti-austerity strike for months.

European lawmakers warn of banking union split
Reuters
BRUSSELS (Reuters) - Creation of a banking union to help resolve the euro zone debt crisis could lead to a split within the wider European Union, lawmakers in the European Parliament warned during a debate that laid bare the extent of tensions in the ...

EMERGING MARKETS-Latam currencies weaken on euro zone fears
Reuters
... for Prime Minister Mariano Rajoy to request international financial aid -- a condition for Spain to receive support from the European Central Bank. Investors fear that a delay in the ECB bond-buying program would further complicate the euro-zone ...

Euro extends decline, how far could it go?
NASDAQ
FXstreet.com (Córdoba) - The euro fell to a 2-week low against the dollar on Wednesday, as worries over the euro zone debt crisis persist and markets are back to trading at the rhythm of European headlines. With Spain in the eye of the storm, the ...

TREASURIES-Prices rise as euro zone fears resurface
Reuters
"This is the first small crack we've seen in the EU bond market since the beginning of August," said Jim Vogel, interest rate strategist at FTN Financial in Memphis, Tennessee. The yield on ... With Spain's borrowing costs rising again and a key region ...

Wall Street lower on euro zone fears but off session lows
Reuters
Meanwhile, Greece faced its biggest anti-austerity protest in more than a year as international lenders admitted to difficulty in working out how to solve Athens' debt crisis. "There is still a real risk that Europe has to make some decisions that ...

Europe Factors to Watch-Stocks set to drop at open
Reuters
European stocks have risen sharply since early June - with the euro zone's blue chip Euro STOXX 50 index gaining 25 percent - boosted by bold action from the European Central Bank and the U.S. Federal Reserve to fight the euro zone debt crisis and ...

The continuing euro zone sovereign debt crisis | East Asia Forum
Author: Quentin Grafton, BREE and ANU The financial troubles in the euro zone are an on-going series of sovereign debt crises that originated in countries.
www.eastasiaforum.org/.../the-continuing-euro-zone-sovereig...

Oil falls below $110 on euro zone crisis Latest News - Editorial ...
Brent crude oil fell more than $1 per barrel to below $110 on Wednesday, weighed down by a stronger dollar, worries over growth and the euro zone debt crisis ...
www.cattlenetwork.com/.../Oil-falls-below-110-on-euro-zone-...

Wednesday, September 26, 2012

European Stalemate on the Euro Zone Debt Crisis


European leaders are struggling to overcome a crisis-fighting stalemate as they face discord over a banking union, Greece’s ongoing debate on how to meet bailout commitments and foot-dragging by Spain and Italy on financial aid requests.

ECB official defends legality of buying crisis bonds
Reuters
The ECB has taken on a stronger role in fighting the euro zone's debt crisis recently and bought governments time by agreeing to buy bonds of struggling euro zone member states once they sign up to strict reform programs from the European rescue fund ...

SNB's Jordan: too early to say if euro crisis easing
Reuters
PFAEFFIKON, Switzerland (Reuters) - The chairman of the Swiss National Bank said on Tuesday it is too early to say that the euro zone's debt crisis has started to subside despite signs of market stress easing. The SNB was forced to set a cap on the ...

Spanish austerity protest turns violent: in pictures - Telegraph: "Spanish riot police have beaten protesters with batons and hauled some into vans as thousands rallied near parliament in Madrid to decry biting austerity cuts." 

S&P warns of new eurozone recession - Telegraph: "The eurozone economy will not grow for two years, according to a gloomy assessment of the outlook for the single currency bloc from Standard & Poor’s."

Lingering euro zone fears peg back European stocks
Reuters
LONDON, Sept 25 (Reuters) - Lingering worries over the euro zone's sovereign debt crisis pegged back European equities on Tuesday following a recent sharp rally and pushed investors towards relatively defensive equity sectors such as food and energy ...

Debt crisis: as it happened, September 25, 2012 - Telegraph: "The eurozone will not start to grow until at least 2014, according to forecasts by Standard & Poor's, as the rating agency said it now expected Spain's economy to contract by 1.4pc next year."

EURO GOVT-ECB bond scheme doubts lift Bunds, Spanish yields
Reuters
Worries the euro zone's strongest economy was no longer immune to the debt crisis, after Monday's fall in the German Ifo business sentiment index to its lowest since early 2010, also supported Bunds. The main focus remained on Spain, which is due to ...

Gordon Brown: Europe is in a 'tranquility period' - Telegraph: "Europe is enjoying a moment of calm due to the European Central Bank's plan to buy debt of eurozone countries, but the region will struggle to solve more fundamental problems, former British Prime Minister Gordon Brown has warned."

Euro Zone Starts Talks Over Centralized Budget
Wall Street Journal
Until now, much of the fiscal-union debate has focused on the prospects for issuing joint euro-zone debt—so-called euro bonds—but that idea has been blocked by fierce opposition from Berlin and the fact that it would contravene a central element of ...

European debt crisis: All eyes on Spain
Alaska Dispatch
... euro zone is safe. With many countries in the second part of a double-dip recession, Spain, Greece and Portugal all face tests in the coming days and weeks that could prove decisive for Europe's efforts to pull out of the debt crisis that has ...

Euro Crisis Melts Baltic Fortitude for 2014 Currency Switch
Businessweek
They are losing their appetite for the euro, once considered a tool to spur growth and increase confidence across eastern Europe, as the 17-nation currency union grapples for a third year with a deepening debt crisis. “It's clear that the ...

Stocks down on unresolved debt crisis
Irish Times
STOCK MARKETS and the euro fell yesterday as investors looked past recently announced stimulus plans, focusing instead on weak economic data and the euro zone's unresolved debt crisis. Stocks dropped across Europe and the Dublin market was no ...

Euro zone still big uncertainty, but situation improving
Chicago Tribune
NEW YORK (Reuters) - Europe's debt crisis remains a big uncertainty and is the biggest drag on the global economy, but the region is in a much better situation today than it was, U.S. Treasury Secretary Timothy Geithner said on Tuesday. The euro zone ...

Global Financial Crisis Looms, QE3 Slows the Inevitable
International Business Times
The euro zone debt crisis, the tightening US budget and slower growth in emerging economies are the “most serious risks to the world economy,” Mexican central bank deputy governor Manuel Ramos Francia said. Ramos said the European Central ... In the ...

The European Stalemate on the Euro Zone Debt Crisis: Video ...
European leaders are struggling to overcome a crisis-fighting stalemate as they face discord ...
www.bloomberg.com/.../the-european-stalemate-on-the-euro-z...

China's Wen to meet EU amid debt crisis, trade row | ArabNews
BEIJING: Chinese Premier Wen Jiabao meets Europe's leaders today as the world's second-biggest economy falters in the euro zone debt crisis downdraft and ...
www.arabnews.com/chinas-wen-meet-eu-amid-debt-crisis-trad...

euro zone debt crisis Quotes & News Quotes
Prime Minister Monti has been very pragmatic in what he set out here, clearly he has raised the question of the extent of austerity which can be applied in Italy.
economictimes.indiatimes.com/topic/euro-zone-debt.../quotes/

Tuesday, September 25, 2012

Europe is Running Out of Time (video)


European nations must share past debts to lift the burden of high interest rates on Spain and Greece and implement a banking union with deposit insurance to prevent capital flight, said Nobel Prize-winning economist Joseph Stiglitz.

Debt crisis: as it happened - September 24, 2012 - Telegraph: " German business confidence falls for fifth month in a row • EC President warns Europe is "losing the sense of urgency" • Volcker: ring-fencing banks not enough to protect taxpayers • UK’s deficit ‘could be bigger than Greece's’ • Leaked troika report reveals €20bn black hole in Greek budget"

Spain Readies Budget for 2013
New York Times
MADRID — The spotlight in the euro zone's sovereign debt crisis turned once again Monday to Spain, where Prime Minister Mariano Rajoy's struggling government is set to present its draft budget for 2013 on Thursday. ... Spain's borrowing costs have ...

Van Rompuy Calls for 'Urgency' from EU Leaders
Wall Street Journal
BRUSSELS—European policy makers are losing their "sense of urgency" in tackling the euro zone's debt crisis, European Council President Herman Van Rompuy warned Monday. Less than three weeks after the European Central Bank announced a new ...

Bundesbank castigates IMF for saving Europe - Telegraph: "Germany's central bank has launched a blistering attack on the International Monetary Fund, accusing officials of spraying around money like confetti and overstepping their legal mandate."

Recovery will be 'painful', IMF's Christine Lagarde warns - Telegraph: "Heavily indebted countries like the UK face years more “painful” austerity to get their economies back on an even keel, International Monetary Fund managing director Christine Lagarde has warned."

Euro zone uncertainty puts shares, euro on back foot
CNBC.com
LONDON (Reuters) - European shares and the euro followed a broad range of riskier assets lower on Monday, as investors refocused attention from central bank stimulus schemes to weak economic fundamentals and the euro zone's still unresolved debt crisis ...

German business confidence at lowest level since early 2010, figures show - Telegraph: "German business confidence has fallen to its lowest level since February 2010, as the eurozone crisis increasingly batters its economy, new data has revealed."

Will the Euro Zone's Bailout Firepower Ever Be Enough?
CNBC.com
The ESM is one of the key tenets of euro zone leaders' attempts to fight the debt crisis which threatens to spread its tentacles ever further. It's expected to come into force later this year, as a replacement for the European Financial Stability ...

Crude Falls As Europe Worries Resurface
Wall Street Journal
Optimism over the euro-zone crisis gave away to uncertainty ahead of the release of the first draft of Spain's 2013 budget Thursday and as investors await Moody's Investors Service's decision on whether to downgrade Spain's debt rating, expected this week.

CANADA STOCKS-TSX may open lower, euro zone crisis in focus
Reuters
Sept 24 (Reuters) - Canada's resource heavy main stock index looked set to open lower on Monday, following a sharp decline in commodity prices, as investors dumped riskier assets with their focus moving back to Europe's debt crisis. TOP STORIES ...

Half Time in the EU
Daily Beast
The worst is over for the euro zone crisis, according to European Commission Jose Manuel Barroso. He talks to ... That move helped push the interest rates on government debt lower across Europe, fueled a stock market rally on both sides of the Atlantic ...

Daily Beast

Germany's Merkel to meet ECB, IMF chiefs this week
Reuters
BERLIN (Reuters) - German Chancellor Angela Merkel will meet separately with the heads of the International Monetary Fund and European Central Bank this week amid debate over the next steps for addressing the euro zone's sovereign debt crisis.

Commodities Drop on Euro Crisis Fears, US Data Eyed
Resource Investor
Newswires chalked up the sour mood to emerging signs of discord between French and German leaders on the “banking union” component of the euro zone's debt crisis management efforts. Asked about the time frame for the setup at a joint press conference ...

An unpleasant surprise may lurk in euro zone GDP numbers - Reuters
By Andy Bruce
The latest flash purchasing managers' indexes, which cover thousands of euro zone companies, suggest the third quarter will mark the euro zone's worst economic performance since the dark days of early 2009, according to Markit, which compiles them. ... In a further sign companies are really feeling the strain of the region's debt crisis, German business sentiment dropped for a fifth successive month in September, according to the Ifo Institute, defying hopes for a slight rise. So don't ...
MacroScope

The European Stalemate on the Euro Zone Debt Crisis ...
European leaders are struggling to overcome a crisis-fighting stalemate as they face discord over a banking union, Greece's ongoing debate on how to meet ...
www.businessweek.com/.../the-european-stalemate-on-the-eur...

Monday, September 24, 2012

Investor Worries: Fiscal Cliff, Fed Policy



Sept. 21 (Bloomberg) -- Bloomberg LP Senior Economist Joe Brusuelas and Deutsche Bank's Carl Riccadonna speak with Bloomberg's Matt Miller about the concerns that keep them up at night as investors. They speak on Bloomberg Television's "Bloomberg Rewind." (Source: Bloomberg)

Asian shares fall as focus shifts to growth concerns
Reuters
Spain has displaced Greece from the center of the euro zone debt crisis, as markets worry it may eventually need external aid to help resolve its problems. But Spain insisted on Saturday it will not rush to seek a sovereign bailout, even as the country ...

Back Ben Bernanke's QE3 with a clothes peg on your nose - Telegraph: "Monetarists from across the world can mostly agree on one thing. The US Federal Reserve caused the Great Recession."

Francois Hollande's 2013 budget is unlikely to secure France a place on eurozone's A-team sheet - Telegraph: "Expect some late nights for Francois Hollande, as the French president prepares to present his 2013 budget on Wednesday."

Paul Volcker: ring-fencing banks is not enough - Telegraph: "Ring fencing Britain's banks will not protect taxpayers in the event of another financial crisis, according to Paul Volcker, the former chairman of the Federal Reserve and the architect of the "Volcker Rule"."

Coeure: Inflation decisive in next ECB rate move
MarketWatch
Despite lower growth figures and forecasts for the euro zone, a rate cut isn't certain after recent policy decisions boosted public confidence in a resolution to the region's debt crisis, said ECB'sexecutive board member Benoit Coeure. "The jury is ...

Euro sulks after negative week, Spain still eyed
Reuters
"As the euro area faces a deepening recession, ECB President Mario Draghi may come under increased pressure to expand policy further." Traders said the market was still waiting to see if Spain, the new epicentre of the debt crisis after Greece, Ireland ...

Debt crisis: Spain 'will need extra bail-out' - Telegraph: "Spanish banks may need a cash injection of more than €100bn (£80bn), the results of an official stress test are expected to show this week, placing more financial pressure on to an already explosive political crisis in Madrid."

Italian Bank Shares May See Fewer Thrills Ahead
Wall Street Journal
Italian banking stocks have taken investors on a roller-coaster ride during theeuro-zone sovereign-debt crisis, thrilling trading desks while leaving long-term market participants dizzy and dismayed. But the wild ride may be over for now, some ...

Wall Street Journal

Euro Bulls Are Focused on Spain
Wall Street Journal
The euro's rally will face an important test this week, as markets look for indications that Spain will request a bailout that would ease the debt crisis in Europe's fourth-largest economy. Expectations that the euro's rally will continue received a ...

Stocks, commodities watch Europe's debt crisis, ongoing mortgage mess
Futures Magazine
The United States cannot abdicate it's primary responsibility for the current global economic problems since it was the marketing of securitized debt that is believed to be the origin of today's global crisis. When Glass Stiegel ... That paper flooded ...

Futures Magazine

Euro rescue fund to be boosted to €2trn: report
The Australian Financial Review
It should be modelled on the European Financial Stability Facility set up in the northern spring of 2010 in response to the Greek sovereign debt crisis, said the report, which cited no sources. However, the proposal has run into opposition from Finland ...

Storm Clouds Darken Over Global Economy
Hamsayeh.Net
Central banks' recent aggressive policy actions will not be enough to spur economic growth in the remainder of 2012 and in 2013, economists say, with the euro zone debt crisis expected to rumble on, growth in Asia seen slowing further, and a recovery...

Hamsayeh.Net

Saturday, September 22, 2012

The Deposit Flight That Could Undermine the Euro


An accelerating flight of deposits from banks in four European countries is jeopardizing the renewal of economic growth and undermining a main tenet of the common currency: an integrated financial system.

The slow bank run that could still doom Europe
Washington Post (blog)
In early September, Mario Draghi and the European Central Bank announced a grand plan to come to the aid of euro-zone governments facing unworkably high borrowing costs — countries like Spain and Italy. It seemed like a reasonable enough plan, despite ...

Greek troika report delayed by US elections - Telegraph: "A decision on granting Greece the next round of its bail-out will be delayed until after the US election to avoid the risk of an economic earthquake jeopardising President Barack Obama’s chances of being returned to the White House, European officials have said."

Austerity in the dock as Europe's debt-stricken leaders meet
Reuters
ROME (Reuters) - The leaders of countries at the center of the euro zone debt crisis met in Rome on Friday after steep upward revisions to Italy's public debt targets raised growing doubts about the austerity policies being pursued. "Prime Minister ...

EU CRISIS ROAD MAP: Key Milestones Ahead
Wall Street Journal
The European Central Bank's plan to buy the debt of more fiscally frail euro-zone countries such as Spain has gone some way to calm investors but a key sticking point remains: the Spanish government has yet to ask for assistance, wary of the ...

Gold hits 2012 high on Spanish bailout fears - Telegraph: "Gold has hit a high for the year on speculation that Spain may be working on a request for financial help from other European countries."

In Crisis, EU Wields More Carrot, Less Stick
Wall Street Journal
BRUSSELS—The euro zone's response to the debt crisis is undergoing a quiet revolution: The bloc has tempered its policy of tough budget austerity that has failed to assure investors about the finances of its weakest members. Euro-zone officials have...

Wall Street Journal

IMF chief urges Europe to act to move beyond crisis
Reuters
WASHINGTON (Reuters) - European policymakers must move quickly to coordinate and implement decisions they have taken to move the euro zone beyond its current debt crisis, the head of the International Monetary Fund said. In an interview with an IMF ...

WORLD FOREX: Spanish Hopes Buoy The Euro
NASDAQ
The euro regained some of its buoyant tone in European trade Friday as reports suggested that Spain and the European Commission were paving the way for a new rescue package, in a move that could further damp down the euro-zone debt crisis.

FOREX-Euro and Aussie regain ground after sell-off
Reuters
SINGAPORE, Sept 21 (Reuters) - The euro clawed higher on Friday, but its gains were limited after a batch of surveys showed euro zone business activity remained weak despite the European Central Bank's bold efforts to tackle the debt crisis. The euro ...

Euro stung by weak data, gives USD a bit of reprieve
Reuters
The euro also lost ground against the Australian dollar, sliding to a one-week low of A$1.2405. "The single currency may likely face additional headwinds over the near-term as the debt crisis continues to drag on the real economy," said David Song ...

IMF chief Christine Lagarde says US needs to rein in its banks - Telegraph: "IMF managing director Christine Lagarde has said that Europe can only solve its debt crisis if countries such as the US bring their banks under control."

Debt crisis: as it happened - September 21, 2012 - Telegraph: "Italy and Greece's prime minister meet in Rome as the Greek premier struggles to secure an agreement from his coalition on a €11.5bn package of budget cuts."

Finns Veto ESM Boost
Wall Street Journal
Also, while the additional leverage options could prove useful, pressure in financial markets and from the region's international partners for euro-zone governments to deploy their own bazooka to stem the debt crisis has ebbed in recent weeks since the ...

China vows support on euro debt crisis
The Australian Financial Review
China has pledged continued help to help tackle the euro zone debt crisis, saying Europe was "on the right track" but needed to implement the measures agreed to fix its problems. Premier Wen Jiabao told EU and Chinese business leaders on Thursday that...

The Australian Financial Review

Friday, September 21, 2012

Growth and debt crisis concerns

GLOBAL MARKETS-Growth and debt crisis concerns drive shares, euro lower
Reuters
Markets in London, Paris and Frankfurt fell between 0.5 and 0.7 percent. Euro zone Purchasing Managers Index data underlined the effect of the bloc's debt crisis. The composite PMI, which combines data from the manufacturing and services surveys, fell ...

Debt crisis: live
Telegraph.co.uk
To emerge once and for all from the euro crisis, three things would be essential: stronger intervention by the ECB to limit possible short-term damage, credible economic growth strategies for crisis-hit countries, and a longer-term plan that provides...

Telegraph.co.uk

China's Wen Jiabao demands EU lift arms embargo - Telegraph: "Wen Jiabao has used his last summit with the European Union to demand that Brussels lifts its arms embargo on Beijing in a move that doused hopes for a final economic boost from the retiring Chinese premier."

Time for Euro Optimists to Scatter
Wall Street Journal (blog)
Also, although the global economy was still slowing, the prospect of more liquidity from the world's major central banks had been enough to lift market hopes that the worst of the financial crisis was now over. ... Thursday alone brought bad news from ...

EURO GOVT-Spanish yields rise on aid doubts, despite firm sale
Reuters
But Bunds remained higher after the auction and ten-year Spanish bonds under pressure, with traders also worried Madrid's tactic to raise funds in the short end could eventually backfire by shortening the average maturity of its overall debt and ...

Euro zone consumer confidence falls in Sept
Reuters
Consumer spending makes up more than half of the euro zone's economic output, but households are in no position to help a recovery as the impact of the debt crisis cuts their disposable income. EU leaders want to drive economic growth and employment ...

Euro business output gloomiest in three years - Telegraph: "Private sector business activity in the eurozone showed an eighth monthly decline in September hitting its gloomiest patch in three years, survey results showed on Thursday." 

Italy slashes economic growth forecasts - Telegraph: "Italy slashed its economic growth forecasts on Thursday saying it was now expecting contractions of 2.4pc for 2012 and 0.2pc for 2013 due to "a deterioration in the international environment"."

German jobless to rise in election year 2013: study
Reuters
As the euro zone debt crisis saps economic momentum in Germany the average number of jobless will rise next year by some 40,000 to 2.94 million, after falling by 80,000 in 2012, according to estimates by the Institute for Labour Market Research (IAB ...

China says 'to play its part' in resolving euro zone crisis
Straits Times
BRUSSELS (AFP) - Chinese Premier Wen Jiabao said on Thursday that Beijing will maintain its efforts to help resolve the euro zone debt crisis, after months of investing in European sovereign bonds. "China will continue to play its part in helping ...

Straits Times

Irish GDP flat in second quarter, keeps government targets under pressure
Chicago Tribune
Irish gross domestic product (GDP) has been one of the most resilient in the euro zone during thedebt crisis, growing by 1.4 percent last year but the export-led nature of that growth makes it vulnerable to a slowdown among its trading partners ...

Eurozone economic woes suggest ECB's Draghi Plan isn't enough to stem debt crisis - Telegraph: "Private business activity in the eurozone plunged at the fastest rate in more than three years, while consumer confidence also sank, according to “dismal” economic data that doused hopes the European Central Bank bond-buying plan would unleash a wave of optimism." 

Debt crisis: Greece sells London property to raise funds - Telegraph: "Greece is thought to be selling its London consulate in Holland Park as part of a wider sell-off of its diplomatic properties designed to raise funds to secure its next bail-out tranche."

Merkel turns to ex-mentor Kohl to sell Europe to Germans
Reuters
The German leader's tough approach to the euro debt crisis has boosted her popularity in the last two years and polls show she is in a strong position to win the September 2013 vote. But she needs to ensure traditional conservatives in her own party ...

China manufacturing contracts for 11th month - Telegraph: "China's manufacturing activity contracted for an 11th straight month in September, as factories struggled with weak demand and hard-to-sell inventories."

Spain risks break-up as Mariano Rajoy stirs Catalan fury - Telegraph: "The ruling parties of Catalonia have sought guidance from Brussels on the legality of secession from Spain, requesting a “route map” for membership of the European Union and the euro as an independent state."

Euro-Area Services, Manufacturing Slump to 39-Month Low: Economy
San Francisco Chronicle
The euro area's economy is heading for a second straight quarterly contraction after a 0.2 percent decline in the three months through June as fallout from the fiscal crisis damps consumer spending and corporate investment. ... “We had hoped that the ...

Thursday, September 20, 2012

US 'Fiscal Cliff' Tops Euro As Biggest Investor Fear

US 'Fiscal Cliff' Tops Euro As Biggest Investor Fear
Wall Street Journal
Few believe the nearly three-year-old euro crisis is over. Some 80% of investors surveyed by Barclays believe Spain will ask for international assistance by the end of the year. That would enable the ECB to buy the country's bonds, but bind the ...

Euro-Zone Construction Falls
Wall Street Journal
The drop was led by the fiscally most troubled nations of the bloc, including Italy and Spain, which have on and off traded places at center stage of the euro-zone sovereign debt crisis this year with Greece, which has fallen behind in fulfilling the ...

Greece sells off London consulate and royal cemetery - Telegraph: "Greece intends to sell high-end properties in London, Belgrade and Cyprus, including a palace with royal graveyard, as part of a privatisation programme designed to free up cash and appease its bail-out rescuers."

Ex-ECB Member Orphanides: Bond-Buying Plan No Silver Bullet
Wall Street Journal (blog)
The European Central Bank's plan to buy potentially unlimited amounts of government bonds of selected member states is legal but isn't a silver bullet to end the region's debt crisis, said Athanasios Orphanides, a former member of the ECB rate-setting ...

Debt crisis: as it happened, September 19, 2012 - Telegraph: "France seeks to calm concerns of a rift with Germany over plans for a eurozone banking union, though prime minister Jean-Marc Ayrault continues to insist that ECB bank supervision should cover all lenders."

High returns keep Spanish banks hooked on sovereign debt
Reuters
Penned at the front line of the euro zone debt crisis, Madrid is under pressure from investors to request financial assistance and trigger a bond-buying programme by the European Central Bank and the region's rescue funds. The country already sought in ...

IMF bail-out plans face 'serious challenges' due to 'ineffective' EU - Telegraph: "The International Monetary Fund says it faces “serious challenges” in drawing up bail-outs for heavily indebted eurozone countries because of ineffective European Union decision-making and the bloc’s opposition to restructuring debt."

Irish Life awaits euro zone calm to resume sale
Reuters
Irish Life, formerly the life insurance arm of bailed out Irish Life & Permanent (IL&P), was taken over by the state this year after a ramping up of the euro zone debt crisis forced the suspension of its sale last November. "We haven't re-engaged in ...

Analysis: US meltdowns - History lessons for the euro
Reuters
The crash that followed parallels what has happened more recently and may, with other lessons from U.S. history, provide pointers for the euro zone crisis. As the property prices soared, Europe's world was turned upside down. Thanks to grain elevators, ...

FOREX-Yen rises, reversing losses after BoJ's aggressive easing
Reuters
BOJ increases asset purchases more than expected * Spain drives new worries over euro zone debt crisis * U.S. housing data show budding signs of recovery By Julie Haviv NEW YORK, Sept 19 (Reuters) - The yen rose broadly on Wednesday, erasing earlier ...

EURO GOVT-Bank of Japan stimulus weighs on safe-haven Bunds
Reuters
Bunds have fallen steeply since the European Central Bank pledged to carry out unlimited purchases of bonds issued by troubled euro zone states to ease the bloc's debt crisis. However, the condition that a country must first request aid from the region ...

Eastern Europe Remains Vulnerable to Euro Crisis, Capital Says
Businessweek
Eastern Europe remains at risk of an escalation in the euro crisis because of its dependency on external borrowing, a shortage of credit and a high level of non-performing loans, Capital Economics Ltd. said. ... “We fear” that the ECB's so-called ...

German economy to barely grow until 2013-BdB
Reuters
BERLIN, Sept 19 (Reuters) - The German economy will hardly grow until next year and the euro zone will be slow to recover from its sovereign debt crisis, a German private banking body said on Wednesday. Germany had until recently avoided much of the ...

Wednesday, September 19, 2012

Greek economy to shrink by 25 percent

Greek economy set to shrink by 25pc - Telegraph: "Greece's economy will have shrunk by a quarter by the time the recession ends, according to the country's finance minister, as pressure grew on international creditors to give Athens more time to catch up."

Euro back in favour as bets against it wane
Reuters
LONDON, Sept 18 (Reuters) - Investor sentiment is turning in favour of the euro, with bets against it at their lowest in two years and falling steadily since the European Central Bank unveiled an aggressive plan to stem the debt crisis. The ECB's ...

German Minister Sees Euro Crisis 'Turning Point' This Month
Businessweek
German Foreign Minister Guido Westerwelle said progress made this month on European bailout funding and central-bank intervention may prove to be the turning point in tackling the debt crisis in the euro zone. Westerwelle cited Germany's Federal ...

Debt crisis: central bank action is work of the devil, says Germany's Jens Weidmann - Telegraph: "The head of Germany’s Bundesbank has raised eyebrows across Europe after he appeared to compare Mario Draghi’s bond buying programme with the "devil’s work"."

Fiscal Cliff Tops Euro Crisis Among Tail Risks, BofA Says
Businessweek
Bloomberg News. Fiscal Cliff Tops Euro Crisis Among Tail Risks, BofA Says. By Charles Mead on September 18, ... That exceeds the 33 percent who are most concerned with Europe's sovereign-debt crisis, according to the BofA Merrill Lynch Fund Manager ...

Iceland Tempers Euro Adoption Goal as Debt Crisis Raises Doubts
Businessweek
Europe's handling of its debt woes has so far failed to resolve the crisis, which is now in its third year. While the European Central Bank's pledge last week to purchase unlimited quantities ofeuro-zone bonds initially stabilized markets, yields on ...

Global funds returning to euro zone equities- BofA poll
Reuters
LONDON, Sept 18 (Reuters) - Global investors are more bullish on euro zone equities than they have been since mid-2011, with new crisis-fighting plans soothing worries over the region's sovereigndebt, a fund managers' survey showed on Tuesday ...

More ECB cash might not unlock lending
Chicago Tribune
LONDON (Reuters) - Any further offer of cheap cash to banks by the European Central Bank might increase liquidity in the euro zone's banking system but is likely to have little impact on lending to the wider economy. ECB Governing Council member Luc ...

Economics of Everyday Greek Life Is Eroding, Euro or No
New York Times
That was after the elevator parts and service business he had owned and run in Athens for a decade began slumping along with the economy, after the extent of Greece's debt crisis became evident. He and his son, Tassos, 24, looked for ways to make a ...

New York Times

Global stocks edge lower, oil drops again
Reuters
Doubts grew over Spain's willingness to ask for an aid package, raising new concerns about Europe'sdebt crisis and the euro, while bellwether FedEx cut its profit forecast, darkening the corporate earnings outlook. In addition, the Swiss government ...

German Investor Confidence Rises First Time Since April
Businessweek
German investor confidence rose for the first time in five months in September after the European Central Bank unveiled a plan to buy government bonds to stem the sovereign debt crisis. The ZEW Center for European Economic ... an economist at ABN Amro ...

METALS-Copper flat as stimulus rally evaporates, economy eyed
Reuters
Euro falls vs dollar, hurts metals * Focus on economy, euro zone debt crisis * Japan 4Q aluminium premiums set at record $254-$255 By Susan Thomas and Harpreet Bhal LONDON, Sept 18 (Reuters) - Copper steadied on Tuesday, pausing for breath as last week ...

EU Zone Debt Crisis Battle Hits a Stumbling Block | The Big Picture
By Barry Ritholtz
EU Zone Debt Crisis Battle Hits a Stumbling Block  By Barry Ritholtz - September 18th, 2012, 6:25AM.
The Big Picture

The Fiscal Cliff Is A Bigger Threat Than The European Debt Crisis ...
By Mamta Badkar
On the U.S.. The U.S. fiscal cliff is seen as more of a risk than the European debt crisis for the first time since April 2011. 38 percent think a fiscal cliff is more likely under president Obama, compared with 26 percent under a Romney presidency.
Clusterstock

Euro zone steers debt crisis obstacles - Bing Videos
The Dutch election ended favourably for the euro zone chiefs who needed to keep their pro ...
www.bing.com/videos/watch/video/euro-zone.../2j74vlqx5

No plain sailing for Eurozone banking union
eGov monitor
Over the past weekend, EU Finance Ministers met in Cyprus to agree on a common supervisory structure for the banking union. The European executive body, the European Commission has proposed putting the European Central Bank (ECB) as the primary ...

eGov monitor

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