Demand for UK gilts is still resilient May 11, 2010 BOND markets breathed a sigh of relief yesterday after a key auction of treasury gilts passed off without a hitch despite days of political turmoil. The auction of £2.25bn of 15-year bonds was wrapped up hours ahead of Gordon Brown’s resignation and the announcement of a formal Conservative-Liberal Democrat coalition. Even so, it was oversubscribed [...]
Economists: Government too unstable May 11, 2010 LEADING economists last night told City A.M. that the new government might not be in a strong enough position to take the decisions necessary to stabilise the economy while also bringing down the budget deficit. “I don’t think the new government will be stable enough,” said Lord Skidelsky, a leading Keynesian economist who believes the [...]
WHAT THE OTHER PAPERS SAY THIS MORNING May 11, 2010 FINANCIAL TIMES QE SPECTRE LOOMS AS ECB TACKLES CRISIS Investors yesterday warned that the European Central Bank would have to introduce quantitative easing to stave off the worst crisis in the Eurozone since it was launched 11 years ago. The ECB has resisted following the Bank of England and the US Federal Reserve in expanding [...]
Market rally loses steam May 11, 2010 GERMANY’S cabinet yesterday approved the biggest national contribution to the emergency package intended to stabilise the euro, as global markets sobered up after Monday’s euphoric rally. Relief at the European Union’s bold move to restore investor confidence gave way yesterday to doubts whether weaker Eurozone economies can meet their part of the bargain and deliver [...]
Backlash for Britain after it opts out of Eurozone bailout May 11, 2010 BRITAIN will receive no help from Europe in the event of a sterling crisis, according to a senior French policymaker. The biting remarks follow Britain’s refusal to sign up to the €750bn (£650bn) rescue plan for the Eurozone. Jean-Pierre Jouyet, who was European affairs minister from 2007 to 2008, said: “The English are very certainly [...]
CITY VIEWS: DO YOU THINK THE BAILOUT WILL BE SUCCESSFUL IN STABILISING THE EUROZONE? May 11, 2010 TONY BRIDGES | LLOYDS “It will stabilise things to a certain extent. Countries like Germany and France don’t want Greece and Spain to leave the Eurozone and return to their own currencies because it will destabilise the euro, so they will do what they can to support them.” JOHN MATHESON | MGMSEARCH “The bailout seems [...]
ECB boosts liquidity supply May 11, 2010 The European Central Bank (ECB) yesterday boosted cash supply in the market via its short and long term liquidity operations. The body re-established currency swap lines with the US Federal Reserve as part of its plan to stop Greece’s debt woes from spreading and aims to keep ample liquidity for investors available on favourable terms. [...]
Deutsche warns on bank losses May 11, 2010 Deutsche Bank said European banks could face losses of between €50bn and €75bn if the debt crisis in Greece continues to escalate and banks are forced to take a “haircut” on Greek sovereign debt. Germany’s flagship lender has limited primary exposure to Greece, but faces “potential risk of tertiary market impact due to contagion,” thanks [...]
Pru moves to rejig AIA bid May 11, 2010 AIG, the US-government owned insurance titan, is close to giving Prudential the thumbs-up to restructure the $35.5bn (£24bn) purchase of its AIA business in Asia. AIG chief executive Robert Benmosche yesterday told employees in New York the deal would go ahead despite the UK regulator’s concerns over the enlarged group’s capital strength. In March, Prudential [...]
Aviva triumphs in first quarter May 11, 2010 INSURER Aviva underlined its commitment to the UK and Europe as its first quarter life and pensions sales numbers beat City forecasts yesterday, slipping just five per cent. Investors’ returning appetite for risk, which in recent weeks has also buoyed rivals Standard Life and Legal & General, helped Aviva bring in £9.1bn in new life [...]
