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Suddenly, There Are Reasons To Worry About Europe Again… Thanks to the ECB’s promise that it will backstop the government bond market, if necessary, the acute financial crisis from the past couple of years is basically over.
But there have always been risks. For one thing, the economy is horrible, and people can only accept that before so long before society starts to tear apart. And then there’s always been politics, and the worry [...] China’s new yuan loans fell 14 percent in October from a year earlier, damping signs the world’s second-biggest economy is recovering after a seven- quarter slowdown. Banks extended 505.2 billion yuan ($81.1 billion) of local- currency loans in October, the Beijing-based People’s Bank of China said on its website today. That compares with the median estimate of 590 billion yuan in a Bloomberg News survey of 28 analysts and 586.8 billion yuan a year earlier. Today’s [...] Credit Agricole has sold its troubled Greek banking arm Emporiki to rival Alpha Bank for a symbolic €1 (£0.81). France’s third-largest bank said that it would take a €2bn hit as a result of the sale. This includes losses from asset sales, transaction costs of between €300m and €400m, and the cost of rebuilding Emporiki’s balance sheet. … The French bank will pump an additional €550m into Emporiki as part of the deal, [...] From Bloomberg: China’s manufacturing teetered on the edge of contraction in July, signaling a rebound in economic growth has yet to take hold. The Purchasing Managers’ Index unexpectedly fell to 50.1 in July from 50.2 in June. The reading today from the Beijing-based National Bureau of Statistics and China Federation of Logistics and Purchasing was the weakest in eight months and compares with the 50.5 median estimate in a Bloomberg News survey. A [...] The kneejerk short covering reaction to Draghi’s remark that he will do “anything to preserve the euro” (this must be news because yesterday the ECB would not do anything to preserve the euro supposedly) is over. Now the analysis begins of what was actually said. The realization is… nothing. From Bloomberg: ‘Nothing Structural’ in Post-Draghi Bond Spread Moves: Credit Agricole Bloomberg’s Lindsay Fortado and Joshua Gallu report that traders at Deutsche Bank AG, HSBC Holdings Plc , Societe Generale and Credit Agricole are under investigation for manipulating the interest rate.
Specfically, regulators are investigating Michael Zrihen at Credit Agricole, Didier Sander at HSBC and Christian Bittar at Deutsche Bank because of their links to former Barclays trader Philippe Moryoussef, says the report. So far, 34 traders have been caught up in the probe and either fired and put on probation by [...] With the exception of progress regarding the bailout of Spanish banks, the echoes from the last EU Summit are not very encouraging. Firstly, some countries, even if they have been part of the consensus for more integration, are expressing doubts or reluctance in the face of domestic public opinion. http://www.efxnews.com/story/13553/spain-bailout-side-echoes-last-eu-summit-not-encouraging-credit-agricole?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Efxnews+%28eFXnews+%29 Proof that the markets are being artificially held up by the stimulus packages that US and Europe are fraudulantly using to their own ends. Now, if the job figures are good then the FR is less likely to throw another stimulus package out there which the baying animals on the stock exchange are all ready to stick their snouts into. http://news.sky.com/story/956815/markets-drop-amid-fear-of-good-us-job-numbers Market logic sours sentiment across Europe and the UK as investors seek [...] http://www.bbc.co.uk/news/business/ he Reserve Bank of Australia cut its key cash interest rate again on Tuesday, in a widely-expected effort aimed at protecting the domestic economy from increasing global growth risks. The cash rate was lowered by a 0.25 percentage points to 3.5%. “The board judged that, with modest domestic growth and a weaker and more uncertain international environment, the outlook for inflation afforded scope for a more accommodative stance of [...] via WSJ:
Some of China’s biggest banks have cut off a handful of their European counterparts from borrowing and derivatives trading as they seek to reduce their exposure to the simmering crisis on the Continent, people familiar with the matter said. Chinese state-owned banks including Industrial & Commercial Bank of China Ltd., Bank of China Ltd. and Bank of Communications Co. have scaled back their dealings with France’s Société Générale SA, BNP [...] via BBC News: China will allow direct trading of the yuan and the Japanese yen, in a move aimed at promoting trade between Asia’s two biggest economies. This means the two countries will not be using the US dollar as an intermediary. China, which sometimes has a tense relationship with Japan, is the country’s biggest trading partner. China’s central bank said the China Foreign Exchange Trade system would launch this trade, starting [...] Basically what will now be heard across the Euro continent is the populist fed theme: “We don’t want the peripherals to bleed to save the skin of Banksta Oligarchy of WS/City. We know that YOU KNOW that we now know, that the TRUE ISSUE is not government debt but private banking debt worldwide. That this Banksta cabal has used SHADOWBANKING pump to export austerity to southern Europe and maintain posperity [...] From Pragmatic Capitalism: There has long been a strong correlation between the Nikkei and the U.S. dollar/yen. A similar version of this correlation is that of the Nikkei and U.S. interest rates. The thinking is rather simple. As a trade surplus nation, the rising yen puts downward pressure on profits and Japanese equities. Unfortunately, the calls for a bottom in the U.S. dollar/yen have been made for years on end. But Credit [...] RBS, Commerzbank, Credit Agricole Take Greek Hit After Deal by AP PARIS (AP) — French bank Credit Agricole SA has reported a massive euro3.07 billion ($4.06 billion) net loss in the fourth quarter and says the Greek debt crisis shaved billions off its bottom line last year. Credit Agricole — one of the most exposed French banks to Greek debt — says fourth-quarter net profit plunged nearly tenfold from a loss of euro328 million in the last quarter of 2010. The bank says [...] By Sara Sjolin LONDON (MarketWatch) — French regulators said Monday they have lifted a ban on short-selling of 10 financial stocks, which had been in effect since August. The French stock market regulator AMF said in a statement that the ban came to an end Saturday. The ban had applied to BNP Paribas SA FR:BNP -0.26% [s:bnp], Credit Agricole SA FR:ACA -0.34% , Societe Generale SA [...] Yesterday when We Discussed the surprising non-cut in the Australia cash rate, we asked “is China re-exporting the lagging US inflation it imported over 2011? ” and said that “It means that Chinese inflation continues to be far higher than what is represented… and wonder: did the RBA just catch the PBOC lying about its subdued inflation?” Lastly, we concluded: “Furthermore, the PBOC did 26 billion yuan in repos, meaning it is set to [...] Societe Generale SA (GLE) and Credit Agricole SA (ACA) were among French banks to have their credit grades cut by Standard & Poor’s after France was stripped of its top rating earlier this month. Societe Generale, France’s second-largest lender, and No. 3 Credit Agricole had their ratings downgraded to A from A+, with a stable outlook, S&P said yesterday in statements. Caisse des Depots et Consignations also was cut to AA+ from AAA. European nations are grappling [...] Sunday, January 15, 2012 With the S&P Massively Downgrading The Eurozone Nations Friday, The Doc interviewed Jim Willie of Goldenjackass.Comtoday regarding his thoughts on the Euro crisis and the implications to gold and silver. Timing questions are the hardest- definitely the hardest. I don’t know, it could be [...] Here is the kneejerk Wall Street response to the key event of the day. Funny how the Italians think it was a good auction and everyone else kinda sorta disagrees. ALESSANDRO MERCURI, STRATEGIST, LLOYDS BANK, LONDON “Decent even though slightly disappointing (compared) to yesterday’s auction. The 2022 bond was well bid, they sold 2.4 billion at the high end of the 2.5 billion range. The key thing that we saw yesterday was [...] From Zero Hedge: In France, the litany of job reductions continues. [Last week] Air France added 2,000 jobs to be eliminated to the 4,000 it had already announced. Late October, automaker PSA Peugeot Citroën announced 4,000 layoffs. Banks — Crédit Agricole, BNP Paribas, Société Générale, and Crédit Foncier — chimed in with their own job reductions. Then there were Areva, the largely government-owned nuclear-power conglomerate, drug maker Sanofi, ferry operator Seafrance (in [...] Reuters Ratings agency Moody’s downgraded the debt of BNP Paribas (BNPP.PA), Societe Generale (SOGN.PA), and Credit Agricole (CAGR.PA) on Friday, citing deteriorating liquidity and funding conditions. Moody’s cut its ratings on the long-term debt of BNP and Credit Agricole by one notch to Aa3, concluding reviews that began in June and were continued in September. Societe Generale’s long-term debt was cut by one notch to A1. The downgrades were driven by [...] (Reuters) – Ratings agency Moody’s downgraded the debt of BNP Paribas (BNPP.PA), Societe Generale (SOGN.PA), and Credit Agricole (CAGR.PA) on Friday, citing deteriorating liquidity and funding conditions. Moody’s cut its ratings on the long-term debt of BNP and Credit Agricole by one notch to Aa3, concluding reviews that began in June and were continued in September. Societe Generale’s long-term debt was cut by one notch to A1. The downgrades were driven by [...] Banks with a TCE to RWA ratio of less than 6.5% to 7.5% accounted for a disproportionate share and the vast majority of distressed banks. Approximately 21% of the largest global banks became distressed during the crisis. Banks with a TCE to RWA ratio of less than 6.5% prior to the depths of the crisis had a distress rate of 33% and made up 58% of distressed banks. Banks with [...] by ZH Following yesterday’s shove-liquidity-down-your-throat-of-last-resort action by the Fed et al. 3M USD Libor fell, admittedly marginally, for the first time since July 25th. The 0.1bps compression was practically insignificant as only 4 of the 18 member banks actually reduced their bids - Citi, Rabobank, RBC, and UBS but we are sure headlines will crow of the impact the coordinated central bank action has had already. What is most concerning when we look at [...] by ZH Slowly even those staunchest critics of reality, namely undercapitalized and insolvent French banks, are coming to grips with the truth that they are going to see massive losses on their tens of billions of French debt exposure. The FT reports that the French stock market regulator has told French banks to apply realistic assumptions to their Greek debt haircuts. Because through today, French banks only used the 21% agreed upon [...] by ZH Image: wikimedia commons In a shocking representation of just how bad things are in Europe, the FT reports that major European industrial concern Siemens, pulled €500 million form a large French bank, which is not BNP and leaves just [SocGen|Credit Agricole] and deposited the money straight to the ECB. The implications of this are quite stunning, as it means that even European companies now refuse [...] |
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