Sharing his forecast for the new year and the sectors to watch, with Larry McDonald, Newedge Senior Director, who says utilities and financials will be the sectors to watch in 2012.
Italian Bond Auction: Yields Edge Higher, 10-Year Yields Rise 22%
Article By CNBC via Reuters Italian government bond yields edged higher on Tuesday and were expected to rise further this week with investors growing nervous that thin liquidity may complicate Rome’s plans to sell 8.5 billion euros worth of debt. Ten-year Italian bond yields rose 8 basis points on the day to 7.10 percent, widening the [...]
‘Monti Effect’ Loses Steam, Italy Needs to Sell $574 Billion of Debt Next Year
Article By Chiara Vasarri and Lorenzo Totaro Prime Minister Mario Monti’s market honeymoon is ending as Italian bond yields approaching 7 percent signal mounting concern his government may struggle to sell 440 billion euros ($574 billion) of debt next year. Monti took just five weeks in office to push through a 30 billion-euro emergency budget package [...]
Video: ECB’s Bazooka Politically Limited?
The banks around the world are being surpressed by this interbank lending problem, says Larry McDonald, Newedge. “Economic indicators really haven’t alleviated which tells you that the actions [the ECB is] taking are making some progress but not a lot of progress otherwise equities would be higher,” he adds. Chris Sheldon, The Dreyfus Corp., also [...]
ECB Lends 523 Banks $645B in 3-Year Loan Program
Article By Gabi Thesing and Rainer Buergin, Bloomberg The European Central Bank will lend euro-area banks a record amount for three years in its latest attempt to keep credit flowing to the economy during the sovereign debt crisis. The Frankfurt-based ECB awarded 489 billion euros ($645 billion) in 1,134-day loans today, the most ever in a [...]
‘ECB Becomes Last Resort in Europe’
Article By Liz Capo McCormick and Tom Keene The European Central Bank is becoming the lender and borrower of last resort for the European banking system and will be forced to expand debt purchases to combat deflation. “Banks would rather lend to the ECB than lend to each other, and would rather borrow from the ECB [...]
Spain, Italy Notes Surge on Demand; Bund Yield Falls to Record
Article By Emma Charlton and Keith Jenkins, Bloomberg Spanish and Italian notes surged, leading gains in euro-area debt, on speculation banks bought the securities to use as collateral when the European Central Bank starts offering three-year loans next week. Spain’s two-year yields dropped to a four-month low after the nation sold almost double its initial maximum [...]
Black Rock Says Europe’s Headed for a ‘Full-Fledged’ Recession
Article By Sree Vidya Bhaktavatsalam, Bloomberg Black Rock, the world’s biggest asset manager, said European nations including France and Germany are headed for a recession as the prolonged debt crisis has prompted companies to cut spending and stop hiring. “We now believe that we’re in for a full-fledged recession, including one in France and Germany, that [...]
Italian Yields Stay Close to Record High at 1-Year Bond Auction
Article By Valentina Za, Reuters Italian one-year borrowing costs stayed close to a record high at an auction on Monday, in an early sign that last week’s EU summit failed to reassure investors European leaders can take the urgent steps required to stem the euro zone debt crisis. The Dutch government in contrast paid a negative [...]
Euro Weakens After EU Summit
Euro Weakens After ECB, EU Leaders Fail to Boost Confidence in Debt Plan Article By Allison Bennett and Catarina Saraiva, Bloomberg The euro fell against the majority of its most-traded counterparts after a European Union agreement for tighter fiscal controls failed to convince investors the region’s two-year financial crisis is closer to a resolution. The [...]
