The Financial Times – John Kay: Taverna talk of fiscal union will remain just that When people talk about fiscal union in Europe – and today they talk of little else in the bierkellers and tavernas – they do not really mean fiscal union. The Dutch and the Austrians will not be persuaded any time… Continue reading More On Europe
<Click on chart for larger image> The Wall Street Journal – Italy’s Borrowing Costs Hit Euro-Era High Italy and Germany successfully sold bonds on Wednesday, but the stark contrast in their borrowing costs underscored investors’ fragile faith in Italian debt and the perceived safety of German debt. The rise in Italy’s borrowing costs at Wednesday’s… Continue reading Italy
<Click on chart for larger image> Time.com – As the Crisis Refuses to Calm, Scenarios of Euro Collapse Appear French researcher Emmanuel Todd argues that though the implosion of the euro would produce a period of economic pain, panic, and instability, he says that shock wouldn’t last as long as some predict (18, maybe 24… Continue reading Is The Euro On The Brink Of Collapse?
<Click on chart for larger image> Bloomberg.com – Death of Gold Bull Market Seen by Gartman Gold, in the 11th year of its longest winning streak in at least nine decades, is poised to enter a bear market, according to Dennis Gartman, who correctly predicted the slump in commodities in 2008.The metal, which traded at… Continue reading The End Of The Gold Bull Market?
<Click on chart for larger image> The New York Times – OPEC Sets Oil Production Target OPEC oil producers on Wednesday agreed to their first new production limit in three years in a deal that settles a six-month-old argument over output levels in Saudi Arabia’s favor. The Organization of Petroleum Exporting Countries agreed on a… Continue reading OPEC Agrees
MarketWatch.com –Money managers fear euro zone breakup Nearly half of all institutional money managers now fear a partial break-up of the euro zone, a new survey revealed. And nearly 75% predict that the U.S. debt will be downgraded still further by ratings agencies. That’s the take from the latest monthly survey of major money managers… Continue reading Inside The Minds Of Money Managers
The Wall Street Journal – Legal Problems Seen for EU Deal The deal reached last Friday among the 17 euro-area countries and six more European Union states to push through a stricter fiscal rule book won’t be easy to implement from a legal perspective, European Council President Herman Van Rompuy said Tuesday. The fact that… Continue reading The Legality Of The Potential EU Deal
<Click on chart for larger image> The Wall Street Journal – ECB Overnight Deposits Hit Fresh High Euro-zone banks’ overnight deposits with the European Central Bank hit another fresh high for 2011 Monday, reflecting continuing market tension and the end of the central bank’s monthly reserve period. Banks deposited €346.36 billion ($456.78 billion) overnight, up… Continue reading ECB Deposits Remain Elevated
Bloomberg.com – Fed May Revise Zero-Rate Vow as Bond-Buying Need Fades The Federal Reserve will probably revise its pledge to keep interest rates close to zero through mid-2013 as the need for large scale asset purchases diminishes, according to economists in a Bloomberg News survey. The Fed will alter the interest rate commitment before June,… Continue reading The Federal Reserve’s Empty Promises
The Wall Street Journal – Bernanke’s Legacy at Fed: Still a Lagging Indicator Mr. Bernanke, who turns 58 on Tuesday—which is also the Fed’s last policy meeting of the year—is entering what are likely to be the final, critical stages of his own deployment as head of the central bank. His second four-year term ends… Continue reading Bernanke’s Legacy
The Wall Street Journal – Appetite for Corzine Bonds George Soros isn’t the only fan of Jon Corzine’s European bonds. J.P Morgan Chase & Co. and at least one large hedge fund bought Italian bonds that until recently were owned by MF Global Holdings Ltd., the bonds that played a key role in pushing the… Continue reading Picking Over Corzine’s Carcass