Posts Tagged France
by: Tyler Durden
August 6, 2012
July 29, 2012
July 26, 2012
Congress in the US is considering extending the Act which gives federal agents broad wire-tapping permission. Officials have now come clean and said that the Foreign Intelligence Surveillance Amendments Act has been used to violate people’s Constitutional rights at least once in the past 4 years. US activist Aaron Swartz describes the practice is virtually illegal.
July 25, 2012
The economic crisis that is sweeping Europe is starting to hit Britain really hard. Over the last couple of years economists have been warning that we can’t let the “contagion” spread from troubled nations such as Greece and Portugal to the rest of Europe. Well, it is too late for that now. Spain and Italy are coming apart at the seams at this point, and even “stronger” nations such as the UK and France appear to be deeply troubled. According to numbers that were released just this week, the UK economy has now contracted for three quarters in a row. During the second quarter of 2012, the UK economy shrunk by 0.7 percent. That was a much larger contraction than the 0.2 percent contraction that economists were forecasting. At this point we have got a definite trend going. During the fourth quarter of 2011, the UK economy shrunk by 0.4 percent. During the first quarter of 2012, the UK economy shrunk by 0.3 percent. And now in this latest quarter the contraction of the UK economy appears to be accelerating. This economic downturn in the UK is being called “the longest double-dip recession for more than 50 years“. So will Britain soon look like Greece and Spain and Italy or will it be able to pull out of this nosedive in time?
The UK construction sector was hit particularly hard during the second quarter. It contracted by 5.2 percent, which was the biggest decline since the first quarter of 2009. Consumer confidence has reached a historic low in Britain and economic gloom is seemingly everywhere.
So what does the future hold for Britain?
Unfortunately, things do not look promising at all right now.
At this point, the budget deficit of the UK government is still about 8 percent of GDP, and British politicians are promising to reduce that significantly.
That means that more austerity measures are coming for Britain and less government money will be flowing into the economy.
So the economic slowdown is very likely to get even worse.
But of course we have been seeing the same kind of thing happening all over Europe.
Economists are warning once again that Greece is on the verge of declaring bankruptcy.
On Tuesday, the Telegraph ran a story with the following startling headline: “Debt crisis: Greece to run out of money by August 20“.
Haven’t we heard this before?
Yes, we have.
And every time, European leaders have gotten together and “fixed” the problem.
But of course they didn’t really fix anything. They just kicked the can down the road a little while and things just kept getting worse.
July 24, 2012
He is one of the thousands who were tricked by French banks into accepting poisonous loans.
French banks set up subsidiaries which offered property loans to middle class families, on one condition: the homes could never be sold, had to be compulsorily rented and only banks, not the landlords, could select tenants. Then they received warning letters from banks.
Home owners realized the contract sent by banks had been illegally skewed whereby, they were forced to repay 6 times their initial loan and all their belongings were auctioned off.
by: Tyler Durden
July 23, 2012
While Monti claims there is no need for an emergency summit and Spain and Italy ban short-sellers (but not long-sellers yet), Europe’s Dow-equivalent is down around 2.5%. Interestingly Italy and Spain ‘bounced’ off ugly lows intraday (which we are sure Monti/Rajoy are patting themselves on the back briefly) but France’s CAC40 and Germany’s DAX were sold hard – both down around 3% (as proxies as much as contagion-gatherers). More critically, equities are catching down to European credit markets. European financial credit is now notably wider than pre-Summit levels but it is the front-end of the Spanish and Italian sovereign yield curves that has been absolutely monkey-hammered in the last few days. Spain 2Y is now at 16 year highs in yield but all-time record wides in spread as we await for the ultimate death cross of inversion to signal the approaching endgame. EURUSD hovered around 1.2100 (down around 50 pips from Friday) and while oil prices slumped, Brent priced in EUR remains above its levels 2 months ago. Meanwhile, Swiss 2Y rates are at a new record low of -44.4bps, German 2Y same at -8bp, and Denmark remains -31bps – thoughwe do note some of the other higher quality 2Ys leaking a little higher in yield such as Austria and France.
European stocks (blue) are catching down to European credit and financials are now worse than pre-summit as the reality of bail-ins and/or subordination hit home…
Expect Strikes and Protests to Spread to Italy; Another Look at Why Italy Will Exit the Eurozone Before Spain
by: Michael Shedlock
Friday, July 20, 2012
Anti-euro sentiment in Italy is already very strong and about to get stronger. Eurointellihence has come interesting comments today regarding Italy.
The demonstrations and protests [in Spain] are very likely now to spread to Italy. The country’s largest union, CGIL, said there would be a public-sector strike in September to oppose the Italian government latest austerity plan, Il Fatto Quotidiano reports.
According to Susanna Camusso, CGIL head, its union will launch “a general strike of the public sector against the umpteenth measure.” The cuts, to avert a 2% increase in VAT scheduled for September, include a 10% reduction of staff and 20% reduction of managers of public-sector.
The complete package, result of the spending review conducted by Mario Monti, will save over €26bn until 2014. The measure, which will go before the Parliament at the end of July, was approved by the cabinet two weeks ago.
Peugeot, Its Record High Default Probability, And A Brief Primer On Corporate Viability Under Socialism
by: Tyler Durden
July 17, 2012