Bernard Hickey details the key news over the weekend in 90 seconds at 9 am in association with Bank of New Zealand, including news European monetary authorities met over the weekend and agreed a stop gap loan of 12 billion euros to support Greece. See more here at BBC.
But Greek Prime Minister George Papandreou has pleaded for a new bailout of 110 billion euros to support Greece over the next couple of years. See more here at The Guardian.
The talks to solve the Greek crisis and stop it spreading to other parts of Europe exposed a rift between France and Germany.
The French want another bailout by Northern European taxpayers, while the Germans are tried of such bailouts and want private debt holders to share some of the pain of a restructure. Meanwhile, the European Central Bank has warned that a restructure could trigger a formal default and financial market chaos.
Essentially, Europe is choosing to kick the can down the road of unsustainable debt in Southern Europe. See more here in my commentary on what the Greek crisis means for NZ.
Banks are beginning to realise the unsustainability of the debt loads and the inevitability of restructures that trigger losses. Some British banks have stopped lending to European banks, fearing the fallout from the contagion from a "Lehman-style" financial crisis in Europe.
This is forcing the European Central Bank to lend to these European banks, effectively shifting private debt to the public balance sheets. It raises the uncomfortable prospect that any Greek default could also wipe out the European Central Bank. See more here at The Telegraph.
Elsewhere, TVNZ is reporting the government will announce which parts of Christchurch will be abandoned and which will be rebuilt as early as Wednesday.
Meanwhile, there were signs that farmers have started spending again at the Field Days, which have just finished. However, many farmers are cautious and choosing to use their higher payouts to pay down debt first. See more here at NZHerald.
No chart with that title exists.
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Senior sources have revealed that leading banks, including Barclays and Standard Chartered, have radically reduced the amount of unsecured lending they are prepared to make available to eurozone banks, raising the prospect of a new credit crunch for the European banking system.
Standard Chartered is understood to have withdrawn tens of billions of pounds from the eurozone inter-bank lending market in recent months and cut its overall exposure by two-thirds in the past few weeks as it has become increasingly worried about the finances of other European banks.
Barclays has also cut its exposure in recent months as senior managers have become increasingly concerned about developments among banks with large exposures to the troubled European countries Greece, Ireland, Spain, Italy and Portugal.
http://www.telegraph.co.uk/finance/financialcrisis/8584442/UK-banks-aba…
"Lemme tell you something right now. Yesterday, all these warring factions in Europe went from a hardcore game of "chicken" to blinking. Each and every one backpedaled. And the spin became "broad-based cooperation" to get it done. Because they were facing meltdown. And I'm thinkin', the next thing we're gonna' see is the Greek Army and then it'll be all over. I am sure all this was not lost on the rest of the world's leadership who are watching Greece unfold from the edge of their seats."
So if I was the Greek Generals I'd take out huge CDS's and then march on the capital....
regards
Hahhaaha, good one Steven.
It's all moot, Saudi Arabia on track to use all its oil production for domestic use in just 19 years. OMG
Saudi Arabia is consuming up nearly a third of its crude oil output and supply could fail to meet domestic demand in 2030 if the high consumption trends are maintained, according to a government report.
The Gulf kingdom, the world’s top oil exporter and largest Arab economy, currently produces nearly 8.5 million barrels per day of crude but local demand is as high as 2.5-3.4 million bpd, mostly used in power generation, said the report by the state-controlled Saudi Electricity Company (SEC).“The current oil production levels of around 8.5 million bpd will not be enough to meet domestic demand in 2030 if the current growth in local consumption continues,” said Abdul Salam Alyamani, SEC’s vice president for relations.“These high growth rates constitute a major challenge to Saudi Arabia in the long term as it relies on oil exports to provide nearly 80 per cent of its income.”
http://www.emirates247.com/news/region/saudi-alarmed-by-high-oil-demand-2011-06-19-1.403349
My oldest is running a superyacht, out of Rhodes.
Says there's no stressed body-language there at all. No marches, no protests. Reckone he's never seen so many beautiful people in one place.
I asked him if he was acting as a counterpoint - he reckons he blends right in.
Nothing surer than death and farmers trying to minimise taxes. ANZ's Cameron Bagrie has fortold, that as farmers stare at prospect of huge tax bills they will find the 'need' to offset that by getting out their cheque books and spending. There are some of course still needing to get their loans in balance but others are looking at some serious earnings this year which means large tax bills unless offset by business purchases. It's going to be good boost for the domestic economy.
Harrrrrrrrrrrrrrrhahahaha
"Thousands of people who signed an early childhood education petition have had their email addresses added to a Labour Party database, with leader Phil Goff saying it was solely to let people know the outcome of the campaign." herald
Keep a straight face Goofy....!
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