Just when it looked like the risk-on paradigm was gaining some traction, Chancellor Merkel, through her spokesman, Steffen Seibert, said, “…dreams that are taking hold again now that with this package everything will be solved and everything will be over on Monday won’t be able to be fulfilled.” The global equity markets were experiencing a continued rally from Friday when the Merkel statement was released and the market immediately went into sell mode and risk off. The U.S. equity markets tried to maintain Friday’s sizable rally as the news of CITI and WELLS FARGO earnings provided a momentary boost. Overnight the U.S., markets were supported by the news that KINDER MORGAN was buying the pipeline and energy producer, EL PASO.
Posts Tagged ‘banks’
Notes From Underground: Geithner to Europe–Walk This way; Merkel to Geithner–Dream On
October 17, 2011Notes From Underground: WAS BERNANKE HAWKING A HAWKISH OUTLOOK???
June 22, 2011I feel like I’m the odd analyst out in that Bernanke failed to impress upon me that he is a DOVE in HAWKS’ feathers. Reading the FOMC statement over and over leaves me wondering just what made the statement so strong an anti-inflation stance. The FOMC release reiterated that the FED is relying on closing the output gaps, “including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate for an extended period.” This is not the musings of an inflation HAWK.
Notes From Underground: Trader’s Buzz (CNBC)
May 11, 2011
Click on image to watch me talk about Greece and the Euro zone.
Notes From Underground: All is well in Ireland as the debt crisis has been resolved–and no corporate tax increase
November 21, 2010It has been a very slow news weekend. There were no major events, and, if you can believe it, the EU and IMF have agreed to a support package for the Irish banks and other institutions that are under stress. Nobody can really be shocked by this as the readers of NOTES have been prepped as to this outcome. The Irish polity at this point did not have to surrender its sovereignty as it doesn’t have to raise its corporate tax, at least not yet. Markets are responding positively as the S&Ps, EURO and COMMODITIES are all higher as the all-clear signal is given.
Notes From Underground: CEBS and the ECB roll the dice and it comes up seven
July 25, 2010The “results” of the European bank stress tests were released Friday afternoon and we learned that seven European banks failed and need to raise about €3.5 billion to meet the needed tier one capital ratios.
Notes From Underground: The Brothers GRIMM and other fairy tales
July 14, 2010We have word from Europe that the stress tests done on their regional banks will be fair and transparent. Do we believe that to be possible? No way, no how. The stress tests will be dependent on the questions asked and if the DESIRED OUTCOME is already known, then the questions are, of course, self-fulfilling. Right or wrong, the elites of Europe are too vested in the EU project to let any genuine tests bring this “edifice” tumbling down. Helmut Kohl often opined that the major purpose of the EU was to secure the blessings of peace for its children and grandchildren. This dream will not die easily–noble ideas seldom do.