World markets boosted by Eurozone agreement May 10, 2010 THE $1 trillion global emergency package to stabilise the euro unleashed a spectacular rally in world stocks yesterday but analysts said EU leaders had only bought time to tackle deep-seated fiscal problems. The “shock and awe” rescue plan – the biggest since G20 leaders threw money at the global economy following the collapse of Lehman [...]
Darling: UK will commit £8bn to European bailout May 10, 2010 CHANCELLOR Alistair Darling said Britain could lose £8bn in an Armageddon scenario under the terms of the €750bn (£645bn) European bailout fund revealed yesterday. The UK has committed to provide a proportion of the €60bn emergency loan component of the deal, which covers the European Union rather than the Eurozone. Although the Chancellor admitted taxpayers’ [...]
Q&A: THE DEAL EXPLAINED May 10, 2010 Q. WHY DOES THE EUROZONE NEED A SAFETY NET? A. Since last autumn fears have snowballed over Greece’s ability to service its huge €300bn (£258bn) debt pile. After credit rating agencies cut Athens’ status, markets cranked up the interest rates on the country’s bonds to unsustainable levels. A separate €110bn package of loan guarantees produced [...]
Banks benefit on regulation May 10, 2010 THE $1 trillion (£672bn) rescue package to stabilise the euro could bolster European banks’ negotiating power as they attempt to fight stricter regulatory capital requirements they expect will hurt economic growth. Europe’s lenders are already significant holders of sovereign euro debt and will be relied upon to buy more state-guaranteed debt as part of the [...]
WILL THE €750BN BAILOUT PACKAGE FIX EUROPE’S DEBT WOES? May 10, 2010 NICK KOUNIS | FORTIS BANK “It’s a very impressive package and it distinctly reduces the chances of a Lehman-type scenario in Europe because it’s large enough to take care of the financing needs of Spain, Portugal and Ireland over the next few years, aside from what’s already in place for Greece. The Eurozone is sending [...]
ECB set to buy up to €1.7tr of national debt May 10, 2010 THE European Central Bank could buy up to €1.7 trillion (£1.4 trillion) of securities from troubled Eurozone countries alongside the unprecedented €750bn rescue fund unveiled yesterday. World equities soared as the ECB started buying bonds on secondary markets, lifting the pressure on Greece and Spain after weeks of hammering by speculators. The move came as [...]
Does EU rescue change the liquidity backdrop? May 10, 2010 MOST of the Eurozone rescue package – EU budget funding, Eurozone intra-government loans/guarantees, the IMF contribution – will have no implication for liquidity. The key issues are the scale of European Central Bank (ECB) government bond purchases – as well as the impact of its expanded lending operations and the US dollar swap on the Eurozone [...]
Fed acts to give liquidity boost to swap market May 10, 2010 AMERICA’S Federal Reserve has moved to shore up liquidity in the international money markets by reopening currency swap facilities with the world’s major central banks, echoing steps it took to ease market concerns after the failure of Lehman Brothers. The Fed said it would provide dollar swaps for the European Central Bank, the Bank of [...]
CITY VIEWS: ARE YOU SURPRISED BY THE STRONG PERFORMANCE OF THE MARKETS, GIVEN THAT WE DO NOT HAVE A GOVERNMENT? May 10, 2010 CHRIS BAKER | SQUARE ONE “The markets rallied on news of the aid package for Greece. The UK’s political situation is only a tiny issue for the markets and we need to keep some perspective. At the same time Clegg and Cameron need to make a decision quickly or panic will set in.” SIMON CARD [...]
Easter timing hits retailers May 10, 2010 THE timing of Easter, combined with consumers’ ongoing uncertainty, caused UK retail sales to fall 2.3 per cent on a like-for-like basis last month compared to April 2009, the British Retail Consortium (BRC) will say today in its monthly retail sales monitor. This year, only two days over Easter fell in April compared to all [...]
