Post Tagged with: "Euro"
Deutsche Bank More Leveraged than Lehman
A new document published by Deutsche Bank shows that in Q4 2011, the large German bank was leveraged at a ratio of 40:1 according to the International Financial Reporting Standards (IFRS). This is higher than Lehman Brothers had. Deutsche Bank is Germany’s largest bank, and the biggest foreign exchange dealer in the world. There has been significant
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
A remarkably resilient euro
Returning to an observation we have made frequently over recent months, it remains extremely interesting that the euro is not significantly weaker than it is. Beset by three sovereign bailouts, collapsing bond and bank equity prices, extreme funding strains, an incredibly clunky policy decision-making process, plummeting business confidence and increasing signs that Europe may already
German Exporters’ Organization: No Need for the Euro
Anton Börner, head of Germany’s BGA organization, said that German exporters can “live without the euro”. BGA represents mostly small and medium sizes companies. Börner’s alternative for the current euro framework is a bloc of the richer euro-zone countries. This statement is quite surprising. The Deutschmark would be of a much higher value if it weren’t
Payrolls could well be on the soft side
A close examination of recent labour market evidence does not augur too well for non-farm payrolls when they are released later today. Continuing claims for the weeks in between the survey period actually rose by more than 50K, the ADP survey recorded a paltry 38K increase in May, and the employment component of the ISM
The worsening debt threat under the euro
Of course, one of the more remarkable aspects of the past week has been the resilience of the euro in the face of the underlying developments of the sovereign debt crisis. This could well be repeated later today when Ireland publishes the results of the latest stress tests on its banking sector, where nationalisation of
The euro stands its ground
The euro was one of the best performers during the European session on Thursday, despite the looming election in Portugal, the assumed EU bailout and the prospect of a delay to agreement on reform of the EFSF. There were three over-arching reasons for the single currency’s vigour. The first was the weakness of both the
11 Forex Predictions for 2011
Exciting 2010 is behind us, and it’s time to discuss what can happen in 2011. Here are the expectations for currency movements and also for trends in forex trading. It’s very hard to make predictions for a full year, because so much can happen, but there are some trends that can continue or fade away.
Bank of Ireland Haircut
Following the haircut forced upon bondholders of the Anglo-Irish bank, also the Bank of Ireland is announcing ”haircuts” or burden sharing if you wish. Tracy Alloway reports about this development, that isn’t too good for the Euro, even if it’s a smoother razor is used. Read it here. This is not the first haircut for an Irish bank, and unfortunately not
Spanish House Prices May Be Lower Than Thought – Problem for Banks
There isn’t enough reliable information about the prices of homes in Spain. Most of the data is based on asking prices rather than on actual deals. A growing portion of assets held by Spanish banks are foreclosed homes – currently estimated at 60 billion euros. If they’ll need to reassess prices, they’ll be in deeper