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 [...]
Government’s plan to subsidise credit could easily backfire June 14, 2012 USUALLY, formal dinners at Mansion House in the City are highly enjoyable but somewhat predictable affairs. This one was unusually exciting. For the first time I can remember, the speeches from George Osborne and Sir Mervyn King included major news bombshells. The Bank is launching an £80bn “funding for lending” plan to cut the cost [...]
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 – [...]
Swiss central bank promises to act to defend cap on the franc June 14, 2012 THE SWISS National Bank yesterday dangled the threat of capital controls to hold down the value of the franc if the Eurozone crisis escalates, days before a Greek election that could drive another flood of money into the safe-haven currency. The central bank said it was determined to defend a cap of 1.20 per euro [...]
