Here’s a Euro bank to buy on the dips
The financial sector seems to have recovered – or at least investors are betting that way.
Tag Archives: uncff
Euro banks suffer hangover from the recent cash injection
The European Central Bank went out of its way to make sure financial institutions in the euro zone had all the cash they need to survive. Given the industry’s response to the cheap credit, there will not be any more liquidity infusions like this.
Trading the euro and euro zone banks after Greek budget deal
European banks like Paribas (BNPQY, quote), Unicredit (UNCFF, quote) and Credit Agricole (CRARY, quote) are soaring on relief after the Greek Parliament passed austerity measures. Although this is step one of many, the euro as well was lifted in overnight trading sending a traders a like a small ray of hope that the cloud of a very messy crisis lifts soon.
Global markets shudder after S&P euro downgrades
Traders got their first chance to react to Standard & Poor’s decision to cut the credit ratings of nine euro members today, leaving European stocks edgy and their Asian counterparts on the defensive.
Ron Paul wants to fire Ben Bernanke and close the most profitable bank in history (UNCIF, CRZBY, CRARY)
In the year that the Federal Reserve under Ben Bernanke was the most profitable bank in history and international lenders such as Unicredit (UNCFF, quote), Commerzbank (CRZBY, quote) and Credit Agricole (CRARY, quote) are tottering, Republic presidental contender Dr. Ron Paul wants to banish the Fed to “the ash heap of history.”
Is France next? Credit swaps say “maybe” (BNPQY, UNCFF)
BNP Paribas (BNPQY, quote), the biggest bank in France, just sold $2 billion in credit default swaps to insure its holdings in the country’s sovereign debt. UniCredit SPA (UNCFF, quote), the largest financial insitution in Italy, also has significant exposure to sovereign debt credit default swaps, which pay off the holder in exchange for the underlying securities or the cash equivalent should there be a default by the borrower.
China to continue buying Hungarian debt (EBKDY, UNCFF)
The Hungarian development ministry reports that Chinese investment funds and financial institutions intend to continue buying Hungarian debt — although no details as to the size of past or future investments was made available.
Watching the U.S. dollar grow in strength (FXE, UUP, UNCFF, ITLY)
The recent risk rally proved to be fleeting on reports that the CEO of one of Italy’s biggest banks is meeting with the European Central Bank (ECB) to discuss additional funding for the country’s beleaguered financial sector. As a result, the U.S. dollar remains strong.
Quick Hits: India looks grim as banks, airlines, car sales slide (FAA, UNCFF, IBN, SEA & USO)
We are watching India today along with the always-fascinating Warren Buffett and the peculiar timing of Italy’s biggest bank suggesting that its domestic market is oversold.