Bank Of Portugal | InvestmentWatch

EU issues joint bonds in a desperate attempt to support Spanish banksters from immune collapse of the banking system. Also retiring Finacial director of government multi-bailed out but collapsing Spain to be given pension bonus of €13.8 million a year:

Economy Ministry says government will approve issuing of joint bonds by regional governments to make it easier for them to raise capital, as Bank of Spain warns that the country’s economy will continue to shrink in the second quarter of this year.

• Spanish recession ‘will get worse in second quarter’
• Spain to approve joint regional bonds on Friday
• Bank of Portugal: domestic bank profitability ‘virtually nil’
• BoE’s Broadbent: inflation to [...]

Economic releases tomorrow:

- German state CPIs
- German May Prelim CPI
- US Redbook
- US S&P/Case-Shiller Home Price Index
- US Consumer Confidence
- Bank of Portugal financial stability report
- Italian 6-month BOT auction
- ECB’s 7 day refi
- Switzerland UBS Consumption Indicator (Apr)
- United Kingdom CBI Distributive Trades Survey – Realized (MoM) (May)
- Japan Nomura/ JMMA Manufacturing Purchasing Manager Index (May)

later today:

- Japan Overall Household Spending (YoY) (Apr)
- Japan Unemployment Rate (Apr)
- Japan Large Retailer’s Sales
- [...]

EUROPE IS BACK: Spanish And Italian Markets Are Getting Smashed, And Yields Are Spiking

After a long holiday, Europe is back.

And it’s not pretty.

The two big weak spots: Spain and Italy are playing catchup with the declines around the rest of the world, reacting to the jobs report and everything else, and it’s not pretty.

Italy is off 2%.

Spanish stocks are off 1.5%.

Both are seeing yields spike.

The Italian 10-year bond now yields 5.52%

Meanwhile, Germany’s DAX is down 1.4% and France is down 1.6%.

Meanwhile, US futures [...]

After Greece, Will Portugal Be Next to Seek Debt Relief?

Despite the official line that the Greek debt situationwas unique, the chances of further debt restructurings in Europe are growing.

The bond markets seem to be preparing for a Greek-style debt reduction in Portugal. Portugal’s 10-year bonds were trading at a 47 percent discount to face value on Friday. Its 10-year debt yields 13.71 percent. This is an improvement from January’s record high of 18.29 percent, but still far from any [...]

Bank of Portugal forecasts GDP contraction of 3.1% in 2012

Euro Credit: Portugal’s government may have to partly nationalize crisis-hit banks, even as it sells assets as part of the 78 billion-euro ($102.8 billion) bailout agreement

(For more on the euro crisis, click on EXT4.)

Dec. 13 (Bloomberg) — Portugal’s government may have to partly nationalize crisis-hit banks, even as it sells assets as part of the 78 billion-euro ($102.8 billion) bailout agreement.

Portuguese lenders’ stock-market value has tumbled to historic lows amid Europe’s deepening sovereign crisis and requirements for banks to bolster capital and mark to market the prices of euro-region debt holdings. The nation’s three biggest [...]

Portugal’s largest banks seek state aid:

– Portugal bank shares up sharply

– Portugal PM says would be passive shareholder in banks

LISBON — Two of Portugal’s largest banks said Thursday that they may need state help to fulfill new capital requirements, in a time that the government is trying to get its hands off the private sector.

Under a recapitalization plan affecting 13 European countries agreed late Wednesday in a summit in Brussels, large banks will have to [...]

Moody’s Downgrades Ratings of Two Biggest Italian Banks; Bank of Portugal Forecasts Deeper Economic Contraction in 2012

Just a few headlines:

Bank of England launches more QE; pound sinks
Moody’s Downgrades Ratings of Two Biggest Italian Banks
U.S. Cost of Hunger Was $167.5 Billion in 2010, Researchers Say
City of Scranton plans to skip bills, meet payroll
Bank of Portugal Forecasts Deeper Economic Contraction in 2012
Company Pension Deficit Jumps Most Ever as Stocks, Yields Plunge
ECB plans $53 billion of covered bond acquisitions

Saxplayer

Portugal Finds $1.53 Billion Hole

From WSJ:

LISBON—-Portugal’s central bank said Madeira island, a small autonomous region, has under-reported its debt since 2004, putting further pressure on the country to meet deficit targets under an international bailout.

An evaluation conducted by Bank of Portugal of Madeira’s accounts showed it failed to report €1.1 billion ($1.53 billion) in debt from 2008 to 2010 related to agreements between the government of Madeira and [...]

The Bank of Portugal warned of “intolerable risk” to the banking system unless the government can improve its finances.

via Reuters:

Portugal’s central bank said on Tuesday the country’s banks faced an “intolerable risk” unless the government manages to bring its public spending under control as it struggles to combat a debt crisis.

The Bank of Portugal report spelled out a tricky scenario for the banks as concerns grew in markets over the nation’s prospects of avoiding a bailout and thus becoming the next domino to fall in the euro zone.

Prime [...]

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