Spain moved back into the eye of the eurozone storm on Thursday as the country's borrowing costs rocketed to unsustainable levels, and the authorities were forced to deny that one of its biggest banks was in meltdown.
By FXstreet:The euro resumed its decline versus the dollar late NY session on Tuesday, and extended below 1.2850 today, as investor worries over the eurozone crisis persist and markets are back to trading at the rhythm of European headlines.
Thursday was just another day in capital markets as Royal Bank of Canada posted results for 2012, causing barely a stir outside the tightly knit community of analysts and fund managers that follow the company.
But here’s the thing: It was the biggest annual profit not only for RBC but also for any Canadian company — ever.
For the 12 months ended Oct 31, the country’s biggest bank by assets posted income of $7.5-billion, up $1.1-billion, or 17%, from the previous year.
That works out to $220.58 for every man, woman and child in the country.
Everyone thought 2012 was the year the euro crisis subsided. The ECB finally stepped up to the plate, bringing government borrowing costs in Spain and Italy down from unsustainable levels. Meanwhile, Greece avoided an exit from the euro.
By Carnegie Endowment:
By Uri Dadush, Zaahira Wyne
Italian and Spanish government bond spreads continue to be high and volatile but have declined sharply compared to the levels reached four months ago. The eurozone is back from the brink of disaster; even so, the fiscal difficulties of Europe’s periphery—dangerous as they are—are only a symptom and not the cause of the crisis.
Greece's borrowing costs spiked to a record high Thursday, intensifying the country's debt crisis. The crisis suggests a euro-zone and International Monetary Fund rescue plan is providing little support for Athens' struggle to avoid default.» E-Mail This » Add to Del.icio.us