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Markets 25th November 2011

Morgan Stanley: “French, Italian banks lead ECB lending demand”

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…

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Markets 23rd November 2011

Barclays: “Those who believe Spain is highly leveraged should think twice”

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…

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Markets 18th November 2011

JP Morgan: “France-Germany spread is the highest of all times”

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…

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Markets 17th November 2011

Juncker: “Germany’s debts are higher than Spain’s, but nobody wants to hear this”

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,…

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Markets 16th November 2011

“Risk premiums of 12 euro countries beat Spain’s in May 2010”

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,…

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Markets 15th November 2011

JP Morgan: “Most times, the S&P 500 rallies at the end of the year”

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…

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Markets 15th November 2011

JP Morgan: "Most times, the S&P 500 rallies at the end of the year"

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…

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Markets 15th November 2011

A commissioner to oversee the budgets of the EU members? Germany says yes

The economic papers in Spain published on Tuesday the seven Dutch proposals to create an EU commissioner to oversee and intervene in the euro zone budget. This official would have the right to expel members who refuse to meet budget requirements. “It is certainly an interesting idea that Germany supports,” said Chancellor Angela Merkel a few weeks ago. On Monday, in the federal congress of the CDU, the Chancellor again…