European markets continue to grind higher following the summit, with today's vibe similar to that of last October's summit conclusion. Europe wasn't solved then (as it wasn't last night), but it didn't stop a sizable rally over the next few months. Stoxx 50 +3.5%, Germany +3.1%, Italy +4.3%. VGK +2.9% premarket. [View news story]
yikes!
details everyone:
euro banks cant get money until they create this phantom bank supervisor which is not gonna get created until the end of the year!
More from Merkel: She says a vote on the permanent EU rescue fund (the ESM) will take place in German parliament today. To pass it, Merkel needs the vote of opposition parties - all of whom desire a softer stance towards Germany's troubled eurozone neighbors. Last night's agreement should seal that. [View news story]
The "fat tail" of a disorderly denouement to the EU crisis grows, according to Ray Dalio. "Students of human nature and deleveragings know" the difficulty of creating a solution, he writes. "We think the popular assumption that the Germans and the ECB will come through with the money to make all these debts good should not be taken for granted." (Soros yesterday) [View news story]
when it happens, it will happen fast! - remember when the Bear Stearns CFO mentioned on a conf. call that they were having liquidity problems?...it will be the same thing with the Euro...you will get a small mention that Germany is spending money on Currency artisits...or that they will not be able to attend a meeting and they are considering their options....
in any event, when it happens, it will happen fast, and we expect the Euro to tumble 10 cents in a single day....!!!
More on Consumer Confidence: It's the 4th decline in a row for the index, which now stands at its lowest level since January (expectations at lowest level since November). "The failure of Bernanke's 'wealth effect,'" says Not Jim Cramer, noting the divergence since QE began between consumer confidence and stock prices. [View news story]
Visa Europe Prepares For Possible Euro Zone Breakup
"From our perspective, we can implement new currencies at the drop of a hat," Mr. Perry said on the sidelines of the BRC Retail Symposium conference. "If a collapse were to happen, or an individual country were to leave the euro, we could handle that very quickly in terms of allowing people to use their cards in a payment capability." ddd
The Road To Eurozone Deposit Insurance [View article]
Visa Europe Prepares For Possible Euro Zone Breakup
"From our perspective, we can implement new currencies at the drop of a hat," Mr. Perry said on the sidelines of the BRC Retail Symposium conference. "If a collapse were to happen, or an individual country were to leave the euro, we could handle that very quickly in terms of allowing people to use their cards in a payment capability."
GeoEye (GEOY -25.5%) gets crushed after disclosing a government agency won't exercise a renewal option for a satellite imagery program, and is instead proposing less lucrative short-term contracts. In addition, the agency won't be providing cost share funding for an upcoming satellite launch. Benchmark is downgrading shares to Hold, and thinks GeoEye's 2013 bond payments are now at risk. JPMorgan thinks a buyout offer from rival DigitalGlobe (DGI -2.6%) is now more likely. (previous) [View news story]
Great buy! If NGA doesn't take future yrs, other nations will. This is a blessing in disguise as the company will receive higher revenues...
The ECB can stop the sovereign debt crisis "almost immediately" by carrying out a "massive" round of government bond purchases, says Guillermo Ortiz, formerly Governor of Mexico's central bank. So now we've got former Mexican central bankers advising the ECB to print massive amounts of money to fund governments. Wonderful. [View news story]
good points,...
however, how do you take an equity position in a Country?
thats the flaw in the aforementioned thinking...
also, if they do attempt now they will realize they are out of ammo...
Official projections show the establishment (pro-bailout) parties - New Democracy and Pasok - with enough seats to form a government in Greece. New Democracy is projected at 30.1%, Syriza at 26.5%, Pasok at 12.6%. Pasok indicates it will provide the votes to create a majority but will not take part in the government, reports Dow Jones. The euro is buying $1.2705 vs a Friday close of $1.2638. [View news story]
euro got a pop on the news and now is trading down...
Greeks are voting for the second time in six weeks in elections that could lead to the country leaving the euro and the bloc breaking up. As far as the EU elites and investors are concerned, New Democracy and Pasok good, Syriza bad, with the outcome to close to call. A wildfire raging near Athens seems to provide an unfortunate but apposite backdrop, but at least the Greek soccer team progressed to next round of the European Championships. [View news story]
Euro to fall off a cliff tomorrow as Greek elections produce no majority winner and they have billions due at the end of the month!
U.K. bank shares are partying following the joint BoE/Treasury plan to fill them full of cheap funding (which they're supposed to funnel into the real economy). The ADRs premarket: RBS +5.9%, Lloyds LYG +4.4%, Barclays +4.1%, HSBC (HBC) +1.3% (HSBC is less pure domestic retail bank than the others). The FTSE 100, though, lags the rest of Europe, up just 0.5%. [View news story]
Why investors should support Syriza? So they get a better deal like the Spanish or finally leave the euro and we can get on with our lives….
Yields on 10-year Spanish and Italian bonds continue yesterday's climb, which came after the euphoria over Spain's bank bailout had dissipated. Spain +15 bps to 6.65% and Italy +10 bps to 6.13%, although Monument Securities' Marc Ostwald argues that the two countries aren't comparable. "Italy is in fact rather like Japan rather than...Spain, Ireland, Portugal, let alone Greece." [View news story]
sell everythig and take off the rest of the week, - protect principal and why take the risk when the Greek elections are coming up...
Banco Santander (STD) and BBVA are downgraded to BBB+ from A by Fitch, a technical move necessary from Spain's sovereign downgrade last week. Both maintain ratings slightly higher than the Kingdom, thanks to their "geographical diversification, strong financial performance, and a proven capacity to absorb credit shocks." [View news story]
sell europe, sell copper, sell china, - go cash for next two weeks
Stocks turn lower after the bailout-induced pop at the open. S&P 500 -0.2%, Nasdaq -0.3%. Europe hits session lows, the Stoxx 50 +0.6% with next-in-line Italy -1.3%. [View news story]
we [U.S.] are realists, get ready for massive selloff!
European markets continue to grind higher following the summit, with today's vibe similar to that of last October's summit conclusion. Europe wasn't solved then (as it wasn't last night), but it didn't stop a sizable rally over the next few months. Stoxx 50 +3.5%, Germany +3.1%, Italy +4.3%. VGK +2.9% premarket. [View news story]
details everyone:
euro banks cant get money until they create this phantom bank supervisor which is not gonna get created until the end of the year!
what happens in the meantime,
details, details....
More from Merkel: She says a vote on the permanent EU rescue fund (the ESM) will take place in German parliament today. To pass it, Merkel needs the vote of opposition parties - all of whom desire a softer stance towards Germany's troubled eurozone neighbors. Last night's agreement should seal that. [View news story]
The "fat tail" of a disorderly denouement to the EU crisis grows, according to Ray Dalio. "Students of human nature and deleveragings know" the difficulty of creating a solution, he writes. "We think the popular assumption that the Germans and the ECB will come through with the money to make all these debts good should not be taken for granted." (Soros yesterday) [View news story]
in any event, when it happens, it will happen fast, and we expect the Euro to tumble 10 cents in a single day....!!!
More on Consumer Confidence: It's the 4th decline in a row for the index, which now stands at its lowest level since January (expectations at lowest level since November). "The failure of Bernanke's 'wealth effect,'" says Not Jim Cramer, noting the divergence since QE began between consumer confidence and stock prices. [View news story]
"From our perspective, we can implement new currencies at the drop of a hat," Mr. Perry said on the sidelines of the BRC Retail Symposium conference. "If a collapse were to happen, or an individual country were to leave the euro, we could handle that very quickly in terms of allowing people to use their cards in a payment capability." ddd
http://on.wsj.com/OrbTw1
The Road To Eurozone Deposit Insurance [View article]
"From our perspective, we can implement new currencies at the drop of a hat," Mr. Perry said on the sidelines of the BRC Retail Symposium conference. "If a collapse were to happen, or an individual country were to leave the euro, we could handle that very quickly in terms of allowing people to use their cards in a payment capability."
http://on.wsj.com/OrbTw1
The Road To Eurozone Deposit Insurance [View article]
Where In The World Is Risk Today? [View article]
GeoEye (GEOY -25.5%) gets crushed after disclosing a government agency won't exercise a renewal option for a satellite imagery program, and is instead proposing less lucrative short-term contracts. In addition, the agency won't be providing cost share funding for an upcoming satellite launch. Benchmark is downgrading shares to Hold, and thinks GeoEye's 2013 bond payments are now at risk. JPMorgan thinks a buyout offer from rival DigitalGlobe (DGI -2.6%) is now more likely. (previous) [View news story]
The ECB can stop the sovereign debt crisis "almost immediately" by carrying out a "massive" round of government bond purchases, says Guillermo Ortiz, formerly Governor of Mexico's central bank. So now we've got former Mexican central bankers advising the ECB to print massive amounts of money to fund governments. Wonderful. [View news story]
however, how do you take an equity position in a Country?
thats the flaw in the aforementioned thinking...
also, if they do attempt now they will realize they are out of ammo...
Official projections show the establishment (pro-bailout) parties - New Democracy and Pasok - with enough seats to form a government in Greece. New Democracy is projected at 30.1%, Syriza at 26.5%, Pasok at 12.6%. Pasok indicates it will provide the votes to create a majority but will not take part in the government, reports Dow Jones. The euro is buying $1.2705 vs a Friday close of $1.2638. [View news story]
Greeks are voting for the second time in six weeks in elections that could lead to the country leaving the euro and the bloc breaking up. As far as the EU elites and investors are concerned, New Democracy and Pasok good, Syriza bad, with the outcome to close to call. A wildfire raging near Athens seems to provide an unfortunate but apposite backdrop, but at least the Greek soccer team progressed to next round of the European Championships. [View news story]
U.K. bank shares are partying following the joint BoE/Treasury plan to fill them full of cheap funding (which they're supposed to funnel into the real economy). The ADRs premarket: RBS +5.9%, Lloyds LYG +4.4%, Barclays +4.1%, HSBC (HBC) +1.3% (HSBC is less pure domestic retail bank than the others). The FTSE 100, though, lags the rest of Europe, up just 0.5%. [View news story]
Yields on 10-year Spanish and Italian bonds continue yesterday's climb, which came after the euphoria over Spain's bank bailout had dissipated. Spain +15 bps to 6.65% and Italy +10 bps to 6.13%, although Monument Securities' Marc Ostwald argues that the two countries aren't comparable. "Italy is in fact rather like Japan rather than...Spain, Ireland, Portugal, let alone Greece." [View news story]
Banco Santander (STD) and BBVA are downgraded to BBB+ from A by Fitch, a technical move necessary from Spain's sovereign downgrade last week. Both maintain ratings slightly higher than the Kingdom, thanks to their "geographical diversification, strong financial performance, and a proven capacity to absorb credit shocks." [View news story]
Stocks turn lower after the bailout-induced pop at the open. S&P 500 -0.2%, Nasdaq -0.3%. Europe hits session lows, the Stoxx 50 +0.6% with next-in-line Italy -1.3%. [View news story]