ITALIAN STOCKS PLUNGE NEARLY 5% — Borrowing Costs Surge After Upset On Election Night
Italy 10yr /quotes/zigman/3483462 4.76 +0.33 7.47%
Spain 10yr /quotes/zigman/3483373 5.36 +0.25 4.96%
ECB bond-buying program may not be there to save Italy! Italy’s inconclusive election results have thrown financial markets into a tizzy.
The Spanish Market Is Collapsing Too
Berlusconi won’t ally with Monti’s party: report
Big Italian bill auction today … € 8.75 bln in short-term debt
Banks Are Diving [...]
The oldest bank in the world, the Italian bank Monte dei Paschi di Siena is threatening to move up one of the biggest turnarounds in the euro zone. Explain to the end of this week, the bank was founded in 1472 from Siena, the EU banking supervision EBA as a capital gap should be filled from 3.26 billion euros
Many predict that the bank will declare bankruptcy till the Italian elections. [...]
Today 40 year veteran, Don Coxe, told King World News “…the amounts involved are at mind-boggling levels,” in terms of what is needed for Europe’s governments and banks. Coxe, who is Global Strategy Advisor to BMO ($538 billion in assets), also said that European banks, “…have borrowed huge amounts of money, in dollars, under currency swap arrangements,” and “if banks start to go down, we know from 2008, when banks start to [...]
Some people know Banca Monte dei Paschi di Siena as one of the biggest banks in Italy (lately best known for being either halted down, about 90% of the time, or up, the remainder) with 3,000 branches, 33,000 employees and 4.5 million employees. Others know it for being the world’s oldest surviving bank, founded in 1472 by the magistrate of the then city-state of Siena. Most will henceforth know it as [...]
Today’s AM fix was USD 1,612.75, EUR 1,286.19, and GBP 1,034.94 per ounce.
Yesterday’s AM fix was USD 1,589.25, EUR 1,271.40, and GBP 1,025.65 per ounce.
Silver is trading at $28.90/oz, €23.16/oz and £18.65/oz. Platinum is trading at $1,455.20/oz, palladium at $617.60/oz and rhodium at $1,200/oz.
Gold rose $11.40 or 0.71% yesterday in New York and closed at $1,611.60/oz. Gold started out trading sideways in Asia and then edged up in early [...]
Italian and Spanish bond yields
Please notice the graphs and yields for 10 year bonds in Italy (currently at 6.04%) and Spain (currently at 6.44%). The bailout rally did not last and bond yields are turning higher.
Spanish Yields Surge As Bank Bailout Stokes Sovereign Debt Fears
Infosys Skirts Italy, Spain Software Deals on Euro Crisis
ECB Financing to Portuguese Banks Increased to Record in May
Puerto Rico Borrowing Costs Rise on Rating Concern: Muni Credit
Spain told it will [...]
EU SOURCES HAVE DISCUSSED IMPOSING CAPITAL CONTROLS AS WORST CASE SCENARIO IF GREECE LEAVES EUROZONE – RTRS
IMPOSING BORDER CHECKS, LIMITING ATM WITHDRAWALS ALSO PART OF WORST-CASE SCENARIO PLANNING – EU SOURCES – RTRS
SUSPENSION OF SCHENGEN ALSO DISCUSSED
Major Italian Bank Freezes All Customer Accounts
On May 31st Bank Network Investments discretely posted an announcementon their website that they would be freezing all of their customers accounts for 1 month freeze on citing financial [...]
BNI depositors unable to make withdrawals / payments, payments of utility bills, mortgage payments, taxes
Peter Giordano, Adiconsum: “Grave of the Bank of Italy’s attitude that takes action without considering the impact on depositors, and especially on single-income families and pensioners”
Adiconsum Bank of Italy asks for an urgent meeting and the lifting of the
The Bank of Italy authorized the suspension of payments by Bank Network Investments SpA (BNI) without communicating anything [...]
It’s all over BBC NEWS24 as breaking news.
Moody’s downgrades credit ratings of six German banks
Ratings agency Moody’s has cut the credit ratings of six German banks and three in Austria.
The biggest bank affected was Commerzbank, Germany’s second-biggest lender, which was cut from A3 to A2.
Moody’s delayed a decision on the rating of Germany’s biggest bank, Deutsche Bank.
“Today’s rating actions are driven by the increased risk of further shocks emanating from [...]
The ratings agencies are major forces for fiscal tightening, as governments desperately hope to maintain their investment grade ratings and so on.
But now look at this from Moody’s downgrade of Italian banks.
The #1 reason for the downgrade?
Increasingly adverse operating conditions, with Italy’s economy back in recession and government austerity reducing near-term economic demand.
So on the one hand, Moody’s pushes Italy to cut spending. And then on the other hand Moody’s punishes the banks for said spending cuts.
Oil prices at record levels in euro terms are threatening to rock the euro zone’s economy more than might be expected, with those countries least capable of riding out a shock being the worst hit.
Standard estimates of the impact of oil prices on the euro zone economy are that a 10 percent price hike dents annual growth by some 0.2 percent in the ensuing three years, with disagreement over whether [...]
It appears that these days a EUR1 trillion hot liquidity injection (such as that from the ECB’s LTRO 1+2) will buy you about 3 months of breathing room. Then the ostriches have no choice but to pull their head out of the sand, especially in Europe, where after three months of spread tightening, and hence the belief that “all is fixed”, things are starting to turn ugly again: sovereign government [...]
This is one of the clearest signs yet that the mood in Europe has totally changed.
European banks are on fire.
The STOXX Europe 600 Banks Price Index is up 3.3% right now.
The big Italian bank UniCredit is up nearly 10%.
Reuters’ Scotty Barber just posted this fantastic chart showing how low bank PEs are relative to the rest. Lots potential for them to rise, just if things don’t totally collapse.
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.
When asked to clarify the timing for his call for an Italian bank to fail and initiate a domino like reaction in the banking system Jim responded:
Timing questions are the hardest- definitely the hardest. I don’t know, it could be [...]
UniCredit, the major Italian bank that got clobbered just about every day last week is… getting clobbered some more today.
The stock is off over 12% today.
The company’s stock ended 2011 and 4.2284. At its current price of 2.306 EUR it’s now down 45% year to date.
Posted in: BI
by Linette Lopez, BI
UniCredit has been tanking for the past three days. You may be saying to yourself: “I’ve heard this story before. Poor Italy. Got it.”
Well unfortunately it’s not that simple. On Monday, UniCredit will try to raise cash by beginning a $9.7 billion rights issue — which means that investors will have the opportunity to buy stock at a discount, theWall Street Journal Reports.
If that sale doesn’t go well (it ends [...]
Italian 10-year yield rises back above 7%
Italian bank shares follow UniCredit lower
ECB Takes Record Deposits Stoked by Emergency Lending Operations
Eurozone unemployment stays at record high
ECB’s Knot: Euro May Collapse If Greece Pushed Out
Soros Says Euro-Area’s Failure Would Have a ’Catastrophic’ Global Impact
UniCredit warns rights issue investors of euro break-up
Europe Banks Tie Up Assets in Covered Bond Sales: Credit Markets
Schools will be cut $4.8 billion if taxes don’t pass, Gov. [...]
“My thesis is that, with the sustainability of euro integration now a pressing issue, capital flight has begun in earnest.
There is evidence that huge flows have left the “periphery” banks in search of the safety of German and other “core” institutions.
A fascinating Bloomberg article on Thursday (“Germany’s Hidden Risk” by Peter Coy) introduced the term “Target2″.
It’s the name for the European Central Bank’s suddenly important interbank payment system, which before [...]
By Jim Tankersley, NJ
This is the worst-case scenario from Europe, and it just might come true: Italy defaults on its debts. Every major Italian bank collapses. Recession grips the eurozone. Sovereign defaults and bank failures ripple across the Continent. Saddled with bad loans to nations and lenders in Europe, American banks hemorrhage cash. Credit freezes in the United States. Multinational companies, unable to raise money, curb U.S. investment and hiring. Wall [...]
Fazio has already been sentenced to four years for blocking the foreign takeover of another Italian bank
The former head of the Italian central bank, Antonio Fazio, has been sentenced to three and a half years in jail.
He was convicted of rigging the sale of Banca Nazionale del Lavoro (BNL) in 2005, by unfairly favouring an Italian buyer, insurer Unipol.
Unipol’s former chairman, Giovanni Consorte, was also sentenced to jail.
It is [...]
Denial. Denial is safe. Comforting. Religiously and relentlessly abused by politicians who don’t want nor can face reality. A word synonymous with “muddle through.” Ah yes, that “muddle through” which so many C-grade economists and pundits believe is the long-term status quo for the US and the world just because it worked for Japan for the past three decades, or, said otherwise, “just because.” [...]
By DoctoRx of the Daily Capitalist, on September 5th, 2011
Stock markets fell very hard in Europe today, but if even Bloomberg.com doesn’t mention it, does that mean it did not happen or does not matter?
The Stoxx 50 index was down over 5%, as was the German DAX. Yet the “Top News” headlines on Bloomberg as I write this are, in order:
Obama Addresses Union Labor Day Rally;
Darwin Effect [...]
Ditto what Sax just posted! -See Zerohedge’s story “EURCHF Crashing After Hours On Italian Bank Run Concerns” @ http://www.zerohedge.com/news/eurchf-crashing-after-hours-italian-bank-run-concerns. Per ZH:
Less than an hour ago, Larry Kudlow tweeted the following: “Sources tell me Italy has to restructure bonds.Deposit run on Italian banks.EU will have to mount Tarp rescue.Big stress on interbank loans.” Basically, this is the worst possible combination for Europe which means that another bailout is [...]