When the latest market squall hit the eurozone last month, the governments of Spain and Italy responded with a time-honored defense; as panic mounted, they banned the short selling of shares in banks, in a desperate bid to shore up confidence.
Thank you Germany, Italy, Spain and, especially, the European Central Bank. They all said enough to provide markets and investors with a tranquil August so far. The question now is whether they will be able and willing to pivot - from re-assuring words to the series of actions required to enable this tranquility to grow deep roots.
This policy expert says a four-part solution to the crisis is in order.
The latest euro zone flash PMI data—which is usually a good advance notice of the state of the economy—pointed to a recession in the area, increasing hopes that politicians and central banks in the region will be forced to take further action to solve the euro zone crisis sooner.
Greece has “one last chance” to prove its credibility to international lenders, Eurogroup chief Jean-Claude Juncker told a press conference in Athens. But with the country set to ask for yet another extension on its bailout, some economists are questioning whether it’s time to expel Greece from the euro zone – or whether, perhaps, it will choose to leave of its own accord.
As the Greek Prime Minister Antonis Samaras prepares to meet euro zone leaders to request a two-year extension to bailout terms, both Greece and the euro zone should be prepared to not get what they expect, according to analysts.
The euro zone is currently in chaos with the euro no longer being functional and order will only be restored by giving struggling member states their currency back, according to Matthew Lynn founder of Strategy Economics.
Arjuna Mahendran, MD & Head of Investment Strategy Asia, HSBC Private Bank thinks the Fed, ECB & possibly the PBOC will act in concert and provide the markets with some good news over the next few weeks.
The euro zone debt crisis is showing signs of reaching a solution and investors should be upgrading their outlook on U.K. banks, according to investment firm Liberum Capital.
Investors live in a “rigged world” and are being forced to “hold unattractive assets by diktat” according to Neil Dwane, the chief investment officer at Allianz Global Investors in London.
Julio Fernández Gayoso has emerged as a symbol of the clash between the time-honored tradition of the caja as a baronial community institution and the modern, euro-based banking economy that Spain has tried to create in recent decades, the New York Times reports.
As the ECB mulls steps to end the euro zone debt crisis, analysts say what’s really key is that Germany fully supports the measures.
You know the euro is in deep water when a doyen of the banking industry, Lord Jacob Rothschild, takes a 200 million pound ($314 million) bet against it.
The market is ultimately preparing for more decisive action from the ECB – once Europe’s politicians and bankers have returned to their desks from the summer break, according to analysts.
Portugal is becoming the new sick man of Europe, despite sticking to the troika’s hard-to-swallow medicine of austerity, while the prognosis for Greece is much worse — and potentially contagious — according to the latest report from Citi.
The euro zone may not have delivered any fresh stimulus to bolster the economy, but the way markets have rallied in recent weeks would suggest otherwise.
Finland is “100 percent” committed to keeping the euro intact and is not looking at any “doomsday scenarios”, Alex Stubb the country’s minister for European affairs and foreigntrade has told CNBC Friday.
The euro is smack in the middle of its recent range, and this strategist is waiting for a breakout.
“The best laid plans are laid to waste” so the saying goes, and according to the latest report from Nomura, plans by Germany and the European Central Bank (ECB) to stabilize and indeed salvage the euro zone are in serious jeopardy.