World economy talk

[uls]

the USD catches a bid

USD index


euro falls below 1.26

EUR/USD

[leonleon]

Heard on CNBC that some European banks are selling their gold reserves to raise cash... Difficult times ahead. I am still bullish in GOLD, there is just no way it will go down with the things going on around us...

Is that the reason it's down approx USD 55/oz from it's all time high?

http://www.reuters.com/article/idUSTRE65E5NH20100707

[tidus1203]

^^Market movements are very fluidic. If you go up so much, you need to go down to so the people who made money can take their profits. New people who want to ride in and buy will push it again higher... In trading, that is what you call a "CORRECTION". Nothing new, ma pa currencies pa yan or stocks... Ang importante dyan yung trend, gold is on a very solid uptrend and the way it moved up this past year is very orderly and does not show bubble like movements...

[uls]

the fear is -- if EU countries default on their debt, the banks holding the debt will suffer massive losses and could collapse

so EU bank regulators will conduct stress tests on the banks to see if they can survive adverse scenarios

but the stress tests will NOT include a sovereign default scenario

coz the EU says it will not allow anyone to default

hahaha

amazing

EU Bank Stress Tests To Cover Debt Crisis,Not Sov Deflt:Press
http://imarketnews.com/?q=node/16076

FRANKFURT (MNI) - Planned stress tests for European banks will cover their resistance to a crisis in the market for European sovereign debt, but not the scenario of a default of a Eurozone state since the EU would not allow such an occurrence, a German newspaper reported Wednesday.

"In the planned stress tests, European banks will also be tested for their resilience toward a crisis on the market for European government bonds," German weekly Die Zeit wrote without identifying its sources.

"It is not envisioned, however, to test the consequences of an insolvency of a Eurozone state," the paper said. "The reason is that the EU does not want to allow a sovereign default and has therefore specifically set up a rescue fund," the paper added.

The consequences of a downturn of economic activity on banks and their lending will, however, be tested, the article said. Were a bank's percentage of own capital to fall below 6% in the tests, it would then need to show how it would obtain fresh capital, the article said.

joke lang ba yan?

[tidus1203]

Will not allow EU state to default??

Di ko na lang what those EURO paper might be worth??

[pup2]

Ginawa yan ng government para mag muka silang mabango. Unemployment is a sensitive topic and has been known to topple Presidents and the party in power.

By the way nice one Gen. Miting for impersonating me!

Kaya nga doctorate degree e ... doctored ang stats.

You think I'M gen mtg/OB?? Tagal ko na here e.

[tidus1203]

No not you! There was an account that impersonated me but was already banned and erased I was referring to that...

[uls]

a number of pages ago, i said if i was Exxon, i would buy BP

http://online.wsj.com/article/BT-CO-...11-702773.html

LONDON (Dow Jones)--U.S. oil major Exxon has sought clearance from Washington DC to examine a takeover bid for BP PLC (BP.LN), according to the Sunday Times.

[tidus1203]

YES! YES! YES! I own BP shares and looks like its McDonald's time again!

[uls]

http://www.spiegel.de/international/...761201,00.html

Greece Considers Exit from Euro Zone

The debt crisis in Greece has taken on a dramatic new twist. Sources with information about the government's actions have informed SPIEGEL ONLINE that Athens is considering withdrawing from the euro zone. The common currency area's finance ministers and representatives of the European Commission are holding a secret crisis meeting in Luxembourg on Friday night.

Greece denies the report (yeah sure... as if Greece has any credibility left)

[tidus1203]

Shouldn't be Greece's withdrawal or any PIGS be Euro positive?

[Monseratto]

PIIGS!!!

http://www.bbc.co.uk/news/business-14080021

The cost of borrowing for debt-laden Portugal, the Irish Republic and Italy hit new highs on Friday.

Greek debts also sold off, reversing a recent rally on hopes of a new rescue.

Italy has seen a sharp rise in its 10-year cost of borrowing over the last week, rising from 4.85% to 5.3% - suggesting markets now view the country as almost as risky as recession-hit Spain, which must pay 5.65%.

Meanwhile Greece, the Republic of Ireland and particularly Portugal have seen the value of their debts in financial markets plummet further.

Their implied costs of borrowing in markets for three years now stand at 28%, 16.3% and 18.6% respectively.

[uls]

again, UNICREDIT

[tidus1203]

With all the problems in Europe in terms of sovereign debt and the problems in the US and the possibility of QE3. Ano kaya mangyayari sa EUR/USD? One has weak fundamentals although rates are rising, while the others is going to be debased again for the third time?

[uls]

Intesa Sanpaolo

[Monseratto]

After opening 1.13% up, DOW lost steam and is in the negative. There is a threat of a downgrade pa ata because the debt ceiling deal is 2 trillion dollar short...

[Monseratto]

fannie mae and freddie mac downgrade to aa+. Can't get a AAA rating in your guarantor is an AA+.

[Monseratto]

Another country that is about tobe DOWNGRADED...

AAA Rated France May Be Vulnerable to Downgrade Following Cut to the U.S. - Bloomberg

[tidus1203]

Dapat pati UK din tangalin na sa AAA... Only Canada, Germany, Australia should be AAA cause they are surplus countries and don't need to print just to pay up.

[Monseratto]

gold hits US$1,715. Now corrected to US$1,702.