InfoAnda - Markets to issue verdict on stress tests

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Major League Soccer looks to online fantasy game | | 16 November 2010
Expect roasting, Ricky Gervais warns Golden Globe stars | | 15 January 2010
Charlie Sheen admits he was not winning but losing | | 17 September 2011

Ghosts of the past: photo fair looks to ex-Soviet east | 20 November 2010

Forum Views () Forum Replies ()

Read more with google mobile : Markets to issue verdict on stress tests

Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World Markets to issue verdict on stress tests AFP - 2 hours 26 minutes ago Send IM Story Print Markets to issue verdict on stress tests PARIS (AFP) - – European bank stress tests will themselves be tested on Monday when investors return to markets in Europe and Asia with a verdict on an unprecedented bid to restore confidence in the EU banking sector. Market reaction will be crucial to determine whether tests on the health of 91 EU banks, published on Friday, have dispelled suspicions that hidden problems and incorrectly priced risks lurk in their balance sheets. The unprecdented decision to publish detailed results of the tests follows the global financial meltdown and the crisis in Europe in the last six months, compounded by doubt about the solvency of some banks. The tests imagine a level of crisis arising from economic downturn, a stock market collapse or a government debt crisis, testing each bank and the system against the given level of distress. The results found that only seven banks, five in Spain and one each in Germany and Greece, were unprepared to absorb a new financial crisis. But analysts were instantly dismissive of the tests, saying the bar was too low to assess the capacity of European banks -- many of which hold bonds issued by debt-riddled governments -- to overcome fresh financial pressures. European bank regulators took the unprecedented step of making the results public, although they delayed the release until after stock markets had closed in Europe. On Wall Street, however, where trading was still going on, analysts said investors were in general relieved by the findings. The Dow Jones Industrial Average ended the day on Friday with a gain of 0.99 percent. Investors in Asia and later in Europe will have their say on Monday. "The market reaction is likely to be one of some disappointment," said Marco Annunziata, chief economist at UniCredit Group. He said the overall capital shortfall uncovered by the tests on the 91 banks, 3.5 billion euros (4.5 billion dollars), "is so small, and so out of line with prevailing market expectations, that it will be regarded with some scepticism." He described the testing exercise as a first step toward transparency "but insufficient to bring about ... rapid and major improvement in confidence in the European banking system." The underlying worry is that if banks in general become nervous that their neighbours have potentially dangerous weaknesses, they could become increasingly reluctant to do business with each other. They would also park funds in safe places, rather than lend normally, in case a link in the banking system becomes insolvent, sparking a domino effect and causing the interbank market to dry up. Suspicions about about the strength of banks have lingered since the end of last year and well up whenever there is talk of economic recovery faltering. This lack of confidence became acute three months ago when the Greek debt crisis showed signs of engulfing Spain, Portugal or Ireland. One concern was that governments with weaker economies -- having worsened their own deficits and debt by rescuing some banks -- faced a risk that banks might then not want to buy their debt bonds. Normally, banks hold and buy large quantities of sovereign bonds, considered low risk, easily convertible into cash and therefore representing a matching factor of top quality so-called Tier One capital that banks need to stay solvent. But the problem became so acute that the European Central Bank broke a golden rule and stood by to buy government bonds from banks that needed funds but had difficulty in borrowing on the markets in the normal way. The ECB was in effect both supporting the balance sheets of some banks, and also indirectly supporting the government bond market and therefore the ability of governments to fund overspending. The effect could be to overstrain the balance sheets of the banks as well as increase problems for governments selling bonds. This explains why one of the test criteria was whether banks could survive the shock of a sudden fall in the price of government bonds. But the stress tests did not involve the scenario of a eurozone country becoming insolvent and its bonds becoming almost worthless -- a fear in recent months given that Greek bonds are now rated in a less than investment phase. "The prospect of an outright sovereign default, which is what has worried markets most, has not even been considered," said Jennifer McKeown, senior European economist at Capital Economics. The stress tests are a legacy of the global financial meltdown that erupted in late 2008 following the failure of US investment bank Lehman Brothers, a victim of the subprime mortgage crisis. The chain reaction unleashed by that meant government around the world had to bail out banks to the tune of tens of billions of dollars, underwriting the banks' debts by borrowing extensively themselves -- through issuing bonds. A measure of the exercise's success should become apparent in the movement of two key interbank interest rates -- the Libor rate for dollars and the euro-based Euribor rate -- in the next few days. Recommend Send IM Story Print Related Articles US-BUSINESS Summary Reuters - 2 hours 21 minutes ago Toyota to post Q1 operating profit Y100 billion: Nikkei Reuters - 2 hours 22 minutes ago Toyota to post Q1 operating profit Y100 bln-Nikkei Reuters - 2 hours 23 minutes ago Markets to issue verdict on stress tests AFP - 2 hours 26 minutes ago Australia targets China's new 'wine class' AFP - Sunday, July 25 News Search Top Stories China sends pandas into wild to bring up cubs BP boss could resign within days Spain's Lorenzo takes MotoGP pole US economy 'gradually' improving: Geithner European governments relieved by bank stress tests More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended Actress Zsa Zsa Gabor in 'critical condition': publicist BP to start drilling off Libya Solar drone lands after record 14 days aloft European governments relieved by bank stress tests Monaco's playboy prince sets wedding date More Most Viewed » Parachuting donkey shocks Russian beachgoers Paris Hilton caught with cannabis in handbag Germany's 'Octopus oracle' keeps perfect record More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo! Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010 Copyright © 2010 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

Other News on Sunday, 25 July 2010
Egypt kills Sudanese migrant near Israel border
Iran, Brazil, Turkey to discuss nuclear fuel swap
Fifteen killed in mass panic at German Love Parade |
US economy 'gradually' improving: Geithner
Turkey, Iran, Brazil to discuss nuclear swap deal
As Cubans wait, Castro to mark revolution's start |
Putin pledges bright future to former spies in U.S. |
NATO soldiers 'reported missing' in Afghanistan
Turkish PM proposes amending sensitive army law
Congo rebels seize Indian pilot in attack on plane |
Turkey, Iran, Brazil to discuss nuclear swap deal |
AU says must replace Western partners with China |
Revolt to force Japan FA boss out of office
AU says must replace Western partners with China
Putin pledges bright future to former spies in U.S.
Khmer Rouge prison chief awaits verdict
US aircraft carrier ups pressure on NKorea
NKorea vows nuclear response to US-SKorea drills
Saudi cleric says Muslim women can respect veil bans
Stampede at Love Parade in Germany kills 15
India, EU in new bid to clinch free-trade deal
Court orders 'Bookseller of Kabul' author to pay damages
Search on for 2 US soldiers missing in Afghanistan
19 killed in Love Parade stampede in Germany
Mexico police find 51 in mass grave near Monterrey |
2 US Navy service members missing in Afghanistan
China sends pandas into wild to bring up cubs
Britain's royals post family pictures online
As Cubans wait, Castro to mark revolution's start |
Lockerbie bomber release 'wrong' but no BP link: London
BP boss could resign within days
Pandora tops 60 million users, mobile growth strong
Spain's Lorenzo takes MotoGP pole
French hostage rescue mission in Mali fails: ministry
Explosives experts in bloody dance with bomb makers |
U.S., South Korea start military drills as North protests |
Eighteen killed in stampede at German Love Parade |
Putin 'sings songs' with deported Russian spies
US, S.Korea stage naval exercise despite nuclear threats
Australian opposition promises fewer migrants
Eastern US cooks in summer heat, temps reach 100s
Beijing hits out at US comments on South China Sea
Floods close Chicago interstate, damage Iowa dam
US aircraft carrier leads drills with South Korea
China warns of more rain in flood-hit areas
Bangkok residents vote in Thailand's litmus test poll
Russian farmers suffer 'catastrophe' in baking heat
US aircraft carrier ups pressure on North Korea
Floods and landslides kill 10 in Vietnam: govt
Row over Cyprus air control poses safety risk
US aircraft carrier ups pressure on NKorea
U.S., South Korea start military drills as North protests
Deep in Colombian jungle, a first in eco gold
Markets to issue verdict on stress tests
China sends pandas into forest to bring up cubs in wild
Toyota expected to report sharp recovery in Q1: report
Global Weather-Celsius
Fewer Tibetans fleeing to the Dalai Lama
Children of prisoners in China given a fresh start
Quake strikes off Tonga, Samoa; no damage reported
Chinese miner goes from corporate star to villain
Iraq parliament to meet Tuesday but impasse lingers
Basque ETA rebels say region "on brink of change"
Fees for online news yet to succeed
Taliban claim to have killed one US soldier
Taliban say they're holding U.S. soldier and second killed |
Turkey, Brazil urge Iran to be flexible on nuclear talks
BP chief likely to resign in wake of US oil spill
German police defend safety steps at music fest |
Iran will react if ships inspected
Iran will react if ships inspected: Ahmadinejad |
Search on for two US soldiers missing in Afghanistan
Ten wounded in bombing as Bangkok votes |
Taliban: 1 missing US sailor dead, other captured
Taliban: 1 missing US trooper dead, other captured
Iran favors talks with EU after Ramadan
Bangkok explosion wounds at least nine: police
Japan rescue helicopter crash kills 5: report |
Ten wounded in bombing as Bangkok votes
Iraq parliament to meet Tuesday but impasse lingers |
Afghan gov't: Taliban kills 1 US sailor, 1 held
Australian PM Gillard on top in election debate
Japan rescue helicopter crash kills 5
Bettencourt aide denies illegally funding French party |
Khmer Rouge victims pray at prison before verdict
Swimmers seen near China oil spill: Greenpeace
Australian opposition wins TV debate
Cloistered French nuns sign record deal
Pilgrims flock to Spain's Way of St.James
Professional vodka tasters keep Polish tipple pure
US aircraft carrier leads drills with South Korea
Floods and landslide in Indonesia kill 21: official
Salt can't shake Inception at box office |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph		BlogMeter 1.01