" A senior German official" has been talking to Reuters. The unnamed official has said they are "not sure if summit will reach conclusion on using IMF funds in eurozone crisis" and "can't forsee running EFSF and ESM simultaneously". They have also said they are "more pessimistic than last week on overall summit deal". Well, that's reassuring....Meanwhile : The ECB said banks asked for $50.7bn in 84-day dollar funds and $1.602bn in the 1-week tender in the operations, in which they are guaranteed to get all funds they requested. The demand was well above the $10bn median forecast in a Reuters poll of money market traders. Traders attributed banking strains in countries mired in the debt crisis as the main reason for the high amount allocated. Remember that liquidity boost last week? Reuters reports that banks took more than $50bn from the European Central Bank today in its first offering since slashing the cost of borrowing dollars, a sign that some euro zone banks have problems finding dollar funding as the region's debt crisis intensifies.www.ziaruldeinvestigatii.ro
Access Investments-Building Awareness - European Union-ROMANIA
Wednesday, December 7, 2011
" A senior German official" has been talking to Reuters. The unnamed official has said they are "not sure if summit will reach conclusion on using IMF funds in eurozone crisis" and "can't forsee running EFSF and ESM simultaneously". They have also said they are "more pessimistic than last week on overall summit deal". Well, that's reassuring....Meanwhile : The ECB said banks asked for $50.7bn in 84-day dollar funds and $1.602bn in the 1-week tender in the operations, in which they are guaranteed to get all funds they requested. The demand was well above the $10bn median forecast in a Reuters poll of money market traders. Traders attributed banking strains in countries mired in the debt crisis as the main reason for the high amount allocated. Remember that liquidity boost last week? Reuters reports that banks took more than $50bn from the European Central Bank today in its first offering since slashing the cost of borrowing dollars, a sign that some euro zone banks have problems finding dollar funding as the region's debt crisis intensifies.www.ziaruldeinvestigatii.ro
Subscribe to:
Post Comments (Atom)
5 comments:
FT's Alphaville blog has a bit more on banks piling in to the new dollar liquidity facility.
11.13am: Apologies for missing this earlier, and thanks to KimJosle in the comments for pointing it out.
We got some figures today on European banks' use of the ECB's dollar liquidity operations.
The idea is to provide dollars to European banks, who have been struggling to get hold of them. The market has seized up given fears over European banks' future.
David Gow in Luxembourg has some detail on the EFSF's funding programme:
In order to increase flexibility in its funding strategy, EFSF has announced the launch of a short-term funding programme focusing on 3, 6 and 12 month bills. Other bill tenors may be developed in time. The first auction is expected to take place before year end.
Klaus Regling, CEO of EFSF stated "The launch of a short-term funding programme is in line with the enlarged scope of activity of EFSF to use its new instruments efficiently." He also underlined: "The bill programme will not substitute the long-term bond programme, but it will add flexibility to it."
There's a bit more on this anonymous briefing from someone Reuters are calling a "senior German official".
Berlin is apparently "increasingly pessimistic" about the chances of getting a deal to solve the crisis this week:
We get the impression from many conversations in recent days that a lot of the protagonists still have not understood how serious the situation is.
It would be wrong to assume more government spending will lead to growth, the official also said.
The operation of the ESM could change if the eurozone moves ahead with 17 countries.
The German government is also so far not totally agreed on the issue of forced recapitalisation of banks.
10.45am: An unnamed senior German official is being quoted by Reuters saying that they cannot foresee running the EFSF and the ESM
EU officials will today debate plans to impose more intrusive control of eurozone national budgets, as we build up towards the summit - taking place tomorrow and Friday.
On the table is this paper, seen by The Guardian, suggesting a new punitive regime overseen by EU institutions.
Greece managed to pass its 2012 Budget last night after clashes outside parliament. 258 of 300 members of the Greek parliament voted in favour.
Meanwhile, US Treasury secretary Tim Geithner is meeting Nicolas Sarkozy today. He indicated yesterday that the ECB would have to play a role in any solution to the crisis, as well as backing moves towards closer fiscal union.
US cash may be less forthcoming. "I would say the reports I've read in the press about what the Fed can do are not accurate," he said, referring to the possibility of a $100bn from the Fed to the IMF to backstop the euro.
We're expecting the market to open higher - with European stock index futures pointing to climbs of 0.8%-0.9%.
12.24 More from Mr Cameron. He told Parliament that Britain would seek to wrest back greater control of its financial services industry from Europe as a result of any changes to the way the European Union operates:
It's absolutely vital that we safeguard it [financial services industry].
We do see it under continued regulatory attack from Brussels and I think there is an opportunity, particularly if there is a treaty at 27, to ensure some safeguards not just for that industry but to give us greater power and control in terms of regulation here in this House of Commons
12.17 David Cameron has been taking questions about Europe in the House of Commons. Tory MP Andrew Rosindell asked the prime minister to "show some bulldog spirit in Brussels", to which Mr Cameron said that is exactly what he will do. Mr Cameron said that the eurozone crisis is "freezing" the British economy and he will seek safeguards for Britain at this week's summit:
Related Links
You might like:British Triumph that reveals a weakness02 Dec 2011(Telegraph Finance)Tesco loses market share06 Dec 2011(Telegraph Finance)Eurozone rescue 'will survive downgrade'06 Dec 2011(Telegraph Finance)
From the WebFORM THE WEB:From credit crunch to oil rushes, keep ahead of market trends with the BBC's business podcast31 Dec 1969(BBC Podcast)‘I Wish I Were Wrong’ — Economist Laments Prediction. See Interview.28 Nov 2011(Moneynews)How Bankers Saved the World From a Euro Meltdown01 Dec 2011(The Daily Beast)[what's this]
It’s freezing the British economy just as it’s freezing economies across the euro zone. The British national interest absolutely means we need to help resolve the crisis in the euro zone
Post a Comment