..Greeks don't fit in the European union, there are also a few other countries to the north of Greece and the right side boundaries of Germany with the same problem..when you have to deal with a culture of corruption at every level, it weakens the Union itself..but this movement in the markets is the rapid fall of a basic commodity - Oil..markets are making corrections..lower oil is positive for consumers..
same thing happened with Bkir, they bought in at 10cents and it went 8 cents, so 20% from 30 cents will not surprise them. Think the politics of Greece is worrying investors. Can the ruling party get support of 25 parliamentary members to elect the President or is it going to be snap elections. The market is sending a very strong message that it doesnt like the prospect of Syriza. Lets see if this message gets through to leaders and the Greek people. They have been given a taste of what will happen if they elect Syriza. Lets see if they listen, they should. You would think the parliamentary members would?
Last week, there was an article in the media stating that an investment bank had been appointed by Permanent TSB to evaluate options in relation to possibly selling a stake in the bank. Moving to this week, we note with interest comments from the Minister for Finance yesterday evening after the Budget that if PTSB needs to raise capital after the stress tests, it can do so in the markets and not impact on the state finances. He specifically indicated that “if they require extra capital, they’re strong enough to get the small amount of capital they require in markets, so we don’t see any risk to taxpayers”. However, it also appears that the Minister indicated that he has “a fair idea” of how the stress tests assessment is going and that AIB and BOI “are very secure in capital terms”. The comments from the Minister and the reports last week may raise speculation that the government is readying the market ahead of PTSB struggling in the stress tests. Should any capital be required, the bank has €400m of Tier 2 cocos that could convert into equity to replenish the core tier 1 capital and the bank could then raise additional hybrid capital to support total capital. However, we are more intrigued by the comments in relation to AIB and BOI, which on face value should be supportive. Though we wonder whether the specific mention of capital, whilst reassuring, still leaves open the possibility of some additional provisions being required by the banks in the stress tests. Our base case is that both AIB and BOI pass the stress tests without the need for additional capital.
Interesting to see that Wilbur Ross and his friends have lost their shirt on their Greek bet with EFG Eurobank - they bought in at 30c ..........now at 25c and doubt they could sell for anything above 15c. Have been watching with interest but am dissuaded by my experience of six months working in Greece where it is apparent that everything and I mean everything is corrupt and most of the Greeks I know do not believe it is possible for Greece to recover.
The Central Bank stated that the policy implications of its analysis is "stark". "Pre-crisis property-related borrowings have an economically and statistically large impact on the likelihood that firms will default on their 'core' enterprise debts," it stated.
It also said that the unlinking of non-core property related debt from the debts of otherwise potentially viable SMEs represents an area of "crucial policy importance".
Anyone want to guess what that last line means? Bad bank for sme debt? Nama? Some kind of ecb solution?
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