|
|||||
|
Austerity comes to Germany: GERMAN GOVT PLANS TO INCREASE 2014 BORROWING: RHEINISCHE POST Is The Eurozone Crisis Set To Flare Up? I have written in the past that all is not solved in the Euro-zone. In fact, despite the ongoing jawboning from the ECB that they stand ready to “do anything,” in reality they have done little to this point other than just talk. While that has worked to a large degree to suppress [...] European leaders are loosening the economic shackles once demanded by Germany as the recession and mounting unemployment in southern Europe shove aside the debt crisis as the euro area’s biggest headache. A two-day Brussels summit starting today will endorse plans for “structural” assessments of national budgets, according to a draft statement, using code for granting countries such asFrance, Spain and Portugal extra time to bring down deficits. “We have to restore sound and sustainable public finances, via continued differentiated fiscal [...] Quantitative easing could cost the taxpayer £8bn, the Bank of England has warned in its first admission that the “money printing” programme may be unprofitable. by Philip Aldrick, The Telegraph: Policymakers had previously insisted they expected to make money on the £375bn of gilts bought through QE. But, in a study published on Thursday, the Bank conceded there were scenarios under which the Government would have to bear a loss by the end [...] Merkel Advisor Feld: “Euro Crisis Will Return Shortly And With A Vengeance” The Italian economy would not find their way out of the recession, according to the pessimistic assessment by Lars Feld: “The sustainability of Italian public finances is in jeopardy. The euro crisis will therefore return shortly with a vengeance.” Apparently, the Italians were not ready to move on the path of reform that has been taken by Mr. Mario Monti, [...] Egypt’s long-term credit rating was cut to the same junk level as Greece by Standard & Poor’s as escalating political tension in the North African nation may render aid from the International Monetary Fund “inactive.” The most-populous Arab country’s rating was lowered by one level to B-, six steps below investment grade, with a negative outlook, S&P said in a statement today. The rating, which is also on par with Pakistan, [...] Osborne warned his slow economic growth could mean another SIX years of cuts and VAT rising to 25% Institute for Fiscal Studies delivers alarming assessment of the Chancellor’s economic plan
The era of austerity could [...] Spanish police have fired rubber bullets and baton-charged protesters attending a rally against austerity. The clashes broke out as protesters tried to tear down barriers blocking access to the parliament in Madrid. Spanish media reported that at least 20 people had been arrested and more than a dozen injured. The protesters dispersed after MPs left the building. The “Occupy Congress” protest came as the government prepares to unveil further austerity measures on [...] A survey of 16 of the largest institutional bondholders by Bloomberg found that 10 would not reduce their holdings if the Chancellor watered down efforts to bring the public finances under control. The research was released as it emerged that Government borrowing for the first five months of the year was running more than 25pc over target, a revelation that prompted Nomura’s UK economist Philip Rush to warn that the Chancellor will [...] Market News International is reporting that the German Finance Ministry may ask Greece to exit the euro “temporarily” while it straightens out its finances.
From MNI: The German Finance Ministry is seriously considering a plan in which Greece would be obliged to ask for a temporary exit from the Eurozone until it sorts out its public finances, senior Eurozone officials told MNI. More to come….
businessinsider POLAND’S entry into the euro is imminent—in theory. With relatively healthy public finances, it should easily qualify. The economy is slowing but it is still the fastest-growing among big EU countries. Germany wants Poland in, at one time even talking of it joining in 2015. Yet Donald Tusk’s Civic Platform-led government has an opaque public line, promising only to join when the conditions are right. The truth is that Poland faces [...] washingtonpost.com Stocks took a battering while the euro slid to a two-year low against the dollar on Monday as fears over Europe’s debt crisis returned to haunt markets. Spain is the epicenter of the current bout of fears, with investors increasingly concerned that the country will not be able to turn its public finances around without outside help. Read more The UK government must make deeper cuts or raise more money in the future to keep public finances in check, the Office for Budget Responsibility says. In its annual look at the government’s finances, the OBR says in 2017-18 public spending needs to be cut by another £17bn or the same amount raised in taxes to stop debt ballooning. The OBR says this change would bring total debt back to 40% [...] Today – Italy May Need Bailout Fund Help to Cut Spreads BRUSSELS—Italian Prime Minister Mario Monti reiterated Tuesday that Italy won’t need a Greek-style bailout but suggested that the country might at some point need the European Stability Mechanism, or ESM, to buy Italian bonds and keep soaring yield spreads under control. “It wouldn’t be prudent to say that Italy will never need to use that fund,” Mr. Monti told … http://online.wsj.com/article/SB10001424052702303567704577518720472322752.html?mod=googlene (Reuters) – Countries who want the euro-zone’s permanent bailout funds to buy their bonds to help lower borrowing costs will have to commit to a reform program, EU Economic and Monetary Affairs Commissioner Olli Rehn said in an Italian daily on Saturday. Rehn wrote in La Repubblica that the market intervention would be available only to countries who pursue policies to control public finances, who adopt reforms to boost growth and [...] James Hall The shadow-banking component that adds to the risk of non-regulatory oversight just deepens the mystery behind the most powerful banking institution that runs roughshod over global finance. In order to gain an insight into the complexity of deception, examine the function of the BIS. The granddaddy of all central banks, the Bank for International Settlement, latest BIS Annual Report 2011/2012, foretells future financial consolidation. Watch the Banker to the World’s [...] Today Italy had a rather critical Bill auction in which it sold €9 billion in debt due six months from today. Obviously, since the maturity is well inside of the LTRO, the auction itself was rather meaningless from a risk standpoint. Still, the good news is that Italy managed to place the entire maximum amount targeted. The bad news: it cost Italy more to raise 6 months of debt, or [...] Reuters) – With tens of billions of euros lent to the public sector in Spain and Italy, bailed-out lender Dexia may be dead as an investment but as a threat to the budgets of guarantors Belgium and France, it is very much alive. Dexia, the first bank to require a rescue during the euro zone crisis, risks becoming a prime example of contagion from the troubled countries on the region’s southern [...] From Bloomberg: The 100 billion-euro ($126 billion) rescue for Spain’s banks moved Italy to the front line of Europe’s debt crisis as an initial rally in the country’s bonds fizzled on concern it may be the next to succumb. Italy’s 10-year bonds reversed early gains today in the first trading after the Spanish bailout and declined for a fourth day, sending the yield up 7 basis points to 5.84 percent. “The scrutiny of [...] Relief about a rescue package worth up to $125 billion for Spanish banks started to wear off on Monday and the rally in financial markets faltered as investors worried about the details of the deal. Stocks, including those of Spanish banks, were still in demand but the debt markets reversed earlier gains and the cost of insuring Spain’s debt rose. Investors were worried about how the bailout, struck by euro zone financeministers over [...] (Updated euro, European futures in sixth paragraph. For more on debt crisis, TOP CRIS)
June 11 (Bloomberg) — The 100 billion-euro ($126 billion) rescue for Spain’s banks moves Italy to the frontline of Europe’s debt crisis, putting pressure on Mario Monti’s unelected government to avoid succumbing to a market rout. “The scrutiny of Italy is high and certainly will not dissipate after the deal with Spain,” Nicola Marinelli, who oversees $153 million [...] Spain’s €100bn bank bailout could backfire on Madrid by destabilising public finances and hampering the country’s access to capital markets, experts have warned. Prime minister Mario Rajoy today hailed the deal with Brussels as a “victory” for Spain and the eurozone, but analysts said it was unlikely to convince financial markets for long. Mr Rajoy’s claims that Spain’s public finances would not be impacted were disputed, even though the details of [...] The United States held onto its AA+ rating from Standard & Poor’s Friday but the agency said it also kept a negative outlook on the country, citing the political deadlock over fixing the fiscal deficit. Ten months after delivering a historic rate cut to Washington, removing its top-level AAA rating, S&P warned that the reasons for the downgrade remained in place and that if anything they were deteriorating. The ideological deadlock between Republicans and Democrats continued to [...] An International Monetary Fund report on Spanish banks will show the country’s troubled lenders need a cash injection of at least 40 billion euros ($50 billion), sources in the financial sector said on Thursday. The report, due to be published next Monday, will also outline overall needs of 90 billion euros to clean up Spain’s entire banking sector, with healthy banks covering a big chunk of this sum, one of the [...] Spanish PM says other countries have a duty to support Spain but the banks need the support otherwise there will be global collapse (5.23 BST): Spain has admitted for the first time that it needs European Union support to prop-up its ailing banks, saying rising borrowing costs had shut the country out of bond markets. Cristobal Montoro, the Spanish Treasury minister, urged European institutions to “open up and help us”, saying the [...] The Brussels-based French-language press corps reacted with fury Wednesday to the release in English of the EU’s annual report cards on the bloc’s 27 economies. In an angry open e-mail to the European Commission, the correspondent for the daily Liberation newspaper Jean Quatremersaid — in French: “Once again, all the documents published today are available only in English. This is unacceptable.” The Commission released 1,500 pages of hotly-awaited reports on the state of the bloc’s [...] It also has said it should consider eurobonds and the direct recapitalisation of banks from its permanent bailout fund as it laid out year-long recommendations. The EU today published documents outlining the economic strategy for the euro zone. It directly addressed market concerns about problems in the Spanish banking sector and the cost to the Spanish government of rescuing it. Investors worry that public finances in Spain, which is already struggling to cut [...] Greece says public finances face collapse… http://www.ft.com/cms/s/0/fec2a4e2-a817-11e1-b8a9-00144feabdc0.html Can Spain really bail it out? If yes, at what cost?
The government has already spent 4.5 billion euros to prop up Bankia and the entire rescue is now seen totaling some 20 billion euros and still growing. How big will the Bankia bailout package grow today? €20 bn? €30 bn? place your bets. via Yahoo: Bankia will ask the state for more than 15 billion euros ($19 billion) to bail it out when its [...] |
Custom Search
    |
||||
|
Copyright © 2013 InvestmentWatch - All Rights Reserved |
|||||
