Euro at New 10-year Low on Eurozone Debt Woes
Source: AFP The euro fell to a new 10-year low against the yen in Asia on Monday as risk-averse investors shunned the European single unit amid continued fears over the continent’s debt problems. The euro fell to JPY102.18 in Tokyo afternoon trade from JPY103.31 in New York late Friday, logging its lowest level since June...
EU May Boost its Rescue Fund: Official
Source: AFP European countries may beef up their financial rescue fund beyond the amount agreed in July, the EU finance commissioner Olli Rehn said in comments to be published in a German newspaper Monday. “We are thinking about the possibility of giving the EFSF (European Financial Stability Facility) greater leverage, to give it greater strength,”...
French, German Bank Credit Bets Soar amid Spreading European Crisis
Source: Bloomberg Trading in credit-default swaps insuring the biggest German and French banks’ debt is soaring as the euro-region crisis spreads. Deutsche Bank AG, Germany’s biggest lender, was the most-traded company of 1,000 issuers tracked by the Depository Trust & Clearing Corp in the week through September 16, up from 12th the week before. Credit...
European Stocks Rebound from Two-year Low
Source: Bloomberg European stocks rebounded from a two-year low as a pledge from the Group of 20 to address risks to the economy outweighed a slide in commodity producers. US futures gained while Asian shares fell. Adidas AG climbed 2.9 per cent after rival Nike Inc raised its annual sales forecast and reported earnings that...
Sovereign-debt Risks Surge to Records in Europe on Fed’s Economic Forecast
Source: Bloomberg The cost of insuring sovereign bonds jumped across Europe with credit-default swaps on France and Germany surging to records after the Federal Reserve signalled “downside risks” to the US economy. Contracts on Germany rose nine basis points to 105, swaps on France jumped to 198 basis points and Italy and Spain also reached...
Euro-area Services, Manufacturing Shrink for First Time Since 2009
Source: Bloomberg Euro-area services and manufacturing output contracted for the first time in more than two years in September as the region’s worsening debt crisis added to concerns that the economy could slide back into a recession. A composite index based on a survey of purchasing managers in both industries fell below 50, indicating contraction,...
European Stocks Drop on Greek Review
Source: Bloomberg European stocks declined as officials said they plan to return to Athens next week to complete a review of the Greek economy. Asian shares and US index futures were little changed. BNP Paribas and Societe Generale led a decline in banks. Deutsche Lufthansa lost 2.6 per cent as Deutsche Bank downgraded Europe’s second-biggest...
Standard and Poor’s Downgrades Italy Debt Rating
Source: AFP Standard & Poor’s on Monday downgraded Italy’s sovereign debt rating, citing economic, fiscal and political weaknesses in the eurozone’s third-largest economy. The rating agency said it had downgraded Italian debt to “A/A-1” from a “A+/A-1+” grade because of “Italy’s weakening economic growth prospects.” It added that Italy’s weak governing coalition would “limit the...
IMF Says Greece Must Implement Agreed Reforms
Source: Reuters Greece must implement reforms agreed under an EU/IMF bailout plan and improve tax collection to qualify for further rescue payments, the IMF said on Monday. The comments add to pressure on Athens to fully deliver on pledged reforms and austerity measures to shore up its finances and stave off a default that would...
Spain’s Public Debt Rises to 14-year High
Source: AFP Spain’s public debt surged in the second quarter of 2011 to a 14-year high, the Bank of Spain said on Friday, even as the government battled to mop up red ink in its annual budgets. Big shortfalls on the government’s books are pushing up the overall debt each year. By the second quarter...
Moody’s Places UBS on Review for Downgrade Over Risk Control
Source: Bloomberg UBS AG, which said it sustained a US$2-billion loss from unauthorised trading at its investment bank, had its credit ratings put under review for possible downgrade by Moody’s Investors Service. The examination “will centre on ongoing weaknesses in the group’s risk management and controls that have become evident again” with the disclosure, Moody’s...
Central Bank Intervention Boosts Euro
Source: AFP A move by key central banks to aid Europe’s struggling banks gave a solid boost to the euro Thursday. The euro climbed more than one US cent during the day to stand at US$1.3882 at 2100 GMT, up from US$1.3750 late Wednesday. The common European currency hit a high of US$1.3931 after the...
