Monday 21 November 2011

Key Comment - 21/11/11

"  Street is flat and happy to go in either direction. Early client activity likely to define the nervy markets"
Cross Market News 

  • Asia   Equities are down on lack of progress on the US deficit plan and Chinese Vice Premier's stark warning on global growth: China: -0.4%; Japan: -0.3%; Hong Kong: -2.1% 
  • Spain's People's Party led by Mariano Rajoy won the majority vote in the weekend's general elections.
  • Greece: Interim PM Mr Papademos is in Brussels to negotiate release of the Greek bailout funds. EU/IMF have insisted on a written guarantee from each of the coalition partners that they will meet the bailout terms regardless of who wins the Feb'12 elections.
  • New York Times :  Europe fears a credit squeeze as financial institutions are offloading vast holdings of European government debt, spurning new bond issues by countries such as Spain and Italy, and refusing to renew short-term loans to other European banks .
  • Bundesbank Pdt. Mr Weidmann on calls for ECB to be lender of last resort: "The economic costs of any form of monetary financing of public debts and deficits outweigh its benefits so clearly that it will not help to stabilize the current situation in any sustainable way. These [heavily indebted countries have] deficiencies [which] include a lack of competitiveness, rigid labor markets and the failure to seize opportunities for growth."
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