Foreign News: Commerzbank capital, Portuguese bailout, Franco-Belgian problems
Here is the second version of this foreign news links post that I am starting. The feedback yesterday was good. You all said it makes sense to see what the press in country are saying in Europe since that is the locus of the sovereign debt crisis, so I will continue this.
I am going to be out of pocket for most of the day, so there may only be a few more posts before I hit the sofa!
By the way, the busted German auction is just one data point. Yes, the currency sovereignty issues will eventually catch up to everyone in Euroland, even Germany and the Finns. But let’s not rush into thinking it’s going to happen overnight. There is still time.
- Neuausrichtung: Nokia Siemens Networks streicht 17.000 Stellen – Wirtschaft – FAZ
Nokia Siemens Networks is chopping 17,000 world-wide.
- Auktions-Flop: Anleger boykottieren deutsche Staatsanleihen – Börse + Märkte – Finanzen – Handelsblatt
Germany was seen as the last place of refuge for investors in the eurozone, this article in Handelsblatt says. For months yields have sunk lower. Now the pendulum appears to be swinging the other way; Germany can barely get its debt away at auction.
- Machtprobe in Kairo: Mindestens 30 Tote bei Krawallen in Ägypten – SPIEGEL ONLINE – Nachrichten – Politik
Police used tear gas against rock throwing protesters in Tahrir Square who were protesting against Egypt’s military leaders. At least 30 were killed according to the UN.
- L’ONU veut une enquête sur les tueries en Egypte – L’EXPRESS
This French version of what’s happening in Egypt stresses how the military has lost credibility with protesters. It only reports three deaths.
- Great Wall: Erster chinesischer Autobauer baut Werk in der EU – Industrie – Unternehmen – Handelsblatt
The first Chinese auto manufacturer to set up shop in Europe is now getting going in Bulgaria and plans to penetrate the entire EU market. The factory is nearly complete.
- ‘Portugal heeft mogelijk nog 25miljard nodig’ – De Standaard
According to Carlos Pina, a former Portuguese government official, the country needs another 25 billion euros, this Belgian article says. It also says “The euro crisis is threatening to claim a new victim.” I thought Portugal was already victimised. The ultimate source of the info was Reuters.
- La deuda de Francia y Bélgica sufre por las dudas del rescate de Dexia · ELPAÍS.com
This article from Spain stresses how Begian and French yields are rising. Belgium’s 10-year spread to Bunds is now 321 basis points, with yields now over 5% for the first time since 2002. The French spread is 175 basis points.
- Milliardenschaden: BayernLB verklagt JP Morgan – Banken – Unternehmen – Handelsblatt
Bayerische Landesbank is suing JPMorgan Chase over losses from the subprime crisis. It want’s to be made whole and is seeking punitive damages too.
- Drohende Kreditklemme: Europa geht das Geld aus – SPIEGEL ONLINE – Nachrichten – Wirtschaft
Spiegel reports that “the euro zone is caught in a double crisis: investors are pulling their money out of government bond markets and banks too… Without a radical signal from policy makers, a downward spiral of fear and ever more debt is a threat.”
- Bei Commerzbank klafft 5-Milliarden-Euro-Lücke
The second-largest German bank Commerzbank saw its shares fall 15% yesterday because of rumours it needs 5 billion euros in additional capital. The CEO is saying they can get by without a second call for aid from the government. The first bailout was in 2008.
- Merkel erteilt Euro-Bonds eine klare Absage
Merkel is rebuffing Barroso’s call for Eurobonds. She gives them a “clear no” even before barosso has released the details of his plan.
- Belgische toestanden in de Verenigde Staten – De Standaard
The Belgians say that the US is now suffering from “Belgian circumstances”, meaning the politics in the US is just as dysfunctional as it is in Belgium – and that’s saying something.
That’s it. Hope you enjoyed it.