See last
night’s long US Close: Running Man for some very good articles. The JP Morgan Losses post has been updated. Follow
‘MoreLiver’ on Twitter and Facebook.
News
roundup – Between
The Hedges
News roundup – The Trader
News roundup – The Trader
The 6am Cut
London – alphaville
/ FT
Commodity
Summary – Commodity
Trader
Press
digests by Reuters: FT, WSJ, NYT
Debt crisis:
live – The
Telegraph
The Euro
Crisis Blog – WSJ
FX Options
Analytics – Saxo
Bank
European
10yr Yields and Spreads – MTS indices
Danske
Daily – Danske
Bank (pdf)
Global risk sentiment continues to deteriorate.
Moody’s downgrades Spanish banks; disappointing US data. EUR/USD and commodity
prices drift lower
Morning
Briefing: Don’t Leave Me Now – BNYMellon
Banking sector fragility is the topic de jour in Europe right now, and another burden for beleaguered Greeks
Banking sector fragility is the topic de jour in Europe right now, and another burden for beleaguered Greeks
Market Preview – Saxo
Bank
European markets are likely to open lower
Friday, following their Asian peers, after Fitch Ratings lowered its credit
rating cut on Greece to CCC from B- and Moody's downgrade on 16 Spanish banks dented investor
sentiment.
EURO CRISIS
On FX and Worst Fears – Bruce
Krasting
If (when) this happens the bank run will
explode in Spain, Portugal and Ireland. The precedent will have been set with Greece. The response by
authorities will be more stamped money, this time with red S’s, P’s and I’s.
Basically the whole ball of wax melts down.
More ECB unconventional easing may be needed:
IMF – MarketWatch
cut rates to help the euro-zone economy and
further unconventional policies may also be needed, an IMF spokesman said
Thursday
SPAIN
Moody's Downgrades 16 Spanish Banks, As
Expected – ZH
Spanish Bank Debt With ECB Up 15.7% in April;
Surprise VAT Hike Coming Up; Moody's Downgrades 16 banks; Capital Flight at
Bankia; Scramble for Deposits Leads to System-Wide Cannibalization – Mish’s
Spain goes deeper in trouble every day. No one can possibly believe
"Bankia is a solvent entity". In fact, the entire Spanish banking
system is clearly insolvent.
GREECE
Summaries
and links to recent articles
FT podcast: World Weekly with Gideon Rachman – FT
With Greece in political limbo
ahead of a new election in June, what is the the economic and political future
of that country and the eurozone? How feasible is for Greece to leave the euro,
and how are other European countries managing the increasingly anti-bailout
mood in Athens?
OTHER
Half Dozen Observations as Week Winds Down – Marc
to Market
Bad
sentiment overblown, yen surged, sterling to show weakness, central banks
expected, QE3 seen as a “put”, policy makers see the same as investors do.
Time to sell on strength – Humble
Student
Wait for
the relief rally and sell
Did Today's Stock Plunge Give The QEeen Light? – ZH
Facebook Frenzy Hits Fever Pitch – MarketBeat
/ WSJ
linkfest
*Fed's operation twist is distorting the
treasury market – Sober
Look
The question now is whether these yields will
reverse direction once Operation Twist ends this summer. Given the global
economic backdrop, the Fed will likely not want to end the program, but the
central bank will soon run out of two-year treasuries to sell. The next step
will be sterilized purchases.
The market is starting to recognize the
economic reality - PragCap
We believe that the numerous headwinds to
economic growth are creating substantial downside risks to the economy and
corporate earnings that, until
recently, were not being appropiately
discounted by an increasingly euphoric stock market. We believe that the
correction is only the beginning of a major downturn.