By Consenso del Mercado | After the difficulties Germany experienced in placing its bonds last week, it seems to have somehow relaxed its official position and be willing to let the ECB buy the required massive amounts of sovereign debt, even though under certain conditions. In this regard, Spanish Bankinter analysts argue that Germany is the country that would be the least interested in a euro breaking down. Here´s why….
By Europa Press | The Italian Treasury on Friday placed €10 billion in two debt auctions, one due at six month and the other at twenty four months. Yet, it has been forced to provide record interests: 6.504% and 7.814%, respectively. Specifically, Italy’s Treasury sold €8 billion in bonds with six-month maturity for which they had to offer a record yield of 6.504%: 84% more than in the previous auction…
The Spanish investment website Consenso del Mercado published on Friday this revealing note and table from Morgan Stanley about the ECB loans. “The deterioration of the euro zone crisis makes very difficult the necessary deleveraging process, which is estimated at €1.5 to 2.5tr during the next 18-24 months. The ECB lendings have reached two-year record highs with French and Italian banks being the ones that increased their demand the most. “Limited…
MADRID | On Wednesday, the markets gave some credence to the possibility of reviving the Eurobond, but once again this option ended up hitting what Barclays describes (our emphasis) as “the wall which Merkel and Germany have turned themselves into. It is clear that in order to launch a Eurobond, the governance system in the euro zone has to improve, and not only that, it will also need a reform…
On Thursday Spain had to pay 6.975% interest to borrow money at 10 years: a spread of 480bp against the German rate. It is the highest rate Spain has had to pay since it became part of the euro zone. However, analysts at JP Morgan remarked that France’s differential compared to Germany’s “is not only the highest since the euro exists, but the highest of all time.” On the other…
The Prime Minister of Luxembourg and chairman of the Eurogroup Jean Claude Juncker made stark remarks on the “disturbingly large amount of the German debt,” which the Bonn paper General Anzeiger published on Thursday. “‘Germany has a higher debt than Spain. But nobody here wants to acknowledge this,’ said Juncker, who expresses understanding regarding the fears of Germany caused by the current financial crisis. “‘Here (in Germany) they witnessed, twice,…
By Julia Pastor, in Madrid | The European debt crisis is not just the result of the rescued euro zone member countries, neither a problem worsened by the two southern-Europe biggest economies, namely Spain and Italy. According to a report appeared on Wednesday in El País “the risk premium of 12 countries out of the the 17 states adhered to the single currency has reached not only a record high,…
Do The Corner’s readers feel in need of some optimistic note? Here you are, thanks to JP Morgan: although up until next Friday the volatility in the S&P 500 may increase due to the fact that on that day $385bn in options reach maturity, JP Morgan has published an analysis of the effect known as end of year. Smile. It looks at the historical performance, since 1920, of the market…