Is
Italy’s Banking Problem Becoming Too Big to Solve? - (www.wolfstreet.com) Ever
since the European Commission and ECB jointly decided that Italy’s government
could bend EU banking rules out of all recognition in order to bail out the
country’s third largest bank, Monte dei Paschi di Siena, Europe’s financial
stocks have been on a tear. But the good times were brought to a grinding halt
Monday after Italy’s largest bank, Unicredit, which employs 55,000 people
in 17 countries, announced losses for 2016 of €11.8 billion. By the
bank’s logic, it would have announced profits if it hadn’t had to write off
€12.2 billion, including billions of euros of non-performing loans (NPLs)
festering on its balance sheets. But it got worse. In the registration document
for its pending recapitalization, published on its website today, Unicredit
also announced that its capital ratios at the end of 2016 might fall short of
ECB requirements. It was enough to prompt a 5.45% slide in its shares. As
detected in the ECB’s latest stress test, Unicredit already had the slimmest
capital buffer of all Europe’s Global Systemically Important Banks (G-SIBs).
And it just got slimmer.
Leaked
Executive Order Reveals Trump Crackdown On Immigrant Welfare - (www.zerohedge.com) Seemingly following the proposals of Bill Clinton (and Ron Paul), The Washington Post reports that a leaked document shows the Trump
administration is planning to crackdown on current, and would-be,
immigrants who are likely to require public assistance. After Bill Clinton received a standing ovation for suggesting crackdown on immigrant
welfare... "We are a nation of immigrants.. but we are a nation of
laws" "Our nation is rightly disturbed by the large numbers of
illegal aliens entering our country... Illegal immigrants take jobs
from citizens or legal immigrants, they impose burdens on our
taxpayers... That is why we are doubling the number of border guards, deporting
more illegal immigrants than ever before, cracking down on illegal hiring,
barring benefits to illegal aliens, and we will do more to speed the
deportation of illegal immigrants arrest for crimes... It is wrong and
ultimately self-defeating for a nation of immigrants to permit the kind of
abuse of our immigration laws that has occurred in the last few years..
and we must do more to stop it."
Greek
Markets Tumble as EU Holds Up Payment Amid IMF Doubts - (www.bloomberg.com) Greek
stocks and bonds fell on Monday after the government in Athens failed to
bridge differences with European creditors over the conditions attached to the
country’s latest bailout review and the International Monetary Fund warned that its debt is on an
unsustainable path. Almost two-thirds of the actions creditors have demanded
for the disbursement of the next tranche of emergency loans have yet to be
completed, the government conceded in a memo discussed between Finance Minister
Euclid Tsakalotos and bailout auditors last week in Brussels, a person familiar
with the matter said. Even though the memo laid out a series of commitments to
ensure the work will be completed, creditors said the proposals weren’t good
enough, a separate official said. The people asked not to be named as the
contents of the memo haven’t been made public.
The
Granular Detail of Miami’s Preconstruction Condo Flipping Bloodbath - (www.wolfstreet.com) Ever
since the European Commission and ECB jointly decided that Italy’s government
could bend EU banking rules out of all recognition in order to bail out the
country’s third largest bank, Monte dei Paschi di Siena, Europe’s financial
stocks have been on a tear. But the good times were brought to a grinding halt
Monday after Italy’s largest bank, Unicredit, which employs 55,000 people
in 17 countries, announced losses for 2016 of €11.8 billion. By the
bank’s logic, it would have announced profits if it hadn’t had to write off
€12.2 billion, including billions of euros of non-performing loans (NPLs)
festering on its balance sheets. But it got worse. In the registration document
for its pending recapitalization, published on its website today, Unicredit
also announced that its capital ratios at the end of 2016 might fall short of
ECB requirements. It was enough to prompt a 5.45% slide in its shares. As
detected in the ECB’s latest stress test, Unicredit already had the slimmest
capital buffer of all Europe’s Global Systemically Important Banks (G-SIBs).
And it just got slimmer.
German
inflation and French election push up borrowing costs across Europe – (www.cnbc.com) The
cost of borrowing across Europe spiked up Monday as German inflation figures
and French elections triggered concern over whether central bank stimulus could
be cut short. Official data from Germany' statistics office show consumer price
inflation across the country has risen 1.9 percent year-on-year, the highest
level since July 2013. It slightly undershot forecasts of a 2.0 percent rise
and sent the euro to an 11-day low.
U.S. stocks
slump as Trump's travel ban triggers uncertainty - (www.reuters.com)
New euro zone loans to Greece hinge on IMF participation in bailout: ESM - (www.reuters.com)
Bond markets set for a taste of the 60s as inflation picks up - (www.reuters.com)
German Pride Shifts to Angst in Role as Europe’s Reflator - (www.bloomberg.com)
New euro zone loans to Greece hinge on IMF participation in bailout: ESM - (www.reuters.com)
Bond markets set for a taste of the 60s as inflation picks up - (www.reuters.com)
German Pride Shifts to Angst in Role as Europe’s Reflator - (www.bloomberg.com)
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