Spain just announced a 100bn euro bailout from the EU on Saturday. Now everyone is wondering if and when Italy will need to come to the table for assistance and what sort of precedent this weekend’s news has set.
“As we expect a further escalation of the crisis, we believe Italy will probably need outside help at some point,” writes Citi’s Jürgen Michels and his team of European economists.
From a recent note to clients:
German Chancellor Angela Merkel and Greek Prime Minister George Papandreou. Officials in Berlin told The Telegraph it is ‘more likely than not’ that investors will suffer fresh losses on holdings of Greek debt Photo: AFP
Officials in Berlin told The Telegraph it is “more likely than not” that investors will suffer fresh losses on holdings of Greek debt, beyond the 21pc haircut agreed [...]
This article originally appeared at Stone Street Advisors.
It has been well documented that Warren Buffett is Wells Fargoâ€™s biggest fan â€“ and largest shareholder (through Berkshire Hathaway). In fact, in his annual letter to shareholders he states that WFCÂ is likely to increase its dividend the most among his common stock holdings. Given that WFC cut its dividend after taking TARP money, his prediction should not come as [...]
Europe : The sovereign debt crisis in Europe has further tarnished the credibility of Ireland’s government-owned bank, Anglo Irish Bank.
The Moody’s rating agency has cut its key rating for Anglo Irish Bank’s debt to the lowest investment grade, warning that the next step could be a “junk” rating unless the government guarantees bond holders against future losses.
In a statement, Moody’s said it expects “a continued asset quality deterioration in [...]