News Links: ECB lending to eurozone banks hits high
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ECB lending to eurozone banks hits high – FT.com
Eurozone banks raised sharply their borrowing from European Central Bank on Tuesday, with lending hitting a new high for the year amid signs banks are being shut out of private markets.
The ECB lent almost €250bn to eurozone banks in its weekly tender, the highest amount in 2011, as traders said more banks were finding it harder to access wholesale funding because of concerns over their creditworthiness.
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FT Alphaville » Interventions and bank queues in Eastern Europe
Investors are generally worried about Poland’s and the wider region’s exposure to a European recession, as well as squeezes on banks and credit due to the sovereign debt crisis in the eurozone.
Develeraging by eurozone banks in Eastern Europe is already having negative effects across the region.
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German 10-year bond auction a disaster | Reuters
A “disastrous” sale of German benchmark bonds sparked fears on Wednesday the debt crisis was beginning to threaten even Berlin, with the Bundesbank forced to dig deep into its pockets to ensure the auction did not fail.
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Neuausrichtung: Nokia Siemens Networks streicht 17.000 Stellen – Wirtschaft – FAZ
Der Mobilfunk-Ausrüster Nokia Siemens Networks will 17.000 seiner weltweit 74.000 Arbeitsplätze streichen. Das teilte das Gemeinschaftsunternehmen von Nokia und Siemens mit.
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Deutschland gilt in der Euro-Krise als letzte Zuflucht für Anleger. Seit Monaten sinken die Zinsen für deutsche Staatsanleihen. Jetzt scheint das Pendel umzuschlagen. Neue Staatsanleihen wird Deutschland kaum noch los.
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Die Polizei setzt Tränengas gegen Steine werfende Demonstranten ein, die auf dem Tahrir-Platz gegen Ägyptens Militärrat protestieren: Die Sicherheitskräfte können die Krawalle in Kairo nicht unter Kontrolle bringen. Mindestens 30 Menschen wurden nach Uno-Angaben bei den jüngsten Unruhen getötet.
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L’ONU veut une enquête sur les tueries en Egypte – L’EXPRESS
Les promesses du maréchal Tantaoui, mardi soir, n’ont pas convaincu les Egyptiens. Sur la place Tahrir au Caire, les manifestants affichent leur détermination et les affrontements ont encore fait trois morts, ce mercredi.
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Als erster chinesischer Hersteller baut Great Wall ein Werk in der Europäischen Union. Die Fabrik in Bulgarien sei fast fertig, kündigte das Unternehmen an. Von Osteuropa aus wolle man in weitere Länder der EU vorstoßen.
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Latvia: another canary croaks | beyondbrics | FT.com
Latvia cancelled an auction of ten-year bonds on Tuesday after regulators suspended operations at Latvijas Krajbanka, a small bank owned by the troubled Snoras Bank of Lithuania, taken over by authorities last week.
So that’s two failed banks and a bond strike, soon after yields on Slovenia’s ten year bonds hit new highs.
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‘Portugal heeft mogelijk nog 25miljard nodig’ – De Standaard
De eurocrisis dreigt een nieuw slachtoffer te maken. Portugal heeft mogelijk 20 tot 25 miljard euro extra nodig om overheidsbedrijven te redden die van alle marktfinanciering zijn afgesneden. Dat zegt Carlos Pina, een ex-medewerker van het kabinet Financiën uit de vorige socialistische regering, aan het persagentschap Reuters.
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The Fed Stress Tests While Europe Starts to Burn « naked capitalism
Pretty much anyone who was not part of the problem (admittedly a small group relative to the financial services industry propaganda machine) expected a major financial crisis in a maximum of five years after the last one. And there was also a widely shared expectation that the next eruption would be worse, given the failure to address core problems: excessive interconnectedness, overly high leverage, both at the institutional and the product level, opacity, and complexity. These conditions are made worse by the fact that major financial institutions operate internationally when times are good but are supervised and backstopped by their home country.
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European Banks Get ‘False Deleveraging’
European banks, vowing to sell distressed assets as regulators tighten capital requirements, are lending money to buyers to get deals done.
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La deuda de Francia y Bélgica sufre por las dudas del rescate de Dexia · ELPAÍS.com
De hecho, la prima de riesgo de Bélgica, indicador que se establece a partir del diferencial entre los bonos a 10 años de un país frente a los alemanes, de referencia ha tocado hoy un máximo de la crisis sobre los 321 puntos básicos. La rentabilidad exigida a su deuda a 10 años en el mercado secundario, donde se intercambian los títulos una vez emitidos, ha marcado a su vez un récord sobre el 5%, un nivel que no traspasaba desde 2002. La prima de riesgo de Francia se iba sobre los 175 puntos básicos.
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BBC News – Chinese manufacturing output hits a 32-month low
China’s manufacturing activity fell to its lowest level in 32 months in November, according to the HSBC bank purchasing managers’ index.
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James Galbraith was the unstoppable force behind the Crisis in the Eurozone Conference that took place at the Lyndon B. Johnson Graduate School fo Government, University of Texas, on 3rd and 4th November.
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Milliardenschaden: BayernLB verklagt JP Morgan – Banken – Unternehmen – Handelsblatt
Die Bayerische Landesbank reiht sich unter die Banken ein, die ihre Verluste mit US-Hypothekenpapieren mit Klagen begrenzen wollen. Die Landesbank fordert von der Investmentbank JPMorgan Entschädigung und Strafzahlungen.
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Drohende Kreditklemme: Europa geht das Geld aus – SPIEGEL ONLINE – Nachrichten – Wirtschaft
Die Euro-Zone steckt in der Doppelkrise: Investoren ziehen ihr Geld sowohl von Staaten als auch von Banken ab – dabei brauchen die es gerade jetzt dringend. Ohne ein radikales Signal der Politik droht eine Abwärtsspirale aus Angst und immer neuen Schulden.
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Bei Commerzbank klafft 5-Milliarden-Euro-Lücke
Die Kapitallücke der Commerzbank könnte rund fünf Milliarden Euro belaufen. Die Neuberechnung der EU-Bankenaufsicht schickt die Aktie auf Talfahrt.
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Merkel erteilt Euro-Bonds eine klare Absage
Noch bevor Barroso die Details zu den Euro-Bonds erläutert hat, erneuert die Kanzlerin ihre ablehnende Haltung zur Vergemeinschaftung der Schulden.
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FORGET THE IMF: The Onus Is On Germany And The ECB To Fix Europe
Today’s announcement by the International Monetary Fund that it would offer massive credit lines to sovereigns targeted by external shocks sparked a brief market rally, but any momentary confidence behind that move has faded—and for good reason.
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Average Of 4.74 Users Separate Everyone On Facebook
The phrase “six degrees of separation” became synonymous with social media back when Friendster was cool, but now it turns out that people are actually more closely connected on Facebook.
Make that 4.74 degrees of separation, according to Facebook’s data team. That’s the average number of people separating any two individuals on the social network. -
Third-quarter growth revised down to 2.0 percent | Reuters
The U.S. economy grew at a slightly slower pace than previously estimated in the third quarter, but weak inventory accumulation amid sturdy consumer spending strengthened views output would pick up in the current quarter.
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Fed to test six U.S. banks on Euro stress | Reuters
The Fed said it will publish the results next year of the tests for six banks with large trading operations. Those banks are Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo.
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BBC News – Merkel sees EU treaty change as solution, not eurobonds
Mrs Merkel argued if there was to be a debate on eurobonds, it should be at the end, not the middle of the crisis.
Germany fears that it would bear much of the cost of jointly backed bonds.
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BBC News – Commerzbank shares fall 15% on capital fears
Shares in Commerzbank have closed down 15% following reports that it may need more capital.
Reuters cited unnamed sources as saying that Germany’s second largest bank needed an extra 5bn euros ($6.7bn, £4.3bn) to build its core capital.
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Press Release: IMF Enhances Liquidity and Emergency Lending Windows
The Executive Board of the International Monetary Fund (IMF) approved on November 21 a set of reforms designed to bolster the flexibility and scope of the Fund’s lending toolkit to provide liquidity and emergency assistance more effectively to the Fund’s global membership. These reforms, which have been under preparation for some time, will enable the Fund to respond better to the diverse liquidity needs of members with sound policies and fundamentals, including those affected during periods of heightened economic or market stress—the crisis-bystanders—and to address urgent financing needs arising in a broader range of circumstances than natural disasters and post-conflict situations previously covered.
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Over one million people write political blogs, yet a select few wield enormous power within the political blogosphere and over politics in general. Known as the “political blogging A-list”, these bloggers command the majority of blogging traffic; set the agenda for the rest of the political blogosphere; and have a strong influence on politics, whether it is directly through blogging, or indirectly through influencing mainstream news media. In Making it in the Political Blogosphere, Tanni Haas profiles and interviews twenty of the world’s top political bloggers, who share the secrets of their success.
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Debunking Economics II now on Kindle | Steve Keen’s Debtwatch
The Kindle version of the second edition of Debunking Economics has just been released. This version differs slightly from the print version, in that the graphics that are available in a separate booklet are integrated with the text for easier reference on an eBook device.
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UC Davis Pepper Spray: 4 Camera Version | The Big Picture
This simultaneous 4 camera shoot (2 at first, then 4 then 3) is really a fascinating example of citizen journalism. It is both stunning and appalling that the UC Davis Campus Police would spray peaceable protestors in the United States.
Kent State is closer than we realize . . .
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Galbraith Says U.S. Debt-Deal Flop ‘Best Thing’ to Cut Budget: Tom Keene – Bloomberg
“As things stand, there will be an examination of the defense budget, and a lot of wailing and gnashing of teeth over that,” Galbraith, an economics professor at the University of Texas in Austin, said in a radio interview on “Bloomberg Surveillance” with Ken Prewitt and Tom Keene. “And the Bush tax cuts expire,” he said. “If you are doing honest budget accounting, that gives you all of the deficit reduction you could possibly want.”
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Italy May Have to Restructure Debt Next Year, Roubini’s RGE Says – Businessweek
Italy “is past the point of no return” and may be forced into a managed debt restructuring as early as next year, according to Roubini Global Economics LLC, the advisory firm co-founded by economist Nouriel Roubini.
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The Indian Rupee Just Hit An All-Time Low Against The Dollar, Intervention Possible
The Indian rupee plunged to an all time low against the dollar Tuesday as global demand for dollars and India’s darkening economic picture swamped out central bank efforts to staunch the decline.
The rupee hit 52.73 to the dollar, breaching its March 3, 2009 low, analysts said.
Slowing growth, a swelling current account deficit and waning investor interest in India are adding to pressure on the rupee amidst a global scramble for dollars as investors flee the euro. -
BofA Warned by Regulators to Get Stronger – WSJ.com
Bank of America Corp.’s board has been told that the company could face a public enforcement action if regulators aren’t satisfied with recent steps taken to strengthen the bank, said people familiar with the situation.
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Spanish yields spike as crisis exits blocked | Reuters
Spain’s short-term borrowing costs hit a 14-year high on Tuesday as political uncertainty over a solution to the euro zone’s sovereign debt crisis hit another vulnerable southern European economy.
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Bank of England says market risks hit 2008 highs – Telegraph
UK market participants see risks of major crisis at their highest since just before the collapse of Lehman Brothers, with a eurozone break-up their top worry, according to a Bank of England survey.
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BBC News – Spain’s cost of borrowing increases sharply
Spain raised 2.98bn euros ($4bn, £2.6bn) in an auction of three- and six-month bills, but at higher yields.
On the three-month bills, the annualised interest rate Spain had to pay more than doubled to 5.11%, from 2.29% at the last auction in October.
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FT Alphaville » The legal aspects and abstractions of a euro redenomination
Case in point — a note by Nomura analysts published over the weekend, which has ruffled a few feathers.
It’s one of the first investment cases drawing on the legal details of redenomination of euros into another currency. Nomura also treat this as quite an urgent practical matter:
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