EURO UPSIDE CAPPED - Some analysts were sceptical about the sustainability of the euro's rise as they believe a Greek debt restructuring is inevitable, and that more aid loans would only throw new debt onto old debt without solving Athen's fiscal problems. "I would fade this rally in the euro for now. Investors will be looking for a more lasting resolution to the Greek debt problems and our economists haven't ruled out the possibility of a voluntary restructuring involving private bondholders," said Valentin Marinov, currency strategist at Citi. Renewed concerns about Greece's debts have pushed the euro around 2.5 percent lower versus the dollar so far this month, cutting overstretched long euro positions. While euro positioning remains long, it is more balanced than a month ago, and UBS currency analyst Geoffrey Yu said recent, choppy trade illustrated the deep division between euro bulls and bears while euro valuation remains relatively high. "Real money is still not convinced that Greece will be able to last the next few months, so there's a struggle between people who want to buy the euro on dips and people who are trying to grab any opportunity to get out of the euro," he said. But given the market's obsession with monetary policy and rate differentials between currencies, Yu said the euro may initially rise to $1.45 if the European Central Bank next month signals that it is preparing to raise interest rates again. Data on Tuesday showed inflation rose more slowly than expected in May but remained well above the European Central Bank's 2 percent target. [ID:nBRLVGE7ET] . An ECB rate rise would widen the euro's rate advantage against the dollar, particularly given that the Federal Reserve is widely expected to keep its lending rate near zero for months to come. Signs of weakness in the U.S. economy have raised speculation that U.S. rates will stay low.
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Tuesday, May 31, 2011
EURO UPSIDE CAPPED - Some analysts were sceptical about the sustainability of the euro's rise as they believe a Greek debt restructuring is inevitable, and that more aid loans would only throw new debt onto old debt without solving Athen's fiscal problems. "I would fade this rally in the euro for now. Investors will be looking for a more lasting resolution to the Greek debt problems and our economists haven't ruled out the possibility of a voluntary restructuring involving private bondholders," said Valentin Marinov, currency strategist at Citi. Renewed concerns about Greece's debts have pushed the euro around 2.5 percent lower versus the dollar so far this month, cutting overstretched long euro positions. While euro positioning remains long, it is more balanced than a month ago, and UBS currency analyst Geoffrey Yu said recent, choppy trade illustrated the deep division between euro bulls and bears while euro valuation remains relatively high. "Real money is still not convinced that Greece will be able to last the next few months, so there's a struggle between people who want to buy the euro on dips and people who are trying to grab any opportunity to get out of the euro," he said. But given the market's obsession with monetary policy and rate differentials between currencies, Yu said the euro may initially rise to $1.45 if the European Central Bank next month signals that it is preparing to raise interest rates again. Data on Tuesday showed inflation rose more slowly than expected in May but remained well above the European Central Bank's 2 percent target. [ID:nBRLVGE7ET] . An ECB rate rise would widen the euro's rate advantage against the dollar, particularly given that the Federal Reserve is widely expected to keep its lending rate near zero for months to come. Signs of weakness in the U.S. economy have raised speculation that U.S. rates will stay low.
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Romanian authorities will make the necessary arrangements to sell “significant stakes” in several key energy companies in the coming months, including nuclear power company Nuclearelectrica and gas pipeline operator Transgaz, an official of the International Monetary Fund said Monday.
Jordan Express Light Railway Company, owned by businessman Fathi Taher, signed a contract with consultants Railway Business to find Romanian investors interested in a $500 million project developed in Jordan.
E.ON, cea mai mare companie de utilităţi din Germania, va cere statului despăgubiri de peste zece miliarde de euro, iar RWE ar putea iniţia o acţiune similară, în urma deciziei guvernului de a renunţa la energia nucleară în următorul deceniu, relatează Reuters.
"Compania se aşteaptă la compensaţii corespunzătoare pentru daunele legate de aceste decizii, care sunt de ordinul miliardelor de euro", se arată într-un comunicat la E.ON.Un purtător de cuvânt al grupului a declarat că despăgubirile ar putea depăşi zece miliarde de euro.El a arătat că scurtarea duratei de funcţionare a centralelor nucleare şi impunerea unei taxe pentru combustibilii nucleari este ilegală şi încalcă legislaţia Uniunii Europene, care interzice discriminarea în domeniu.Ministerul german de Finanţe a refuzat să comenteze decizia E.ON.
RWE, cel mai mare producător de energie din Germania, a anunţat, luni, că analizează lansarea unei acţiuni în justiţie.După ce în weekend peste 150.000 de oameni au demonstrat în oraşe precum Berlin şi Munchen pentru a contesta folosirea energiei nucleare, coaliţia condusă de cancelarul Angela Merkel a anunţat, luni, decizia de a închide toate reactoarele nucleare până în 2022. Strategia guvernului german în acest sector a fost modificată radical după dezastrul nuclear de la centrala japoneză Fukushima.
Măsura va costa scump producătorii de energie E.ON, RWE, EnBW şi divizia germană a Vattenfall.Un analist al DZ bank estimează că profitul E.ON înainte de plata dobânzilor şi taxelor va scădea în acest an cu 600 milioane de euro, iar cel al RWE cu 575 milioane euro. În cazul RWE, suma reprezintă 9% din profitul estimat. E.ON nu publică estimări referitoare la profit.
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