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S&P warns six euro nations of possible downgrade: FT
December 5, 2011--Ratings agency Standard & Poor's has warned Germany, France and four other triple A eurozone nations that they risk losing their top ratings within 90 days amid the debt crisis, a report said on Monday.
The Financial Times newspaper said the US-based agency would announce later Monday that the Netherlands, Austria, Finland and Luxembourg had also been put on "creditwatch negative."
This means a one-in-two chance of a downgrade within 90 days, said the paper.
Banks' internal audit function - consultative paper issued by the Basel Committee
December 2, 2011--The Basel Committee on Banking Supervision issued today a consultative paper on The internal audit function in banks.
The objective of the proposed guidance, which revises the Committee's 2001 document Internal Audit in Banks and the Supervisor's Relationship with Auditors, is to help supervisors assess the effectiveness of a bank's internal audit function. The guidance reflects developments in supervisory and banking practices and incorporates lessons drawn from the financial crisis.
view BIS The internal audit function in banks - consultative document
Sterling could yet win ‘ugly currency’ competition
December 2, 2011-Sterling is not at the forefront of most investors’ minds. In a week that has seen sentiment on both Europe and the US improve significantly, the pound has seemed immune to the increasingly poor outlook in the UK.
That might not last much longer. Sterling, almost by default, has been benefiting from some rather reluctant haven flows in the past few months. It costs about 86p to buy a euro, down from 91p in June, the point at which things started to look dire for Europe.
France and Germany to battle debt crisis with new EU treaty
December 2, 2011-- France and Germany will push for a new European Union treaty to impose tough budgetary discipline on the debt-ravaged eurozone, President Nicolas Sarkozy declared ahead of a critical week for the euro.
The French leader was to meet Britain's Prime Minister David Cameron on Friday to discuss the crisis and then Germany's Chancellor Angela Merkel on Monday to agree a joint Franco-German proposal to save the single currency.
Then, on December 8 and 9, all 27 European leaders will meet at the EU Summit in Brussels, a meeting which some observers have billed as their last chance to restore the credibility of eurozone economic governance.
IMF says could raise new funds from Europe
December 2, 2011--The IMF confirmed Friday that it could raise new funds for onlending from Europe, amid speculation that the European Central Bank might provide money to the Fund that could be used to help Italy and Spain.
"The IMF will need more resources should the crisis deepen further, and... the European authorities -- like some other IMF member countries -- are exploring bilateral loans to the IMF," IMF spokesman Gerry Rice said in a statement.
"As we have also noted, such loans could indeed come from member country central banks, and indeed these central banks are already lending to the Fund under the new arrangements to borrow and bilateral agreements since 2009," he said.
Sharp fall in Spanish debt cost
December 1, 2011--Spanish borrowing costs experienced the third sharpest daily fall since data were first recorded in 1993 as yields
dropped below the key level of 6 per cent. The move came after successful bond auctions eased investor nervousness following Wednesday..
Component Changes Made to STOXX Blue-chip Indices
Changes are due to fast entry rule
December 1, 2011--STOXX Limited, the market-moving provider of innovative, tradable and global index concepts, today announced changes to the STOXX Europe 50, STOXX Asia-Pacific 50 and STOXX Global 150 indices, which will become effective with the open of European markets on December
19th, 2011.
In the STOXX Europe 50 and STOXX Global 150 indices, the following changes will be made:
Spain pays higher rates in EUR 3.75bn bond sale
Decemeber 1, 2011--Spain's borrowing costs surged Thursday as it auctioned 3.75 billion euros ($5 billion) in bonds in the midst of the eurozone debt crisis.
The Treasury managed to raise the full amount targetted but had to offer yields of more than five percent to lure interest in the auction of three-, four- and five-year government bonds, the Bank of Spain said.
Investor appetite for the bonds had been stimulated by the decision of the world's top central banks on Wednesday to pump liquidity into the financial system, said an analyst at Bankinter.
Vietnam losing attraction: European business group
December 1, 2011--Vietnam is losing its attraction as a regional investment destination because of trade restrictions, new regulatory burdens and economic instability, the European Chamber of Commerce said Thursday.
"European investors' confidence in Vietnam is going down," Alain Cany, chairman of EuroCham, told reporters at the launch of an annual review of trade and investment issues in Vietnam.
While the fast-growing nation was an investment priority five years ago, businesses are finding increasingly attractive options elsewhere, such as Indonesia, which is a larger market where the business climate has recently improved.
Yields On Short-Dated German Bonds Turn Negative
Yields on German bonds due in one year turn negative for first time since the advent of the euro
Investors pile into safe havens as debt crisis deepens
ECB expected to ease policy further
November 30, 2011--Yields on German bonds maturing in one year turned negative Wednesday for the first time in the history of the euro zone as risk averse investors continued to pile into assets perceived to be safe from the current debt crisis engulfing the area.
The German 4.25% January 2013 bund yielded -0.04%, according to data from Tradeweb, 12 basis points lower on the day and down from a peak yield of 1.835% made at the start of May this year.
Bid and offer yields on all bonds due in 2012 were also negative.
Investors are continuing to shun bonds issued by highly indebted euro-zone countries as politicians flounder in their attempts to stem the euro-zone debt crisis which is threatening to ensnare larger economies such as Italy and Spain. Banks are worried that their balance sheets will be contaminated by their holdings of so-called peripheral euro-zone debt.
