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Marc Faber, editor and publisher of the Gloom Boom & Doom Report, discusses the S&P downgrades of France and other European countries. He believes they should be downgraded even further. Source: CNBC, January 13, 2012.
Stephen Roach, non-executive chairman of Morgan Stanley Asia, talks about the European debt crisis, its implications for Asian economies, and the outlook for the People’s Bank of China monetary policy. Source: Bloomberg, January 12, 2012.  By Prieur du Plessis, on January 10th, 2012 posted in: Economy, Europe  2 people had their say - chime in!
Investor George Soros talks about the 2008 financial crisis and Europe’s sovereign-debt woes. He speaks with Anurag Behar, vice chancellor of Azim Premji University, in Bangalore, India. Source: Bloomberg, January 9, 2012.
David Rosenberg, chief economist and strategist at Gluskin Sheff & Associates, talks about the outlook for the U.S. and European economies. Source: Bloomberg, January 9, 2012. 
In order to gauge whether credit conditions in Europe are improving or worsening, I posted an article on the European TED spread a few days ago – “What is the European TED spread signalling?” The difference between the LIBOR rate and the overnight index swap (OIS) rate is another measure of credit market stress. When the European LIBOR-OIS spread is increasing, it indicates that banks believe the other banks they are lending to have a higher risk of defaulting on the loans so they are charging a higher interest rate to offset this risk. The opposite applies to a narrowing European LIBOR-OIS spread. As shown below, the movement in the European LIBOR-OIS spread over the past few weeks is similar to the European TED spread and indicates that confidence in interbank lending has started improving, but the European LIBOR-OIS spread needs to show a more meaningful decline in order for a calmer environment to prevail.
Source: Fullermoney.com
Source: Fullermoney.com More on this topic (What's this?) New Global Banking Regulations: Buying Opportunities in Europe (Investment U, 1/5/12) The U.S. and Asia Use Europe to Get to Emerging Markets: Part II (Investment U, 12/30/11) Eurozone Descends into a Farce as "Grexit" Looms Large (Money Morning, 5/18/12)
The euro’s resilience in the face of the eurozone’s sovereign debt crisis has finally evaporated; the single currency has slid to a 16-month low against the U.S. dollar and an 11-year low against the Japanese yen. FT Lex’s Vincent Boland and Jennifer Hughes discuss the move’s significance and its implications. Please click here or on the image below to watch the video.
Source: Financial Times, January 7, 2012. |
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Prieur’s Readings (May 5, 2012) – staying up to date with top money news
Don Coxe webcast – updated (May 4, 2012)
Laugh out Loud: EU debt whack-a-mole
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