Post Tagged with: "Angela Merkel"
Back on the slippery slope
After reaching its highest level since mid-December, euro-bulls beat a hasty retreat during the London trading session yesterday. There were numerous issues to worry about, including the CDU’s decision to scupper Angela Merkel’s idea that the EFSF and ESM could run in parallel, the German proposal to appoint an EU budget commissioner to veto tax
Germany’s Negative Yields – Another Reflection of Distrust in Periphery
For the first time, Germany’s bond auction yielded negative yields. Its 6 month bond auction resulted in 3.9 billion euros in fresh funds, with a yield of -0.012%. This means that investors are willing to take a loss in order to hold on to the precious German papers. This emphasizes the loss of trust in
Merkozy Agreement Lacks Details – Euro Rally Fades Away
The leaders of France and Germany announced that they have reached an agreement regarding more means to resolve the debt crisis. The agreement requires EU Treaty changes that should be ratified in March 2012. Is this realistic? And even if so, will the markets wait that long? Here are the highlights from the announcement: No
EUR/USD Dec. 5 – Rising on Hopes for Central Bank Action
Euro dollar is moving up gradually at the wake of this critical week. There are reports about another coordinated action by the Federal Reserve, the euro-zone central banks and the IMF to inject €100 billion or more to debt struck countries. In addition, the ECB may finally be preparing the massive QE program worth €1 trillion.
The momentum increases
In the run-up to the EU Summit this coming Friday, Europe is working on numerous fronts in an attempt to regain the trust of markets. Italy has unveiled a raft of austerity measures a day earlier than planned. German Chancellor Merkel meets with French President Sarkozy again today in an attempt to iron out their
Merkel and Sarkozy take to the dance-floor again
On the surface, last night’s speech by French President Sarkozy appeared to suggest that he was endorsing Angela Merkel’s vision of how fiscal union in Europe will look. Sarkozy stated that eurozone countries must prepare their national budgets in a common fashion, face stringent automatic penalties for breaking fiscal rules and undertake measures to narrow
Spain’s Rajoy Negotiated €100 Billion Aid With Merkel – Report
Mariano Rajoy, who is widely expected to become Spain’s next Prime Minister, met with German Chancellor Angela Merkel and discussed a possibility that Spain will receive aid reaching 100 billion euros. In at least two meeting held in Germany, Rajoy discussed his plans to cut €30 billion in government spending and to undertake significant labor reforms. Regarding
Japan losing the battle
The overnight intervention by Japan to weaken the yen is not wholly surprising given the recent moves we’ve seen on the USD/JPY. But it’s not a situation of yen strength by any stretch of the imagination. Ahead of the currency selling by the BoJ this morning, the yen was the weakest performer on the majors
EUR/USD Oct. 26 – All Eyes on EU Summit
Euro dollar is now in an even narrower range towards the second EU Summit later in the day. There are big doubts if any meaningful decisions will come out of this decision. Some numbers are set to be absent and yet another summit is on the cards. We have important US figures as well today. Here’s
Europe has an impossible dream
Expectation levels have certainly been raised by last weekend’s declaration at the G20 meeting that Europe needs to present a comprehensive plan for resolving its sovereign debt and banking crisis at this weekend’s EU Summit. Since that time, Germany has attempted to water down the “dreams” that many appear to harbour of what can realistically