BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[France's Prime Minister Sees Only Good Things in Euro-Dollar Parity]]>http://www.bloggingstocks.com/2010/06/04/frances-prime-minister-sees-only-good-things-in-euro-dollar-par/http://www.bloggingstocks.com/2010/06/04/frances-prime-minister-sees-only-good-things-in-euro-dollar-par/http://www.bloggingstocks.com/2010/06/04/frances-prime-minister-sees-only-good-things-in-euro-dollar-par/#commentsFiled under: , ,

euroThe euro plunged versus the dollar again Friday, this time falling 1.2 cent to a four-year low of $1.2040.

Friday's culprit? Comments by French Prime Minister Francois Fillon that he's "not worried" about the current euro/dollar exchange rate, Bloomberg News reported Friday.

Fillion added that he saw only good news in a euro/dollar exchange rate at parity, or where €1 buys $1, Reuters reported Friday.

Continue reading France's Prime Minister Sees Only Good Things in Euro-Dollar Parity

France's Prime Minister Sees Only Good Things in Euro-Dollar Parity originally appeared on BloggingStocks on Fri, 04 Jun 2010 15:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>debt crisisdollareurofeaturedFranceinthenewsFri, 04 Jun 2010 15:30:00 EST<![CDATA[Analyst Says Weaker Euro May Prevent European Recession]]>http://www.bloggingstocks.com/2010/05/20/analyst-says-weaker-euro-may-prevent-european-recession/http://www.bloggingstocks.com/2010/05/20/analyst-says-weaker-euro-may-prevent-european-recession/http://www.bloggingstocks.com/2010/05/20/analyst-says-weaker-euro-may-prevent-european-recession/#commentsFiled under: ,

Will the euro's decline in value prevent a dreaded euro-zone recession? That's the conclusion of one analyst.

"The euro depreciation is very good news for the region" because the rest of the world economy is expanding, Charles Wyplosz, head of the International Center for Monetary and Banking Studies in Geneva, told Bloomberg News Thursday. "This is going to bring a welcome boost that may save the euro-zone from outright recession."

Continue reading Analyst Says Weaker Euro May Prevent European Recession

Analyst Says Weaker Euro May Prevent European Recession originally appeared on BloggingStocks on Thu, 20 May 2010 16:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>dollareuroexportsFranceGermanyinthenewstradeThu, 20 May 2010 16:00:00 EST<![CDATA[Sarkozy Reportedly Threatened to Pull France out of Euro-Zone]]>http://www.bloggingstocks.com/2010/05/14/sarkozy-reportedly-threatened-to-pull-france-out-of-euro-zone/http://www.bloggingstocks.com/2010/05/14/sarkozy-reportedly-threatened-to-pull-france-out-of-euro-zone/http://www.bloggingstocks.com/2010/05/14/sarkozy-reportedly-threatened-to-pull-france-out-of-euro-zone/#commentsLast weekend French President Nicolas Sarkozy reportedly threatened to pull France out of the euro-zone if Germany did not agree to a comprehensive stabilization package for Greece, Agence France-Presse reported Friday, citing Spain's El Pais.

Spanish Prime Minister Jose Luis Rodriguez Zapatero reported Sarkozy's remarks to a meeting of leaders of his Socialist Party on Wednesday. However, a government source in Madrid denied the Sarkozy incident, telling the AFP that it is "lacking in any foundation."

Continue reading Sarkozy Reportedly Threatened to Pull France out of Euro-Zone

Sarkozy Reportedly Threatened to Pull France out of Euro-Zone originally appeared on BloggingStocks on Fri, 14 May 2010 15:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>debt crisisdollareurofeaturedFranceGermanyGreeceinthenewsSarkozyFri, 14 May 2010 15:30:00 EST<![CDATA[Greek Debt Exposes European DisUnion]]>http://www.bloggingstocks.com/2010/03/23/greek-debt-exposes-european-disunion/http://www.bloggingstocks.com/2010/03/23/greek-debt-exposes-european-disunion/http://www.bloggingstocks.com/2010/03/23/greek-debt-exposes-european-disunion/#commentsFiled under: , , , ,

The economic debate among the European Union nations about how to handle the turmoil in the Greek economy and, subsequently, the Greek bond market casts greater doubt on the value of the euro and the EU with each passing day -- and they know it!

While the economic benefits of the Union are obvious and highly valuable the turmoil has turned a giant spotlight on the problems and conflicts that exist and will continue to exist for another century or more if not solved in a way that not only works for the EU but does not diminish the Euro in the slightest way.

Continue reading Greek Debt Exposes European DisUnion

Greek Debt Exposes European DisUnion originally appeared on BloggingStocks on Tue, 23 Mar 2010 15:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Chancelor MerkelEUEuroeuropean unionFranceGermanyGreecegreek debt crisisinternational monetary fundTue, 23 Mar 2010 15:40:00 EST<![CDATA[France, Germany Split over Greece Stabilization Policy Widens]]>http://www.bloggingstocks.com/2010/03/22/france-germany-split-over-greece-stabilization-policy-widens/http://www.bloggingstocks.com/2010/03/22/france-germany-split-over-greece-stabilization-policy-widens/http://www.bloggingstocks.com/2010/03/22/france-germany-split-over-greece-stabilization-policy-widens/#commentsFiled under: , ,

Monday's key developments in "As The Eurozone Turns":

The Greek policy gap between Germany and France widened after German Chancellor Angela Merkel emphasized that the key to resolving Greece's fiscal crisis is Greece's austerity measures.

"I do not see Greece needs money at the moment and the Greek government has confirmed that," Merkel said, FT.com reported Monday.

Continue reading France, Germany Split over Greece Stabilization Policy Widens

France, Germany Split over Greece Stabilization Policy Widens originally appeared on BloggingStocks on Mon, 22 Mar 2010 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>dollareuroeurozonefrancegermanyGreeceinthenewsMon, 22 Mar 2010 18:00:00 EST<![CDATA[Germany, France Prepare Aid Package, Press Greece for Budget Cuts]]>http://www.bloggingstocks.com/2010/02/10/germany-france-prepare-aid-package-press-greece-for-budget-cut/http://www.bloggingstocks.com/2010/02/10/germany-france-prepare-aid-package-press-greece-for-budget-cut/http://www.bloggingstocks.com/2010/02/10/germany-france-prepare-aid-package-press-greece-for-budget-cut/#commentsFiled under: , ,

All-in yet regarding Greece? Nope, not quite, but Germany, as expected, has taken the lead in coordinating an aid package for the euro-zone's beleaguered font of democracy.

Further, France, Bloomberg News reported Wednesday, has quickly voiced support for the German initiative, and if it follows the pattern of previous interventions, investors will soon learn that France fully-supports Germany's plan, but also underscores that Germany, with the euro-zone's largest economy and resources, should bear most of the financial burden/risk of any package.

Continue reading Germany, France Prepare Aid Package, Press Greece for Budget Cuts

Germany, France Prepare Aid Package, Press Greece for Budget Cuts originally appeared on BloggingStocks on Wed, 10 Feb 2010 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>euro zoneFranceGermanyGreeceinthenewsMerkelWed, 10 Feb 2010 18:00:00 EST<![CDATA[Will Fashion Lead Magazines out of the Recession?]]>http://www.bloggingstocks.com/2010/01/26/will-fashion-lead-magazines-out-of-the-recession/http://www.bloggingstocks.com/2010/01/26/will-fashion-lead-magazines-out-of-the-recession/http://www.bloggingstocks.com/2010/01/26/will-fashion-lead-magazines-out-of-the-recession/#commentsFiled under: ,

It's been a long time since there's been any good news for the print media, but this is a start: ad pages at leading fashion magazines are significantly year over year.

InStyle pulled off an incredible 33.5% jump in year over year ad pages for its March issue, and Vogue eked out a 0.6% increase. Harper's Bazaar was up 4.4%. Elle was up 4%. The big laggard was W, which saw its ad count fall 23.4%.

Continue reading Will Fashion Lead Magazines out of the Recession?

Will Fashion Lead Magazines out of the Recession? originally appeared on BloggingStocks on Tue, 26 Jan 2010 17:40:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Advertisinganna wintourAnnaWintourFashionfranceTue, 26 Jan 2010 17:40:00 EST<![CDATA[France follows the U.K. to impose tax on bank bonuses]]>http://www.bloggingstocks.com/2009/12/10/france-follows-the-u-k-to-impose-tax-on-bank-bonuses/http://www.bloggingstocks.com/2009/12/10/france-follows-the-u-k-to-impose-tax-on-bank-bonuses/http://www.bloggingstocks.com/2009/12/10/france-follows-the-u-k-to-impose-tax-on-bank-bonuses/#commentsFiled under: , ,

French President, Nicolas Sarkozy, said he would follow the U.K. and impose a one-off tax on bonus payouts by banks operating in France.

The tax would be levied on bonus payouts above 27,000 euros. Paris's move is in line with Britain's tax on payouts above 25,000 pounds.

Both leaders issued a statement saying: "It is clear that the action must be taken at a global level. No territory can be expected to or be able to act on their own."

Continue reading France follows the U.K. to impose tax on bank bonuses

France follows the U.K. to impose tax on bank bonuses originally appeared on BloggingStocks on Thu, 10 Dec 2009 09:40:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bonusbrownfranceinthenewsSarkozytaxesThu, 10 Dec 2009 09:40:00 EST<![CDATA[General Electric's Immelt talks to the French government about Areva]]>http://www.bloggingstocks.com/2009/11/27/general-electrics-immelt-talks-to-the-french-government-about-a/http://www.bloggingstocks.com/2009/11/27/general-electrics-immelt-talks-to-the-french-government-about-a/http://www.bloggingstocks.com/2009/11/27/general-electrics-immelt-talks-to-the-french-government-about-a/#commentsFiled under: , ,

General Electric's (GE) chief executive visited France this week, making what some are calling a "last-ditch bid" to acquire the transmission and distribution arm of Areva, a state-owned French company.

Immelt spent some time with two of the closest advisors to French president Nicolas Sarkozy, hoping to convince Sarkozy to ignore political pressure and realize the benefits of GE's $6 billion offer. The French government is rather adamant about keeping the domestic company home, asking a pairing of two French companies (Schneider Electric and Alstom) to rework their initial bid, which was the lowest.

Continue reading General Electric's Immelt talks to the French government about Areva

General Electric's Immelt talks to the French government about Areva originally appeared on BloggingStocks on Fri, 27 Nov 2009 12:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ArevaFranceFrench governmentGEGeneral ElectricinthenewsJeffrey ImmeltNicolas SarkozyToshibaFri, 27 Nov 2009 12:00:00 EST<![CDATA[Ray of light: Euro-zone GDP increased 0.4% in Q3]]>http://www.bloggingstocks.com/2009/11/13/ray-of-light-euro-zone-gdp-increased-0-4-in-q3/http://www.bloggingstocks.com/2009/11/13/ray-of-light-euro-zone-gdp-increased-0-4-in-q3/http://www.bloggingstocks.com/2009/11/13/ray-of-light-euro-zone-gdp-increased-0-4-in-q3/#commentsFiled under: , ,

Europe, font of western civilization, is growing again. The euro-zone officially entered a recovery with GDP in the 16-nation zone increasing 0.4% in Q3 compared to the previous quarter, Eurostat, the European Union's official statistics agency, announced Friday. Europe's economy had contracted for the five previous quarters.

Meanwhile, growth in the 27-nation E.U. (EU27), which includes nations that aren't members of the euro monetary system, increased 0.2% in Q3.

Continue reading Ray of light: Euro-zone GDP increased 0.4% in Q3

Ray of light: Euro-zone GDP increased 0.4% in Q3 originally appeared on BloggingStocks on Fri, 13 Nov 2009 15:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Euro zoneFrancegdpGermanyinthenewsFri, 13 Nov 2009 15:40:00 EST<![CDATA[McDonald's to add another thousand golden arches next year]]>http://www.bloggingstocks.com/2009/11/13/mcdonalds-to-add-another-thousand-golden-arches-next-year/http://www.bloggingstocks.com/2009/11/13/mcdonalds-to-add-another-thousand-golden-arches-next-year/http://www.bloggingstocks.com/2009/11/13/mcdonalds-to-add-another-thousand-golden-arches-next-year/#commentsFiled under: , , ,

For McDonald's (MCD), 32,000 restaurants in 100 countries isn't enough. The quick service restaurant announced in a meeting with Wall Street analysts that it will open 1,000 new restaurants next year. Most will be in the United States, China, Australia, Russia, Germany and France. Don't expect to see any in Iceland, though, as the company is closing its three restaurants there and has no plans to return in the near future.

The company is also looking to rehabilitate the interiors and exteriors of another 2,300 locations in 2010 - approximately half of them in Europe. In all, this should cost around $2.4 billion. For 2009, McDonald's expects its capital expenditures to reach $2.1 billion on 900 new restaurant openings. The chain is increasing its rate of new restaurant openings by more than 10% from 2009 to 2010.

Continue reading McDonald's to add another thousand golden arches next year

McDonald's to add another thousand golden arches next year originally appeared on BloggingStocks on Fri, 13 Nov 2009 11:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>australiafast foodFastFoodfrancegermanyIcelandinthenewsmcdMcDonaldsFri, 13 Nov 2009 11:00:00 EST<![CDATA[Eastern Europe aid plea rejection likely to delay Europe, U.S. recoveries]]>http://www.bloggingstocks.com/2009/03/02/eastern-europe-aid-plea-rejection-likely-to-delay-europe-u-s-r/http://www.bloggingstocks.com/2009/03/02/eastern-europe-aid-plea-rejection-likely-to-delay-europe-u-s-r/http://www.bloggingstocks.com/2009/03/02/eastern-europe-aid-plea-rejection-likely-to-delay-europe-u-s-r/#commentsFiled under: , , ,

Following the instructions of President John F. Kennedy, "I appreciate candor almost as much as I appreciate good news," we're moving forward with candor, however unpleasant.

Investors take heed: the U.S. recession most likely just got longer.

The European Union, led by Germany, has rejected Eastern Europe's pleas for an aid package of about $228 billion, citing budget concerns in their own Western European countries, Bloomberg News reported Sunday.

The E.U.'s failure to provide aid and fiscal stimulus to Hungary, the Czech republic, Slovakia, Romania, Bulgaria, Latvia and Poland will hurt both the U.S. and global economies.

Continue reading Eastern Europe aid plea rejection likely to delay Europe, U.S. recoveries

Eastern Europe aid plea rejection likely to delay Europe, U.S. recoveries originally appeared on BloggingStocks on Mon, 02 Mar 2009 08:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Eastern EuropeEUEuropean UnionfeaturedFranceGermanyglobal economyglobalizationHungaryinthenewsMerkelRussiaMon, 02 Mar 2009 08:00:00 EST<![CDATA[France bails out the newspaper industry]]>http://www.bloggingstocks.com/2009/01/24/france-bails-out-the-newspaper-industry/http://www.bloggingstocks.com/2009/01/24/france-bails-out-the-newspaper-industry/http://www.bloggingstocks.com/2009/01/24/france-bails-out-the-newspaper-industry/#commentsFiled under:

On Wedneday I wrote about France's idiotic bailout of the auto industry. But wait! There's more!

Now the French President Nicolas Sarkozy has announced what amounts to a bailout of the country's newspaper industry as well. Here's how it works: The French government is going to help buy every 18-year old a newspaper subscription as a birthday gift. The newspapers will be given away by the publishers while the state "pays for the deliveries." According to the Associated Press, "Sarkozy also announced a ninefold rise in the state's support for newspaper deliveries and a doubling of its annual print advertising outlay amid a swelling industry crisis."

The problem with this whole measure is that vast majority of teens don't want to read a newspaper. They get their news for free on this newfangled device called the internet. Having publishers and the government shell out cash to send them newspapers is a complete waste of time and it diverts resources from what the traditional media really needs to do: adapt to a changing market.

I understand that Sarkozy wants to help the industry buy time. Fine: Why not just cut them a check to invest in moderinzation? Why bog it down with a gimmick like giving newspaper subscriptions to people who don't really want them?

France bails out the newspaper industry originally appeared on BloggingStocks on Sat, 24 Jan 2009 13:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BailoutFranceinthenewsNewspapersSat, 24 Jan 2009 13:10:00 EST<![CDATA[Dick Morris says under Obama U.S. economy 'will become like Socialist France']]>http://www.bloggingstocks.com/2009/01/21/dick-morris-says-under-obama-u-s-economy-will-become-like-soci/http://www.bloggingstocks.com/2009/01/21/dick-morris-says-under-obama-u-s-economy-will-become-like-soci/http://www.bloggingstocks.com/2009/01/21/dick-morris-says-under-obama-u-s-economy-will-become-like-soci/#commentsFiled under: ,

Prior to President Obama's inauguration, political strategist Dick Morris appeared on conservative commentator Sean Hannity's new show on FoxNews and said the Obama administration will implement policies such that the U.S. economy "will become like Socialist France."

(Note: Full and fair disclosure - Before offering his policy forecasts for the Obama administration, Morris recognized and applauded the history-making event of the United States inaugurating its first African-American president approximately 150 years after President Lincoln's Emancipation Proclamation.)

Morris also sees U.S. national health care

Morris also said he expects President Obama to implement a national, universal health care system, although Morris did specify how much he thought the program would cost, or how it would be funded.

In 2007, French government spending accounting for about 50%, $1.29 trillion of France's $2.56 trillion economy, according to research compiled by the U.S. Central Intelligence Agency. According to the CIA, France's elected officials remain committed to a capitalism in which they maintain social equity by means of laws, tax policies, and social spending that reduce income disparity and the impact of free markets on public health and welfare. In 2007, total government spending in the U.S. accounted for about 35-40% of U.S. GDP, depending on the methodology used.

Continue reading Dick Morris says under Obama U.S. economy 'will become like Socialist France'

Dick Morris says under Obama U.S. economy 'will become like Socialist France' originally appeared on BloggingStocks on Wed, 21 Jan 2009 16:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Dick MorrisFrancegdphealth careObamaObama administrationtaxesU.S. economyWed, 21 Jan 2009 16:40:00 EST<![CDATA[France comes up with an even dumber auto industry bailout]]>http://www.bloggingstocks.com/2009/01/21/france-comes-up-with-an-even-dumber-auto-industry-bailout/http://www.bloggingstocks.com/2009/01/21/france-comes-up-with-an-even-dumber-auto-industry-bailout/http://www.bloggingstocks.com/2009/01/21/france-comes-up-with-an-even-dumber-auto-industry-bailout/#commentsFiled under:

I've been watching for months trying to find a dumber approach to a bailout than TARP and now I've found one: France.

The French government said yesterday that it will inject as much as €6 billion ($7.86 billion) into its ailing auto industry. But there's a catch. Prime Minister François Fillon says that (subscription required) "There is no question of the state helping a car manufacturer that decides purely and simply to close one or more production sites in France."

That's right. Any company that closes an unproductive plant won't get any of that government cheese. Any economics professor will tell you that's an incredibly stupid policy. The point of a bailout -- if there is one -- is to buy time for an industry to revitalize itself. Insisting that companies continue to build cars when there are no buyers for them is just bad policy. It's all in the name of preserving jobs but it would be better to free up people who are building stuff no one wants so they can devote their time to something productive. With fewer new cars being sold, demand for mechanics and automotive technicians seems likely to stay strong and possibly rise. Wouldn't it be better to let the factories close and let the market redeploy the workers there?

It's just bad economics, but it has a nice populist ring to it that makes it politically expedient.

France comes up with an even dumber auto industry bailout originally appeared on BloggingStocks on Wed, 21 Jan 2009 14:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Auto industryAutoIndustryBailoutCarsFranceWed, 21 Jan 2009 14:15:00 EST<![CDATA[American banks pay the most for their capital]]>http://www.bloggingstocks.com/2008/11/19/american-banks-pay-the-most-for-their-capital/http://www.bloggingstocks.com/2008/11/19/american-banks-pay-the-most-for-their-capital/http://www.bloggingstocks.com/2008/11/19/american-banks-pay-the-most-for-their-capital/#commentsFiled under: , ,

Banks around the world have been raising capital in the last few months. If the market is efficient, then the cost of capital for these banks should tell us something about how risky they are. Based on the relative cost of capital of banks in the U.S. compared to those in France, Germany and Switzerland, the world's riskiest banks are right here in the good old USA. The safest banks? French ones.

How so? Here is the rough (due to different capital structures) after-tax cost of capital for the banks in different countries:

  • U.S.: Morgan Stanley (NYSE: MS) is paying a 17% interest rate and Goldman Sachs Group (NYSE: GS) pays almost 17%
  • UK: Barclays pays 16%; HBOS, Lloyds TSB; and Royal Bank of Scotland pay about 12%
  • Germany: Commerzbank pays 10%
  • Switzerland: UBS's interest rate is relative bargain of 9.9%
  • France: BNP Paribas, Societe Generale, and four others pay the lowest rate -- 5% -- for their capital

Maybe there's some sort of trading opportunity to short U.S banks and go long French ones. C'est la vie!

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College. His eighth book, You Can't Order Change: Lessons From Jim McNerney's Turnaround at Boeing, will be published by Portfolio on December 26, 2008. He has no financial interest in Goldman or Morgan Stanley securities.

American banks pay the most for their capital originally appeared on BloggingStocks on Wed, 19 Nov 2008 16:45:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bnp paribasBnpParibasfrancegermanygshbosinthenewslloyd tsbLloydTsbmsrbssociete generaleSocieteGeneraleswitzerlandubsukusaWed, 19 Nov 2008 16:45:00 EST<![CDATA[E.U. commits $2.4 trillion and says ball is now in your court, U.S.]]>http://www.bloggingstocks.com/2008/10/13/e-u-commits-2-4-trillion-and-says-ball-is-now-in-your-court-u/http://www.bloggingstocks.com/2008/10/13/e-u-commits-2-4-trillion-and-says-ball-is-now-in-your-court-u/http://www.bloggingstocks.com/2008/10/13/e-u-commits-2-4-trillion-and-says-ball-is-now-in-your-court-u/#commentsFiled under: , , ,

Gosh. Golly. Gee Whiz.

That was the reaction Monday of traders and economists to the European Union's coordinated decision to invest a staggering $2.4 trillion in interbank loan guarantees and bank recapitalizations, ft.com reported, to end the global financial crisis.

(Of course, 'gosh, golly' etc. were not exactly the reactions of traders and economists -- this is a family-appropriate financial blog -- but you get the point.)

Europe's decision sparked a global rally in stocks. The Dow closed up 936.42 points -- the largest one-day point gain in its history -- to 9,387.61.

Europe takes the lead

At minimum, Europe is saying that its economic stake in the current global financial system is so large that it's willing to err on the side of over-committing public funds, economist Peter Dawson said.

"Europe's response is very large, unexpected, and it could prove to be the pivotal move in this crisis," Dawson said. "Europe appears to be saying, 'well the United States is doing what it can do, given its political constraints' now let's do what our political culture allows. Basically, Europe is saying 'the storm of fear starts to lose its strength here.' "

The measures were both sweeping and unprecedented in size and scope, Dawson said. Germany said it offered about $680 billion in loan guarantees and will invest $108 billion in its banking system, ft.com reported. France said it would provide up to $435 billion in loan guarantees and invest as much as $52 billion. The United Kingdom has committed about $70 billion for investment in key banks, along with a guarantee for banks deposits and interbank lending. The Netherlands, Spain, and other nations announced similar plans.

Continue reading E.U. commits $2.4 trillion and says ball is now in your court, U.S.

E.U. commits $2.4 trillion and says ball is now in your court, U.S. originally appeared on BloggingStocks on Mon, 13 Oct 2008 17:09:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bank of Englandbond marketcredit marketsdollarECBEUeuroeuro zoneEuropean Central BankEuropean UnionEuroZoneFedfiscal policyFranceGermanyinterest ratesmonetary policymoney supplymortgage backed securitiesU.S. Federal ReserveU.S. TreasuryUnited KingdomMon, 13 Oct 2008 17:09:00 EST<![CDATA[Soros sees ray of light in bank recapitalization plan]]>http://www.bloggingstocks.com/2008/10/13/soros-sees-ray-of-light-in-bank-recapitalization-plan/http://www.bloggingstocks.com/2008/10/13/soros-sees-ray-of-light-in-bank-recapitalization-plan/http://www.bloggingstocks.com/2008/10/13/soros-sees-ray-of-light-in-bank-recapitalization-plan/#commentsFiled under: , ,

One of the world's leading investors is expressing cautious optimism - - underscoring cautious - - regarding the fate of the global financial system.

Billionaire investor George Soros said Monday a pledge by European leaders to guarantee new bank financing is "a positive step" may help stabilize global financial markets, Bloomberg News reported.

Soros: We're finally getting the leadership we need

"In the last 72 hours, I think the European governments got religion and realized that this is a serious problem,'' Soros said at a press conference in Washington, Bloomberg News reported. "People are looking for some leadership and finally they are getting it." Soros is chairman of the $20 billion Fund Management LLC.

Along with actions by the major central banks to increase the supply of dollars in the global money supply, Europe's major industrialized nations announced fiscal policies to back bank-to-bank loans and recapitalize banks, The New York Times reported Monday. Britain said it will invest $73 billion in its banks, Germany is investing up to 500 billion euros or about $680 billion, and France will create an agency to offer state guarantees for banks and to channel money to them.

Further, Soros underscored that the United States government must recapitalize solvent banks, ft.com reported Monday. The U.S. said it intends to do that, but has not yet released details of its plan. Soros would like the U.S. government's recapitalization to take the form of preferred shares, which would dilute existing shareholders, but with private capital given the right to subscribe on the same terms, if private investors are able to put up more money, ft.com reported.

Continue reading Soros sees ray of light in bank recapitalization plan

Soros sees ray of light in bank recapitalization plan originally appeared on BloggingStocks on Mon, 13 Oct 2008 14:18:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorbanksbond marketcredit marketseuro zoneEuropeEuropean Unionfiscal policyFranceFund Management LLCGeorge SorosGermanyinterest ratesinthenewsmonetary policyrecapitalizationSorosUnited KingdomMon, 13 Oct 2008 14:18:00 EST<![CDATA[Fed, ECB lead effort to increase dollar supply in global markets]]>http://www.bloggingstocks.com/2008/10/13/fed-ecb-lead-effort-to-increase-dollar-supply-in-global-markets/http://www.bloggingstocks.com/2008/10/13/fed-ecb-lead-effort-to-increase-dollar-supply-in-global-markets/http://www.bloggingstocks.com/2008/10/13/fed-ecb-lead-effort-to-increase-dollar-supply-in-global-markets/#commentsFiled under: , , ,

The U.S. Federal Reserve is leading an unprecedented effort by major central banks to push dollars into the global financial system, the Fed announced Monday, backstopping government fiscal policies to restore confidence,

The European Central Bank, Bank of England, and the Swiss Central Bank, will offer unlimited dollar fund auctions with maturities of seven days, 28 days, and 84 days at a fixed interest rate. The Bank of Japan may offer similar measures, the Fed said.

The Fed added that "central banks will continue to work together and are prepared to take whatever measures are necessary to provide sufficient liquidity in short-term funding markets."

Dollar falls on increased currency supply

The dollar fell early Monday against the world's other major currencies on the news, as traders adjusted positions to the increased supply of dollars. The dollar fell one half cent to $1.3615 versus the euro, 1.5 cents to $1.7286 versus the British pound and one-third yen to 100.37 versus Japan's yen.

Economist Richard Felson told BloggingStocks Monday the major central banks' effort is clear: keep financial markets adequately supplied with dollars amid a world that's hoarding dollars.

"It's one of the paradoxes of this current global financial crisis that despite the fact that the crisis originated in the United States, banks and financial institutions around the world are hoarding dollars. The reason is the dollar is still the world's reserve currency and investors are engaging in a flight to safety. The consequence has been a credit crunch," Felson said. "The central banks' policy should help alleviate that crunch by ensuring that there's adequate dollar liquidity. It's the correct move."

Continue reading Fed, ECB lead effort to increase dollar supply in global markets

Fed, ECB lead effort to increase dollar supply in global markets originally appeared on BloggingStocks on Mon, 13 Oct 2008 10:31:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bank of EnglandBank of Japanbanking sectorbanksBOEBOJBritish pounddollarECBeuroEuropean Central BankFedfiscal policyFranceGermanyJapanmonetary policyU.S. Federal ReserveUnited KingdomyenMon, 13 Oct 2008 10:31:00 EST<![CDATA[Europe in need of 'a more aggressive, coordinated effort']]>http://www.bloggingstocks.com/2008/10/06/europe-in-need-of-a-more-aggressive-coordinated-effort/http://www.bloggingstocks.com/2008/10/06/europe-in-need-of-a-more-aggressive-coordinated-effort/http://www.bloggingstocks.com/2008/10/06/europe-in-need-of-a-more-aggressive-coordinated-effort/#commentsFiled under: , ,

So far, there's little indication the financial crisis is subsiding.

The euro and British pound fell against the dollar, and money market rates climbed early Monday in Europe as banks hoarded cash.

The euro and British pound fell about 1 cent versus the dollar to $1.3610 and $1.7568, respectively, early Monday as traders sensed both the European Central Bank and Bank of England, along with national governments, will have to take monetary and policy actions to address the crisis.

The London interbank offered rate, or LIBOR -- the rate banks charge each other for overnight dollar loan, increased 37 basis points to 2.37%. The Euribor, a similar rate for the euro, rose 1 basis point to 5.35%, an all-time high.

Currency Trader Andrew Resnick told BloggingStocks Monday, currency, credit and stock markets in Europe all indicate the financial crisis will impact many of the economies in the euro zone.

"Germany's decision to guarantee all private German bank accounts kind of spooked the currency market, and drove the euro and pound lower. It's a good, defensive action, but it prompted people to ask 'how deep is the problem in Europe?'" Resnick said. "We're going to need more action to address the crisis from both the European Union and the central banks of Europe to boost liquidity."

Continue reading Europe in need of 'a more aggressive, coordinated effort'

Europe in need of 'a more aggressive, coordinated effort' originally appeared on BloggingStocks on Mon, 06 Oct 2008 10:43:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bond marketBritish poundcredit marketsdollarEUeuroEuropean UnionFranceGermanyinterest ratesinthenewsItalyliborUnited KingdomMon, 06 Oct 2008 10:43:00 EST