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Flash estimate for the third quarter of 2011: Euro area and EU27 GDP up by 0.2%

GDP increased by 0.2% in both the euro area (EA17) and the EU27 during the third quarter of 2011, compared with the previous quarter, according to flash estimates published by Eurostat, the statistical office of the European Union.

In the second quarter of 2011, growth rates were +0.2% in both zones.

Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 1.4% in both zones in the third quarter of 2011, after +1.6% in the euro area and +1.7% in the EU27 in the previous quarter.

US Bank exposure to PIIGS

Five US banks have released some data (SEC filings) of their exposure to PIIGS.

Source WSJ

Economist: Europe's deepening crisis

Autumn forecast 2011-13: Growth at a standstill

Commission Vice-President for Economic and Monetary Affairs Olli Rehn said: "Growth has stalled in Europe, and there is a risk of a new recession. While jobs are increasing in some member states, no real improvement is forecast in the unemployment situation in the EU as a whole. The key for the resumption of growth and job creation is restoring confidence in fiscal sustainability and in the financial system and speeding up reforms to enhance Europe's growth potential. There is a broad consensus on the necessary policy action. What we need now is unwavering implementation. On my part, I will start using the new rules of economic governance from Day one."


ECB Overnight Deposits 2011 (statistics)

Lenders increased overnight deposits at the European Central Bank to the highest level in more than 16 months.

Banks parked 299 billion euros ($412 billion) with the Frankfurt-based ECB yesterday, up from 288 billion euros on Nov. 4. That’s the most since June 30, 2010, and compares with a year-to-date average of 71 billion euros.



ECB Overnight Deposits 2011

The big fat Greek Drahma

Yesterday, Giorgos Papandreou was at the center stage forRead more

Flash estimate October 2011: Euro area inflation estimated at 3.0%; unemployment at 10.2%

Euro area annual inflation is expected to be 3.0% in October 2011 according to a flash estimate issued by Eurostat, the statistical office of the European Union. It was also 3.0% in September.

Eurostat also estimated September 2011 Euro area unemployment rate at 10.2% and EU27 at 9.7%.

Who is the biggest clown of the Credit Crisis? Vote now!

Thanks to @centrifugen I came across a poll on a Swedish site: who is the biggest clown of the Credit Crisis?

Thought we should have our voice heard so please cast your vote here: http://www.asymptotix.eu/content/who-biggest-clown-credit-crisis

G-20 Summit Cannes 3-4 November 2011

Presidents Barroso and Van Rompuy shared their views in advance of the summit in a letter sent to the other members of the European Council on 7 October 2011 (see MEMO/11/678).

The errors are manifold - Sarkozy: Greece should not have been in the eurozone - Soros: Same goes with Italy

French President Nicolas Sarkozy has said it had been an error to admit Greece to the eurozone in 2001 but said he was confident the country could emerge from its debt crisis.

George Soros went even further and said that it was wrong that Italy joined too.

The EBA details the EU measures to restore confidence in the banking sector

EBA: 26 October 2011
The European Banking Authority (EBA) supports the agreement at EU level on measures to restore confidence in the banking sector. These measures form part of a broader package aimed at addressing the current situation in the EU by restoring stability and confidence in the markets. Their implementation is conditional on the other components of the package being fully clarified and endorsed.

Official version: Main results of Euro Summit

Secure the decline of the Greek debt to GDP ratio with an objective of reaching 120% by 2020. Euro area Member States will contribute to the PSI package up to 30 bn euro. The nominal discount will be 50% on notional Greek debt held by private investors. A new EU-IMF multiannual programme financing up to 100 bn euro will be put in place by the end of the year. It will be accompanied by a strengthening of the mechanisms for the monitoring of implementation of the reforms


Markus Krebsz - Scottish Financial Risk Academy (SFRA) Inaugural Colloquium - Risky Ratings - Reducing Over-Reliance

At the Scottish Financial Risk Academy (SFRA) Inaugural Colloquium in Edinburgh on the 4 November 2010, Markus Krebsz presented "Risky Ratings - Reducing Over-Reliance by using the Agencies' analysis sensibly.

Download the Slide Deck here!

EU, Internal Markets commissioner Michel Barnier, plan gives regulators more power to avert collapse of ailing banks

The European Commission wants to give regulators the power to convert debt issued by ailing banks into equity as they try to avert the collapse of failing institutions without leaning on taxpayers. In the latest in a long line of far-reaching reform proposals from internal markets commissioner Michel Barnier, the EU executive also wants to give regulators the power to depose the management of vulnerable institutions, suspend dividend payments, force asset sales and compel an institution to implement a recovery programme.

Mr Barnier’s plan, which also foresees powers to install a special management team in distressed banks, is designed to prevent a repeat of costly episodes such as the Irish banking crisis by introducing new resolution procedures to facilitate an “orderly” wind-down of institutions that have no prospect of survival. In anticipation of legislative proposals next year, he set out his thinking yesterday in a communiqué on “crisis management” in the financial sector. While some of the measures he proposes have already been deployed by EU governments on an ad hoc basis – Ireland among them – the commissioner wants to have common rules throughout Europe for phased resolution procedures.

Ireland - haunted by Ghost Estates - bank costs climbing - video report

The issue of ghost estates in Ireland is more than empty houses. It's a symbol of the country's descent from the Celtic Tiger leading the European charge of prosperity to a broken state, crippled by what most would agree was a universal greed: greed of consumers, developers and those who Irish people blame the most, the banks.

NTMA sells Irish bonds worth €1.5 billion at auction

The National Treasury Management Agency (NTMA) sold €1.5 billion of bonds in a monthly auction this morning, meeting its target of raising €20 billion in 2010 and is now fully funded through the first half of next year. In what was being seen as a key test of the market, there was plenty of demand for the securities despite recent turmoil. The agency sold €1 billion of eight-year bonds at an average yield of 6.023 per cent, compared to 5.088 per cent in June. Bids received were 2.9 times the amount allocated.

Deutsche Bank issue set to raise €10.2bn

Deutsche Bank is set to raise a higher than expected €10.2bn ($13.3bn) in its largest rights issue, increasing its flexibility to take over Deutsche Postbank and bolster its capital position to meet stricter global regulations. Germany’s largest bank said on Monday that it had fixed the subscription price for new shares at €33, compared with an underwritten minimum price of €31.80 announced last week. Deutsche investors will be able to buy one share for each two they own.

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