There will be NO QE with food prices at 11++% …China DON’T risk a civil war for higher stocks
10.45 Spain says injecting debt into Bankia is a “marginal” option. Prefers to tap markets for financing.
10.34 China has no plans to introduce large-scale stimulus, Xinhua news agency reports.
10.32 European Commission President José Manuel Barroso is “reasonably confident” about Europe. Says it is in Greece’s best interest to stay in the EU.
10.28 Switzerland sells CHF688.8m of 91-day bills at a negative yield of -0.62.
10.13 The parent company of Bankia, the lender at the centre of Spain’s financial worries, has restated its 2011 results to reflect a €3.3bn loss as opposed to a €41m profit.
BFA said in a statement that about half of this revised amount stemmed from losses at Bankia, which has been nationalized and will receive €19bn in a government bailout.
“The Chinese government’s intention is very clear: it will not roll out another massive stimulus plan to seek high economic growth,” Xinhua said in the seventh paragraph of a Chinese- language article on economic policy. “The current efforts for stabilizing growth will not repeat the old way of three years ago.”
Premier Wen Jiabao’s call last week to focus more on boosting economic growth has spurred speculation the nation will step up measures to boost expansion that’s set to slow for a sixth straight quarter. Economists at Credit Suisse Group AG and Standard Chartered Plc said yesterday that stimulus is likely to be smaller than the 4 trillion yuan ($630 billion at today’s exchange rate) package announced in 2008.