Bond yields fall in Spain and Italy on the news from the G20 summit that eurozone leaders will discuss a €750bn deal to push down borrowing costs in the region by buying the debt of the worst-hit nations.
By Carnegie Endowment:As expected, the G20 summit yielded little by way of concrete commitments or dramatic breakthroughs. The high hopes of just a few weeks ago had already dimmed by the time leaders gathered in Cannes, in an atmosphere beset by European divisions, Greek tragedies, and the inability of the United States — absorbed by its own domestic problems — to provide the necessary impetus.
LONDON: The euro tumbled on Tuesday and the region's stocks and bonds jumped after the European Central Bank signalled it would speed up its 1 trillion euro bond-buying programme for the next two months ahead of an expected summer lull. World stocks were already testing all-time highs after another jump in Chinese stocks and a record close on Wall Street, and European markets shot up after top ECB policymaker Benoit Coeure talked of adjusting the bank's buying programme.
NEW YORK: The global bond market rout slowed on Thursday as long-term borrowing costs retreated from their highest level in more than five months, but the recent surge in yields kept pressure on stocks worldwide. The absence of a deal between Greece and its creditors also remained a drag on stocks and the euro. Investors' stampede from stocks and bonds this week sent major European indexes to their lowest in two months and major U.S. and Japanese gauges to the weakest in a month. U.S.
The leaders of France and Germany summoned Greece’s prime minister for crisis talks Wednesday in Cannes, ahead of the G20 summit there, to discuss his surprise announcement of a national referendum on a 130-billion euro EU bailout.
European leaders summoned the Greek prime minister to the French riviera on Wednesday to restore calm on the eve of a G20 summit after his shock call for a debt rescue referendum raised the spectre of Greece leaving the eurozone.French President Nicolas Sarkozy, German Chancellor Angela Merkel, top EU leaders and the head of the International Monetary Fund were set to meet with Greek Prime Minister George Papandreou to discuss the implications of his referendum plan.
The G-20 summit of to a great start if you like fireworks, endless bickering, and finger-pointing. Otherwise these summits are totally useless.
When asked by a Canadian journalist "Why should North Americans risk their assets to help Europe?" EC President José Barroso replied "Frankly, we are not here to receive lessons in terms of democracy or in terms of how to handle the economy.
AMERICAN employment put in a respectable performance in July. Non-farm payrolls rose 117,000, or 0.1%, and the unemployment rate edged lower to 9.1% from 9.2%, both better, but not dramatically so, than Wall Street had expected. Any other time this would have been cause for mild satisfaction. In these grim times, it constitutes a massive relief bordering on joy.