It's like a reoccurring nightmare lately for Europe!
France's largest bank, BNP Paribas just got downgraded by Fitch to AA-. Fitch sited a "deterioration of the company's asset quality".
Over the weekend, China announced that it would be dropping the yuan peg to the dollar. Oh they've been under pressure from the G-20 to do this for quite some time. However, I believe that they are doing it for a couple of reasons:
1. They need another tool to fight the growing inflation problem that they have right now in China. A higher yuan exchange rate to the dollar (and even euro) would help that.
It's 8 am and I'm writing to you from my hotel room in the French Quarter of Philadelphia.
Yesterday was an absolute blur! As promised, I spent the afternoon at the Philadelphia Stock Exchange (really the Nasdaq OMX inside the Philadelphia Exchange building).
First up, our new buddies at the Exchange gave us a tour of what's left of the options "floor."
The options "floor" is really just a dozen or so guys staring at their computer screens, and making changes. Several guys watch four different screens at once, so they looked more like hackers than traders.
By Kat Von Rohr
I’m about to let you in on some insider information.
Right now, everyone and their brother is yammering on about the euro crisis. Even non-financial folks in Indiana were talking about “the euro collapse” when I visited my hometown a few weeks ago.
So I won’t insult your intelligence by telling you that the euro is facing its first major crisis ever thanks to the PIIGS that built their financial houses with straw.
In the upcoming days (in FX University Daily), I'll be releasing an article that talks about how to protect your portfolio from the falling stock market. I hope you'll be looking for that issue in the upcoming days because I believe it could really help change the outcome of your IRAs and taxable stock brokerage accounts over the next 12 months.
However, today I want to show you the two charts that I'm looking at which tell me that "the crap is about to hit the fan" again!
The Euro Zone just gave Investors 1 Trillion reasons to Buy the Euro & it's still not going to Work!
What a joke! The EU (& IMF) just doles out the trillions like there is no tomorrow. On Monday, they set up a massive bailout fund to resue any members of the currency union from default. They "inked" a deal that would establish a $1trillion (750 billion euro) fund. This fund supposedly is enough to take care of Spain, Portugal and Greece for years if they had to.
$526 billion (440 billion euros) will be available as soon as this month, according to Luxembourg Prime Minister Juncker.
Last week I gave you my reasoning for why the Greek crisis was killing any revaluation of the Gulf States currencies against the US Dollar.
Today, I want to speak to you about another victim of the Greek tragedy - The Chinese Yuan.
China's GDP growth surged in 1Q, but the chances of further policy tightening are fading as a result of events in Europe and a still unfolding correction in the property market. I now expect no rate hikes in 2010, while the resumption of currency appreciation is delayed until end-3Q.
By Evaldo Albuquerque
While I'm not a huge sports fan, I know that in football if you're going to win a game its not going to be because of the offensive team alone but it will be due to a great defensive team as well.
I consider our portfolios to be in the same boat! We need a great offensive team but the problem is that most people ONLY have an offensive team and don't have a defensive team at all.
Hello there again!
The Euro continues to falter. The PIIGS are continuing to hog the limelight. And just late last week, Spain lost its AAA ratings. What a shocker!!
OK - So what other collateral damage has been inflicted upon the world's currencies due to the over obsession with Greece, Spain and the likes?
One of the first one that comes to mind is the Arab currencies (I will call them GCC Currencies for convenience).