Moody’s downgrades five Dutch banks June 15, 2012 Moody’s Investors Service said it had downgraded five Dutch banks, four of them by two notches, and warned a Greek exit of the euro would see further cuts, kicking off a long-awaited round of downgrades for major European institutions. Moody’s set a stable outlook to the ratings for four of the groups but kept a [...]
£100bn gamble to save UK economy June 14, 2012 EMERGENCY measures to try to kick start an economic recovery were announced by Sir Mervyn King and George Osborne at Mansion House last night, aiming to pump cash into the financial system and boost lending to businesses. The printing presses are set to be switched back on at the Bank of England as King warned [...]
Central banks on standby if Greek vote hits markets June 14, 2012 CENTRAL banks have devised a plan to boost liquidity and prevent a credit crunch if Greeks fail to elect a pro-bailout government on Sunday. A senior US official cautioned that the Greek election will not provide “the definitive signal on what happens next”, stating that central bankers are on standby to ensure enough cash is [...]
US investors eye stimulus after weak jobs stats June 14, 2012 WEAK US jobless figures and lower inflation helped fuel an uptick on Wall Street yesterday, as traders took the data as a signal that a new round of quantitative easing is more likely. The Labor Department reported 386,000 new claims for jobless benefits last week, an unexpected rise of 6,000 on the previous week. And [...]
WHAT THE OTHER PAPERS SAY THIS MORNING June 14, 2012 FINANCIAL TIMES Money managers reap US crop insurance rewards Institutional money managers have emerged as unlikely beneficiaries of a subsidised safety net for US farmers set for expansion by Washington. Basel III will damage developing countries Tough global bank reforms will be disproportionately difficult to implement in developing economies and will damage their growth, a [...]
French banks’ ratings slashed June 14, 2012 Moody’s Investors Service has today downgraded the standalone bank financial strength rating of five French lenders – Credit Industriel et Commercial, Credit Mutuel Arkea, Oddo & Cie, Banque Federative du Credit Mutuel and the BPCE including some of its subsidiaries – citing their vulnerability to loss of investor confidence in the highly uncertain current European [...]
OPEC leaves oil output on hold June 14, 2012 Opec left the ceiling for oil production on hold yesterday, powerless to do anything other than hope top producer Saudi Arabia scales back supplies unilaterally soon to stem a $30 (£19.28) slide in prices. Several in the Organisation of the Petroleum Exporting Countries called on Saudi to cut back to bring collective supply down to [...]
Egypt court dissolves parliament June 14, 2012 Egypt’s supreme court ruled yesterday to dissolve the Islamist-led parliament, plunging a troubled transition to democracy into turmoil just two days before an election to replace ousted leader Hosni Mubarak. Islamists who gained most from Mubarak’s overthrow decried what they called a coup by an army-led establishment still full of Mubarak-era officials. They said the [...]
City welcomes Vickers changes June 14, 2012 THE CITY last night breathed a sigh of relief after getting a first look at the government’s proposed banking reforms, which amend the Vickers plan to strengthen the sector, taking into account international competition and the needs of banks’ business customers. The main aim is to allow bad banks to fail safely without harming other [...]
SNB hits out at Credit Suisse’s capital buffer June 14, 2012 SHARES in Credit Suisse plunged by more than a tenth yesterday after Switzerland’s central bank urged it to cut dividends or issue shares to improve its “below average” capital ratio and protect it from future financial shocks. The Swiss National Bank singled out Credit Suisse for its risk-weighted capital ratio of 5.9 per cent – [...]