Wednesday 23 November 2011

Key Comment - 23/11/11

"  More weakness in European sovereigns as Belgium widens to record levels, throwing Dexia bailout into disarray."   

Cross Market News

  • Asia-Pacific Equities down on growing US and China growth concerns: China -0.8%; Hong Kong -2.0%.
  • The FT reports that the Federal Reserve will force the biggest US banks to "stress test" their balance sheets against a severe eurozone recession and a US unemployment rate of 13 per cent as part of a wide-ranging exercise.
  • The FT reports that Brussels will today propose measures giving it more authority over the national budgets of eurozone states, including a requirement to submit tax and spending plans to European Union authorities before their national parliaments. According to the FT, the proposals would also allow the European Commission, to send fiscal inspectors to eurozone capitals if it decides a country is "experiencing severe difficulties" – even if that country's government has not requested them.  
  • German Finance Minister Mr Schaeuble said that the December meeting of the Eurozone (9th December EU Summit) leaders will likely give a clear indication of the amendments to the EU treaty, proposed by Berlin. "There is no alternative" to safeguard the stability of euro, reports quoted him as saying during a discussion on Tuesday.Mr Schaeuble also reaffirmed his opposition to calls for greater role of the European Central Bank in tackling the crisis. "The Central Bank is not there to be used for state financing" the minister was quoted as saying.

No comments:

Post a Comment

Legal Disclaimer

Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice or recommendation by us and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Appropriate independent advice should be obtained before making any such decision. Any arrangement made between you and any third party named in the site is at your sole risk and responsibility.