“France looks mighty exposed, with $51bn potentially at risk. But that’s in absolute terms; it’s still only 0.5 per cent of total French bank assets. Instead, look at Austria, where the $17bn at risk represents 1.4 per cent of its total bank assets. Germany and Spain stand out as having very little exposure, at least on the bank loan front. yet the picture changes markedly when “other exposure” (derivatives, guarantees and trade credit) is taken into account. Suddenly the US — and, to a lesser extent, the UK — is most exposed.”
“European leaders headed into a meeting Thursday facing internal divisions that are hampering their ability to impose tough sanctions against what they call unacceptable Russian aggression in Ukraine.
Leaders indicated the main response from a European Union summit to Russia’s annexation of Crimea would be the addition of some names to a list of 21 people targeted last week.”
Top of the market?
“Sales of previously owned homes fell 0.4% in February from January to a seasonally adjusted annual rate of 4.6 million, the National Association of Realtors said Thursday. That matched a forecast by economists surveyed by Dow Jones Newswires and was the sixth decline in sales in the past seven months.”
“It would have been easy to blame February’s continued feeble home sales on the weather, but Realtors seemed more taken with weak affordability and the lack of new households being formed”
“The UK has a current account deficit running at more than 5pc of GDP, the worst in a quarter of a century and by far the worst of the G7 ”
“It is still possible that China will blink, raise infrastructure and housing spending and new credit creation, and lower bank reserve requirements and the renminbi. This would introduce a sharp twist to the underlying plot, but lead to a more dramatic conclusion.”
The stimulus begins.
“China’s yuan has suffered its biggest one-week fall in 20 years, nearing key trigger levels that threaten a wave of forced selling and mounting stress for those with dollar debts.”
Sell what you can, not what you must. This is the essence of a liquidity crisis.
““Bitcoins are not money in a proper sense as there is no issuer behind them,” the report states. “Instead, bitcoins display the characteristics of a commodity to which users attach value. Unlike precious metals such as gold and silver, bitcoins have no actual utility value, bearing closer resemblance to glass beads.””
“Netflix has accused Comcast and other big internet providers of using their “market position” to impose tolls for access to their networks, hindering the ability of online video operators to provide a quality service.”