Commerzbank set to raise fresh capital May 20, 2010 COMMERZBANK shareholders have approved capital-raising plans by the bank that could see it begin to repay a state aid package from the German government and provide it with more cash. At the bank’s annual general meeting yesterday, shareholders gave Commerzbank the green light to raise the funds through issuing fresh shares or convertible bonds. Chief [...]
EU task force to examine German move May 20, 2010 EUROPEAN Union finance ministers will discuss Germany’s short-selling ban and coordination of such market-moving decisions in the EU on Friday, European Union president Herman Van Rompuy said yesterday. Germany did not consult on its decision late on Tuesday to introduce a ban on some short-selling of bonds, stocks and transactions in credit default swaps with [...]
Greek MPs attack central bank over bond regulations May 20, 2010 GREECE’S central bank yesterday dismissed accusations by backbench parliamentarians that it made it easier for speculators to sell short Greek government bonds, helping to deepen the country’s debt crisis. Ten deputies of the ruling Socialist party filed a parliamentary question earlier in the day, asking the government to explain why the Bank of Greece in [...]
CITY VIEWS: WILL THE GROWING EUROZONE CRISIS BLOW THE UK’S ECONOMY OFF COURSE? May 20, 2010 MEIK FRIEDRICH | PROTECTION RE “The bailout package is sufficient enough to save Europe and so the crisis won’t have much of an impact on the UK. The important thing now for the UK government is to concentrate on the Budget.” JON CHAPMAN | HISCOX “Our economy is strong enough and we’re not linked into [...]
Merkel declares war on the speculators May 20, 2010 GERMAN chancellor Angela Merkel declared war on speculators yesterday, just hours after she threw world markets into turmoil by announcing a ban on short selling. Merkel told the Bundestag: “This challenge is existential and we have to rise to it. The euro is in danger. If we don’t deal with this danger, the consequences for [...]
ANALYST VIEWS: WHAT DO YOU MAKE OF THE GERMAN BAN ON SHORT SELLING? May 20, 2010 MARTIN BLESSING | COMMERZBANK “Besides the ban on naked short selling, I am thinking particularly of credit default swaps. Such financial instruments can serve as a warning light. On the other hand, they also unnecessarily aggravated the situation, and even increased the risk of a default.” ANTHONY BELCHAMBERS | FUTURES AND OPTIONS ASSOC “This is [...]
Merkel’s tantrum will not dent market resolve May 20, 2010 ONCE again Germany has ignored the golden rule of markets – they should never be spooked. So be it but on the day the German Chancellor made some politically challenging remarks on the future of the euro that removed any thought of secretly wanting out of the currency, why on earth did Angela Merkel choose [...]
Bank warns of risks on the downside May 20, 2010 PROSPECTS for the UK’s economic recovery remain uncertain, the Bank of England’s Monetary Policy Committee concluded in minutes released yesterday from its latest meeting. The Committee, which voted unanimously to leave interest rates unchanged at 0.5 per cent, was meeting just after voting in the general election. The minutes reveal the Committee’s concerns about turbulence [...]
Construction industry boost but outlook remains uncertain May 20, 2010 CONSTRUCTION workload, as measured by the Royal Institute of Chartered Surveyors (RICS) survey, has increased for the first time in two years, the latest data revealed yesterday. The RICS quarterly survey of the UK construction market showed that the headline net balance swung into positive territory in the first three months of the year despite [...]
US consumer prices fall bolstering low rates view May 20, 2010 US consumer prices unexpectedly fell in April, the first decline in a year, and the core annual rate recorded its smallest gain since 1966, suggesting scope for the Federal Reserve to keep interest rates near zero for some time. The Labour Department yesterday said its seasonally adjusted Consumer Price Index slipped 0.1 per cent, pulled [...]
