Currencies  |  March 22, 2013 13:10:05

ECB will again threaten German PMI disappoint

Common currency yesterday recorded a further decline against the euro, and because of the worst informations with help of German sentiment PMI as well as still due to the ongoing uncertainty about Cyprus. The landscape is still on the verge of collapse, given its huge financial sector. Responded to this development also fall in U.S. stock markets and the SP500 index was slightly departing from the chance to reach new highs. Yesterday he sent down markets mainly weak profit company Oracle (-9.7%) for the previous quarter and the results of sales of existing homes only in accordance with expectations. Yester cocktail stock: Dow Jones -0.62% SP500 -0.83%, Nasdaq Composite -0.97%.

Rescue cyperských banks: historically the second largest

Question rescue Cyprus still has not been resolved and the reason of the scale cyperského banking sector, which makes up 7-fold cyperského GDP. His rescue would cost up to 56% of GDP, which means that cyperská in the history of salvation is in proportion to the size of the second largest landscape.

ECB will again threaten

The fact is that with this huge rescue Cyprus must hurry up, yesterday showed the ECB. She said that cyperské banks no longer seen as a recapitalization of insolvent and no longer allow them to obtain liquidity from Tuesday through facility ELA (emergency liquidity assistance). Cyperské banks acquire access to ELA cyperskú directly via the central bank, and not through the ECB.The Facility is intended to fund illiquid but still solventných banks that have problems and directly through the ECB would be to get liquidity. ELA is a relatively obscure Facility and ECB him some rules basically not mentioned at all. But if the ECB said that cyperské cut from the bank liquidity, the team wants to say that the country needs rescue.

ECB basically threaten land that otherwise it is cut from a liquidity and not ask for help. This is probably the total pressure on the Troika that Cyprus has asked for help and stopped to rising tensions in the euro area. Similarly, for example, the ECB even threatened to Ireland, not to let banks go bankrupt.

Deposits in banks as a new revenue stream State

That's what's going on Cypre, can be a dangerous precedent. Jernej Omahen analyst at Goldman Sachs thinks the depositors from must now deal with a completely new risk: money deposited in banks are becoming a new tax Baasha to future wealth tax b Europe. Politicians, of course, rejecting, but initially retail problem only Greece and otherwise all other countries were in order. Cyprus is but five countries the euro area, which is a saving.

For other countries that are prone to the rescue, like Slovenia, this is a very dangerous situation, because depositors can very quickly move the money elsewhere. Risk are also deposits in Greek banks, since there is a possibility of additional non-standard steps, the politicians are still great. Ireland and Spain depositors vydýchli probably because so could eventuate and they, so to the restoration of confidence in the banks it probably does not lead.

Spain's banking sector is one more shock awaits. This month it should still occur as well recapitalization banks Bankia through the conversion of preferential shares into ordinary and with big losses. Parallel tax on deposits in banks cyperských may trigger negative associations, which may be inconvenient for the sector.

Germany is against bailouts without conditions

So how does the whole confronts Germany? After that, the German tax payers to saving other countries, Merkel is slated from their own ranks (page FDP) as well as by the opposition Socialists SPD. Preference to the CDU / CSU did not sink, it had the hard stand against Germany nepodmienečným bailouts, and therefore insists on tax on deposits. Germany citizens, although landscape benefits from euro zone deficiencies, are not among the richest in the eurozone.Passed through the unification of Germany, European integration, bailouts of banks, hard reforms Kohl and now behold rescue European hriešnikov. Opposition to the rescue to shares is large and, therefore, we must reckon with the fact that from now on will have a new rescue harsh conditions. German tax payers will no longer finance landscape that recent years have benefited from low-cost loans, realitného boom, and financial services and neuťahovali belts so as Germans.

View on today

Today were published data from the eurozone German IFO sentiment, which resulted in the market-based expectations. The euro but it should not have a big impact. The market is still waiting for a vote in parliament on the taxation cyperskom deposits. Flange talks with Russia fail, slightly receding behold EU, which already is studying the proposal uses the resources pension scheme to rescue the banks.Crisis Cyprus would in the event of a successful vote could be relieved while your not appear again some new risk.

Author: John Benaki | TRIM Broker, as | Trading on exchanges TRIM Broker

Was this article: 10 | 8 | 6 | 4 | 2 | 0

Last news from the section Currencies:

Po 16:48  Euro pomohlo koruně zkorigovat ztráty (Komentář) Investiční bankovnictví (Komerční banka)
Po 15:53  ČNB ve středu počtvrté v tomto roce zvýší své úrokové sazby Markéta Höfferová (
Po 15:40  Prorazí American Outdoor Brands (AOBC) hranici 16 USD? Grant Capital (Grant Capital)
Po 14:31  Kurzovní lístek ČNB na pondělí 24.09.2018 Redakce (

Zobrazit sloupec 
Moner | ISIN database | Weather forecast
Česká verze - Akcie cz, kurzy měn, forex, zlato.
Favorite: Prague Stock Exchange Czech crown Czech economy Commodities Gold Trademarks Prague Weather

Copyright © 2000 - 2018, spol. s r.o., AliaWeb, spol. s r.o.,

ISSN 1801-8688