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rainmoney

Markets 29th February 2012

ECB lends €529.532bn… and Citi resumed lending to European banks

By Tania Suárez.- The new unlimited liquidity action, a.k.a. Long-Term Refinancing Operation (LTRO), has placed €529.532 billions today, with the goal of enabling again the flow of credit to the private sector. Gradually, there are prospects of an improvement in European financial markets. On one hand, the interest rates banks charge one another to lend money have dropped significantly: the 3-month Euribor has fallen to just under 1% from about…

eurocoin

Markets 28th February 2012

The ECB injects oxygen: the euro breathes

MADRID | Original post on republica.com | The European government, which some now call ‘governance’, has not been doing well for quite a few years. The expansion of the club during the last two decades has caused chronic indigestion, and a loss of perspective and project steam. The Single European Act (last decade of the XX century) meant a decisive step forward for a united Europe at peace, free, and…

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Markets 28th February 2012

LTRO? Credit to the private sector frozen in the whole euro zone last January

By Tania Suárez, in Madrid | Today is the day: petitioners will submit their requests in the second Long-Term Refinancing Operation (LTRO) by the European Central Bank. On Wednesday the auction will be carried out, and the money will be distributed. Most experts estimate an amount slightly lower than the one expected by Mario Draghi (over €500 billion), and many see the LTRO with a positive feeling. However, the fact…

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Markets 27th February 2012

British banks to take part in the European money fair

By Tania Suárez, in Madrid | Next Wednesday takes place the second Long-Term Refinancing Operation (LTRO) by the European Central Bank. The hot spot is the participation of some British banks, such as Lloyds and RBS (according to FT), which didn’t take part in the last liquidity auction thanks to the central bank of the United Kingdom. The end of its QE programme has forced RBS and Lloyd to forecast…

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Spanish economy 24th February 2012

De Guindos to explain Spanish plan to grow

“We have a plan to combine fiscal consolidation with structural reforms in order to jumpstart growth in the country and help stabilize the euro area.” This was the core message of the Spanish minister of Economy and Competiveness Luis de Guindos’ speech on Friday at the Brookings Institution, a center-left Washington-based think tank. In his first official trip to the US, De Guindos also held a meeting with the most…

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Markets 23rd February 2012

LHC.Clearnet cuts down by 10pc the additional margin for Irish bonds

LONDON, MADRID | Ireland and Greece appear this week at the opposite ends of the rainbow. Santander credit research team painted Thursday an optimistic picture in its investors’ note based on the news that LHC.Clearnet has cut down by 10pc the additional margin it requires, which was 25pc, for positions in Irish government bonds cleared through its RepoClear service. A more relaxed market environment has also prompted Ireland to increase asset sales to €3…

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Markets 16th February 2012

When it comes to money, one can get really FED up

By Juan Pedro Marín Arrese, in Madrid | Markets around the world are flooded with huge loads of fresh cash pumped in by central banks. The balance sheets of central banks have tripled since 2008. And yet monetary supply is lagging behind. Don’t put the blame on banks. Their assets are shrinking as a result of the massive reshuffle in credit exposure undertaken by enterprises and individuals. A grim outlook is…

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In Europe 31st January 2012

Euroland should be run by Anglosaxons

By Juan Pedro Marín Arrese, in Madrid | Economics is not a science but rather a common sense attitude. An open mind approach is vital to grasp its core meaning. Policing it shouldn’t be handed over to people too fond of rigid rules. Let the Germans have a go at it and you’ll end up with a neutral fiscal and monetary stance all year around. No policy at all, in fact….

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Markets 17th January 2012

Inverseguros’ Alberto Matellán: “The Euro could go below $1.20”

By Alfredo Aranda, in Madrid | The course of the euro seems to be clearly bearish, according to some analysts. However, in contrast with previous situations, the depreciation of the single currency is more the result of the actions of the ECB than due to traditional factors such as monetary or economic policies. According to Alberto Matellán, the liquidity injection carried out by both the Fed and the ECB are directly…