Thursday’s chart: Quo Vadis, Italian yield?
Contagion has been bucked in the eurozone, in spite of the instability markets forecast over Italian politics.
Portugal
Portugal shouted ‘enough’!
From Presseurope.eu | By Daniel Oliveira | More than a million people of all ages took to the streets of Portugal on March 2 to demand an end to austerity. The growing discontent could bring down the political system that has been in place since the fall of the dictatorship.
Portugal attests austerity alone cannot reign in debt crisis
Presseurop.eu | By François Musseau |European leaders are counting on Portugal to set an example of how austerity can succeed when it is applied seriously. Sadly, despite a unprecedented tightening of the screw, Lisbon is still being forced to sell off its “crown jewels” to halt its spiralling debts.
How Portugal charms investors
Presseurope | by Karin Finkenzeller | Hard-hit by the crisis, Lisbon is wooing rich investors from its former colonies. Anyone who invests in the country has a good chance of obtaining a visa — and an open door to the rest of Europe.
ECB should start new strategy buying Portuguese bonds (JP Morgan)
Almost all analysts have interpreted Mario Draghi’s comments about the “legality” of buying bonds with a duration of less than three years as a preview of what the ECB iwill announce on Sept. 6. JP Morgan’s Executive Director of Global Equity Sales Hugo Anaya believes such statements “are within the new idea of the ECB to intervene in the short term, justifying it by saying that it’s helping the transmission…
There will not be Spanish debt buying unless profitability goes up (JP Morgan)
By Tania Suárez, Madrid | It seems that September will be a busy month, the beginning of a year full of interesting appointments for investors. As noted from JPMorgan, markets have already priced in aggressive Spanish debt buying by the European Central Bank, “but the risks shall remain high.” Many sources agree that the ECB is not expected to provide many details of the SMP. “There’s not a clear indication…
After EBC’s meeting, Portuguese bailout (JP Morgan)
By Tania Suárez, Madrid | Global growth will remain below trend until later this year, according to JP Morgan expectations. Rates have dropped less than 50bp from their peaks in 2011 and are projected to fall further 20bp until late 2012. Developed markets authorities believe that “the limit of zero interest rates has eliminated the possibility of conventional action.” Meanwhile, emerging markets with still flexible rates, have “persistently high inflation…
Spanish sovereign paper: war and punishment
How scared are investors of Spain’s debt? Very. So much so that judging by their behaviour, financial analysts in Madrid are increasingly adopting the language of their country’s politicians, if for different reasons. That is war out there for Spain’s sovereign paper, no one doubts. The Spanish debt has now been under extreme tension during a week and the pressure has pushed credit costs up whether it is for two…
Alan Meltzer has a solution for the euro
WASHINGTON | “Capitalism without failure is like religion without sin, it does not work,” had already said Allan Meltzer in 1969. Pittsburgh's Carnegie-Mellon University teacher and author of the monumental History of the Federal Reserve is the same conservative who advised John F. Kennedy and Ronald Reagan. Under Clinton's presidency he was in charge of a U.S. Congress committee that essentially claimed the end of the World Bank on the basis…
It’s the Single Market, stupid!
MADRID | CAPITALMADRID.COM In the years 1992/93 the Spanish authorities struggled for longer than events recommended to keep the exchange rate of the peseta. Something similar might be going now on, but in another dimension, as the government still defends the good health of Spain's financial system. Back then, the stabilisation mechanism in place determined a fixed exchange rate for the peseta, let's say in short, against the German mark….