Greece: Germany pushes for a 60% haircut while France and banks want a 40%

By admin | Published: October 25, 2011

Germany is pushing hard for banks to accept a haircut 60% on Greek bonds in their possession, but France insisted that the “cut” should not be higher 40%, a view which also supported by the banks, as officials said the IMF and the eurozone. The banks fear that a rate of 60% will not be deemed voluntary and can trigger the payment of CDS’s, to cover losses on bonds. “The intention is for a haircut 60%, and banks offered Sunday. Thus, Germany appears to be pushing in this direction, although there is still room for compromise about 50%. The final decision will be made ​​tomorrow at the meeting of the eurozone and investors are optimistic for a solution as the Euro boosted on $1.3900 earlier today on the forex market, as Dow Jones Newswires broadcasted from an official eurozone with knowledge of the matter. Another official said the tough stance was transferred to representatives of banks by Vittorio Grilli, who is responsible for the eurozone to negotiate a voluntary cut deeper by banks, compared with 21% decided by EU leaders in July

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New loan in dollars from the ECB in a European bank

By admin | Published: September 28, 2011

The amount of $500 million borrowed a European bank by the ECB using the swap mechanism lasting 7 days. As the Dow Jones Newswires transmits, the auction there was only one bank while the rate stood at 1.09%. The move is an indication of the difficulty faced by some banks to raise liquidity. Recalled that last week the ECB had provided a bank 500 million dollars and two weeks ago to two banks 575 million dollars in an effort of this phenomenon, the ECB, in cooperation with the central banks of U.S., Japan, Britain and Switzerland, decided to carry out three operations to provide liquidity through securities lasting about three months to the end of the year The new instruments to strengthen the dollar liquidity are added weekly to swap U.S. dollars of the ECB. Visit the best forex brokers in the market and get 20% bonus on your first deposit plus a 10% loyalty bonus on all other deposits.

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Fitch: Warns China for possible downgrade

By admin | Published: August 30, 2011

Faced with a new downgrade of credit rating in local currency is China because of rising bankruptcies and high inflation, according to Fitch Ratings. The firm warned that Chinese politicians will be faced with another recession, as rising consumer prices and rising bad loans might prevent the repetition of a large stimulus package, as it started three years ago. In April, Fitch downgraded the outlook of China’s negative because of concerns that a huge increase in potentially destabilizing debt by the end of 2008. The assessment of Fitch is at ‘AA-’, four levels below the highest possible rating.

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Gold: just a breath away from the $1,900 level

By admin | Published: August 22, 2011

The “crazy” path of gold prices to new record levels and continues Monday, with the yellow metal to negotiate a “breath” from the level of $ 1,900. Keep up … platinum climbed to the highest level in more than three years. Specifically, the spot price of gold has been found to earn up 1.6% at $ 1,882.55 an ounce in Singapore. Benefiting from the global economic slowdown and financial crisis affecting Europe, the price of the precious metal is gaining 16% since early August, claiming the best monthly performance since September 1999. The contract of gold trading, December delivery was found to enhance up 1.8% at a record $ 1,885.90 an ounce. Friday recalled that the contract set a new record high closing in Commodity Exchange of New York at 1852.20 dollars per ounce. In platinum, the spot price was gaining 0.9% to $ 1,891.50 per ounce, which is the highest level since July 2008. In an upward trajectory and silver, with the spot price touches a high of more than three months at $ 43.975 an ounce. The contract delivery December, strengthened 3.6% to $ 44.01, also its highest level since May 3.

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New intervention by the SNB on the Swiss franc

By admin | Published: August 10, 2011

Its intention to take additional measures, which will include enhancing liquidity in the market to address the extraordinary appreciation of the Swiss franc, announced by the Central Bank of Switzerland (SNB). The SNB explains that “a significant strengthening of aversion risk in forex international financial markets has given a push in the appreciation of the franc in the last days. ” He added: “Given the above developments, the SNB will take additional measures against the power of the franc and will significantly strengthen again to provide liquidity in the currency market.” The Bank plans to expand rapidly the demand deposits of banks by the current level of 80 billion francs to 120 billion francs. Furthermore, in order to accelerate liquidity in Swiss franc, the SNB will also hold foreign exchange swap. The SNB surprised with the new intervention, analysts comment, in order to achieve maximum impact. “There was no indication of movement of the SNB in European trade,” said strategist, David Kohl. “Without the element of surprise is more difficult for them to achieve their goal, looks a bit like a game of mouse and cat,” he adds. “Also, logically, the SNB will choose to intervene. The initial reaction of the franc in the notice extending the measures of SNB were to fall against the euro and the dollar to recover but quickly thereafter. This time the euro and U.S. dollars are making a profit of about 0 , 5% against the franc. “huge” size features to enhance liquidity by Citi. The analyst Valentin Marinov says that the SNB increases the liquidity of 90 billion Swiss francs, equivalent to almost 20% of GDP. The SNB have a dynamite, but he’s not, says the HSBC, the analyst firm Paul Mackel appear pessimistic about the effectiveness of new measures announced by the SNB.

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Russia: Rescue Plan of $14.2 billion for the Bank of Moscow

By admin | Published: July 1, 2011

Economic package 14.2 billion to rescue the failing Bank of Moscow launched the Bank of Russia in cooperation with the state bank VTB Group, as transmits news agency, Dow Jones Newswires. This is the biggest bank rescue of the Russian taxpayers and investors, the agency notes. The Central Bank of Russia announced that the authorities place on Bank of Moscow-which is almost 50% in VTB-low-interest loan over 10 years and totaling 295 billion rubles ($10.6 billion) as reported by the agency. On the part of the VTB will lend 100 billion rubles in troubled banks to rescue the “unstable” financial position it is received. This enchanced the EURRUB pair in the forex market which is now trading at 40.41. Many investors believe that the RUB will continue to record gains as the situation in Europe is still doubtful.

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The agreement between Germany and France supported Euro

By admin | Published: June 20, 2011

The long-awaited agreement between Germany and France seem to be a fact and investors should no longer worry about the Greek debt crisis and the risk of transmission to other eurozone countries thus the euro enhanced against all the major counterparts. The euro traded at $1.4283 on the forex online market(FX), near a high day, posting gains of 0.50% against the U.S. currency, while against the Japanese yen recorded marginal gains 0.01% to 114.586 yen.In relation to the pound the European common currency strengthened 0.44% at 0.8830 while sterling recovers against the Swiss franc at 1.2107 francs, rising 0.50%.

“We are cautiously optimistic that a solution will not be disorderly.But there is real political chaos in Europe and it is difficult to find a clear economic rationale for the euro, “said Aditya Bagaria, an analyst at market exchange for Credit Suisse. He adds that the massive selloff in stock markets this week, combined with fears of transmission, leading performances of the Spanish government bonds to high early Thursday and prompted a rise in interbank spreads, was a worrying development. “What this tells us is that it is not just a crisis region.The market starts to anticipate the risk of a financial crisis may continue to do so, “said Bagaria.

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Failed bond issuance of the Spanish Bank Santander “shakes” Europe

By admin | Published: June 10, 2011

Anxiety in Europe, particularly in the banking sector, after the failed covered bond of EUR 1 billion by the Spanish Banco Santander SA last week. According to foreign reports, the issue has been covered to only 50% despite the fact that they were evaluated with “AAA” by Moody’s and despite the relatively high interest rate offered 1.95% over midswaps. Trade Forex Online and get a 20% bonus on your first deposit plus a 10% bonus on each deposit!

Thus, the underwriter, Commerzbank AG, HSBC Holdings PLC and Societe Generale, is now required to cover the remainder, ie an amount of EUR 500 million. The lack of interest from investors, especially of this magnitude was not expected by the executives of the largest Spanish bank, analysts say, illustrates the ease with which risks can be dispersed within the Eurozone. Note that Santander has a total refinance debt that matures this year.

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China and EU talks for currency reserves

By admin | Published: June 8, 2011

The issue of diversification of international reserve currency would like to discuss with European leaders the Chinese goverment, and the creation of a stable reserve currency system in which supply and the total size will be “disciplined” and controlled. This imparts a publication of the Dow Jones Newswires citing Chinese news agency Xinhua, which refers to statements by the Deputy Governor of Central Bank of China, Yi Gang.

“China will adopt a ‘prudent’ monetary policy, which will allow the return of normalcy in the monetary environment,” said Yi Gang, deputy escorting the Chinese premier, Li Keqiang, its European tour. “China will continue to improve the mechanism for determining the exchange rate of yuan,” said including the Yi Gang, adding that among the priorities of the Chinese policy is both how the country will be able to use macroeconomic policy and forex technical analysis to tackle inflation pressures, other unconventional monetary policy measures adopted by the European Central Bank. He noted that Chinese and European financial institutions can enhance their cooperation in areas such as capital support and improve the system of sharing risk. And in this respect, we should examine the possibilities for financial instruments and hedging instruments that serve the needs of both Chinese and European forex markets.

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Eurozone: In five months low the PMI composite index in May

By admin | Published: June 3, 2011

The development of the private sector of the eurozone slowed to its lowest level in five months in May and inflation reduced, offsetting some of the pressure on the European Central Bank to proceed with the tightening of monetary policy as a poll showed the Markit. The Chris Williamson, chief economist at Markit, said that in the second quarter, the Eurozone economy probably failed to maintain quarterly growth of 0.8% of gross domestic product made in the first quarter.
“Although an expansion of 0.7% is possible if the information does not fall further in June, said in a statement.

The final composite index PMI to Markit, an index of business activity in the private sector based on a survey of about 4,500 thousands of companies manufacturing and services fell to 55.8 points in May from 57.8 points in April. When the count exceeds 50 points indicates expanding activity. Nevertheless, the figures surpassed the expectations of analysts who spoke invariably points compared to the initial measurement of 55.4 points in May, published on May 23. The preliminary measurement was based on 81% of the total respondents of the poll, said Markit.

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