In five out of nine times that the European Council has met since January 2011, market expectations have been missed. Analysts at BNP Paribas have done the research, which supports the heavy air of pessimism surrounding this Thursday's euro summit that is set to present some sort of action plan on Friday. “Although it is [...]
"Germany will accept Eurobonds only when Italy requests bailout"
By Tania Suárez, in Madrid | José Luis Herrera, analyst at CMC Markets, considers that it’s necessary a Federal Europe in order to achieve economic policies with a combination of austerity and growth. In his opinion, authorities need to undertake growth measures that have an effect on the real economy, but avoiding a new bubble. [...]
All sorts of Eurobonds
By Luis MartÃ, in Madrid | Amid the recent flurry of proposals for restructuring of the euro zone and opinions on its decomposition, seasoned with all sorts of half truths, two reports –one of the European Commission, by order of Parliament, and one of the Council of Economic Experts which advises the German government– have seriously [...]
Why European banks are still broke
LONDON/MADRID |Â The default risk rates or CDS of the European banks are a hundred points above the peak reached after the Lehman Brothers bankruptcy, although it is Spanish and Italian entities that receive much of the attention these days. There is some justification for it. On June 11, after Spain's banking rescue was announced, the [...]
Madrid speaks up in arm-wrestle with Brussels, Moody's adds pressure
I Want To Get Back With Him MADRID | An Spanish offensive seems to have been deployed in all fronts. Spain's King Juan Carlos in Brazil called on the European Union to advance its integration because the problem, he said, rather than economic, is political. Meanwhile, president Mariano Rajoy introduced in a Senate session what [...]
Obama’s three counter-austerity darts
NEW YORK | U.S. President clearly sided with pro-growth Europeans remarks in his final NATO summit remarks on Monday, urging the Old Continent to strenghten its defenses against financial market turmoil and recapitalize its banks. In a nutshell, these were his three darts. Yes to a monetary policy “We’ve got to make sure that there is a [...]
European fiscal union? Eurobonds? Good luck convincing Germany
Luis Arroyo, in Madrid | It’s the talk of the town. The euro zone desperately needs to become a fiscal union and, voilà , everything will be sorted. But I wonder: how do we get there? Have a look at the chart below, which reflects fiscal pressure levels in core Europe economies and in some of the [...]
Weekend ongoing coverage (1) | G8′s Camp David: austerians vs growthers
NEW YORK | In the idyllic setting of the Catoctin Mountains of Maryland 63 miles from the White House, world leaders gathered on Friday for the G8 summit. This time, the agenda has real economic substance. Will the intimacy of the lodges in the wilderness help to solve the eurodrama? The pressure is expected to [...]
Weekend link fest
A curated selection of links we hope can enlighten us all; some come from our corner, some do from other corners of the net. And as always, our comment widgets are anxious to get your suggestions. Oh no, one more bubble!!! The problem with the euro: it isn’t sexy We need oil speculators, actually Derivatives are [...]
