The Euro Could Disappear In 10 Years – BlackRock CE

The euro could be in danger of disappearing within the next decade if France does not continue pushing economic reforms, BlackRock Capital boss Larry Fink said Tuesday. Fink expressed his concern about the health of one of Europe’s largest economies at The New York Times’s DealBook Conference, mentioning France’s recent downgrade by Standard & Poor’s. “I don’t think […]

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Analysis: Deflation threat in Europe may prompt investment rethink

(Reuters) – The threat of deflation in the euro zone could reverse a major investment trend of 2013, drawing funds out of stocks and into government bonds and cash. Europe is still some way from a negative inflation rate, let alone a Japanese-style deflationary spiral – the policymakers’ nightmare in which falling prices weaken demand, leading to wage cuts and even […]

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Germany Summons U.S. Ambassador to Explain Merkel Phone Tapping

Germany summoned the U.S. ambassador to the Foreign Ministry over reports ChancellorAngela Merkel’s mobile phone was monitored by U.S. spy agencies as European Union leaders prepared to discuss tighter data protection. Ambassador John B. Emerson was called in for talks with Foreign Minister Guido Westerwellein Berlin this afternoon, a ministry spokeswoman said, speaking under customary condition of anonymity. France summoned […]

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Report: NSA Spied on 124 Billion Phone Calls in One Month

The National Security Agency recorded information about more than 124 billion phone calls during a 30-day period earlier this year, including around 3 billion calls from U.S. sources, according to a tally from top-secret documents released by multiple news outlets. Documents revealing details about the NSA’s Boundless Informant program show that information regarding billions of […]

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Draghi Says Bank-Aid Rules Must Be Flexible on Forced Losses

European Central Bank President Mario Draghi said banks should be able to access public aid without wiping out junior bondholders if regulators decide a lender needs more capital and isn’t on the brink of failure. Draghi urged the European Union to make clear when it will allow exceptions to state-aid rules that require private-sector creditors […]

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IMF Sees Business-Loan Losses of EU250 Billion in EU Banks

“Banks in Spain, Italy and Portugal face about 250 billion euros ($338 billion) in potential losses on their business loans over the next two years, the International Monetary Fund said. About one-fifth of combined corporate loans is at risk of default in the three economies, which are forecast to contract this year, according to the […]

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Draghi Seen Putting Words Before Action on ECB Policy

“Mario Draghi is likely to rely on the power of his voice rather than new policies to steer Europe’s banks through the early stages of an economic recovery. The ECB president will hold off from pumping more cash into the currency bloc’s financial system as long as the threat of action keeps market interest rates […]

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Banca d'Italia says gold reserves key to cenbank independence

“Keeping gold reserves is a key support to central banks’ independence, an official from Banca d’Italia told a bullion industry conference on Monday, dampening talk that it might sell some of its holdings. Speculation has emerged since the financial crisis hit the euro zone that Banca d’Italia might be pressured to leverage or even sell […]

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Balance Sheet Liquefaction And The Race For Precious Metals

  The Fed seems to be stuck because of housing market weakness and its associated mortgage backed securities. The repo market appears to be where the stress is most threatening, though hidden from view. These trillion dollar daily transactions are the lifeblood of world financial markets. Furthermore, the size of global financial markets has become […]

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Bailed-Out Nations Get Another Four Years of Merkel

“Southern Europeans are facing four more years of Angela Merkel whether they like it or not. Majorities of 82 percent in Spain, 65 percent in Portugal and 58 percent in Italy repudiate the German leader’s handling of the euro area’s debt crisis, blaming her for drastic cuts in social services, recession and record unemployment, according […]

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