The Irish government currently holds only 18% of Allied Irish Banks, but might raise its stake to 91.5%, nationalizing the bank. This comes as the troubled bank is having trouble raising necessary money in order to operate, and as the government has sweeping powers for a cash injection and a takeover. Neil Hume reports Although … “Allied Irish Bank to be Nationalized?”
Category: Forex Bits
Moody’s to Downgrade France?
The markets already see French credit much lower. France, Europe’s second largest economy, has a perfect AAA credit rating and has a very stable economy. Yet French banks are extremely exposed to debt of peripheral countries. The credit default swaps on French bonds already reflect a much lower credit rating: Baa1. This indeed sounds bad … “Moody’s to Downgrade France?”
Mexico Oil Pipe Blast Kills 11 People
A blast in a Mexican oil pipe kills 11 people in the Puebla region, in the center of Mexico. This could push oil prices higher at the beginning of the week. The blast occurred at the city of Texmelucan, in an oil pipeline operated by the national oil company Pemex. The BBC reports that a suspected … “Mexico Oil Pipe Blast Kills 11 People”
Iran Blast Kills Dozens
A blast in a Shiite mosque in Chabaharin southern Iran kills dozens of people. The city is close to the border with Pakistan. The bombing happened early in the morning. 5 months ago, a blast in the city of Zahedan killed 22 people. In many cases, the Baluchian insurgency, wanting independence, took responsibility for the bombing. Iran has … “Iran Blast Kills Dozens”
Gain IPO – Capital Will Reflect Lower Valuation
The IPO of Gain Capital Holdings (forex.com) will go ahead on Wednesday, December 15th. Michael Greenberg reports about this exact scheduling and says that the valuation will be around $434 million, significantly lower than $536 originally estimated. Gain’s IPO got an informal “green light” after the successful IPO of FXCM held at the beginning of … “Gain IPO – Capital Will Reflect Lower Valuation”
Belgium Downgrade Possible by S&P
Credit rating agency S&P warned that it could downgrade the credit rating of the country if there is no government. Belgian politics are in a deadlock for quite a long time. Belgium is the non-official capital of the European Union, but it lacks unity within the country. Contrary to peripheral countries, Belgium is one of … “Belgium Downgrade Possible by S&P”
Moody’s – Negative US Outlook Possible On Tax Cuts
Jamie Coleman reports that Moody’s reacted to the deal on tax cuts in the US – they stated that there’s a higher chance of a negative outlook on the American perfect AAA credit rating over the next two years. US treasury yields are higher once again on this news – ten note yields are at … “Moody’s – Negative US Outlook Possible On Tax Cuts”
Gain Capital IPO This Week
The IPO of Gain Capital (forex,com) is due this week. Gain Capital Holding wishes to be valuated at $536 million. Gain pushed forward with the IPO, pending for quite a long time, after the successful IPO of of FXCM, done at the beginning of the month. FXCM asked and got a valuation of over 1 … “Gain Capital IPO This Week”
Hezbollah Threatens “New Era” in Lebanon
Indictments against Hezbollah members are due any day now, by the special tribunal for Lebanon, investigating the murder of Rafik Hariri. Yet again, tensions are getting higher as Hassan Nasrallah threatens to bring a “new era” in Lebanon – a hint towards a full takeover of the country. The son of murdered Rafik Hariri, Saad … “Hezbollah Threatens “New Era” in Lebanon”
US Jobless Claims Fall – Was the NFP Too Weak?
American weekly unemployment claims dropped to 421K, pushing down the 4 week moving average once again. It already reached 407K two weeks ago and rose last week to 438K (revised from 436K). This raises some questions about the accuracy of the weak Non-Farm Payrolls that we saw this Friday – they disappointed with a job … “US Jobless Claims Fall – Was the NFP Too Weak?”