http://www.euronews.com/ Spain managed to sell all the government bonds it wanted at its latest auction - 2.5 billion euros worth. But investors' worries about the state of the economy and the struggles Madrid is having to tame its deficit meant a rise in the bond yields, that is the amount of interest offered. Spain has again slipped into recession and the economy has been contracting or showing minimal growth for four years. It is not under too much pressure as, including earlier issuance, the government has now raised half of its gross target for this year. It has benefited from market liquidity after Europe's banks took more than a trillion euros of ultra-cheap three-year cash (LTRO) from the European Central Bank in December and February. "A reasonable set of results, which will go some way to allaying fears the domestic bid for Spanish bonds has dried up. That said, as evidenced by the accepted yield on the 10-year, this support does come at a price," rate strategist at Rabobank Richard McGuire said. Find us on: Youtube http://bit.ly/zr3upY Facebook http://www.facebook.com/euronews.fans Twitter http://twitter.com/euronews
Views: 289 euronews (in English)
http://www.euronews.com/ The interest rates that Spain had to offer to sell its latest batch of government bonds shot up on Thursday. That came after economic data confirmed the eurozone's fourth largest economy was back in recession and on fears of a bank run at one of its largest lenders. Madrid had to pay around five percent to attract buyers at an auction of bonds maturing in four years time. That was way above the 3.374 percent paid the last time such bonds were sold. Longer term bonds are already close to unsustainable levels as 10-year yields have spiked back above six percent, which investors view as a pivot point that could accelerate a climb to seven percent. Official data confirmed the Spanish economy shrank by 0.3 percent in the first quarter, putting it back into recession. The country faces a prolonged downturn as the government cuts spending in an attempt to wrestle down its budget deficit. *Bankia beset* A major worry for Spain is a banking sector awash with bad loans, from the bursting of the property bubble. On Thursday the government had to deny a newspaper report that customers of nationalised lender Bankia had withdrawn more than one billion euros in deposits over the past week. "It's not true that there is an exit of deposits at this moment from Bankia," said Economy Secretary Fernando Jimenez Latorre. Bankia's president, José Ignacio Goirigolzarri, also tried to reassure calling the bank "extremely strong". The government last week took over Bankia, the country's fourth-largest lender which holds around 10 percent of Spanish deposits, in an attempt to dispel concerns over its ability to deal with losses related to the 2008 property crash. Find us on: Youtube http://bit.ly/zr3upY Facebook http://www.facebook.com/euronews.fans Twitter http://twitter.com/euronews
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Spain's 10-year bond yield crossed 7% and equities lost early gains after Greek election relief faded. Don’t miss a WSJ video, subscribe here: http://bit.ly/14Q81Xy More from the Wall Street Journal: Visit WSJ.com: http://www.wsj.com Visit the WSJ Video Center: https://wsj.com/video On Facebook: https://www.facebook.com/pg/wsj/videos/ On Twitter: https://twitter.com/WSJ On Snapchat: https://on.wsj.com/2ratjSM
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In a closely watched auction Spain's treasury has sold 3.95 billion euros of long-term sovereign bonds. The figure almost topped its highest sales target of four billion euros but were still forced to pay relatively high yields to attract investors. With sharp focus on Greece investors and analysts are anxiously watching Spain and Italy to see if they still have access to debt markets at reasonable rates of interest.... http://www.euronews.net/
Views: 203 euronews (in English)
http://www.euronews.com/ Spain's borrowing costs have shattered euro-era records. The yield on 10-year bonds hit 7 percent on Thursday morning. The move comes after ratings agency Moody's cut Spain's credit rating to one notch above "junk". The downgrade came with a warning the country's rating could be reduced further in the next three months and face the risk of a full-blown bailout. The debt yield has peaked and troughed since the start of the year. Seven per cent is seen as too expensive by markets for a sovereign to borrow over the long term. It is the highest since the birth of the single currency in 1999. "The markets will probably start to think that Spain has received the bailout however it's framed. And you know when they lose confidence; we all know what happens to bond yields. I think in the current environment, as pressure on Southern European yields will continue to rise, it clearly raises pressure on the ECB to take further action and to buy bonds in the secondary market," said Peter Dixon, Global Financial Economist at Commerzbank. The ECB pumped more than one trillion euros in cheap loans into the European banking system in two operations in December and February seeking to avert a dangerous credit squeeze. The Spanish crisis is unfolding against the backdrop of Sunday's Greek elections further destabilising markets. Find us on: Youtube http://bit.ly/zr3upY Facebook http://www.facebook.com/euronews.fans Twitter http://twitter.com/euronews
Views: 133 euronews (in English)
http://www.inthemoneystocks.com The yields on Spanish and Italian debt is once again on the rise. Earlier today, Spain and Italy both auctioned off €3.00 billion in new short term debt. When yields rise it will usually cause the U.S. Dollar Index futures (DX-U2) to strengthen and that causes the stock and commodity markets to deflate and trade lower. The problems in Europe continue to increase by the day as Greece plays second fiddle to Spain and Italy. Yesterday, credit rating agency Moody's downgraded the Spanish banking sector. This tells us that Spanish banks and most European banks could be very volatile today. Some other equities that could be volatile today include Banco Santander S.A. (ADR) (NYSE:SAN), ProShares UltraShort Euro (ETF) (NYSEARCA:EUO), Credit Suisse Group AG (ADR) (NYSE:CS), and the iShares MSCI Germany Index Fund (ETF) (NYSEARCA:EWG).
Views: 702 InTheMoneyStocks
http://www.euronews.net/ November 17 signalled new fears for the euro, sowing seeds that soon might spread - of more unsustainable debts. Spain's ten-year bond yield reached a dangerous level, so that even France's borrowing rate rocked higher. On Thursday, what the euro zone's third and fourth-largest economies, Italy and Spain, paid on debt (6.8% and 6.6%, respectively) was more than three times Germany's rate (1.8%). France was (3.6%).
Views: 833 euronews (in English)
► Subscribe to the Financial Times on YouTube: http://bit.ly/FTimeSubs The search for higher yields has sent many investors to junk bonds, co-cos, emerging market debt and munis. John Authers, the FT's senior investment columnist, examines the risks involved. ► FT Wealth: http://bit.ly/1e3996C ► FT Business: http://bit.ly/1KUK08s ► Bond Turmoil: http://bit.ly/1JUa4Dy
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Growing worries over Spain's economy prompted investors to demand a higher bond yield, Charles Forelle reports on Markets Hub. Don’t miss a WSJ video, subscribe here: http://bit.ly/14Q81Xy More from the Wall Street Journal: Visit WSJ.com: http://www.wsj.com Visit the WSJ Video Center: https://wsj.com/video On Facebook: https://www.facebook.com/pg/wsj/videos/ On Twitter: https://twitter.com/WSJ On Snapchat: https://on.wsj.com/2ratjSM
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» Subscribe to NowThis World: http://go.nowth.is/World_Subscribe After a historic election, Greece's Prime Minister Alexis Tsipras promised to roll back austerity measures imposed by its European partners. But will this anti-austerity gamble work? Learn More: German Economy Minister Says Greece Should Not Burden Europe With Its Internal Political Debates http://www.ibtimes.com/german-economy-minister-says-greece-should-not-burden-europe-its-internal-political-1798774 "The German economy minister has said that Greece must respect the terms of its international bailout, and that the "troika" of international lenders was not to blame for economic inequality in the country." Alexis Tsipras begins rolling back Greek austerity policies http://www.theguardian.com/world/2015/jan/28/greece-new-prime-minister-halts-austerity-policies "In a dramatic start to his tenure in office, Greece's new prime minister, Alexis Tsipras, has begun unpicking the deeply unpopular austerity policies underpinning the debt-stricken country's bailout programme." Greek Bank Bonds Tumble After ECB Restricts Funding Windown http://www.bloomberg.com/news/articles/2015-02-05/greek-bank-bonds-tumble-after-ecb-ends-access-to-funding-window "Bonds of Greek banks tumbled after the European Central Bank said it would restrict their access to funding, raising financing costs and limiting the availability of liquidity." European Central Bank throws Greece lifeline before eurozone talks http://www.theguardian.com/business/2015/feb/12/european-central-bank-greece-eurozone-talks-emergency-lending-alexis-tsipras "The European Central Bank has thrown Greece a lifeline to prevent Athens running out of money before crunch talks with European leaders." Watch More: Why the US & China are investing in Africa: https://www.youtube.com/watch?v=lq0bKvEg560 _________________________ NowThis World is dedicated to bringing you topical explainers about the world around you. Each week we’ll be exploring current stories in international news, by examining the facts, providing historical context, and outlining the key players involved. We’ll also highlight powerful countries, ideologies, influential leaders, and ongoing global conflicts that are shaping the current landscape of the international community across the globe today. More from NowThis: » Subscribe to NowThis News: http://go.nowth.is/News_Subscribe » Like NowThis World on Facebook: https://go.nowth.is/World_Facebook » Connect with Judah: Follow @judah_robinson on Twitter – Facebook: http://go.nowth.is/LikeJudah » Connect with Versha: Follow @versharma on Twitter – Facebook: http://go.nowth.is/LikeVersha http://www.youtube.com/nowthisworld
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http://www.inthemoneystocks.com This morning, the S&P 500 Index e-mini futures (ES-U2) are trading lower by 0.50 points to $1308.25 per contract. Believe it or not, the futures market is holding up well considering the horrible news out of Europe. Bond yields on both Italian and Spanish debt are soaring higher today. In fact, the yields on the Spanish 10-year bond reached 7.0 percent earlier today after Moody's cut the countries debt rating. Greece will be holding another vote this weekend to decide if they want to stay in the European Union. You just can't make this stuff up as it just seems to be getting worse by the minute. This is why we use charts and do not care about the news. Traders must keep an eye on the U.S. Dollar Index as a falling dollar will help to inflate the major stock market indexes.
Views: 634 InTheMoneyStocks
(12 Jan 2012) SHOTLIST 1. Various interiors of the Frankfurt Stock Exchange 2. Set up shot of Oliver Roth, Director of Trade at Close Brothers Seydler Bank 3. Mid of traders at work 4. SOUNDBITE (German) Oliver Roth, Director of Trade, Close Brothers Seydler Bank: "Certainly the euro is, for the moment, a bit weak compared to a lot of the other key currencies around the world. The fact is that the European debt crisis is weakening the currency, but I think there will be a revival sooner or later as the dollar has the same weakness, so there will be a rebound meaning the euro will massively pick up, which could give an impulse to the European markets." 5. Cutaway of traders 6. SOUNDBITE (German) Oliver Roth, Director of Trade, Close Brothers Seydler Bank: "Italy and Spain need fresh money - they will certainly get this money, and they will certainly have to pay premiums for it, additional premiums. But this has always been expected anyway, so I don't think that this will have a negative impact on the markets today." 7. Wide of interior stock exchange STORYLINE Strong bond auctions in Italy and Spain dramatically drove down their borrowing costs and lifted stocks on Thursday, providing a reprieve from Europe's relentless debt crisis. But analysts warned that economic fears lie just below the surface and relief could be short-lived. While strong corporate earnings in the US have been buoying world stock markets recently, observers said that European companies would likely tell a markedly different story, squeezed as they are by government cost-cutting measures and pessimism that's driving down consumer spending. When the European Central Bank announces its interest rate decision later in the day, traders will be hanging on bank President Mario Draghi's every word for indications about the eurozone economy, which many worry is slipping back into recession. A cut in rates would be a jolt to the economy, but most analysts expect the bank to hold rates steady after lowering them for two months in a row. But on Thursday, the underlying fears were shrugged off as traders focused on solid auctions in Italy and Spain that saw both countries pay far less to borrow than in recent sales. Ahead of the auction Oliver Roth, Director of Trade at Close Brothers Seydler Bank, said: "Italy and Spain need fresh money - they will certainly get this money, and they will certainly have to pay premiums for it, additional premiums." Rising borrowing costs are at the heart of Europe's crisis, pushing three countries to seek bailouts when investors refused to lend to them except at astronomical rates. In recent months, Italy and Spain have careered toward similarly unsustainable rates, so their bond auctions are closely watched to measure investors' willingness to bet on them. Both countries are generally considered too big to be rescued as Greece, Ireland and Portugal were, significantly raising the stakes. Cautious early trading gave way to substantial gains in European markets after the auctions. In France, the CAC-40 rose 1.1 percent to 3,239, while Germany's DAX climbed 1.3 percent to 6,234. The FTSE index of leading British shares was up 0.9 percent at 5,694. Stocks in Italy got the biggest boost, rising a whopping 2.6 percent. The yields, or interest rates, on 10-year Italian and Spanish bonds on the secondary market dropped significantly - a sign that investors see their debt as less risky. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/572565b7102dc7c21a02636a97fdb9d5 Find out more about AP Archive: http://www.aparchive.com/HowWeWork
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http://www.euronews.net/ The first test of investor confidence since combined action by six central banks saw Spain selling nearly four billion euros of bonds. But Spain had to offer the highest rate of return since 2005 to borrow for five years. France too decided to sell 4.3 billion euros of debt but the cost of borrowing over ten years was 3.18 per cent - less than in early November. Analysts said the central bank action helped produce 'pretty good' results.
Views: 111 euronews (in English)
Spain has paid sharply higher yields of interest to borrow money on the international markets, to clear a crucial bond auction of three medium-term bonds. Which is better than the market could have predicted and ensures the stability of the Spanish market. Written and Presented by Ann Salter The Treasury sold 2.5 billion euros of two bonds maturing in 2015 and one bond maturing in 2016, at the top end of the targeted range. Analyst Pablo De Barrio was positive about the government getting back on target, speaking in Spanish he said "Although the cost has increased what we at least see is a higher demand, the government has cleared what it needed, it was 2.5 billion euros, well we have practically reached the target - one billion and something in the three year bonds, one billion and something in the four year bonds, and 4 million euros in an another special three year auction, so pretty much within the government's targets but paying more, of course." On bonds due to be paid back in January 2015, it had to pay an interest rate of 4.373%, up from 2.89% in April. on debt maturing in April 2016, Spain had to pay an interest rate of 5.106%, up from 3.374% on 15 March. And The bond maturing April 30, 2016 sold 1.1 billion euros with an average yield of 5.106 %, higher than 3.374 %March 15. Demand was lower than previously, with the bond 2.4 times subscribed after 4.1 times at the March auction. The government on May 9 took over Bankia, the country's fourth-largest lender, in an attempt to dispel concerns over the bank's ability to deal with losses related to the 2008 property crash. And this morning shares in Bankia slumped a further 10 percent ,compounding a week of falls, as small investors who had participated in a July stock market listing sold their holdings which have lost over half their value since the flotation. I am Ann Salter, thanks for watching, for the latest on the Eurozone crisis and other stories go to our website at ibtimes.co.uk Written and Presented by Ann Salter
Views: 90 IBTimes UK
Oct. 4 (Bloomberg) -- Nick Sargen, chief investment officer at Fort Washington Investment Advisors, talks about the performance of U.S. stocks, investor sentiment and Fort Washington's investment strategy. Sargen speaks with Adam Johnson and Lisa Murphy on Bloomberg Television's "Street Smart." Ben Willis, head of floor operations for Sunrise Securities Corp., and Bob Iaccino, founder and president of TraderOutlook.com, also speak. (Source: Bloomberg)
Views: 219 Bloomberg
http://www.euronews.net/ Italy's borrowing costs plunged in its first auction of government bonds of the new year. For bonds that have to be repaid next January, Rome paid less than half the rate of interest it had to fork out a month ago -- 2.735 percent as opposed to six percent. The auction, and a similarly successful one in Spain, showed renewed investor confidence in the attempts to address the eurozone's debt problems with Italy getting help from the European Central Bank and praise from German Chancellor Angela Merkel.
Views: 238 euronews (in English)
June 12 (Bloomberg) -- Scarlet Fu reports on today's top news. She speaks on Bloomberg Television's "InBusiness." (Source: Bloomberg)
Views: 179 Bloomberg
► Subscribe to the Financial Times on YouTube: http://bit.ly/FTimeSubs The difference between short and long-dated Treasury yields is narrowing, a classic harbinger of an economic downturn, says the FT's US markets editor Robin Wigglesworth. For more video content from the Financial Times, visit http://www.FT.com/video Twitter https://twitter.com/ftvideo Facebook https://www.facebook.com/financialtimes
Views: 1001 Financial Times
http://www.euronews.net/ In its latest auction, Spain had to offer sharply higher rates of return to get investors to buy almost 3.5 billion euro's worth of its government bonds. Economists said that trend is likely to continue until European leaders make progress on tackling the region's debt crisis. The major credit rating agencies -- Moody's, Fitch and Standard & Poor's -- each cut Spain's credit rating this month.
Views: 327 euronews (in English)
http://www.slumdogforex.com/special1.html The price action in the EUR/USD pair ended flat & neutral for the day as growing concerns out of the Eurozone periphery created more uncertainty & indecision in the market. On today, we had 10yr Spanish bond yields rise above the 7.00% level and some of the Spanish shorter dated paper broke to new record highs as well. This news, along with weak data out of the US, caused the whipsaw, choppy behavior in price and the EUR/USD had only traded within a 95 pip range, from the session high at 1.2325 down to the session low at 1.2230. In today's technical analysis video, we will identify trade entries around common areas of support & resistance and what to expect during the next trading session.
Views: 208 Forex Anatomy Trading School
http://www.euronews.com/ Italy's borrowing costs have jumped in its latest auction of government bonds. The amount of interest Rome had to offer investors on bonds maturing in three years time hit 3.89 percent. That is a rise of more than one percentage point compared with a month ago when the yield was at 2.76 percent. It was the latest sign that the markets are unconvinced Europe is getting on top of its debt problems. Budget troubles in Spain and concerns about slowing global growth have turned the spotlight back on Italy's 1.9 trillion euro debt. However, in a more reassuring sign the Treasury raised 4.88 billion euros at the sale - just shy of its maximum planned amount of 5 billion euros. Italian officials have blamed external factors - an oblique reference to Spain - for the rise in yields and dismissed suggestions the slow progress of structural reform in Italy has put off investors. Find us on: Youtube http://bit.ly/zr3upY Facebook http://www.facebook.com/euronews.fans Twitter http://twitter.com/euronews
Views: 198 euronews (in English)
Subscribe to our channel http://bit.ly/AJSubscribe Spain saw its bond yields shoot up again after the country's economy minister said that the future of the euro would be determined in the next few weeks and would depend on the stability of Spain and Italy. The interest rate on 10-year Spanish bonds stood rose 0.13 percentage points to 6.58 per cent in early trading on Friday. The rate was more than 5.4 percentage points higher than the equivalent German one, which is considered a safe haven for investors. Peter Sharp reports. At Al Jazeera English, we focus on people and events that affect people's lives. We bring topics to light that often go under-reported, listening to all sides of the story and giving a 'voice to the voiceless.' Reaching more than 270 million households in over 140 countries across the globe, our viewers trust Al Jazeera English to keep them informed, inspired, and entertained. Our impartial, fact-based reporting wins worldwide praise and respect. It is our unique brand of journalism that the world has come to rely on. We are reshaping global media and constantly working to strengthen our reputation as one of the world's most respected news and current affairs channels. Social Media links: Facebook: https://www.facebook.com/aljazeera Instagram: https://instagram.com/aljazeera/?ref=... Twitter: https://twitter.com/ajenglish Website: http://www.aljazeera.com/ google+: https://plus.google.com/+aljazeera/posts
Views: 1476 Al Jazeera English
http://www.euronews.com/ A growing belief that Spain is going to need a full bailout from the European Union caused Madrid's borrowing costs to rise again on Tuesday. The interest it had to offer to get investors to buy its short-term government bonds rose close to the highest since the creation of the euro. Spain did find buyers for all the three billion euros worth of bonds it wanted to sell, but the markets are very nervous, which was reflected in a sell-off shares on the Madrid stock exchange. Adding to the worries was the near certainty that more of Spain's regions will ask for bailout help from Madrid as they can no longer borrow independently. David Jones, Chief Market Strategist with IG Index, said: "I think a full bailout for Spain is something that the European Central Bank and the eurozone as a whole will be very keen to try and avoid, but it's difficult to see it going any other way at the moment." Spain's Economy Minister Luis de Guindos was in Berlin on Tuesday for crisis talks with his German counterpart Wolfgang Schaeuble. On Monday de Guindos repeated Madrid would not need more aid. The government's position remains that the 100 billion euros that it has asked for from the EU to recapitalise its battered banks will be enough to stem the crisis but the latest bond auction showed the markets do not believe that. *Madrid's mounting costs* Spain's increasingly desperate struggle to put its finances right have seen its borrowing costs soar to levels that are seen as being unsustainable. Italy, commonly regarded as too big to bail out, has been dragged along in its wake. The Spanish Treasury raised 3.04 billion euros of three and six month T-bills, meeting its target. The average yield on the three month bill was 2.434 percent, up from 2.362 in June. For the six-month paper, the yield jumped to 3.691 percent from 3.237 percent last month. On the secondary market, Spanish five-year government bond yields rose above 10-year yields for the first time since June 2001. Having to pay more to borrow shorter-term rather than longer-term is usually a sign that markets think the risk of a default or debt restructuring has increased. "The spread between five and 10-years moved to negative today, which is a classic sign that the market thinks the current trends are unsustainable for Spain's fiscal dynamics," said Nick Stamenkovic, bond strategist at RIA Capital Markets. Find us on: Youtube http://bit.ly/zr3upY Facebook http://www.facebook.com/euronews.fans Twitter http://twitter.com/euronews
Views: 677 euronews (in English)
(19 Jun 2012) STORYLINE Spain paid sharply higher interest rates in a short-term bill auction on Tuesday, highlighting growing investor concerns that the country might eventually need foreign help to finance itself. The Treasury raised euro3.39 billion (b) (4.28 billion (b) US dollars) in 12- and 18-month bills - more than its upper target of euro3 billion (b) - and demand was robust, but the cost skyrocketed. The interest rate on the 12-month bills rose to 5.07 percent from 2.98 percent at the last such auction on May 14. The rate on the 18-month bills soared to 5.10 percent from 3.3 percent. In the secondary market, where issued debt is traded openly, the yield on 10-year Spanish bonds remained perilously high at 7.03 percent, down 0.10 percentage points from the previous day. Worries about Spain's ability to repay its debt grew last week when the country agreed to accept a eurozone loan of up to euro100 billion (b) to shore up its ailing banks, which are sitting on massive amounts of soured real estate investments. But analyst Salvador Isasa said Europe's political leaders had to think beyond Spain's troubles. "I think there's a need of making an energetic political decision, to finally put a firebreak not on the Spanish situation only, but on the Eurozone. It would be senseless to rescue Spain, if Italy is going to be in the same situation than us tomorrow." In Greece meanwhile, rival Greek party leaders launched a second day of talks on Tuesday in an attempt to quickly form a coalition government after weekend elections produced a winner without a governing majority. Antonis Samaras' New Democracy party came first in Sunday's vote, winning 129 of Parliament's 300 seats. He is seeking an alliance with the third-placed Socialist PASOK and the smaller Democratic Left party. Analyst George Tselios said a new government made up of different factions gave "a perspective for a government with big possibilities to take new measures." He added: "This is a very positive aspect for the market, for stability and perhaps for improvement in the next few months." The leaders of the world's largest economies where meanwhile meeting in Mexico at the annual Group of 20 meeting, their agenda set on efforts to boost growth and job creation amid the festering European financial crisis. "We're waiting," said head of Baader Bank Robert Halver. "We have a 'wishy-washy' market. We want to know what the EU summit will come up with later this week, the G20 summit. Not a lot more is expected but on the one hand one thinks the world economy is running ok, which is a positive, but on the other hand one thinks nothing much sensible is expected, which is why the market is left in the lurch," he added. Even the eurozone's top performer was under pressure as concerns about Europe's heavily indebted economies sent a closely-watched survey of German investor confidence plummeting in June. The ZEW institute reported on Tuesday that its monthly confidence index dropped by 27.7 points to a level of minus 16.9 points _ its strongest decline since October 1998. The institute's president said the financial market experts who were surveyed are clearly warning against an over-optimistic assessment of Germany's economic prospects this year. Germany's export-oriented economy ships a lot of its goods to countries where the crisis is weighing on the economy. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/87b12cc03b95b13cd1dbea0c27079691 Find out more about AP Archive: http://www.aparchive.com/HowWeWork
Views: 7 AP Archive
http://www.euronews.com/ The rate of interest the Spanish government is having to offer to get investors to buy its bonds rose sharply on Monday. A row over slush fund allegations involving Prime Minister Mariano Rajoy and his political party caused bond yields to suffer their biggest one-day percentage jump since last September. That raised renewed fears Madrid might have to seek an international bailout, something which had looked less likely in recent months. At the same time the International Monetary Fund said that "risks to Spain's economy and hence to the financial sector remain elevated." The IMF's monitoring mission did however praised Madrid's efforts in repairing its broken banking system saying it had made "major progress" in setting up a so-called bad bank to take over the toxic property assets of lenders receiving state aid. But the monitors did say that bad bank still needs to publish an "updated and comprehensive long-term business plan". Find us on: Youtube http://bit.ly/zr3upY Facebook http://www.facebook.com/euronews.fans Twitter http://twitter.com/euronews
Views: 117 euronews (in English)
http://www.euronews.com/ A ruling from a top German court paving the way for policymakers to take new steps to tackle the eurozone's debt crisis meant European shares finished Wednesday's session at fresh highs. There was also a fall in the amount of interest that the Spanish and Italian government had to pay to get investors to buy their government bonds. The decline in Spanish bond yields to well below 6.0 percent prompted Spain's Prime Minister Mariano Rajoy to say improved market conditions may make aid unnecessary. Spanish economist Ignacio Cantos with investment firm ATL Capital said: "This decision was expected. Now, events can take their course and things will calm down. And so the risk premiums will fall because the situation allows for that. In other words, if you remove the possibility of the euro breaking up it stabilises the markets." The euro rose to its highest level since mid-May. It has been the best-performing major global currency since the European Central Bank pledged to do whatever was needed to "preserve" it at the end of July. It was been over $1.29 on Wednesday and rose to a two-month high against the British pound. Find us on: Youtube http://bit.ly/zr3upY Facebook http://www.facebook.com/euronews.fans Twitter http://twitter.com/euronews
Views: 80 euronews (in English)
http://www.euronews.com/ It is getting more difficult for Spain's government to borrow money. The Spanish Treasury did manage to sell just under three billion euros worth of government bonds in its latest auction on Thursday but had to offer higher rates of interest to entice investors. Demand was also down. That is because the financial markets remain unconvinced Spain's problems can be solved by the austerity measures being brought in as part of a bailout deal for the country's banks. Bond buyer Javier Ferrer, head of the debt desk at Ahorro Y Corporacion, explained the scepticism: "On longer term bonds the interest the treasury has had to pay is frankly high and that's where the auction suffered most. There are still many doubts about Spain, there are still doubts about what the conditions of the bailout are going to be. What happens in terms of the signing and agreement of the 'Memorandum of Understanding' for the bailout is very important." The final terms for the 100 billion euro bailout for Spanish banks will be discussed by EU finance ministers on Friday. *EU says no to bond buying* The European Commission has just said that that money can only be used for recapitalising the banks -not for buying government bonds - removing another potential lifeline for Madrid. "The up to 100 billion euros, which the euro zone has undertaken to provide to Spanish banks is to do just that, it is only for that purpose and not for any other," Commission spokesman Simon O'Connor told a regular briefing. "There is no link between assistance for bank recapitalisation in Spain and any other type of financial assistance, which might be requested at some further juncture by Spain or anybody else," he added. Spanish daily El Pais wrote on Thursday that any amount not used for bank recapitalisation out of the up to 100 billion euros could be used to buy public debt. "The press reports have been based on a misinterpretation of the legal document," O'Connor said. *What Spain sold* The Treasury sold 1.4 billion euros worth of bonds maturing October 31, 2014 with a 3.3 percent coupon, at an average yield of 5.204 percent compared to 4.335 percent last month, at a bid-to-cover ratio of 1.9 after 4.3 previously. It also sold 1.1 billion euros worth of bonds maturing in July 30, 2017, with a 5.5 percent coupon at a yield of 6.459 percent, above June's yield of 6.072 percent and 2.1 times subscribed compared to 3.4 times in June. The bond maturing October 31, 2019 with a 4.3 percent coupon, sold for a yield of 6.701 percent after 4.832 percent in February. The Treasury placed 548 million euros worth of the bond at a bid-to-cover ratio of 2.9 after 3.3 previously. Find us on: Youtube http://bit.ly/zr3upY Facebook http://www.facebook.com/euronews.fans Twitter http://twitter.com/euronews
Views: 292 euronews (in English)
http://www.euronews.com/ The amount of interest that the Spanish government is having to pay to borrow in the medium term has soared again to the highest since the launch of the euro. At its latest debt auction, Madrid was able to raise all the money it needed from investors but fears about the Spanish bank's black hole of debt meant it is paying a hefty price to find buyers for its government bonds. Analyst Javier Barnuevo of CVG said: "It is a good thing when we think short term because our financial needs seem to be covered. But the interest rate is high and that means that it won't be sustainable long term." The bond auction came just hours ahead of an independent report on the state of Spain's weaker banks which have been hammered by the effects of a property crash and the recession. Madrid is expected to make a formal request for tens of billions in European Union funds to rescue them. Banking sources believe the lenders will need to raise a further 60-70 billion euros to improve their capital reserves. The debt auction proved the Spanish Treasury can still borrow on international markets, albeit at a high cost, and it made the best of solid demand by selling 2.2 billion euros in bonds, above the targeted amount. "We want to emphasise the strong demand despite the current situation on the markets," an Economy Ministry source said. But concerns that Spain might have to take a full sovereign bailout meant that international investors are opting for less risky debt. While Madrid does not give immediate breakdown of buyers in primary auctions, data shows international investors are steering clear of Spain and have left the often troubled domestic banks to buy up the government's bonds. Find us on: Youtube http://bit.ly/zr3upY Facebook http://www.facebook.com/euronews.fans Twitter http://twitter.com/euronews
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(7 Jun 2012) France's government has raised 7.8 billion (b) euros (9.7 billion (b) US dollars) in an auction of long-term bonds that saw its key borrowing rate fall. The bond sale came amid heightened fears that Spain's rocky finances could further damage the eurozone. In France's largest bond issue on Thursday, the treasury sold 3.5 billion (b) euros in 10-year bonds. It paid an interest rate of 2.46 percent, down from 2.96 percent the last time it auctioned such bonds a month ago. "It's good news. I mean France is about to refinance itself at pretty good conditions and improving conditions," said Benoit de Broissia, a fund manager at KBL Richelieu. The overall sale was on the high end of government expectations of between 7 billion (b) euros and 8 billion (b) euros, and demand was strong, an indication of investor confidence. The treasury also sold bonds maturing in 2019, 2026 and 2060. Critics of France's new Socialist government question whether it can bring down the country's high debts as promised. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/be5700b52b726be384a68fa6ac48ce98 Find out more about AP Archive: http://www.aparchive.com/HowWeWork
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http://www.euronews.com/ Spain's borrowing costs remain high despite the recent eurozone leaders' deal aimed at helping the region's most troubled economies. The Madrid Treasury paid the highest interest rates in over seven months when it sold government bonds maturing in ten years time on Thursday. However demand was solid which strategists said showed that Spain is still able to borrow on the markets. Domestic banks have been the main buyers at Spanish sovereign auctions since the European Central Bank injected nearly one trillion euros of cheap credit in December and February to liquidity-starved lenders. Spanish banks raised their holdings of domestic sovereign debt from 16.9 percent of the total in circulation in December to 29.2 percent in March. The Treasury sold 747 million euros in the 10-year bonds at an average yield of 6.43 percent, up from 6.044 percent at the last such auction on June 7. This marked only the fourth time Spain has sold 10-year bonds this year as it has concentrated on lower, less expensive maturities which were supported by the ECB loans. Find us on: Youtube http://bit.ly/zr3upY Facebook http://www.facebook.com/euronews.fans Twitter http://twitter.com/euronews
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(19 Jul 2012) Germany's Parliament has approved a rescue package worth up to 100 billion euros (122 billion US dollars) for Spain's struggling banks, which the finance minister said was needed to help prevent the eurozone's debt crisis spreading further. Lawmakers voted on Thursday 473-97 in favour, with 13 abstentions. The two main opposition parties joined in backing the Spanish rescue. Germany's Parliament has to endorse all decisions to use money from the eurozone's rescue fund. The country is Europe's biggest economy and the biggest single contributor to the bailout fund. Bailing out struggling eurozone nations isn't popular in prosperous Germany and helping banks is even less so, but Chancellor Angela Merkel's government argued that stabilizing Spain's banking sector - which has been hit hard by a burst real-estate bubble - is in the country's own interests. Eurozone finance ministers are to give final approval Friday. Finance Minister Wolfgang Schaeuble said the Spanish government itself is on the right path, pushing through unpopular austerity measures and reforms to get its finances in order. But it needs help to cope with losses at its banks, as investors who fear the Spanish government may be overwhelmed by such costs have pushed its borrowing rates high. "We are helping the Spanish state against the financial markets' excessive nervousness and, in doing so, we are contributing to preserving the eurozone's overall financial stability," Schaeuble said. Spain has the 17-nation eurozone's fourth-biggest economy, far bigger than those of the three countries - Greece, Ireland and Portugal - whose governments have been bailed out. Its ruling conservative Popular Party used its majority in the Spanish Parliament to push through the latest round of austerity measures on Thursday, which include a rise in sales taxes and a wage cut for civil servants. The vote followed an auction of medium-term Spanish bonds, where the government had to pay substantially higher interest rates to unload 2.96 billion (3.62 billion US dollars) in bonds maturing in 2014, 2017 and 2019. Demand was roughly two times the amount on offer for each issue. But that was down from earlier auctions. In the secondary bond market, where issued debt is traded openly, the interest rate, or yield, on benchmark Spanish 10-year bonds, a measure of investor worries about the security of a country's debt, was at 6.95 percent Thursday, up 0.05 percentage points on the day. Meanwhile France's borrowing rates have dropped sharply in a 9.1 billion euro (11.1 billion US dollar) sale of medium and long-term bonds, signalling that investors are seeking haven from shakier European economies. Yields on French bonds have been dropping and even entered negative territory on short-term bonds earlier this month. While France also has huge government debts, it is perceived as less volatile than neighbouring Spain and other struggling European countries. France's borrowing rates fell on three-year bonds from 1.09 percent in February to 0.12 percent in Thursday's auction. Rates on four-year bonds fell from 1.59 percent in January to 0.53 percent on Thursday. The government also sold seven-year, 10-year and 28-year inflation-linked bonds at lower rates. Demand was high though the overall total was on the low end of the government's goals. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/c77852a327ee6299bc63340584612f0e Find out more about AP Archive: http://www.aparchive.com/HowWeWork
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http://www.euronews.net/ Illustrating now deep Italy is in the debt danger zone the country's one-year government bond yields soared in the latest auction on Thursday. Italy had to pay interest of 6.087 percent to get investors to buy those bonds which mature next November. That compares with a yield rate of 3.57 percent at a previous sale of 12-month paper on October 11. However analysts said the auction went better than feared and Rome did manage to sell all five billion euros worth of the bonds.
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(27 Jul 2012) European markets stabilised on Friday after the previous day's rally, which had been driven by the European Central Bank chief's pledge to do whatever it takes to save the euro currency union. ECB President Mario Draghi triggered a jump in stock markets - which lasted through Asian trading but faded in Europe on Friday - by suggesting on Thursday that the central bank could intervene in markets to lower the borrowing rates of financially weak countries like Spain. Benchmark borrowing rates for Spain and Italy were stable after sliding sharply on Thursday. Spain's 10-year bond yield remained under 7 percent at 6.93 percent, while Italy's traded at 6.04 percent. The yield spread between Italian treasury bonds and German bunds decreased from 518 points to 477, reaching the same level of the first stage of Mario Monti's government. Fidel Helmer, analyst and trader from Hauck and Aufhaeuser in Frankfurt on Friday said that Draghi's pledge helped calm the markets down but could lead to inflation in the future. "The ECB certainly is exceeding its mandate extensively and I think this measure will have bad consequences someday," Helmer said. "There will be a higher inflation, which the politicians of course won't grieve for, because that will reduce sovereign debts," he added. In late morning European trade, Britain's FTSE was down 0.1 percent at 5,566.58 and Germany's DAX shed 0.4 percent to 6,558.54. France's CAC 40 rose 0.1 percent to 3,210.14. Wall Street was set to gain with Dow futures and broader S&P 500 futures both up 0.1 percent. The euro, which had spiked higher on Thursday, gave up some of those gains, trading 0.2 percent lower at 1.2261 US dollars. Market fears have grown over the past few weeks that Spain, the fourth-largest economy among the 17 that use the euro, could need a bailout along the lines of Greece, Ireland and Portugal because its borrowing rates are high. That would strain Europe's finances and potentially cause the breakup of the euro. Analysts say the shockwaves from a splintering of the currency union would likely tip the world economy into recession. Draghi suggested that the ECB considers it part of its job to keep government borrowing rates at normal levels. It could do so by buying government bonds, which has the effect of lowering their yield, or interest rate. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/b198fbc5a77cd814467d097775c6673b Find out more about AP Archive: http://www.aparchive.com/HowWeWork
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http://www.euronews.com/ Spain's borrowing costs climbed at its latest bond auction due to an alleged corruption scandal amongst top politicians and concerns over its weak economy. However interest rates on the 4.6 billion euros worth of government bonds that were sold remain far below previous crisis levels and demand from investors was solid. For bonds maturing in two years time, Madrid had to offer just over 2.8 percent, but that is well down on the more than seven percent reached last summer. "The result of today's auction reflects the recent shift in sentiment towards Spain - a marked increase in yields after months of declines," said Nicholas Spiro, managing director of Spiro Sovereign Strategy in London. But he said that Spain should be pleased by the results given the current economic and political problems. *Scandal* Spain is also being scrutinised by investors for potential political instability because of a widening corruption scandal involving officials of the ruling People's Party. A former party treasurer, Luis Barcenas, has described as fakes handwritten ledgers published last week by El Pais newspaper, which accused the party of channelling payments through secret accounts from managers of building companies to its leaders, including Prime Minister Mariano Rajoy. Rajoy has also denied any wrongdoing. *Headwinds* Spain has been at the centre of the eurozone debt crisis as it fights to deflate one of the highest budget deficits in the bloc through wide-reaching austerity measures, which many claim could make economic recovery harder. The government is expected to announce a public deficit of around seven percent of gross domestic product in 2012 in the next few weeks, down from over nine percent a year earlier. However, many fear such a sharp reduction implies unprecedented budget cutting efforts that will be near impossible to continue. Madrid's budget plan faces strong headwinds from rising costs of unemployment at 26 percent, an aging population and high debt funding bills. Find us on: Youtube http://bit.ly/zr3upY Facebook http://www.facebook.com/euronews.fans Twitter http://twitter.com/euronews
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http://www.euronews.com/ Spain's tough austerity budget has failed to reassure the financial markets, and at its latest auction of government bonds Madrid had to offer higher interest rates to find buyers for those bonds. That was in contrast to a successful step back into debt markets by neighbouring Portugal. The worry is Spain is getting closer to the point where it can no longer afford to maintain its debt and will need a bailout. The yield - that is the interest rate payable - on the country's bonds redeemable in 10 years spiked close to 5.7 percent. Just over one month ago, that rate was down below 4.9 percent. Trying to reassure investors, Spain's economy minister, Luis De Guindos, said the deficit targets for this year and next year are set in stone and promised further reforms in the coming weeks. But economist Pablo De Barrio with XTB Analysts pointed out that with borrowing costs rising, what is missing is additional support from the European Central Bank to reassure bond investors. He added: "Although the new austerity budget will reduce government spending and boost the amount of money coming in, there could be less income for the government than expected if the economy contracts." Despite the concerns, many analysts believe Spain can avoid a bailout. Its neighbour Portugal, which did need a European Union and International Monetary Fund bailout, had good news on Wednesday when it managed to sell one billion euros of 18-month treasury bills at a lower rate of interest than it had to pay one year ago. The average yield on the new T-bill was 4.537 percent, compared with 5.993 percent on the last 18-month bill auctioned in March 2011, before Portugal was forced to withdraw from the bond market. Lisbon also sold 500 million euros in 6-month T-bills at an average yield of 2.90 percent, sharply down from February's 4.332 percent. Still, most investors doubt that Portugal, which is in a deep recession, can finance itself fully in the commercial debt market from the second half of 2013 as the bailout deal envisages. They say it may need additional rescue funds, and some have even expressed fear of a Greece-style debt restructuring. The Lisbon government insists the country is on track to meeting its bailout goals, including the return to the markets. Find us on: Youtube http://bit.ly/zr3upY Facebook http://www.facebook.com/euronews.fans Twitter http://twitter.com/euronews
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In the midst of the worsening euro zone debt crisis Spain has survived a crucial test of its ability to sell government bonds. With the financial markets worried that the euro zone's fourth biggest economy could be the next to need a bailout Madrid managed to find buyers for 3.3 billion euros worth of bonds but had to pay a hefty - and unsustainable - rate of interest. Worries about Spain going the same way as Greece, Portugal and Ireland pulled down shares in Madrid nearly four percent with those falls mirrored around Europe. ... http://www.euronews.net/
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Spain's latest attempt to sell government bonds met a lukewarm reception from investors. As a result, at its first bond auction in a month, Madrid had to pay a higher rate of interest to find buyers for three and a half billion euros worth of bonds due to be paid back in five years. That is despite European Central Bank buying Spain's bonds on secondary markets to stop the euro zone debt crisis spreading. ... http://www.euronews.net/
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The European Sovereign Bond market will soon be in crisis mode. The PIIGS economies are not able to sustain the double hit of political instability (Italy) and rising rates. When European QE stops there will be a bond liquidity crisis which could lead to a major financial crisis sooner than you think. The Euro crisis of 2011 will look like a picnic compared to what's coming! Subscribe so as you can take advantage of the in-depth, accurate and timely research we produce so as you have the right investment strategies for your portfolio.
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(7 Jun 2012) Spain's Treasury successfully raised 2.1 billion (b) euros (2.62 billion (b) US dollars) on Thursday from the bond markets, but at higher interest rates as investors remained concerned the country might need external help to shore up its troubled banking sector. The Treasury paid an average interest rate of 6 percent to sell 611 million (m) euros in key 10-year bonds, up from 5.7 percent in the last such auction on April 19. The rate is still lower than the 6.1 percent being demanded on the secondary market, where issued bonds are traded openly and the yield is seen as an indicator of investor wariness. The rate soared in recent weeks to as high as 6.7 percent on fears over the country's creditworthiness. A rate of 7 percent is considered unsustainable over the long term. Demand for the 10-year bonds in the sale was nevertheless strong, about 3.3 times the amount on offer. Analyst Salvador Isasa said that Spain was already being indirectly helped and would continue to be, but only through bank bailouts. "If what we understand by rescue is to have the Troika here in Spain directly making decisions for us, then I don't think that's going to happen," Isasa said. "The right decisions are being made so far. And yes, we are going to be rescued or intervened, possibly, but in an indirect way and only through banks," he explained. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/471be32892a372746131544cd51931d1 Find out more about AP Archive: http://www.aparchive.com/HowWeWork
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http://www.euronews.com/ Greece's political stalemate is already splashing over onto Spain. On Wednesday, the Spanish Prime Minister Mariano Rajoy said Madrid if facing trouble borrowing enough as the interest rate - or yield - it is having to pay to sell its government bonds shoots up. Spain's yields are back up near the levels that led to Greece, Portugal and Ireland having to be bailed out. Calling it a very difficult situation, Rajoy said: "The borrowing rate has increased a lot and that means it is very difficult to finance ourselves at a reasonable price." "In Spain I believe we are taking the measures we have to take. We must continue cutting public spending," Rajoy said. He added Europe also had to take measures but Spain should concentrate on getting its house in order instead of asking for help from the European Central Bank. Rajoy told reporters it would be a "major error" if Greece were to leave the eurozone. He said Spain's banks are also having difficulty in the markets and so are not making loans. Rajoy has passed two different reforms to try to clean up the country's banks, but investors fear more problems. Shares in the most troubled, Bankia, tumbled further on Wednesday after the Bank of Spain told it to come up with a better plan to deal with the mass of bad property loans it is holding. The government acquired 45 percent of Bankia last week through converting an earlier 4.5 billion euro rescue loan to parent company BFA into shares and is expected to merge Bankia with BFA to control both entities. The government is also expected to pump another 10 billion euros of loans or cash into Bankia to cover the hole left by bad loans. "The Bank of Spain, in view of the events of the last few weeks and the growing uncertainty about the future of the entity, has demanded the presentation of a strengthened plan," Bankia said in a statement to the stock exchange regulator. Find us on: Youtube http://bit.ly/zr3upY Facebook http://www.facebook.com/euronews.fans Twitter http://twitter.com/euronews
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http://www.euronews.com/ Spain's short-term borrowing costs nearly tripled at its latest auction of government bonds. The almost three-fold increase in interest rates Madrid is having to offer underlined the country's precarious finances. The yield paid on a 3-month bill was 2.362 percent, up from just 0.846 percent a month ago. For six-month paper, it leapt to 3.237 percent from 1.737 percent in May. The problem is the financial markets see the 100 billion euros in European Union aid for Spain's newly downgraded banks as only temporary solutions amid the recession and debt crisis. Spain's ability to stop the spiralling of its debt pile amid a tough recession, to clean up its fragile banking system, and to keep its autonomous regions from overspending have kept the country at the centre of worries over a spreading euro zone crisis. Investor unease at Madrid's attempts to do all three means the Treasury has had to rely on Spanish banks to sell its debt in recent auctions, strengthening the vicious link existing between sovereign and banking risk. Economy Minister Luis de Guindos said on Tuesday at a parliamentary hearing that the negotiation of the European financial package to recapitalise Spanish banks was very complex and would take time. It was dealt a further blow late Monday when Moody's followed up its sovereign downgrade by slashing the ratings of the country's banking system. Find us on: Youtube http://bit.ly/zr3upY Facebook http://www.facebook.com/euronews.fans Twitter http://twitter.com/euronews
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Oct. 2 (Bloomberg) -- Bloomberg's Alix Steel, Dominic Chu, Stephanie Ruhle and Adam Johnson update the top trading stories of the day. They speak on Bloomberg Television's "Lunch Money."
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Spanish bond yields Up to 6.47% Spread to bunds Record high 5.14% Bankia bailout 19 bln euros Inject Spanish bonds Then borrow from ECB Backdoor bailout Of Spanish banks Via ECB Nomura note Other banks too Santander, BBVA 50-60 bln euros 220 bln short Spanish property slump Spanish regions Not paying bills Youth jobless 50% Spanish stocks down 2.2% Bankia down 30% Olive oil 10 yr low Bumper crop US markets shut NZ$ over 76 USc Hopes for Greece Pro-bailout ahead
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Economic and financial collapse in Italy is becoming more of a potential reality day by day. The recently elected government is anti EU, ant austerity and would prefer the breakup of Italy (north and South) if it was possible. The fact is that Italy is an integral part of the EU but it's banking sector needs close to 500 billion Euros to stave off bank failures and it's Sovereign bond market is in turmoil. If Italy's Bond yields continue to decline then a credit downgrade is likely which will put Italian bonds near the 'junk' stats. That's Bad Bad news for Italy and the Eurozone. Please subscribe for video alerts as new content comes out.
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Gina Sanchez, Chantico Global, and Matt Maley, Miller Tabak, discuss the bond and stock market with CNBC's Brian Sullivan. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Find CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC Trading Nation: Bond Yields Sink | Trading Nation | CNBC
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