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EU

Bobbys Corner-Open Market-Oct.10.2012

Good Morning:

A fairly lackluster overnight session-with the majors showing no real activity.

Fitch Ratings commented that the US fiscal cliff, EU crisis, and a potential “hard landing” for the Chinese economy will be
a risk to the global economy.  Thanks-I think we knew that!

EU’s Rehn on the Wires

Says:

  • Euro governance to be determined this year
  • Closer economic union to complement monetary union
  • Recession to be ‘much nastier’ if crisis not resolved
  • EU going through a ‘mild recession’
  • EU undertaking reformation of Europe’
  • Portugal making ‘good progress’ on fiscal reforms
  • Greek PSI agreement by the end of the week
  • Greece must make ‘decisive progress’ on reforms

 

EU President Van Rompuy on the Wires

Says:

  • U.S, E.U both need strong action on economies
  • Euro road map presented Dec.9
  • ‘Aiming for binding rules’
  • E.U has gone through ‘confidence crisis’

Adding On: Barroso has ‘full confidence’ Europe can resolve crisis
                       “Absolutely serious” on crisis

 

 

IIF on the Wires

Says:

  • EU bank recapitalization plan has ‘serious problems’
  • EU banks would shrink rather than raise more capital
  • Euro area is at ‘significant’ risk of recession
  • Bank recap plan would hurt EU sovereign debt outlook
  • Calls on EU to support ongoing ECB bond-buying program
  • Lower ECB policy rates would help stability, growth
  • Releases letter to G-20 leaders ahead of growth summit
  • Extra EU capital requirements should be temporary
  • Banks would reduce EU private credit exposure by 5%

 

EU’s Rehn on the Wires

Says:

  • EU figures show drop in Greece’s net debt ratio
  • EU figures show Greece’s debt ratio increased
  • Greek debt on ’durable declining path’
  • Greek debt ratio subject to unfavorable developments
  • Cites not yet publish assessment of Greek debt
  • Greek debt ratio expected to drop from 2013 on

 

EU’s Barroso on the Wires

Says:

  • Urges ‘swift’ national passage or Euro rescue measures
  • Rapid EU passage of economic governance laws
  • Financial transaction tax will be ‘key instrument’

EU’s Barroso on the Wires

Says:

  • Bond market developments source of ‘deep concern’
  • Bond market developments ‘clearly unwarented’
  • Spain, Italy, taking steps to reinforce economies
  • Investor concern of systemic capacity of Euro area
  • Euro leaders recognize systemic nature of crisis
  • Concern of capacity of Euro area to handle crisis
  • Urging national governments to act without delay

IMF and ECB’s Szekely, Masuch & Chopra on the Wires

Says:

  • Irish fiscal program on track
  • Tensions in bond markets have escalated
  • Irish program cushioning it from market developments
  • Irish six month deficit below targets in aid program
  • Strong implementation needed to prevent contagion
  • Ireland met all targets in review
  • Masuch says no change on ECB stance on senior bonds
  • Moody’s Irish downgrade linked to EU policy plans
  • Contagion risk is pushing up irish spreads
  • Ireland showing some signs of economic growth
  • Irish debt is sustainable
  • No need for Irish restructuring
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