US stocks: too high for their own good
Analysts at Barclays pointed at the already noticeable slow down in company investment to alert about future job creation data. The US could be in for a nasty surprise: something to do with the “fiscal cliff”.
Markets
Euro zone bailout fund could guarantee partial losses on Spanish bonds
The bailout that would await the Spanish government’s request is surrounded by many suppositions over its conditionality and how the rescue fund would intervene. But the recent decision of Moody’s keeping Spain’s bonds on investing grades has made investors feel more confident.
Shame about the ‘nein’ to a Banking Union
Miguel Ángel Rodríguez, financial analyst at XTB, accuses core euro governments of impeding progress towards a real Banking Union that would stop contagion spreading from public debt risk to credit entities.
Even Milton Friedman would bless central banks cancelling debt
Even Milton Friedman would understand it if central banks cancelled their public debt holdings, economist Luis Arroyo proves. Do you think that’s crazy? The alternative is a long, painful economic rehabilitation, defaults and poverty.
European banks too careless about investors’ trust
The European Banking Authority delivered its latest examination on entities’ compliance with information disclosure. Banks appear to be oblivious of regulators’ demand for more transparency, let alone investors’.
Kissing frogs in Europe: look for the small-cap hidden champions
LONDON | From Standard Life, an optimistic nudge for investors seeking opportunities amidst recession-threatened Europe. Despite the stress the euro zone is under, some small listed companies show resilience and maintain a strong leadership in their sectors.
What the Schuldschein pump can do for financially strangled Spanish regions
Schuldschein, a traditional non-listed German type of debt issue, will be made available for Spanish regions in need of a bailout. It could afford Europeans a chance to fix their troubling past relationship of ever riskier borrowing and lending practices.
Standard & Poor’s dumps Spanish debt
Market reaction to Spanish sovereign downgrade by the ratings agency may not have shown visible concerns on Thursday, but the credibility of Madrid’s and Berlin’s recovery plans is ebbing away.
ESM’s dummy guns won’t deter looters
The European Stability Mechanism, the euro bailout fund, was designed to avoid a rapidly approaching doomsday scenario. But Germany’s tendency to backtrack in the last moment will only scare investors even more. Market pressure on Madrid is mounting again.
The LatAm lifeline of Spain’s big banks
Spain’s largest banks have built up a bigger footprint in Latin America to hedge against recession-hit European markets. Their bet is now paying off. The economies of the region are still expanding.