Allied Irish Bank (nyse:aib) is running for the loot – AIB will pay $53 million in bonuses to senior bankers. What is the bonus for? Not announcing a haircut yet? While Anglo Irish and the Bank of Ireland already announced restructuring / burden sharing / cutting the hair of bondholders, Allied Irish Banks haven’t done … “Allied Irish Banks Scavenging Before Haircut?”
Category: Forex Bits
Irish Sovereign Downgraded by Fitch
Credit rating agency Fitch downgraded Ireland’s score to BBB+. Needless to say, this came as no surprise. Credit rating agencies such as S&P, Moody’s and Fitch are always late. The real credit rating is better reflected in CDS – Credit Default Swaps. It’s no news that the Irish sovereign is having trouble, due to its … “Irish Sovereign Downgraded by Fitch”
Euro Credit – The Way to Resolve Debt Crisis
Deutsche Bank offers the ECB an idea for resolving the European debt crisis by giving incentives to commercial lenders – incentives to get them buying bonds of debt-laden countries. After the politicians’ handling of the crisis hasn’t been optimal, hopes still lay at the door of the central bank, which now focuses on buying bonds … “Euro Credit – The Way to Resolve Debt Crisis”
Portugal Focus of ECB
The European Central Bank now focuses on buying Portuguese bonds, in an effort to prevent the fall of the next domino in the European debt crisis. After the Irish parliament approved the budget cuts – a pre-condition for the bailout package, the ECB leaves Irish debt crisis behind and focuses on another periphery country – … “Portugal Focus of ECB”
Bank of Ireland Haircut
Following the haircut forced upon bondholders of the Anglo-Irish bank, also the Bank of Ireland is announcing “haircuts” or burden sharing if you wish. Tracy Alloway reports about this development, that isn’t too good for the Euro, even if it’s a smoother razor is used. Read it here. This is not the first haircut for an Irish bank, and unfortunately not … “Bank of Ireland Haircut”
Yields of Spain on the Rise Again
After we’ve seen that Trichet’s bond buying was rather limited, bond yields are on the rise again. Spanish ten year notes now have a yield of 5.26%, rising from 5.15%. On Friday they were under 5%. There is high tension towards the Irish budget vote due later in the day. The budget is expected to … “Yields of Spain on the Rise Again”
Irish Budget Vote Will Probably Pass
The Irish parliament, the Dáil Éireann will probably pass the budget. One independent member, Michael Lowry, came out to the media and said that he’ll support the budget. His support, together with another independent member, pave the way for the budget to pass. The Irish Times reports that the ministers are likely to feel the … “Irish Budget Vote Will Probably Pass”
Varanasi Bomb Injures 7 Foreigners – Fear of Global
At least 25 people were hurt in the India, in the city of Varanasi, which is a holy place for Hindis. At least 7 foreigners were among the victims in this attack, that happened at 18:00, local time. The city is a popular place for tourists from all over the world. At least 7 foreign nationals were injured. The local … “Varanasi Bomb Injures 7 Foreigners – Fear of Global”
Wikileaks: Chinese GDP Unreliable
Wikileaks showed a message quoting a Chinese official, Li Keqiang, that said that most statistics, including GDP, are “for reference only”.f As China begins a tightening monetary policy, we can expect the GDP numbers to fall. Here’s more from Alpahville. Chinese growth was extremely high, even after the crisis broke out. The Aussie enjoys positive data from China, its … “Wikileaks: Chinese GDP Unreliable”
Irish Budget Vote Very Close
The Irish parliament will vote on the budget on Tuesday, and it will be very hard for the government to pass the budget. The vote currently depends on two independent members: Michael Lowry and Jackie Healy-Rae. Both are expected to announce their decision soon. The Irish Times reports that the budget may face opposition also … “Irish Budget Vote Very Close”