Eurozone Crisis

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After a marathon 17 hour session of negotiations, Greece has finally reached a deal with its creditors; here’s what we know so far: *The deal will unlock €82-86bn of funds for Greece - that's enough to keep it going for another three years *There will be no Grexit - European Commission president Jean-Claude Juncker made that much clear *Greece will have to transfer €50bn of assets to a new fund, although it'll be based in Athens, rather than Luxembou…

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The man who shocked us all last week calling the surprise Greek Referendum, the then Greek Finance Minister Yanis Varoufakis' promptly resigned this morning despite the vote coming in as a resounding ‘No’ to accepting their creditors’ reform proposals. He actually initially announced that he would only resign should the Greek public vote ‘Yes’ thus the result and his departure leave analysts and everyone else alike even more ‘in the dark’ a…

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Cypriot capital controls are weighing on markets this morning. The draconian measures have been put in place, to slow the pending bank run, as investors attempt to pull assets from the crippled Cypriot financial system. Individual accounts with balances below €100,000 will be “unaffected” by the haircut, however with large balances expected to receive significant haircuts, funds are expected to exit the country. The mood is reported to be hostile in Cyprus, as residents feel…

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The situation continues to develop as comments from EU officials and Cypriot politicians fuel market speculation. Sources for many rumours are unclear leading to speculation and confusion as to what the current situation is. The banks remain closed in Cyprus and the final terms (not yet known) are still required to be ratified by a Cypriot government. The Cypriot coalition has only recently taken office and the required majority for a vote might not be met. Market chatter has beg…

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To the surprise of analysts it was announced over the weekend that as part of the bailout agreement, Cypriot bank deposits would be imposed with a levy, or a so-called tax. The bailout terms are harsh in comparison to many, with the unprecedented terms effecting individual investors directly. The situation is fluid, and the initial terms of the “tax” are rumoured to have changed, with government officials in discussion on how to move forward. Today and tomorrow are now bank holid…

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There have been numerous articles in the last few months over the so-called business zombies of the UK high-street. These are companies that have become reliant on low-financing rates but have had stagnated growth, thus are on the verge of collapse. HMV in a statement last night announced: The board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection The music retailer has been tra…

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The UK supermarket industry is saturated and companies are ruthless in attempting to increase their market shares. Loss leader promotions are common and tactics to attract customers over the all-important Christmas period are key. This week has seen the supermarkets post their trading updates, with Tesco posting better than expected numbers following last week’s results from Waitrose. Marks and Spencer suffered over the Christmas period and their release was brought forward after a lea…

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Fitch said and Moody's downgraded France by one notch to Aa1 from Aaa with a negative outlook The FT says trading of US equities in "dark pools" has grown 50% in 3yrs and now represents a third of trading Credit Suisse Group AG plans to split its private bank business from its investment bank, and its asset-management unit will be dissolved and integrated into its wealth-management unit -Tagesanzeiger The Spanish government is offering residency for home purc…

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During the Asian session, the Reserve Bank of New Zealand (RBNZ) left their base interest rate on hold at 2.5%. The central bank expects firmer growth for the final quarter of the year and into 2013, with the markets expecting no further interest rate cuts, the Kiwi Dollar rallied following the release. UK GDP is released at 9:30am (London) and is expected to show expansion, and that the economy has pulled out of recession. David Cameron has come under fire from the opposition for a su…

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Another week begins and it is the first trading day of the week. Chinese data released on Saturday was better than expected giving Asian markets a lift from the open. However sentiment faded as markets focused on the continuing uncertainty in Europe. It is thought that Virgin Money may purchase the 316 RBS branches that need to be sold by the end of the year. Under the European regulations the bailout conditions stipulate that RBS must sell the branches by year end or incur large fines…

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It is a miserable wet, cold and windy day in the City of London, and I feel that a rubber dingy would have been a more appropriate method of transport to get into the office. Investors are awaiting Thursday’s release of the Oliver Wyman investigation into the Spanish banking sector. The report has independently covered 14 banking groups, with an estimated figure for a required bailout of €60bn. Currently Spain has earmarked €100bn to recapitalise the Spanish banks, but…

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It’s the final trading session of the week in Europe and if you are one of the Apple faithful then you might have been queuing outside an Apple store overnight awaiting the iPhone 5 release. With pre orders topping $2 million, Apple has already released a statement stating that some clients will be unable to purchase the new smart phone until the end of October. It is a problem, that many companies would love to have, being unable to meet the demand upon release of a new product, with…

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Its Monday morning and the start of the trading week in Europe, and though there has been unrest in the Middle East, political tensions increasing between Japan and China, the mainstream UK press is focused on the pictures taken of a royal while sunbathing. The escalating unrest in the Middle East is likely to unsettle investors and push up the prices of Oil due to the uncertainty of future supply. Protesters have been outside western embassies and Al-Qaeda brazenly attacked the ISAF b…

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In a controversial plan Vince Cable the Business Secretary, will announce the plans today for a government-backed corporate lender. This is an attempt to reignite lending and reinvigorate the UK economy, though firmer details as to the scale and setup are yet to be decided. I personally think that this is a backwards step and that a regulated banking sector is the solution rather than a politicised government lendeThe new Chief Executive of Barclays Antony Jenkins has vowed to review each un…

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Equity markets rallied yesterday after the expected announcement by Mario Draghi that the European Central Bank (ECB) will indeed be supporting indebted European governments. He pledged the ECB will consider to purchasing their government bonds in a new programme dubbed Outright Monetary Transactions. These would be bought in the secondary market, and not indirectly from the governments and Draghi stipulated that this would only happen after the governments had sought financial aid from the…

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