The Euro-crisis appears to be nearing a climax.

[credit provider=”Nihnih, Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:Bushido-Rolle.jpg”] As we explained last night, there’s basically just one solution left in Europe, and everybody knows it: The ECB must come in forcefully to suppress sovereign yields.We’re not talking about nibbling around the edges here: We’re talking about the ECB basically announcing that it won’t […]

European banks are scrambling to engineer new sources of funding as traditional ones dry up, David Enrich of the Wall Street Journal reports.

[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:RelojDespertador.jpg”] Remember the October 26 deal to expand the European rescue facility? Nobody who matters believes in it anymore.Irish PM Enda Kenny and Greek PM Lucas Papademos — both of whom are feeding at the Europe Financial Stability Facility (EFSF) trough — both basically said today that […]

[credit provider=”AP” url=”http://www.apimages.com/OneUp.aspx?st=k&kw=hungary%20mortgages&showact=results&sort=creationdatelower%3Areversealphabetical&intv=None&sh=10&kwstyle=and&adte=1312389132&pagez=60&cfasstyle=AND&rids=27d20ec387834b05ac50fe33f3280ec7&dbm=PY2010&page=1&xslt=1&mediatype=Photo”] Hungary has been offering forint loans to its citizens to help them repay Swiss Franc denominated mortgages. Hungarian prime minister Viktor Orbán has said as many as 300,000 might opt for the discount repayment scheme.The European Central Bank (ECB) has warned that the government’s scheme is likely […]

[credit provider=”AP”] The most important debate of our lifetimes is now ongoing. For many, the answer will be existential. First, the question: Should the ECB “write the check’ for the euro area national governments? In thinking about the answer to this all-important question, I prefer to shift the focus by […]

The escalation of the European debt crisis and mounting evidence of new economic contraction have increased the scrutiny on the region. Yet it seems like many observers may be failing to grasp several important points, including the nature of the new governments, the Italian challenge, pressure on the ECB, risks […]

[credit provider=”Wikimedia” url=”http://commons.wikimedia.org/wiki/File:USAF_EOD_explosion.jpg”] Bond yields are spiking across Europe, not to mention the spreads between Belgian, French, Spanish, and Italian bonds and German 10-year bunds.To give you an idea, here’s today’s carnage in 10-year spreads (via Bloomberg):

[credit provider=”NASA” url=”http://history.nasa.gov/ap08fj/photos/a/as08-16-2593.jpg”] Great points this morning from Deutsche Bank’s top credit strategist Jim Reid on what the future holds.Quite simply, it’s all about the ECB.

[credit provider=”www.chaletzermattpeak.com” url=”http://www.chaletzermattpeak.com/czppictures.html”] Even as Europe flirts with depression, it could be a great time to buy a chalet.Societe Generale’s Marc Mozzi names a few reasons to be bullish on European real estate, starting with debt monetisation by the ECB:

Yesterday we wrote about how Monday will prove to be an important day for the Eurozone crisis, as we will see if the ECB is going to intervene to suppress Italian yields, now that Berlusconi has quit.

[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:EUR_5_holographic_band.jpg”] It’s been darkly amusing watching European leaders continue to increase the size of their “bazooka” over the past two years, only to see the markets return fire, and render it useless.First they thought they could solve the problem with a few hundred billion euros. Then they […]

[credit provider=”US Navy” url=”http://www.navy.mil/view_single.asp?id=45643″] Stocks are having a mad run today, with the Dow up 270.According to Cullen Roche, the hot rumour is that the ECB is soon going to come in and forcefully drive yields lower in the periphery through massive bond buying.

[credit provider=”AP”] Lorenzo Bini Smaghi, a longtime Italian member of the European Central Bank’s executive board, has tendered his resignation, according to Bloomberg.He will go to Harvard January 1.

[credit provider=”AP”] Yesterday Italy’s 10-year government bond yields soared well above 7%, the level beyond which Greece, Ireland and Portugal were all pushed into EU/IMF bailout programmes. Having been frozen out of the markets, Italy now faces a buyer’s strike. Its only possible options going forward are a bailout or […]

[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:Gs4.jpg”] With Italian borrowing costs at dizzying highs, Goldman Sachs strategist Dominic Wilson says the European Central Bank should take a leaf out of the Swiss book.An unlimited commitment by the ECB to purchase Spanish and Italian sovereign bonds may actually end up being less expensive for […]

The sun has risen today and Italy is still there and so is Europe and monetary union, despite concerns about a point of no return being passed or some Rubicon has been crossed.  The combination of an acceptable Italian T-bill auction and apparently stepped up ECB buying has seen the […]

[credit provider=”wikimedia commons” url=”http://en.wikipedia.org/wiki/File:DeathStar2.jpg”] OK, that’s it. Calling on a European policy to appear in front of us as a divine saviour is turning out to be nigh on impossible. We have tried the Ouija board of Greek debt, then the talking in tongues of Greek politics, we have tried […]

Interesting graphic from Der Spiegel.   Note the title, “An Endless Bond Buy?,”  which speaks volumes on the German position of ECB monetization.   Is a new Europe about to erupt onto the scene?

[credit provider=”flickr / jurjen_nl” url=”http://www.flickr.com/photos/jurjen_nl/5271842133/”] With borrowing costs rapidly escalating not only in Italy but also in Spain and France, analysts are chattering about whether or not the European Central Bank can and will step in to save the euro.WSJ’s Simon Nixon says don’t count on it, for three reasons. […]

[credit provider=”AP”] Not sure if there’s anything to it…We’ve seen a couple IMs and Doug Kass tweeted that there was a rumour of an emergency meeting of the ECB.

Once again, the only chart that matters in the world is the Italian 10-year, which hit a new record yield today of 6.656%. You can round that to 6.66% if you’d like.

[credit provider=”flickr / jurjen_nl” url=”http://www.flickr.com/photos/jurjen_nl/5271842133/”] The Occupy Frankfurt movement, part of the global protests, has been camped out in front of the European Central Bank in Frankfurt for a couple of weeks now.Though Deutsche Welle reports that the weekend saw protesters march through the city’s streets, it’s impressive to see […]

It’s Mario Draghi’s first week at the helm of the European Central Bank, and he’s already making a splash.

Dow futures jumped 30 points to 129 just seconds after new ECB president Mario Draghi unexpectedly cut the benchmark rate by 25 basis points.

[credit provider=”AP”] UPDATE: The ECB just cut interest rates by 25 basis points to spur on economic growth amid growing signs of recession in the eurozone.

[credit provider=”AP/Riccardo De Luca”] The European Central Bank is about to make a decision on monetary policy at 8:45 AM EST this morning.Italian Mario Draghi just took the helm of the bank earlier this week, and investors will be examining his willingness to deviate from the policies of French predecessor […]

[credit provider=”Zechariah Judy on Flickr” url=”http://www.flickr.com/photos/[email protected]/4268587808/”] With hopes about that EU summit last week deflating amid talk of a Greek referendum, focus is turning back to whether the eurozone economy is going to be able to hold out amid a slew of bad signs.And that’s where Mario Draghi and the […]

Headlines coming out about the Eurozone debt crisis have wreaked havoc in the stock markets.

Bill Fleckenstein recommends gold above all as a hedge against money printing from the Fed and the ECB.

[credit provider=”AP/Riccardo De Luca”] Today is Italian Mario Draghi’s first day on the job as president of the European Central Bank — and what a day.Greek PM George Papandreou’s call for a national referendum on austerity measures and the second Greek bailout have pushed the country even closer to the […]

Risk appetites returned in a big way in October, as equities, emerging markets, commodities and currencies all generally advanced and smartly so, recouping much of the ground lost in September.  The events in the week ahead will likely set the tone for the month of November.  They include three central […]

[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:2010_Moscow_Victory_Day_Parade-21.jpeg”] Paul Krugman is correct here about the inadequacy of the latest European bailout scheme, and what it will take for Europe to save itself:It’s still looking impossible to save this system without a drastic change in both the ECB’s actions and its philosophy. If that’s impossible, […]

[credit provider=”iStockphoto”] Next week will be huge for the eurozone.A major shakeup is ahead for the European Central Bank, then the bank will make a new policy rate decision, and leaders of the Group of 20 will meet in Cannes.

[credit provider=”Stuart Richards on Flickr” url=”http://www.flickr.com/photos/left-hand/2675010261/”] Today’s inflation hawks are crowing over nothing.Not only do we have the most divided Fed since 1992, we’ve watched the European Central Bank repeatedly refuse to cut interest rates all year despite the clearly flagging eurozone economy.

[credit provider=”pixle via Flickr” url=”http://www.flickr.com/photos/pixle/1102673463/”] Both the European Central Bank and the Federal Reserve are set to ramp up easing measures, if not right away then in the near future.That’s the view Morgan Stanley analysts Evan Brown and Gabriel de Kock take in a recent investor note.

[credit provider=”www.time.com” url=”http://www.time.com/time/covers/0,16641,20110822,00.html”] Today Morgan Stanley economists put out a European strategy report as leaders in the 27-nation region try to hammer out a new financial stimulus.The firm asks if we’re starting to see some light at the end of the tunnel, and answers that perhaps we are.

[credit provider=”AP”] Silvio Berlusconi’s appointment of Ignazio Visco to run the Bank of Italy may cause a rift with French President Nicolas Sarkozy, reports Reuters.It was reported yesterday that Berlusconi had appointed Visco to run the bank after Mario Draghi was foisted into the role of head of the European […]

Moody’s warns that France’s Triple-A rating could be put on negative outlook; Merkel’s Spokesperson: Dreams of a magic solution will not be fulfilled this week Reuters reports that eurozone leaders are likely to agree to leverage the eurozone’s bailout fund, the EFSF, by allowing it to guarantee a portion of […]

For the last two months, former Ukrainian President Yulia Tymoshenko has been on trial on charges of “abuse of office” for allegedly forcing the country’s state gas company, Naftogaz, to sign illegal deals with Russia.

[credit provider=”Ibrahim lujaz on Flickr” url=”http://www.flickr.com/photos/notsogoodphotography/2713087843/lightbox/#/photos/notsogoodphotography/2713087843/”] Everyone’s still watching Europe right now, with traders jumping to react to each new announcement or rumour — important or not.With the EFSF still in flux, Trichet stepping down this month, and Greek protests turning violent in Athens, the crisis could be escalating once […]

The passing of tech innovator Steve Jobs is dominating the news today. What will Apple and its products look like without Jobs’ vision and guidance?

[credit provider=”World Economic Forum at Flickr” url=”http://www.flickr.com/photos/worldeconomicforum/2297234392/”] Outgoing European Central Bank President Jean-Claude Trichet gave his final press conference after a rate decision today.This marks the end of his incumbency at the helm of the ECB, and he’s not exactly receiving high fives on his way out the door.

Today’s ECB President Jean-Claude Trichet’s final rate decision announcement.  Deutsche Bank’s Jim Reid offers some parting words:

European Central Bank President Jean-Claude Trichet is gave his last press conference on a monetary policy decision as the head of the bank today in Berlin, beginning at 8:30 AM EST.

The BoE and ECB always announce their interest rate decisions on the same day, and lately the decisions have been something of a snooze.

[credit provider=”Morgan Stanley”] In a note on market instability and discipline published today, Morgan Stanley’s Elga Bartsch gives us insight on the elements of a eurozone endgame.In his opinion, the markets have proved unable to accurately assess sovereign risk, but now that a vicious cycle of market cynicism is in […]

Speculation over the probability of a European Central Bank rate cut tomorrow has kept markets jumpy over the fortnight.

[credit provider=”Artnow314, Flickr” url=”http://www.flickr.com/photos/[email protected]/356048734″] Don’t get your hopes up for the European Central Bank to slash interest rates tomorrow.A note out this morning from Morgan Stanley explains why this is unlikely to happen, although waxes optimistic about seeing the bank hint at a rate cut in November.

The Bank of England and the European Central Bank meet this week. There is much speculation that both could alter policy. We suspect there may be risk for disappointment, but that disappointment with the BOE, could trigger a bounce in sterling, while disappointment with the ECB could see the euro […]

[credit provider=”Bank Of Italy” url=”http://www.bancaditalia.it/media/fotogallery/eventipersone/conv_mezzogiorno/intervento_draghi”] The Chairman of the Financial Stability Board and soon-to-be head of the European Central Bank, Italian Mario Draghi, told reporters this morning that banks are clearly having funding problems.This may have sent the euro into a tailspin.

[credit provider=”Robin Zebrowski on Flickr” url=”http://www.flickr.com/photos/firepile/68493747/”] A top official at the European Central Bank said off the record that the ECB/EU/IMF troika could require private holders of Greek bonds to accept a 75% haircut rather than the 21% they were expected to take, according to Italian newspaper Linkiesta (via @FGoria).This […]

[credit provider=”Ibrahim Iujaz on Flickr” url=”http://www.flickr.com/photos/notsogoodphotography/5739769957/”] With the media outlook swinging from wildly positive to wildly negative on a daily basis and rumours spiraling out of control, it can be hard to tell exactly where things stand on the eurozone crisis.But let’s be clear: the eurozone crisis is NOT going […]

[credit provider=”AP” url=”http://www.apimages.com/OneUp.aspx?st=k&kw=Evangelos%20Venizelos&showact=results&sort=creationdatelower%3Areversealphabetical&intv=None&sh=10&kwstyle=and&adte=1314047304&pagez=60&cfasstyle=AND&rids=554882c6cfc04508abc8c8be1c0c63d1&dbm=PY2011&page=1&xslt=1&mediatype=Photo”] Greek Finance Minister Evangelos Venizelos warned today that if Europe cannot save Greece, it cannot save itself, according to Bloomberg.Reuters also reports that he proposed a “euro-atlantic axis” to take steps to resolve the crisis.

Eurozone inflation situation is more stable, liquidity more important than rates ECB borrowing costs extremely cheap, inflation appears stable and  not far from ECB objectives Greek insolvency shouldn’t be scenario, situation moving in the right direction Spain and Italy proposals for consolidation should be enough to get them back to fiscal […]

There’s a rumour out this morning which may be part of the rally in European markets.

The European Central Bank may be telling the world it has virtually unlimited liquidity, but except for the extremely unpalatable approach of just printing more money, this promise is not as sturdy as it seems.

[credit provider=”flickr:timsnell” url=”http://www.flickr.com/photos/timsnell/4569457286/”] According to CNBC, The ECB just changed its rules for allowing banks to use debt instruments to be used as collateral.Before, debt instruments could only be used if they were covered bonds, or approved for trading on regulated markets. Now, they’ve thrown that rule out.

There’s been a lot of confusion about Siemens fund deposit with the European Central Bank (ECB).

[credit provider=”DanielleCM via flickr” url=”http://www.flickr.com/photos/danni_m/536492895/”] According to Reuters, EU finance ministers have prepared a statement calling for European banks to raise their capital.The move would signal acknowledgment of the ineffectiveness of bank stress tests conducted by the European Central Bank in July. This couples mounting speculation that banks may indeed […]

UPDATE: A time frame for EFSF approval by eurozone parliaments is probably the biggest news coming out of this meeting. The EU officials said parliaments should all approve the July 21 agreement by early October so that funds can be dispersed by mid-October. They all stressed that this would only […]

There’s been lots of chatter about Geithner’s suggestion that the Europe should leverage the European Financial Stability Facility.

Reports are swirling that the European Central Bank and the European Financial Stability Facility could mimic TARP in order to restore confidence in the eurozone banking sector and ease the region out of the sovereign debt crisis.

A big announcement by the European Central Bank on renewed dollar liquidity measures sent markets soaring today, and pushed the euro significantly higher against the dollar.

Just out…

Britain will sue the European Cental Bank to prevent it from implementing a new policy that would drive London’s financial services sector to the Continent, according to the FT.

It’s hard to be optimistic about any solution in Europe if you listen to what top European leaders are saying today. First, you have ECB boardmember Carlos Costa saying that the Eurozone was better off than the UK and the US, because external debts were lower. Sorry, but external debts […]

Morgan Stanley’s research team put out a huge strategy report on U.S. and European markets today — and it isn’t pretty.

ECB President Jean-Claude Trichet just announced that Greece most likely will receive the next round of funding from the European Central Bank, European Union, and International Monetary Fund.

Good morning. Here’s the news:1. The Taliban yesterday detonated a powerful truck bomb at a major military base in eastern Afghanistan near Kabul, killing five Afghan civilians and injuring 77 American troops. The blast was timed to coincide with the 10th anniversary of 9/11.

[credit provider=”ap”] It may be too late to save Greece from default, but Eurozone doves are excited as the European Central Bank sheds its biggest hawks.Outspoken ECB critic Nouriel Roubini sees a brighter future. He tweeted this morning: “With Weber, Stark, Trichet and Bini Smaghi all soon gone the ECB […]

[credit provider=”AP”] Jürgen Stark — who quit the European Central Bank over bond-buying this morning — told Handelsblatt that the European Monetary Union has to consolidate in order to function effectively.According to a report published in that paper this morning, Stark believes “far-reaching reform of the decision and sanction mechanisms” […]

European Central Bank President Jean-Claude Trichet launched into a mini tirade in response to a question about Germans talking about leaving the euro zone at his press conference today.

European Central Bank President Jean-Claude Trichet is giving gave a press conference today starting at 8:30 AM ET to talk about the bank’s decision to keep interest rates unchanged.

[credit provider=”flickr / jurjen_nl” url=”http://www.flickr.com/photos/jurjen_nl/5271842133/”] Update:No change in rates.

[credit provider=”horasis via Flickr” url=”http://www.flickr.com/photos/horasis/4672102342/in/set-72157624208930732/”] If you think the big speech of the day is Obama’s jobs speech at 8:00 PM ET, you’re not paying attention.First, let’s quickly explain why Obama’s speech won’t be that big of a deal: We know all the details, the Republicans have already said they […]

Nouriel Roubini tweets: “I was just interviewed on CNBC:The ECB has to reverse this week its biggest mistake ever, the rate hike that sharply worsened the EZ crisis.”

While yields on Italian bonds are certainly not out of control again (yet), bonds to bunds spreads have been marching steadily upwards since bond buying by the European Central Bank pulled them down last month.

[credit provider=”AP” url=”http://www.apimages.com/OneUp.aspx?st=k&kw=Evangelos%20Venizelos&showact=results&sort=creationdatelower%3Areversealphabetical&intv=None&sh=10&kwstyle=and&adte=1314047304&pagez=60&cfasstyle=AND&rids=554882c6cfc04508abc8c8be1c0c63d1&dbm=PY2011&page=1&xslt=1&mediatype=Photo”] Discussions between Greece and officials from the “troika” of the European Union, European Central Bank, and International Monetary Fund will pause for 10 days so that Greece can perform a technical study of its economic data.This pause follows revelations yesterday that Greece will miss its deficit-cutting and […]

[credit provider=”Associated Press”] Good morning! Here’s the news:1. Reuters reports: “The euro fell across the board on Thursday after a weaker-than-expected reading of German manufacturing highlighted increasing sluggishness in the euro zone’s largest economy.” Eurozone manufacturing activity is down virtually everywhere. 

An auction of $11.2 billion in Italian bonds went off without a hitch this morning, with yields on 10-year government bonds remaining at a respectable 5.22%.

[credit provider=”Twitpic” url=”http://twitpic.com/5i0v4d”] The drama continues… or does it?It seems as though it was a crisis that sometimes people ignore, as if it has been solved somehow, while it has not. 

[credit provider=”Rai.TV” url=”http://www.rai.tv/dl/RaiTV/diretta.html?cid=PublishingBlock-64203784-70f7-4b53-9d21-b14693850195&channel=Rai%201#cid=PublishingBlock-233b8482-1cbc-4970-87d5-9d7604b26ddb”] I am about to take a two week vacation (though will update the blog).I had some time off earlier in the summer, but it was dominated by the concerns of a father of a Little League baseball pitcher.

[credit provider=”Images_of_money on Flickr” url=”http://www.flickr.com/photos/[email protected]/5858030702/sizes/l/in/photostream/”] A bank approached the European Central Bank to borrow dollars in violation of a major lending taboo, according to FT Alphaville.Banks systematically approach the ECB to temporarily borrow euros, but avoid asking for dollars unless pressed to find a reasonable borrowing rate.

[credit provider=”ECB”] From Morgan Stanley’s Joachim Fels:Economic conditions and policy legroom have switched places since 2008. Back then, economies were in very poor shape and policy legroom abundant. Since then, economic conditions have improved but policy is significantly more constrained than it was then. Despite higher thresholds to easing, the […]

Good morning. Here’s the news:

Wall Street Selector

Today everything in the market tanked. The US faced its first day as a AA+ rated nation and Europe continued to get crushed as it seemed no one was safe from investors’ debt fears. Join Nicholas Carlson, Politics editor John Ellis, and Politics reporter Zeke Miller as they discuss the […]

[credit provider=”EU”] We’re waiting on Silvio Bersluconi to speak at 1:30, while watching this bonkers market.One quick note: If indeed the ECB is coordinating with the government of Italy to trade debt monetization in exchange for reforms, that should pretty much end any notion that the ECB is independent somehow.

[credit provider=”ECB”] Fires are raging in Europe today, with stocks tanking and yields widening once again.All eyes this morning have been on the ECB due to the fact that A) it’s decision day and B) it may be the last saviour for Europe’s troubled sovereigns.

 Central banks are now targeting liquidity, not just inflation. The credit boom of the past decade highlighted the inadequacy of focusing only on prices, and underscored the need for the monetary authority of a country (or group of countries in the case of the European Central Bank and the eurozone) […]

[credit provider=”EU”] Jean-Claude Trichet is giving his post rate decision press conference.He has NOT said the words “strong vigilance” which would have meant an imminent rate hike.

[credit provider=”World Economic Forum at Flickr” url=”http://www.flickr.com/photos/worldeconomicforum/2297234392/”] Update: Exactly as expected, a 25 basis point hike.Again, the real news will come in 45 minutes when Trichet speaks.

[credit provider=”AP” url=”AP”] UPDATE 9:12 AM: We have official language to back up the earlier Reuters report. An extension, rather than a new opening.From The ECB:

[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:Draghi,_Mario_%28IMF_2009%29.jpg”] The last few days have been very significant and will likely shape investors views in the weeks ahead.  While Greece remains at the epicentre of the European debt crisis, the issue is much bigger.  It has begun bleeding over not just into Ireland and Portugal, but […]

If Greece defaults on its sovereign debt, the effects will be global. Everyone from Japanese savers to U.S. retirees is likely to feel the effects. Let’s run through the dominos that could fall after a Greek default.

T he world is beginning to look a lot like the August of 1914 or perhaps the summer of 1939 all over again. This time instead of the great powers of central Europe dragging the rest of us into a European affair, it seems that nearly every corner of the […]

The feud between ECB president Jean-Claude Trichet and German finance Minister Wolfgang Schaeuble escalated in a major way today with members of German Parliament siding with Schaeuble and against the wishes of the ECB. German Politicians Demand Private Creditors Participate Please consider Germany MPs discuss resolution on Greece aid