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Amid Europe crisis, dial MF for mayhem
MF Global Holdings' demise might actually be encouraging if it didn't underscore just how easily Europe's problems can ricochet through the financial system.
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Greek debt deal won't solve pensions tragedy
If the outlook for Greek banks is grim, spare a thought for the fate of Greek pensions. The government is considering a transfer of state-owned assets to pension funds to make up for losses following the proposed 50% Greek sovereign-debt haircut: a potential €4bn hit. But that won't put Greek pensions on any more of a sustainable footing.
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Europe gets a not-so-grand plan
Well, it's a plan. That alone will come as a relief to markets given how low expectations had fallen. But it falls far short of the "comprehensive plan" that eurozone leaders had promised and investors had been demanding.
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Italy risks post-Berlusconi hangover
Silvio Berlusconi has largely lost the confidence of investors and policy makers. But would his departure ease the euro crisis? The Italian prime minister's hold on power appears increasingly shaky as Europe's demand for deep structural reform has exacerbated tensions between the coalition's key partners, Berlusconi's People of Freedom party and the Northern League. Many hope he might be replaced by a technocratic government with the power to make difficult decisions. A bigger risk is that early elections lead to instability and government paralysis.
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Eurozone commodity contagion
The empires and periodic invasions of yesteryear are long gone, but Europe still has a talent for fomenting global crises. That applies to commodities - though not necessarily because of the Old Continent's absolute demand.
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Italy's growing need for change
If the world's eyes are on Europe, then Europe's eyes are on Italy. Eurozone leaders made it clear this weekend that Prime Minister Silvio Berlusconi must do more to reduce Italy's debt pile of 120% of gross domestic product. The only way to reduce debt convincingly and ease market concerns is to boost the country's anaemic growth profile. But this is a task Berlusconi has repeatedly failed to achieve.
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The end of triple-A?
Government finances have been stretched to the limit. A new recession in Europe could lead to downgrades for Italy, Ireland, Spain, Portugal—and France, which would lose its triple-A rating, Standard & Poor's warns.
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Prepare for Europe's lost weekend
No grand plan, no big bazooka, not so much as a pea-shooter. Angela Merkel and Nicolas Sarkozy were already downplaying expectations that this weekend's summit would deliver the comprehensive solution for the eurozone crisis that was originally promised. Now the German Chancellor and French President say they won't finalise their plans until a second summit next week. Expectations should be held firmly in check.
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Europe again risks flawed bailout plan
Here we go again. In 2010, European leaders hoped the creation of the €440bn European Financial Stability Facility alone would restore confidence to government-bond markets. They were swiftly disabused.
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Goldman tells a tale of two banks
Dr. Goldman and Mr. Sachs? The securities house known as Goldman Sachs didn't have a terrible third quarter—in fact, it was decent considering all the market upheaval. Unfortunately for investors, the hedge-fund/private-equity shop also known as Goldman Sachs took a beating.
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How far can eurozone push Greek bondholders?
The quest to find a way out of Greece's debt labyrinth continues. Is the answer to inflict greater losses on bondholders? Eurozone policy makers appear increasingly determined to reopen the July 21 bondholder deal as they look for ways to make Greek debt sustainable in the face of a slowing economy. But the tricky part is finding a way to achieve this via a voluntary deal, thus avoiding a coercive—and therefore disorderly—default.
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Seeking value in Europe's debt crisis
European corporate bonds are back trading at levels last seen in 2009. But does anyone have the courage to buy them? Back then, buying corporate debt was a trade that paid off handsomely. This time, the economic risks may be greater, but companies are better prepared.
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European bank buffers offer little comfort
Just how much more capital European banks need is the subject of fierce debate, especially as France and Germany weigh the latest rescue plan for Europe. And Dexia's collapse shows that some measures of financial strength can paint misleading pictures of how much additional firepower is needed.
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Aussie bank fears lurk underground
Looking at the market for credit default swaps on Australia's banks, it's like the past two years never happened.
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Don't bet on breaking China
It's too soon to start betting on the collapse of China. A shaky world economy has investors understandably nervous. For many, a hard landing for China, with GDP growth for 2012 dipping sharply below the 8% mark, has moved from outlying risk to central scenario.
