Fed extends program to ease Europe debt crisis...

Fed extends program to ease Europe debt crisis
The Federal Reserve extended a program set up earlier this year to ease strains from the European Debt crisis. The program, which was set to expire in January, will now run through Aug. 1, the Fed announced on Tuesday. The Fed is Lending dollars to other Central Banks in exchange for their currencies. The Central Banks can lend those dollars out to banks in their home countries to ease financial turmoil. The Fed's "swap" program was set up in May as fears rose that Greece's Debt crisis could eng...

Let's Not Save the Euro or, For That Matter, The European Union
I am no fan of the European Union. It is an artificial contraption, run by the corporate and bureaucratic elites of the continent, without democratic sanction because the various peoples subsumed under its rule themselves see that it is without democratic values or ambitions. Had it at least energized the economies of Europe there might be some raison d'être for its intrusive rules which wreak havoc with every member nation's culture and identity. The fact is, however, that t...

Fed throws euro banks a lifeline
Fed throws euro banks a lifeline Posted by Colin Barr December 21, 2010 4:19 pm For an outfit whose policies supposedly are plunging the world into unspeakable conflict, the Federal Reserve is doing an awful lot to avoid another meltdown. The Fed said Tuesday it would extend The Dollar swap lines it provides to Central Banks in Europe, Japan and Canada in a bid to avoid a cash crunch like the ones seen to such devastating effect in 2008. Your dollars, our problem? The swap lines, under which...

China ready to buy $5.3 billion of Portugal debt: report
The paper said, without citing any sources, that a deal reached between the two governments will lead to China buying Portuguese Debt in auctions or in the secondary markets during the First Quarter of 2011. China's Central Bank declined to comment on the report. The euro rose to the day's high versus The Dollar on Wednesday on the back of the report, climbing around 30 pips to a session high of $1.3168 according to Reuters data. Portugal has moved into the eye of the storm in Europe's Debt cri...

FOREX-Euro helped by report China will buy Portugal's debt
Wed Dec 22, 2010 7:49am EST * Euro gets lift from report China will buy Portuguese Debt * ECB tender shows heavy reliance on cheap funding * Euro hovers near all-time low vs Swiss franc (Adds detail, updates prices) By Anirban Nag LONDON, Dec 22 (Reuters) - The euro gained against The Dollar and bounced from all-time lows against the Swiss franc on Wednesday, boosted by a news report that China was ready to buy significant amounts of Portuguese Sovereign Debt. The Jornal de Negocios daily rep...

Berlusconi Cites Debt Crisis in Fight to Survive: Euro Credit
Dec. 13 (Bloomberg) -- Silvio Berlusconi’s fight for his political life enters its final round today with the Italian premier using the European Debt crisis as a shield. “We could become targets of international speculators like Greece, Ireland and Portugal, a tragic risk with disastrous consequences,” Berlusconi told supporters in Naples on Dec. 5. “The Ratings agencies have confirmed our top rating but have said that it’s conditional on maintaining political stabi...

Fed extends USD swaps with major central banks
By Sakari Suoninen Frankfurt | Tue Dec 21, 2010 10:58am EST Frankfurt (Reuters) - The world's major Central Banks said on Tuesday they would extend emergency supplies of U.S. dollar funding to money markets, in a sign that authorities remain concerned about financial instability as governments grapple with Debt problems. The European Central Bank, the Bank of Japan, Bank of Canada, the Bank of England and the Swiss National Bank extended their U.S. dollar Liquidity providing operations with t...

Extended Fed Currency Swaps Not Sign of Fresh Concern
By Michael S. Derby The Federal Reserve ’s extension of it currency swap arrangements with other major Central Bank reflects continued unease around the state of European Financial Markets. That said, the decision to maintain the swap lines with the Bank of Canada , Bank of England , the European Central Bank , the Bank of Japan and Swiss National Bank , should be viewed more as a protective action on the part of American officials. It is not, most Economists reckon, a sign that some new ...

FOMC statement: Federal Reserve, European Central Bank, Bank of Japan, Bank of Canada, Bank of England, and Swiss National Bank
The Federal Open Market Committee has authorized an extension through August 1, 2011, of its temporary U.S. dollar Liquidity swap arrangements with the Bank of Canada, the Bank of England, the European Central Bank, the Bank of Japan, and the Swiss National Bank. The swap arrangements, established in May 2010, had been authorized through January 2011. ...

Fed throws euro banks a lifeline
For an outfit whose policies supposedly are plunging the world into unspeakable conflict, the Federal Reserve is doing an awful lot to avoid another meltdown. The Fed said Tuesday it would extend The Dollar swap lines it provides to Central Banks in Europe, Japan and Canada in a bid to avoid a cash crunch like the ones seen to such devastating effect in 2008. Your dollars, our problem? The swap lines, under which the Fed provides foreign central Bankers with essentially unlimited stocks of doll...

US Fed extends dollar lifeline for central banks
The US Federal Reserve on Tuesday extended until August an emergency tool for other Central Banks to access US dollars, amid market jitters and high demand for the safe haven greenback. The deal, which had been due to expire in January, allows the Central Banks of Britain, Japan, Canada and Switzerland, as well as the European Central Bank, to exchange local currency for US dollars. The swap agreements were sealed in May, but as a Debt crisis and slow Economic Recovery continues to roil markets ...

Gates of Vienna News Feed 12/21/2010
The United States Senate voted 67 to 28 to clear the “New Start” Arms Control treaty for a final vote, so that the treaty is all but certain to be ratified. Eleven Republicans joined with the Democrats to vote in favor of it. Sen. John Kerry hailed the vote as an important step towards drastically reducing the danger of Nuclear Weapons. In other news, the Chinese commerce minister says his country is “very concerned” about Europe’s Debt crisis. As well it should be ...

Moodys Warns Portugal of Downgrade
Source: Reuters Lisbon (Reuters) - Moody's Investor Service warned on Tuesday it may downgrade Debt-ridden Portugal's A1 rating by one or two notches after a review that will take up to three months, citing weak growth prospects and high borrowing costs. Portugal has moved into the eye of the storm in Europe's debt crisis, with markets worried it will be next to take a Bailout after Ireland and Greece, although Moody's said its solvency was not in question. The premium investors demand to hold...

It's Europe's Crisis
The recent riots in Athens, London and Rome signal rising insecurity and uncertainty within the European Union. The most profound and widespread challenge is the growing sense that the EU's common currency, the Euro, may not survive in its present form, if at all. The obvious reason is that, as a matter of economics, the euro project gives surrealism a bad name: A currency without a government was always doomed to fail. Now, there are only two choices: 1) Abandon or dramatically shrink the...

Fed extends dollar lifeline for central banks
The Federal Reserve Building in Washington, DC. The US Federal Reserve on T... The US Federal Reserve on Tuesday extended until August an emergency tool for other Central Banks to access dollars, amid market jitters and high demand for the safe haven greenback. The deal, which had been due to expire in January, allows the Central Banks of Britain, Japan, Canada and Switzerland, as well as the European Central Bank, to exchange local currency for dollars. The swap agreements were sealed in May,...

EUR/CHF Continues To Make Historic Lows On Euro Zone Tensions
The euro is slightly firmer today vs. The Dollar today, but continues to make new historic lows vs. Swiss franc just below 1.25, suggesting that euro zone tensions remain strong. EM currencies continue to firm, suggesting a bit of decoupling from the euro zone crisis. However, trading ranges are fairly narrow as we head into the holiday weekend. The ECB said will lend out EUR149.5 bln in 3-month loans, and that 270 banks bid for the money. Banks need to repay EUR96.9 bln in maturing 12-month l...

Greece to vote on 2011 austerity budget (AFP)
Athens (AFP) – Greek lawmakers on Wednesday wrap a five-day debate on a Budget containing over 14 billion Euros in savings under a tough Austerity policy imposed after the country's Bailout by the EU and the IMF. The Socialist Government of George Papandreou has a six-seat majority in parliament and is expected to carry the vote to be held after midnight. The 2011 Budget includes cuts in the badly mismanaged Greek health sector and public companies, a two-percent increase in the lowe...

Greece to vote on 2011 austerity budget
Athens (AFP) – Greek lawmakers on Wednesday wrap a five-day debate on a Budget containing over 14 billion Euros in savings under a tough Austerity policy imposed after the country's Bailout by the EU and the IMF. The Socialist Government of George Papandreou has a six-seat majority in parliament and is expected to carry the vote to be held after midnight. The 2011 Budget includes cuts in the badly mismanaged Greek health sector and public companies, a two-percent increase in the lowe...

Strike hits Greece ahead of vote
Greece crisis: Is there an exit? Public transport Unions have staged a further strike in Greece as the country's parliament prepares to vote on the 2011 Budget. The 24-hour strike has caused traffic chaos in Athens as commuters struggled to get to work by car or taxi. Unions are protesting over cuts to wages, which are part of a national Austerity programme. The budget, which is designed to satisfy bail-out requirements by the EU and IMF, is expected to pass. The strike includes public tr...

UK considers upgrade of Palestinian delegation
The UK is considering upgrading the status of the Palestinian representation office in London in a show of support for Palestinian state building efforts, the Foreign Office said last night. "We are aware of the moves by other European states to upgrade the Palestinian delegations in their capitals," Foreign Office officials said. "We are also looking into this in accordance with our support for Palestinian state building efforts." F ADVERTISEMENT rance, Spain, Portugal and Norway have each r...

France’s AAA Grade at Risk as Rating Cuts Spread: Euro Credit
Dec. 20 (Bloomberg) -- France risks losing its top AAA grade as Europe’s Debt crisis prompts a wave of downgrades that threatens to engulf the region’s highest-rated borrowers, with Belgium also facing a possible cut, analysts and investors said. Moody’s Investors Service said Dec. 15 it may lower Spain’s rating, citing “substantial funding requirements,” and slashed Ireland’s rating by five levels on Dec. 17. Standard & Poor’s is reviewing its...

Crisis-hit Greece gets new ratings warning
Athens, Greece—Fitch Ratings agency on Tuesday warned of a possible downgrade of Greek bonds, adding pressure on the government as it debates the 2011 Budget in parliament. Fitch said that the action "indicates that there is a heightened probability that Greece's sovereign Ratings will be downgraded" from its current BBB- status after a review is completed next month. It follows similar warnings from Ratings agencies Moody's and Standard and Poor's earl...

Greeks go on strike before austerity vote
Greek unions called a general strike on Wednesday and Athens was paralysed by a 24-hour public transport stoppage in Protest against the government's 2011 Budget, set to pass later as part of an EU/IMF Bailout. The Budget, meant to help stem a Debt crisis that has shaken the euro zone, includes further tax hikes and wage cuts in state-run enterprises, especially in public transport. Fitch said on Tuesday it may cut Greece's Credit Rating next month to junk as both other major rating agencies hav...

Europe still cant turn the page
As we are on the cusp of rapping (pun intended) up 2010, one of the main issues that impacted markets that of sovereign European Debt problems, remains in full force. After seeing Bailouts for Greece and Ireland and now the implementation of a permanent bailout facility we’ve learned that outside of temporarily saving senior bank bondholders, the actions have done nothing to calm investor concerns as funding costs are still very elevated. While markets are thin this week and let’s ...

Moody's warns of lowering Portuguese debt rating
Moody's warned on Tuesday it may lower by one or two notches Portugal's A1 rating owing to uncertainty about growth and borrowing prospects, but said it expected Lisbon to be able to pay its Debts. "In Moody's opinion, Portugal's solvency is not in question," Anthony Thomas, Moody's Vice President and lead analyst for Portugal was quoted as saying in a statement. Moody's emphasised its concern over Portugal's growth prospects, which will affect its long-term ability to repay debts, rather than m...