Friday, March 22, 2013

Bloomberg:  
  • Cyprus Struggles to Meet Bailout Demand as Deadline Looms. European and Cypriot officials were locked in talks to find a formula to avert the Mediterranean island’s financial collapse, struggling to forge consensus on a bailout package before the European Central Bank cuts funding. Cyprus’s options narrowed today after Russia spurned a bid for a loan and coalition lawmakers in Germany dismissed the Cypriot government’s latest rescue proposals. That left the troika of international creditors to hammer out fresh terms with President Nicos Anastasiades’s coalition focusing on the fate of Cyprus’s ailing banks. 
  • Cyprus Crisis: Bankers Clashing With Riot Police. (video) 
  • U.K. Moves Closer to Losing AAA at Fitch on Debt Concerns. Britain came a step closer to losing its top credit grade at Fitch Ratings after Chancellor of the Exchequer George Osborne said debt will rise more than previously forecast. The U.K. was placed on rating watch negative, “indicating a heightened probability of a downgrade in the near term,” Fitch said in a statement in London today. The company will complete its review of the grade by the end of April.
  • German Business Confidence Unexpectedly Drops. German business confidence unexpectedly fell from a 10-month high in March as Cyprus inflamed the euro region’s debt crisis. The Ifo institute in Munich said its business climate index, based on a survey of 7,000 executives, declined to 106.7 from 107.4 in February. That’s the first drop in five months. Economists predicted a gain to 107.8, according to the median of 42 forecasts in a Bloomberg News survey.
  • Banks' Use of CDS to Lower Capital Targeted by Basel Regulators. Global regulators are planning to crack down on banks that underestimate their capital requirements because of the way they use credit-default swaps and other instruments to lower the amount of risk on their books. The Basel Committee on Banking Supervision said today that it would seek to stop banks from lowering capital charges by buying instruments such as CDS to insure themselves against losses, while failing to recognize the large liabilities they incur from what they pay for this protection, the group said in a statement on its website. “The proposed changes are intended to ensure that the costs, and not just the benefits of purchased credit protection are appropriately recognized in regulatory capital,” the Basel, Switzerland-based group of international regulators said in a statement. There exists a “potential for capital arbitrage” as banks can book the benefits of these deals without also booking the associated costs, the group said.
  • Biased Loans by Auto Dealers to Bring Bank Suits by CFPB. U.S. banks may be sued by the Consumer Financial Protection Bureau if they fund discriminatory vehicle loans made by auto dealers, according to new guidance released by the agency
  • Mortgage Bonds Detect Bernanke Signaling Retreat: Credit Markets. Mortgage investors are signaling increased doubt that the Fed will maintain the current pace of bond purchases much longer as a measure of relative yields on securities it's buying expands to the widest since July. The spread between yields on Fannie Mae mortgage securities that lenders use to finance new 30-year home loans and those on similar Treasuries widened for a second day yesterday, reaching 132 basis points and reversing a week of tightening. Mortgage bonds would be among the first assets affected by a Fed pullback, PIMCO said. 
  • Gold Seen Extending Rebound as Cyprus Revives Bulls: Commodities. Gold traders are becoming more bullish as concern mounts that a worsening of Europe’s debt crisis will spur demand for a protection of wealth at a time when nations from the U.S. to Japan are signaling more stimulus
MarketWatch:
Fox News:
  • Syria's Assad vows to cleanse nation of extremists. President Bashar Assad vowed Friday to "wipe out" Muslim extremists in Syria, blaming them for a suicide bombing at a mosque that killed dozens of people, including a top cleric who supported the embattled regime in the civil war. The death toll from Thursday night's bombing -- the first suicide attack on a mosque in two years of violence in Syria -- rose to 49 after seven of the wounded died overnight, the Health Ministry said. Sheik Mohammad Said Ramadan al-Buti, a top Sunni preacher, was killed as he was giving a sermon in the mosque in the heart of the capital, Damascus. The blast, which also wounded nearly 80 other people, was one of the most brazen assassinations of the civil war, which has seen a number of suicide bombings blamed on Islamic extremists.
CNBC: 
Zero Hedge: 
Business Insider:
Real Clear Markets:
Reuters:
Telegraph:
Frankfurter Allgemeine Zeitung:
  • Questioning Euro Is Playing With Fire, Schweitzer Says. Newly-appointed head of Germany's DIHK national chamber of commerce Eric Schweitzer says the risk associated with potentially dissolving euro are incalculable. Cyprus should not get preferred treatment compared with Greece, Ireland or Portugal, he said.
Hospodarske Noviny:
  • Cyprus crisis is "extremely unpleasant" situation, which will bring new types of risks and will trigger mistrust in governments and banking systems, Sberbank CEO Herman Gref said in an interview. People will start to hedge against the risks, which didn't exist before, including possible tax on bank deposits. Any potential decision on capital transfers would have long-term and exceptionally "serious" impact on Cyprus as most investors would leave the country, he said.
El Pais:
  • Spain Mulls Cutting 23% of Weekly Train Routes. Spain's public works ministry may cut 779 train routes unless regions are able to finance those that aren't profitable. 172 train stations with less than avg one passenger a day may be removed, citing a draft submitted to unions.

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