Europe's banking sector is braced for chaos, with Italian giants desperate for a bailout and Germany’s biggest lender deemed a threat to the world economy.
In Italy, politicians begged the European Union for permission to bail out troubled lenders sitting on more than £300bn of bad loans. Meanwhile, Portugal – long feared to be a future flashpoint in the eurozone crisis – has been urged to double down on austerity measures in the uncertain times ahead.
its only a problem if nothing is done,but the ecb are buying up bonds atm,like bernanke did with mortgage backed securities about 7 years ago,so it's just a short term problem,if draghi get;s it right. the markets have brushed off the oil problems,now it's the banks again,in 3months time,it'll be something else.lol. nite.
It can go to 46p, makes no difference to me. 46p is highly unlikely though ,since it's been hitting a brick wall around 50p anyway. Even on Friday when volatility was through the roof it didn't break through 50p on the downside. I've got confidence in Lloyds banking model and wont let the market sway me with it's games,. The professionals placed their bets too early going into Brexit and then panicked, now they're trying to make up for their substantial losses last Friday.
I've seen the articles talking down the price and my view is that it's total bs. I don't dispute that there's a lot of fear around banking stocks, but it's not something i'm worried about. I've seen an article today, from a technical chartist talking the price down, but they always allow themselves a way out saying if it breaks through this level to the upside, blah de blah de blah. Investing is gambling, you put put your money down and watch the cards fall, if you act on fear then you shouldn't be in the game.
There wont be a bank run, because that scene has already been screened with Northern Rock, etc. The central banks will just guarantee all savings without limit if they think a systemic risk is on the cards. I just don't see the risk.
What you need to understand is it's not just about Italy, it's about trying to prevent a bank run. If one falls they all fall and you can say it's nothing to do with the UK but try telling that to the man on the street. A bank run will decimate bank shares and if there was not a credible risk of a bank run then why would the EU be sliding deals of this magnitude under the table?
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.