Comments »Spanish Prime Minister Mariano Rajoy said European leaders should reinforce efforts to protect euro- area banks, ratcheting up pressure on German Chancellor Angela Merkel to back new ideas for a resolution of the debt crisis.
With markets bracing for further deterioration in Spain’s finance sector and a possible Greek departure from the 17-member euro area, Rajoy on June 2 added his voice to calls for a more robust “banking union” in Europe, lending his support for a centralized system to re-capitalize lenders. On the same day, Merkel toughened her opposition to euro-area debt sharing, telling members of her party in Berlin that “under no circumstances” would she agree to German-backed euro bonds.
Euro Zone Nears Moment of Truth on Staying Together
Comments »LONDON — As Spain’s economic crisis deepens and uncertainty swirls over Greece’s future in the euro zone, the guardians of the increasingly fragile European monetary union are near a moment of truth: Can they muster the will and resources to keep the euro zone from breaking apart?
This Summer an ‘Eerie Echo’ of Pre-Lehman: Zoellick
Comments »The summer of 2012 is looking like an “eerie” echo of 2008 but euro zone sovereign debt has replaced mortgages as the risky asset class that markets are anxious about, said Robert Zoellick, President of the World Bank.
Banks are under stress and depositors have begun to “jog,” Zoellick wrote in an editorial in the Financial Times on Thursday.
“The European Central Bank, like the U.S. Federal Reserve in 2008, has sought to reassure markets by providing generous liquidity, but collateral quality is declining as the better pickings on bank balance sheets are used up,” he added.
To prevent investors from fleeing in panic, Europe must be ready with more than liquidity injections to contain the consequences of a possible Greek exit. “If Greece leaves the eurozone, the contagion is impossible to predict, just as Lehman (Brothers’ collapse) had unexpected consequences,” Zoellick said.
Italy’s Monti sees eurobonds becoming reality
Comments »(Reuters) – Italian Prime Minister Mario Monti believes eurobonds will become a reality in the 17-nation euro zone and that Greece will remain in the single currency, he told a Greek newspaper on Saturday.
Monti, a respected former European commissioner who became Italy’s prime minister in November, was known to be a supporter of eurobonds – unlike politicians in European Union paymaster Germany – but his comments were some of his strongest on the subject yet and looked like an attempt to sway Berlin.
“I believe we will have eurobonds in one form or another because our union is becoming all the more integrated,” Monti told the Sunday edition of the To Vima newspaper in an interview made available on Saturday.
Iran threatens to target U.S. bases if attacked
Comments »(Reuters) – Iran has warned the United States not to resort to military action against it, saying U.S. bases in the region were vulnerable to the Islamic Republic’s missiles, state media reported on Saturday.
The comments by a senior Iranian military commander were an apparent response to U.S. officials who have said Washington was ready to use military force to stop what it suspects is Iran’s goal to develop a nuclear weapons capability.
World powers held talks with Iran in Baghdad on May 23-24 in an attempt to find a diplomatic solution to their concerns over its nuclear program, which Tehran maintains is entirely peaceful. Another round was set for June 18-19 in Moscow.
“The politicians and the military men of the United States are well aware of the fact that all of their bases (in the region) are within the range of Iran’s missiles and in any case … are highly vulnerable,” Press TV reported Brigadier-General Yahya Rahim Safavi as saying.
Marijuana initiative could make or break Obama in Colorado
Comments »(Reuters) – Throughout his presidency, Barack Obama hasn’t exactly been a friend to marijuana users.
Sure, he has acknowledged smoking pot as a young man, but he has disappointed marijuana advocates by opposing its legalization, regulation and taxation like alcohol.
And the Justice Department’s occasional crackdown under his administration on medical marijuana dispensaries, which 17 states and the District of Columbia allow, has angered others.
So now, with Obama facing a stiff challenge from Republican Mitt Romney in the November 6 election, it’s ironic that his chances of winning the key state of Colorado could hinge on marijuana legalization, supported by a growing number of Americans.
Dare nine men defy the siren call of Christine Lagarde?
Comments »All eyes on Threadneedle Street this week as the City waits (prays) for the Bank of England to fire up its magic money machine at the June gathering of the monetary policy committee.
Apart from the economic repercussions of the MPC’s deliberations, the two-day meeting gives it a shot at making history and becoming the first body to summon the fortitude to resist the charms of Christine Lagarde, beguiling head of the International Monetary Fund.
By Thursday we should know if her siren calls for the UK to make further interest rate cuts and create more electronic money have been fended off by the nine-strong committee, although the odds on that are shortening. Poor economic news on Friday (May’s PMI survey was a shocker) has been described by Deutsche Bank’s George Buckley as a “game changer”. Meanwhile, Citi’s Michael Saunders muses: “We continue to expect that worsening economic prospects will prompt the MPC to expand QE [quantitative easing] markedly further – to a total of about £500bn – and that the next instalment will occur soon. On balance, we forecast the MPC will expand QE by another £50bn at the June meeting.”
Surely the Bank’s nonet of middle-aged men wouldn’t consider frustrating the French temptress
Debt Up $1.59T Under GOP House—More in 15 Months Than First 97 Congresses Combined
Comments »(CNSNews.com) – The Republican-controlled House of Representatives, which took office in January 2011, has enacted federal spending bills under which the national debt has increased more in less than one term of Congress than in the first 97 Congresses combined
n the fifteen months that the Republican-controlled House of Representatives–led by Speaker John Boehner–has effectively enjoyed a constitutional veto over federal spending, the federal government’s debt has increased by about $1.59 trillion.
Obama Tells Donors Europe To Blame For Weak Job Growth
Comments »President Barack Obama told campaign donors in Chicago and Minnesota that Europe’s sovereign debt crisis is largely to blame for the slowest month of U.S. employment growth in a year, seeking to counter an issue weighing on his re-election bid.
“We’re not where we need to be; we’re not there yet; you saw that in today’s jobs report,” the president said at a Chicago fundraiser, the fourth of six yesterday in the Midwest. “A lot of that’s attributable to Europe and the cloud that’s coming over from the Atlantic. The whole world economy has been weakened by it, and it’s having an impact on us.”
China’s Non-Manufacturing Industries Grow At Slower Pace
Comments »China’s non-manufacturing industries grew at a slower pace for a second month, as export demand moderated and new orders in construction and real estate contracted, an official survey indicated.
The purchasing managers’ index fell to 55.2 in May from 56.1 in April, the National Bureau of Statistics and China Federation of Logistics and Purchasing said in a statement today in Beijing. A reading above 50 indicates expansion.
Today’s data adds to evidence that growth in the world’s second-biggest economy is slowing after a government manufacturing report showed the weakest reading since December. Brent crude tumbled below $100 a barrel on June 1 for the first time in almost eight months on concern that China’s industrial expansion is moderating and unemployment in the U.S. is rising.
European Union Said To Prepare Start Of ESM For July 9
The European Union is targeting July 9 as the start date for its permanent euro-area rescue fund, the 500 billion-euro ($620 billion) European Stability Mechanism, an EU official said.
Parliaments across the 17-nation currency union must ratify the fund before it becomes available to counter the financial crisis spawned in Greece. Until it receives 90 percent of its expected capital allotment, officials must turn to the temporary European Financial Stability Facility, a 440 billion-euro fund with 240 billion euros available.
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JPMorgan’s Iksil Said To Take Big Risks Long Before Loss
Comments »JPMorgan Chase & Co. (JPM) trader Bruno Iksil, known as the London Whale because his bets this year were so large, has been a leviathan of a risk-taker since at least 2010, a person with knowledge of the matter said.
Merkel Rejects Debt Sharing As Obama Urges End To Crisis Cloud
This is big, down 10% on Monday, unless of course they say something else tomorrow.
Comments »German Chancellor Angela Merkel hardened her opposition to joint debt sharing in the euro region as President Barack Obama singled out Europe’s leaders for not doing enough to arrest the financial crisis.
With Europe’s debt crisis cited last week for canceled IPOs, weaker-than-expected Chinese manufacturing figures and a rise in the U.S. jobless rate, Merkel rejected joint debt issuance in the 17-nation euro area as a solution, saying “under no circumstances” would she agree to Germany-backed euro bonds.
Now, some “come along and ask for euro bonds, saying all we need are equal interest rates and everything will turn out all right,” Merkel said in a speech to members of her Christian Democratic Union in Berlin yesterday. Instead, what’s needed is an economic overhaul to tackle the lack of competitiveness in Europe, she said.
Merkel, the head of Europe’s biggest economy and the largest contributor to bailouts for Greece, Portugal and Ireland, is the pivotal player in efforts to resolve the crisis now in its third year. As Spain struggles to avoid becoming the next country to call for a rescue and the euro slides near a three-year low against the dollar, Obama added to pressure from the European Central Bank, France and Italy to do more to halt the spread of contagion.
Hybrid Movers
Here’s a look at today’s hybrid movers, click here for charts
Comments »Market Update
Markets have just touched down on new lows for the day. Gold is looking good. The dollar is strong and the Euro has managed to hold its recent gains into the green zone.
The Fly had it correct this morning when he said the market will crash on Monday if no solution is had by Sunday to solve the European debt crisis. For now we remain at the 200 day ma and await a hit of hopium from central banks.
[youtube://http://www.youtube.com/watch?v=AzqiPvGrkTo 450 300] Comments »LIVE CNBC STREAM (MITT ROMNEY IS ON NOW)
S&P 500 Touches 200 Day Moving Average
The S&P 500 touches the 200 day for the first time since the year began. Buying opportunity?
Morgan Stanley CEO: No apologies on Facebook IPO
LATE NIGHT REPORT
Read it all here, it’s not looking like a good day tomorrow, even if the job’s numbers are good.
Comments »Country’s most affordable cities make for surreal comparison with SF
This is another place were the Zuck Fuck has screwed people over. There is an influx of wealth, almost a dot-com 2.0 if you will. Especially check out the slideshow at the bottom.
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