Overnight Markets-Leading News -Update 4

Insults fly over troubled HP buyout

Spain to inject up to €19bn into Bankia

http://www.ft.com/intl/cms/s/0/27db02ec-a643-11e1-aef2-00144feabdc0.html#axzz1vtJM7o7u

Evil English Lawyers Conspire to Crash Greeks -Advise Corporations to Start Bank Runs

As these idiots leave, BP and Rothschilds and the Windsors and Greek Royals will move in. The English are an execrable people.

“In February, Andrew Witty, the chief executive of GlaxoSmithKline, said: “We don’t leave any cash in most European countries” except Germany. Tens of millions of pounds flow into accounts in Britain every day, he said.”

http://www.nytimes.com/2012/05/26/business/global/greek-exit-is-impossible-but-theres-really-little-to-stop-it.html

Stocks Fall With Euro as Treasuries Gain on Spain Concern

European stocks fell, trimming a weekly rally, amid concern about regional government finances in Spain and plans that would force some investors to take losses on debt holdings at failing European banks. Spanish and Italian bond yields rose and the euro reverse earlier gains.

The Stoxx Europe 600 Index (SXXP) lost 0.3 percent at 9:35 a.m. in New York while the Standard & Poor’s 500 Index drifted between gains and losses near 1,321. The MSCI Asia Pacific Index (MXAP) declined 0.3 percent on concern Chinese banks will miss loan targets. The euro depreciated 0.1 percent to $1.2519, erasing an earlier 0.6 percent advance to sink to the lowest since July 2010. Spanish 10-year yields added 13 basis points and Italy’s increased five basis points.

The euro and equities headed lower after Reuters reported that Spain’s Catalonia is running out of debt financing options and needs help, quoting Catalan President Artur Mas. Spain’s government is analyzing “with all caution” requests from regional governments to help them regain access to capital markets, Deputy Prime Minister Soraya Saenz de Santamaria said.

“People are wondering if there are other skeletons in Spain’s regional government closets,” said Russ Koesterich, the San Francisco-based global chief investment strategist for the IShares unit of BlackRock Inc. His firm oversees $3.68 trillion as the world’s largest asset manager. “ Greece is critical, but still relatively small in the euro zone. The same cannot be said of Spain.”

The euro and equities also weakened as draft plans obtained by Bloomberg News showed the European Union will seek to give regulators the power to impose writedowns on senior unsecured creditors at failing banks as part of measures to get taxpayers off the hook for saving crisis-hit lenders.

Bank Debt

The writedown powers would apply to senior unsecured debt and derivatives, while some other claims, including secured debt and deposits that are protected by government guarantee programs, will be protected from losses, according to the guidelines.

The euro and stocks gained earlier after Italian Prime Minister Mario Monti said yesterday most of the region’s leaders support sales of joint euro-area bonds to fight the debt crisis.

The majority of EU leaders at a Brussels meeting this week backed joint euro-area government bonds, Monti told Italy’s La7 television station yesterday, even as Germany remains opposed to such sales. The MSCI All-Country World Index fell 0.3 percent, trimming this week’s gain to 0.6 percent. The index snapped a string of three weekly losses that drove equities to their cheapest valuations relative to earnings this year.

‘Air of Inevitability’

“There’s an air of inevitability that we’ll get euro bonds,” Donald Williams, chief investment officer at Platypus Asset Management Ltd. in Sydney, which manages about $1 billion, said in an interview with Susan Li on Bloomberg Television’s “First Up.” “Germany is going to have to compromise more than it was willing to a few months ago. Ultimately there will be some resolution there and the markets will start to head higher again.”

More than $4 trillion was erased from the value of global equities in the first three weeks of the month as concern deepened Greece will abandon the euro, driving valuations of shares in the MSCI World gauge down to 12.9 times reported earnings, the lowest since Dec. 30. European leaders failed to come up with a plan to resolve the debt crisis at a summit this week.

Even after today’s decline, the Stoxx 600 is poised for its biggest weekly advance since April 20. Logica Plc, an Anglo- Dutch computer services provider, and Nexans SA (NEX), a maker of cable and wire, rallied more than 2 percent today as analysts upgraded the shares.

Four-Day Rally

The S&P 500 was little changed after rising for four straight days. The Thomson Reuters/University of Michigan final index of consumer sentiment for May is due for release today. The gauge climbed to 77.8, the highest since January 2008, from 76.4 the prior month, according to the median forecast of 60 economists surveyed by Bloomberg.

The MSCI Emerging Markets Index (MXEF) slipped 0.2 percent. The gauge has fallen 0.7 percent this week, poised for a 10th weekly decline, the longest string of losses since 1994. The Shanghai Composite Index lost 0.7 percent today. China’s largest banks may fall short of loan targets for the first time in at least seven years as an economic slowdown crimps demand for credit, three bank officials with knowledge of the matter said. Indonesia’s Jakarta Composite Index (JCI) sank 2.1 percent, the biggest loss since Nov. 1 and the most in Asia.

http://www.bloomberg.com/news/2012-05-25/asian-stocks-rise-as-greece-concern-eases-oil-kiwi-gain.html

 Big European funds dump euro assets

http://www.ft.com/intl/cms/s/0/92f5c37a-a5a1-11e1-a77b-00144feabdc0.html#axzz1vtJM7o7u

Asia Stocks Fall as Economic Slowdown Cools China Lending

Asian stocks fell, dragging the regional benchmark index to its fourth weekly loss, on concern China’s biggest banks may fall short of loan targets for the first time in at least seven years as the economy slows.

China Minsheng Banking Corp. (1988) fell 1.8 percent, leading banks lower in Hong Kong. Esprit Holdings Ltd. (330), a clothier that depends on Europe for 79 percent of its sales, lost 1.1 percent in Hong Kong. Sims Metal Management Ltd. slid 6.1 percent in Sydney as the processor of scrap metal forecast full-year earnings will decline.

The MSCI Asia Pacific Index fell 0.2 percent to 111.72 as of 7:14 p.m. in Tokyo, taking its decline this week to 0.8 percent. The gauge earlier rose 0.3 percent after Italian Prime Minister Mario Monti said Greece is likely to stay in the euro and most of the region’s leaders supported issuing a joint bond.

 

“Definitely there’s poor appetite from industrial companies, and there’s very little demand for borrowing because you still have this restraint on property development and then you have export sentiment going down,” said Pauline Dan, chief investment officer at Samsung Asset Management Co.’s Hong Kong division. The firm oversees $100 billion globally. “There’s continuous concern about what happens in the euro zone, and this is causing people to stay off the market.”

The Asia-Pacific index is headed for its longest weekly losing streak since November, as Greece prepares for a second election on June 17 following an inconclusive ballot this month. European leaders urged Greece to stick with austerity measures needed to stay in the euro at a European Union summit in Brussels on May 23. They also debated joint bond sales to help contain the debt crisis.

Japan Consumer Prices

Japan’s broader Topix Index closed little changed with volume 11 percent below the 30-day average after a report today showed the nation’s consumer prices rose 0.2 percent in April from a year earlier. The index capped an eighth straight weekly decline, the longest losing streak since 1977.

New Zealand’s NZX 50 Index lost 0.3 percent in Wellington as an earthquake hit the city of Christchurch on the nation’s south island. Australia’s S&P/ASX 200 slipped 0.7 percent, while South Korea’s Kospi Index gained 0.5 percent.

Hong Kong’s Hang Seng Index rose 0.3 percent, and the Hang Seng China Enterprises Index of mainland stocks closed little changed. The Shanghai Composite Index declined 0.7 percent.

A drop in lending in April and May means it’s likely China’s biggest banks’ total new loans for 2012 will be about 7 trillion yuan ($1.1 trillion), less than the government goal of 8 trillion yuan to 8.5 trillion yuan, said a bank official, declining to be identified because the person isn’t authorized to speak publicly.

Lenders Fall

Chinese banks fell in Hong Kong. China Minsheng Banking slid 1.8 percent to HK$7. Agricultural Bank of China Ltd. lost 1.6 percent to HK$3.11.

Futures on the Standard & Poor’s 500 Index (SPXL1) fell 0.3 percent today. The index added 0.4 percent in New York yesterday, reversing losses, after Monti said in an interview on Italian television station La7 that “Europe can have euro bonds soon.” Italy can help push Germany to support the idea of collective debt and to embrace the “common good” of Europe, he said.

“Monti’s comments should provide some support to the market, but in terms of a more sustained turnaround, we still have to see more out of Europe,” said Matt Riordan, a portfolio manager who helps manage about $6.5 billion in Sydney at Paradice Investment Management Pty. “The next catalyst will be the Greek election and things that come out of that. The market is going to play a bit of a wait-and-see game on that front.”

Esprit, Nintendo

Companies that do business in Europe fell. Esprit lost 1.1 percent to HK$12.26. Nintendo Co., a maker of video-game players that depends on Europe for a third of its sales, slid 1.3 percent to 8,870 yen in Osaka.

The MSCI Asia Pacific Index slipped 1.7 percent this year through yesterday, compared with a 5 percent advance by the S&P 500 and a 1.1 percent drop by the Stoxx Europe 600 Index. Stocks in the Asian benchmark were valued at 1.2 times book value, compared with 2.1 times for the S&P 500 and 1.3 times for the Stoxx 600, according to data compiled by data compiled by Bloomberg.

Among other stocks that fell, Sims Metal Management slid 6.1 percent to A$11.50 in Sydney after the processor of scrap metal said full-year earnings will be materially less than 85 percent of a year earlier.

http://www.bloomberg.com/news/2012-05-25/asia-stocks-snap-2-day-loss-as-greece-exit-concern-eases.html

Euro zone must head toward banking union: ECB’s Praet

(Reuters) – The euro zone needs to push ahead with its financial sector reform plans and create a centrally managed and funded body to handle troubled banks, a European Central Bank policymaker said on Friday.

“Europe needs to move towards a ‘financial union’, with a single euro area authority responsible for the supervision and resolution of large and complex cross-border banks,” ECB Executive Board member Peter Praet said.

“Decisive and far-sighted reforms like these, unrealistic until a short while ago, are now gaining support. Reacting to the pressure of events may seem unattractive, but it may also be the only way forward,” he said in the text of a speech prepared for a financial conference in Milan.

Praet told the conference that there was “no escaping a banking union” and that a resolution framework was an essential part of a single market.

The European Commission will present a proposal in early June to wind up banks when they hit trouble…..

Financial Terrorist Moodys Downgrades Stable Nordic Banks

 

Frozen Europe Means ECB Must Resort to ELA as Finance Lights Dim

May 25 (Bloomberg) — The first rule of ELA is you don’t talk about ELA.

The European Central Bank is trying to limit the flow of information about so-called Emergency Liquidity Assistance, which is increasingly being tapped by distressed euro-region financial institutions as the debt crisis worsens. Focus on the program intensified last week after it emerged that the ECB moved some Greek banks out of its regular refinancing operations and onto ELA until they are sufficiently capitalized.

European stocks fell and the euro weakened to a four-month low as investors sought clarity on how the Greek financial system would be kept alive. The episode highlights the ECB’s dilemma as it tries to save banks without taking too much risk onto its own balance sheet. While policy makers argue that secrecy is needed around ELA to prevent panic, the risk is that markets jump to the worst conclusion anyway.

“The lack of transparency is a double-edged sword,” said David Owen, chief European economist at Jefferies Securities International in London. “On the one hand, it increases uncertainty, but at the same time we do not necessarily want to know how bad things are as it can add fuel to the fire.”

Under ELA, the 17 national central banks in the euro area are able to provide emergency liquidity to banks that can’t put up collateral acceptable to the ECB. The risk is borne by the central bank in question, ensuring any losses stay within the country concerned and aren’t shared across all euro members, known as the euro system…

Euro-zone countries appear far from compromise

Bankia Shares Suspended Ahead of Rescue Details

http://www.cnbc.com/id/47562239

Grave error not to prepare for Greek exit-Belgium Deputy PM

http://www.reuters.com/article/2012/05/25/us-eurozone-greece-belgium-idUSBRE84O0J220120525

Europe slowdown adds more tension to Greek drama

http://www.reuters.com/article/2012/05/25/us-eurozone-greece-idUSBRE84M0P420120525

In Spain, Bank Transfers Reflect Broader Fears

http://www.nytimes.com/2012/05/25/business/global/in-spain-bank-transfers-reflect-broader-fears.html?_r=1&ref=business

Greek Poll Shows Syriza Gaining Support Before June Vote

http://www.businessweek.com/news/2012-05-24/greek-poll-shows-syriza-gaining-support-ahead-of-june-17-ballot

After Barreling Ahead in Recession, China Finally Slows

http://www.nytimes.com/2012/05/25/business/global/chinas-once-hot-economy-is-turning-cold.html?_r=1&ref=business

Buba boss dismisses French-led euro bond push

(Reuters) – German central bank chief Jens Weidmann dismissed French-backed calls for the use of euro bonds to boost economic growth in Europe, saying in an interview in French newspaper Le Monde that “this debate irritates me a bit”.

“It’s an illusion to think euro bonds will solve the current crisis,” the Bundesbank chief said.

Spurring economic growth in a debt-burdened region required structural reforms and not more public spending when it was not even sure that expenditure on infrastructure was what was missing, he said.

“You cannot give someone your credit card without having the means to control the spending,” he said.

French President Francois Hollande is pressing his European partners to commit to euro bonds, a form of pooled debt-raising, despite stiff opposition from German Chancellor Angela Merkel.

Weidmann, who is also part of the governing council of the European Central Bank, also said that financial aid for Greece should stop if Athens did not respect commitments it made in return for outside help.

“Otherwise the agreements would lose all credibility and we would be engaging in unconditional transfers,” he said.

The central banker defended the ECB’s role in fighting the debt crisis in the euro zone, saying that it had bought time by lending heavily to banks in the region at low interest rates but that such lending had its limits.

“It’s like morphine. It eases the pain but doesn’t cure the disease. It can even have side effects, by delaying adjustment in the banking sector for example.”

Asked about the possibility of wage rises in Germany, the Bundesbank chief said it was possible to have raises above the euro zone average for a time, but that it was vital to ensure that inflation expectations remained firmly anchored.

http://www.reuters.com/article/2012/05/25/us-eurozone-eurobonds-bundesbank-idUSBRE84O0FJ20120525

Spain’s Catalonia seeks government help to pay debt

http://www.reuters.com/article/2012/05/25/spain-catalonia-idUSL5E8GP73Z20120525

Rothschilds Stooge, Jew Merkel Sells Out The Germans- Gets Ready to Saddle Germans With Greek and Italian Debt

She won’t have any luck!! Recall she tried to sell German Gold until the Bundesbank leaked the story to  FAZ.net.

Chancellor Angela Merkel left the door open to a compromise on debt sharing in the euro area as Italian Prime Minister Mario Monti said he can help bring Germany around to acting in Europe’s “common good.”

Merkel’s veto on allowing Germany to underwrite joint debt issuance in the 17-nation euro region is under fire from her international partners as well as the domestic opposition. While she refused to back joint euro-area bonds at a Brussels summit on May 23, Germany’s opposition parties wrung a concession from the chancellor on her return to Berlin yesterday to reconsider a separate proposal on common liability for sovereign debt.

The blueprint, published in November by Merkel’s council of economic advisers, involves a so-called European redemption fund that would help governments scale back outstanding debt to below 60 percent of economic output in return for constitutional commitments on economic reform. The government and opposition agreed to study the fund and discuss it further on June 13.

“The concept amounts to a third way to tackle the euro area’s debt mountain,” Peter Bofinger, a professor of economics at the University of Wuerzburg and one of the proposed fund’s architects, said today by phone. “Euro bonds have a dreadful press and are evidently unacceptable to Germany. What’s overlooked by the fund’s critics is that it is temporary and has built-in inducements on states to run sound budgets. I don’t know right now whether the concept will be adopted, but it deserves earnest consideration.”

Euro, Stocks

Stocks fluctuated as the euro rose from a 22-month low against the dollar. The Stoxx 600 (SX7P) Index dropped 0.1 percent to 241.75 as of 1:42 p.m. in Berlin, after earlier rising as much as 0.8 percent. The euro was up 0.3 percent at $1.2572.

Merkel called the Berlin meeting in a bid to secure passage of Europe’s budget enforcement treaty and associated legislation setting up the permanent rescue fund before parliament’s summer recess on July 6. She needs to assuage opposition anger over her austerity-first stance during the debt crisis to win the two- thirds majority needed to pass the bills in both houses of parliament.

The talks took place after Merkel clashed with fellow European Union leaders at the Brussels summit over her refusal to consider euro bonds. Merkel was in the minority in rejecting them, according to Monti.

‘Anything Can Happen’

“Europe can have euro bonds soon,” Monti said in an interview on Italian television station La7 yesterday. Germany has an economic interest in ensuring no country leaves the euro, while Greece will probably remain in the currency region even as “anything can happen,” he said.

“A united Europe is in Germany’s interest,” Monti said. “We’ll have euro bonds if the euro area, and therefore Germany, will want them.”

Monti’s account of the meeting contrasted with that of Luxembourg Prime Minister Jean-Claude Juncker, who told reporters in Brussels that joint debt sales “didn’t find much support,” particularly in the German-speaking area, while the French-speaking area was more enthusiastic.

Back in Berlin 15 hours later, Merkel’s coalition and the opposition Social Democrats and Greens agreed that euro bonds “are not up for discussion,” Volker Kauder, the floor leader of Merkel’s Christian Democratic Union, told reporters. At the same time, the two sides agreed to “exchange studies” on the redemption fund before next month’s meeting.

The government has “legal reservations” about whether joint liability for national debts “is in line with European treaties” and is examining the matter, Merkel’s chief spokesman, Steffen Seibert, said today.

Gold Reserves

The fund, backed by euro member states’ gold reserves, would be worth 2.3 trillion euros ($2.9 trillion). Under the system, participating countries would be able to transfer debt exceeding the 60 percent threshold into the fund for which participating member countries are “jointly and severally liable,” according to the council’s paper. Limited to 25 years, it would be accompanied by a pledge by states to anchor debt limits in their constitutions and commit to economic reforms.

Michael Meister, the CDU’s deputy floor leader, said in an interview that joint liability “runs counter to European law” and Germany’s constitution.

“European treaties as well as the constitution would have to be changed, and I don’t see a chance for either,” he said.

Public opinion is with the government. Seventy-nine percent of Germans back Merkel’s rejection of euro bonds, with little difference between government and opposition supporters, a Feb. 22-24 FG Wahlen poll for ZDF television showed today.

No Big Bang

Merkel, who poured cold water on the redemption fund when it was unveiled last year, again doused joint debt liability in a speech yesterday, saying that the causes of the debt crisis “can’t be redressed with one big bang.”

“This means very hard work for Europe,” Merkel told an electrical industry conference in Berlin. “It makes no sense to paper over everything with euro bonds or other instruments that ostensibly show solidarity, only to find Europe in even more difficult straits than we are in today.”

Sigmar Gabriel, chairman of the main opposition Social Democrats, told reporters after yesterday’s meeting with the Merkel that he had the impression “the government’s blockade on growth has been broken.” Even so, thus far the government is “being extremely reticent” with regard to the redemption fund proposal, “even if they’re not rejecting it.”

Whatever the fund’s merits, Merkel needs the fiscal pact to pass in parliament, Jan Techau, director of the European Center of the Carnegie Endowment for International Peace in Brussels, said by phone. If she wavers, “it would be political suicide and the markets would go crazy.”

http://www.businessweek.com/news/2012-05-25/merkel-may-be-persuaded-on-euro-debt-sharing-compromise

China Banks May Miss Loan Target for 2012, Officials Say

China’s biggest banks may fall short of loan targets for the first time in at least seven years as an economic slowdown crimps demand for credit, three bank officials with knowledge of the matter said.

A decline in lending in April and May means it’s likely the banks’ total new loans for 2012 will be about 7 trillion yuan ($1.1 trillion), less than an estimated government goal of 8 trillion yuan to 8.5 trillion yuan, said one of the officials, declining to be identified because the person isn’t authorized to speak publicly. Banks are relying on small and mid-sized companies for loan growth after demand from the biggest state- owned borrowers dropped, the people said…

http://www.businessweek.com/news/2012-05-24/china-banks-may-miss-12-loan-target-officials

Israel AG against prosecuting authors of book justifying killing of non-Jews

One of the book's authors Rabbi Yitzhak Shapira

One of the book’s authors Rabbi Yitzhak Shapira Photo by Moti Milrod

http://www.haaretz.com/news/national/israel-ag-against-prosecuting-authors-of-book-justifying-killing-of-non-jews-1.432504

 Zionist Google Funding UK Schools while paying Nothing in USA Taxes!!

Scroogle, don’t google. Traitors!!! This is all about the vile English and their Hebrew first cousins!

http://www.telegraph.co.uk/education/maths-reform/9288256/Make-Britain-Count-Google-head-Eric-Schmidt-supports-our-campaign.html

Pupils asked ‘why do some people hate Jews?’ in GCSE exam

People don’t hate Jews as a rule. They hate what they do as Global slave masters. The Jewish elite want the world to grovel for their whip of fiat and usury. At some point it is right to grab the whip and shove it up the rectum of the slave master so it comes out the other end. We are fast approaching that point in the history of the world. With the internet the Zionist vermin and their supporters cant hide and the old brainwashing will fail. These people are constantly tormenting and abusing the Gentile, indeed their religion demands it. A slave is not wrong if he beats his unjust master.

http://www.telegraph.co.uk/education/educationnews/9288585/Pupils-asked-why-do-some-people-hate-Jews-in-GCSE-exam.html

AEP/MI6-Europe’s slump deepens as Kabuki summit falls short

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/9288812/Europes-slump-deepens-as-Kabuki-summit-falls-short.html

Vile Drug Addict Son of English Lord Dies in Kenyan Jail

Well the drugs he had in his pocket combined with Alcohol is toxic. But notice presumption of English. Their druggie, thug, punk son could not have possibly od himself. These English royals are vile beasts. Their scions are from hell and this one unfortunately now reposes with the great red dragon of England.

http://www.telegraph.co.uk/news/worldnews/africaandindianocean/kenya/9288974/Son-of-Lord-Monson-who-died-in-Kenyan-police-custody-was-killed-by-blow-to-head.html

Bill Clinton photographed with porn stars in Monte Carlo and Parties With Royals 

http://www.telegraph.co.uk/news/newstopics/howaboutthat/9288584/Bill-Clinton-photographed-with-porn-stars-in-Monte-Carlo.html

Merkel fails to get support from SPD or Greens

Anglomasons Pay the Price for their Satanism

Warren Beatty’s transgender son Stephen ‘having second thoughts about taking final step in sex change’

http://www.dailymail.co.uk/tvshowbiz/article-2149081/Warren-Beattys-transgender-son-Stephen-having-second-thoughts-taking-final-step-sex-change.html

Watermelon English Thug Sting Goes Shopping for Gas Guzzling Yacht
How you Know the Greeks are Really Not Suffering at all…
Athens has a population of slightly over 4 million and they report 13,000 homeless people. LA has about the same population as Athens and a homeless population of 250,00. These Greeks are shameless liars and whiners. Where is all the empathy and headlines  for Americans sleeping on the streets due to NAFTA/CAFTA/WTO and the WS-Pentagon-Washington complex and supporting the rich Greeks? While I feel sorry for the 13,000 on the streets in Athens, that is a pittance to the homeless in the USA on a per capita basis. Just leave the EU Greeks your time has come to become men again and not welfare deadbeats.
Russia warns US to quit pitting sanctions against Iran

Undercover US agents brought down our new Superjet: Russia’s extraordinary claim about crash which killed 45

  • State’s GRU military intelligence source says Russians are investigating theory crash was ‘industrial sabotage
  • Aircraft was on a demonstration flight aimed at securing lucrative orders when it slammed into a mountain killing all 45 passengers and crew
  • Russian intelligence official claims US have ‘special technology’ capable of jamming signals from the ground or causing systems to malfunction
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