LONDON | The direct costs of a Greek default and exit would appear controllable after all, analysts at Barclays Capital noted in a report to investors on Friday. But for all the sense markets are supposed to instil into State finances and economic policies, as their champions tirelessly tell everybody, emotion accounts for an awful lot. Let's say, for instance, that yes-all right, Greece's new government would be formed by…
JLM Campuzano, Citi strategist, in Madrid | I read half surprised, half indignant, that a competitor released today an investor note in which the pending exit of Greece from the European Monetary Union is given a week as a deadline. The arguments are all too well known: the Hellenic authorities have already breached the adjustment plans, the country’s political parties will not come together in any of the urgent agreements…
LONDON |The European economies are likely to continue being a significant source of volatility as disagreement within the European Central Bank inhibits its ability to put the region on a firmer footing, Standish said in a report published Thursday. The fixed income specialist for BNY Mellon made the observations in its April Outlook, by the global macro strategists at the firm. The conflicting viewpoints of members of the ECB’s governing council…
LONDON | Skandia Investment Group believes equities will go higher in 2012 despite their already record performance in the first quarter. Equities would be set to rally again once profit taking comes to an end, SIG told investors Friday in a note. Analysts pointed out that global equities had their strongest quarter in over 10 years on the back of strong economic data and hopes that the European debt crisis was past…
LONDON | In a report to investors in London, Newton Global Dynamic Bond Fund, which is part of Bank of New York Mellon, noted that political decisions taken by the European Comission regarding the euro crisis are a source of worry for the markets. In fact, plans to tackle weak economies in the periphery may be raising the chances of default. Newton GDB Fund said that its portfolios have increased…
MADRID | Since December, the Spanish Treasury has had a series of successive successes in its debt offers, even exceeding their expectations in many of them. On Thursday, it happened again. The agency under the ministry of Economy and Competitiveness placed €4,560 million in bonds, the maximum planned, at more moderate rates than on the previous occasion according to data released by the Bank of Spain. Specifically, the Treasury placed…