Comments »BERLIN (Reuters) – Germany’s top court handed its country’s parliament a greater say over euro zone bailouts, potentially hampering Berlin’s ability to act decisively against a debt crisis which Chancellor Angela Merkel said needed a fundamental rethink to solve.
The Constitutional Court rejected a series of lawsuits aimed at blocking the participation of Europe’s biggest economy in emergency loan packages but said the government must get approval from parliament’s budget committee before granting such aid.
“This was a very tight decision. But it should not be mistakenly interpreted as a constitutional blank check authorizing further rescue measures,” the judge told plaintiffs, government officials and members of parliament in the courtroom in Karlsruhe.
The euro briefly rose against the dollar in response.
“Today’s ruling should bring some relief to financial markets as a total chaos scenario has been avoided, but it should not lead to euphoria,” said Carsten Brzeski at ING.
“The ruling confirms our view that the German piecemeal approach on the debt crisis is not likely to change but eventually the German parliament will vote in favor of a second Greek bailout package and the beefed-up EFSF (euro zone rescue fund).”
Upgrades and Downgrades This Morning
Upgrades
UBS – UBS AG upgraded to Buy from Hold at Collins Stewart
COF – Capital One upgraded to Outperform at Oppenheimer
WSM – Williams-Sonoma upgraded to Outperform from Neutral at Cowen
DKS – Dick’s Sporting Goods initiated with a Buy at Canaccord Genuity
SWKS – Skyworks reinstated with a Buy at BofA/Merrill
SAPE – Sapient upgraded to Outperform from Market Perform at BMO Capital
CJES – C&J Energy initiated with Overweight at JP Morgan
RFMD – RF Micro Device reinstated with an Underperform at BofA/Merrill
GM – General Motors Added to Top Picks Live list at Citigroup
TWX – Time Warner upgraded to Overweight from Equal Weight at Barclays
CVX – Chevron upgraded to Buy from Outperform at Credit Agricole
IRDM – Iridium Communications initiated with an Outperform at William Blair
LVS – Las Vegas Sands upgraded to Buy from Neutral at Goldman
L – Loews Corp initiated with a Buy at BGB Securities
Downgrades
DRI – Darden Restaurants downgraded to Outperform from Strong Buy at Raymond James
LMT – Lockheed Martin initiated with a Neutral at Lazard
CPNO – Copano Energy downgraded to Equal Weight from Overweight at Morgan Stanley
ORBK – Orbotech initiated with a Neutral at JP Morgan
VDSI – VASCO Data Security downgraded to Hold at Wunderlich
DOV – Dover downgraded to Underweight from Neutral at JP Morgan
SONC – Sonic downgraded to Market Perform from Outperform at William Blair
BUD – Anheuser-Busch InBev downgraded to Neutral from Buy at Goldman
FRAN – Francesca’s initiated with a Neutral at JP Morgan
ALR – Alere downgraded to Market Perform from Outperform at Leerink Swann
Comments »Gapping Up and Down This Morning
Gapping up
BCS +1.4%, CS +2.3%, HBC +1.8%, UBS +1.8%, ING +1.4%, TWO +1.1%, SAP +1, LYG +4.6%, MELA +78.6%,
WLT +10%, YHOO +7.7%, BAC +6.4%, NVDA +5.5%, FST +3.8%, WMB +3.8%, SDRL +3.2%,
PAY +2.8%, RCL +2.4%,
Gapping down
GLD -2.1%, SLV -1.8%, ACOR -4%, NNN -2.3%, GDX -2.1%, DRI -3.3%, PBY -3%, URBN -3%, ALTR -2.5%,
Comments »In Play and On the Wires
Bond Markets Say “Fiscal Skies are Falling;” In Other Words “Borrow and Spend”
Jim Rogers Says the Swiss Franc Peg to th Euro is a “Huge Mistake”
Rogers said it will work for a period of time, but in the end the SNB will eat a huge loss.
Comments »Soros: Crisis ‘Worse Than Lehmans’
Soros feels the current European situation is worse than the Lehman Bros. crisis sighting tight liquidity problems and Europe’s ability to actually handle the crisis.
Comments »Italian Bond Yields Fall for a Second Day
Industrial Production Rises in Germany
Short Term Funding Needs for French Banks Drops by 26%
Commodities Rise Across the Board
Low interest rates are being used as an excuse for global recovery, but a reflex rally and value buying is probably more like it.
Comments »Gold Falls as Investor Appetite Turns Toward Equities
World Markets Bounce on a Weak Dollar, Upcoming Obama Speech, and Technical Oversold Conditions
Finland Will Likely not Participate in a Second Greek Bailout if No Collateral is Provided
Debt Collapse: A Revealing Description on Today’s Debt Reality and How You Can Profit From It
Sometimes too many posts go off and many miss important opportunities to learn more about today’s events.
I found this discussion very informative. I knew a lot of the info, but the presentation and analysis opened up a new view of current events involving debt and the market place.
So for those who missed it here it is again for your learning and viewing pleasure.
[youtube:http://www.youtube.com/watch?v=tj2s6vzErqY 450 300] Comments »
