Tag Archives: Friday

Opening Quotes: Throwing Dummies

You had a sense their was a rabbit lurking in the hat, but the timing and extent on Friday’s ‘relief rally’ surprised me. And, superficially, it seemed justified.

Then there’s the  reality.

FT’s Wolfgang Munchau  – consistently ahead of the curve – claims: ‘The Real Victor in Brussels was Merkel.’

Unfortunately I believe he makes he makes a compelling argument. Strip away the political victory laps and what really happen?

Germany’s liabilities are unchanged.

The ESM has no banking license.

Italy hasn’t really gained anything.

The move towards euro-wide banking supervision (& Spainish recaps) will be torturous.

Conclusion: Merkel stands over her ‘not in my lifetime’ Eurobonds pledge, the ESM is seriously overloaded and by the way – where on earth does the growth come from?

Germany – and remember Merkel is <rightly> contemptuous – has bought the market some time but this could be THE rally to sell.

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Opening Quotes – MF Irish Style

http://www.irishtimes.com/newspaper/finance/2012/0321/1224313641061.html

WorldSpreads said its directors believed that, as of the close of business on March 16th, there was a shortfall of about £13 million pounds (€15.6 million) of client money. It added that gross amounts owed to clients were estimated at about £29.7 million, while the company had total cash balances of about £16.6 million.

Conor Foley, who is also WorldSpreads’ largest shareholder, stepped down as the company’s chief executive last Wednesday, two weeks after chief financial officer Niall O’Kelly submitted his resignation on the day the group issued a profit warning.

Mr Foley released a statement on Monday stating that his resignation was “completely unrelated” to the financial issues at the firm and he only learned of them on Friday, at the same time as the rest of the WorldSpreads board.”

Yeah ……
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