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| ECB's getting stuffed with PIIGS-hit |
Summary: Slight calm in the markets after yesterday’s European horror. German constitutional court’s decision on the legality of EFSF: legal, but further parliamentary support required in the future.
Views: The negotiations between Finnish, German and Dutch finmins on bailout collateral are not solved. I state it again: Finland will not give up on the demand, as the weakened traditional parties gave the promise before elections that no further bailout money would be given without collateral. Finnish pols are not going to sacrifice themselves just to please some Herman van Rompuy.
Positions: Yesterday I recommended to buy EURUSD at-the-market (1.4090), target 1.4400, stop 1.3950, and tweeted later to take profit on half at 1.4215. Keeping it as it is, maybe tweeting later on this. Follow me on Twitter!
News That Matters – the trader
Wednesday Watch Evening Headlines – Between The Hedges
EURO CRISIS
first the best:
With a link to the full research note pdf
JP Morgan explains the euro crisis with lego – Felix Salmon / Reuters
Big issue was the coming IMF stability report, that was supposed to have calcs on eurobanks’ obvious recapitalization needs. IMF just cried uncle.
“Periphery pensioners will be hit hard, banks in core nationalized but life will go on.”
No-One Cares About Italy – Asian Times
European Scramble To ECB Safety At Highest In Over A Year As ECB Deposits Surge To €167 Billion – Zero Hedge
20 quotes from EZ key players
Nomura’s research note points out that court decision is only the latest stage in a trend towards German domestic defection from eurozone rescues.
Bundesverfassungsgericht risk – alphaville FT
and the rest:
“markets demanding more integration at least for the euro area, markets quicker than democracy”
Markets will drive a two-speed Europe, says Barroso – euobserver.com
After nearly a decade of working on the 2010 Lisbon Treaty, back to work
Spectre of fresh EU treaty returns to haunt ‘incomplete’ Europe – euobserver.com
“The only route to more political integration now may be by force.”
Can the Eurozone Become a 'United States of Europe'? – The Curious Capitalist TIME
“it will not end well given the track record of politicians screwing things up.”
The Euro Is Doomed In Its Current Form – Also Sprach Analyst
Mass strikes, protests hit Italy, Spain over EU-imposed austerity – euobserver.com
SWISS FRANC (also see yesterday’s CHF links)
The Cost of Swiss Intervention: $1 Trillion? – MarketBeat WSJ
Can the Swiss peg the franc? – Marginal Revolution
Swiss FAQs – The Street Light
OTHER