Predictions: Mike Lenhoff at Brewin Dolphin Securities said China is prepared to ease, which will be good for European markets, particularly cyclical stocks – investors sense a more determined spirit to push through tangible measures in Europe. Julian Callow at Barclays Capital forecasts ECB rates will be cut on July 5. Read the full article
READ MORE... →Salient to Investors: Professor Niall Ferguson at Harvard said the key negotiators, including Merkel, do not understand that the timeframe for financial crises is days, for structural reforms is years. Merkel has to realize that the cost of disintegration to Germany would be mind-blowing, and whatever happens, Germany pays – either through massive defaults or fiscal transfers. Read
READ MORE... →Salient to Investors: French banks held $541 billion of private and public debt in Greece, Ireland, Italy, Portugal and Spain at the end of 2011, the most by foreign lenders. France had zero growth in Q1, and joblessness is rising. Predictions: Bill Blain at Newedge Group says once the misery of Spain and
READ MORE... →Salient to Investors: Simon Johnson at MIT Sloan School of Management says: The euro area faces a major economic crisis, most likely a series of rolling, country-specific problems involving some combination of failing banks and sovereigns that can’t pay their debts in full. Expect system wide stress, emergency liquidity loans from the
READ MORE... →Salient to Investors: George Soros said: A failure to produce drastic measures could spell the demise of the Euro. Europe should create a European Fiscal Authority to purchase sovereign debt in return for Italy and Spain implementing achievable budget cuts – funding to come from the sale of European Treasuries, which would
READ MORE... →Salient to Investors: George Soros warned that a failure by EU leaders to produce drastic measures could spell the demise of the Euro and that policy makers should create a European Fiscal Authority to purchase sovereign debt in return for Italy and Spain implementing achievable budget cuts Soros said Angela Merkel
READ MORE... →Salient to Investors: George Soros called on Europe to buy Italian and Spanish bonds, warning a failure by leaders meeting on June 28 to produce drastic measures could spell the end of the euro. Wayne Lin at Legg Mason says the EU summit won’t produce anything extraordinary, that Soros’ views are extreme, and expects more volatility.
READ MORE... →Salient to Investors: German auto rebates on new cars rose to a seven-year high in June. Moody’s cut the ratings of 15 global banks due to their significant exposure to the volatility and risk of outsized losses. Predictions: Lucy MacDonald at RCM expects extremely low growth, low interest rates and much politically driven volatility
READ MORE... →Salient to Investors: Moody’s Investors Service slashed credit ratings on 15 global banks yesterday. Hiromasa Nakamura at Mizuho Asset Management said even Germany can’t avoid a slowdown, showing the instability of Europe’s financial system is affecting the region’s economy. Nakamura said the weakening global economy is leading to risk aversion among investors, putting
READ MORE... →Salient to Investors: Euro-area manufacturing output shrank at the fastest pace in three years in June. Chinese output gauge indicated contraction. Japan reported its first trade deficit with the EU since it began tracking data in 1979. Howard Archer at IHS Global Insight said the EU is dealing with serious tightening of fiscal policy
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