Wednesday, February 10, 2016

The day a minute: The turmoil on the stock markets, doubts about Deutsche Bank and Centeno cuts – Jornal de Negócios – Portugal

Second day in black bags. Second session this week, the second day of sharp declines in world stock markets. In Surf “Black Monday”, Japan’s squares were the first to signal that was ahead another difficult day in the equity markets. The index of the Japanese stock market plunged more than 5% on a day when the “yield” of the sovereign bonds of the country has for the first time in negative territory. In Europe the session was highly volatile, with the Stoxx 600 closed the day to fall 1.58%, reaching new lows since October 2014. In Lisbon the declines were more pronounced, with the PSI-20 to yield more than 2% the sixth consecutive session on “red” that leaves the Portuguese index very close to touching minimum 2012.

Deutsche Bank in the eye of the hurricane. The panel is again the focus of investor concerns and within the sector is Deutsche Bank that is at the epicenter. The “stress” with the German bank began on Monday after an analyst at Credit Sights have put into question the ability of Deutsche Bank repay all coupons of contingent capital bonds (known as CoCo). The suspect took the actions of the German bank to sink more than 9% on Monday, forcing the institution to issue an unusual statement to ensure you have way to fulfill their obligations. The co-CEO of the bank, John Cryan, said that Deutsche Bank is a “rock solid” and even the German finance minister came to say that “has no fears” about the country’s largest bank. At a time when the European banks facing a ‘perfect storm’, these guarantees were not enough to stop the fall of the German bank on the stock exchange.

interest on debt in maximum 2014. The strong turbulence in the markets is driving investors to shun riskier assets, which is also reflected in sovereign debt of peripheral euro countries. Portuguese bonds were the hardest hit in the region, with the “yield” of the bonds for 10 years to shoot 3.65%, its highest level since October 2014 that threw the “spread” in the face of German debt to 340 basis points, a maximum since January 2014, four months before the troika leave Portugal. This increased risks for Portugal also appears in the two days following the presentation of the State Budget. In both sessions, the “yield” of government bonds to 10 years fired more than 50 basis points.

The “yield” of Portuguese bonds of 10 years, as shown in this Bloomberg graph has risen more 1 percentage point since the beginning of the year

Eurogroup wants more savings. The proposed state budget will be on the table of the Ministers of Finance of the euro on Thursday. Although the European Commission has given “green light” to the document, the Eurogroup Finance Minister Portuguese will be confronted with the need to make further budget cuts, which quantifies Brussels at EUR 155 million. This is because if the government quantifies the impact of additional measures negotiated with the European Commission in 1,125 million euros, Brussels believes that these only be worth 970 million reduction euros deficit.

Minister will explain TAP in Parliament. The Minister of Planning and Infrastructure, Pedro Marques, will have to go to Parliament to explain the contours of the amendment to the privatization contract of TAP. After requests from various parties, this Tuesday was the turn of the PS own members (Luis Moreira Testa, João Paulo Correia and Carlos Pereira) request a “hearing, a matter of urgency” the Minister Pedro Marques, to be ” given the necessary explanations “about the” contours of the agreement in principle that was reached. ” But the PSD asked to carry out an urgent debate in Parliament on the privatization of TAP and changes to the contract signed this week by the Government.

Shock between trains in Germany. Two passenger trains collided head-on near the spa resort of Bad Aibling, in the state of Bavaria, causing nine deaths and over a hundred injured, 18 of them in serious condition. The scenario just was not worse for being day of Carnival, with schools closed and some companies in the country, so the two trains followed only 150 passengers. The minister of the German Transport, Alexander Dobrindt came already say that it is not clear if it was human error or technical failure, although the technological system that manages the railway lines in the region cautioned scenarios like this.

Budget in five minutes. You are known the main measures of the state budget for 2016, which penalizes more businesses than households. Find out what are, in just five minutes.

The state budget in five minutes


No comments:

Post a Comment