Europe

The data have shown that deposit flight out of the euro zone into the US just isn’t happening. But what about intra-euro zone deposit flight? Here’s a chart from the Council on Foreign relations that suggests this could be a story supported…

One should fear an Italian debt spiral, yes. However, fiscal consolidation is an anti-growth policy that leads to higher deficits in the short-to-medium term. So what Draghi is saying doesn’t make a lot of sense.

Our macro takeaway from the call is that Europe is rolling over. No normal September bounce from the seasonally slow August. The company also notes what they see as a temporary slowdown in China. Alcoa missed and the stock got hammered…

The problems Italy faces may have deeper roots than simply the current prime minister. It is not clear that the opposition offers a significantly different agenda rather than different personalities. ECB bond buying of Italian debt…

Global stock continue to push higher amid choppy conditions; EuroStoxx reaches 6-week high. Slovakia’s rejection of the EFSF 2.0 is unlikely to derail ratification; EUR/USD breaches 1.38. China’s PBOC reportedly intervened it the Chinese…

Last week Moody's cut the ratings of 12 British lenders, including Royal Bank of Scotland and Lloyds Banking Group. This week the other two ratings agencies, S&P and Fitch cut the ratings of 10 Spanish lenders.

These governments have to know that these bailouts are going to affect their credit ratings. They need to steer clear of worsening that credit profile in a panic environment. The only way they can do so is by clipping bondholders instead of…

The answer is it depends who you ask. The New York Times put the question to five of us and our answers varied considerably. If there was any overlap in answers I would say it was our general agreement that the euro zone periphery will…

In an interview carried on Austrian Television station ORF, Euro Group President Jean-Claude Juncker admitted that the present bailout package for Greece will not stand. The 21% discount worked out just a few months ago will become 50 or…

Equity markets paring back recent gains after one-week recovery ahead of Slovakia EFSF vote. Slovakia is the last country to vote on EFSF enhancement; “Yes” vote is not a done deal. News reports indicate China’s SWF is buying bank shares;…