Global Macro Monitor

Key Data Points
German 10-year Bund 9 bps lower;
France 10 bps wider to the Bund;
Belgium 11 bps wider;
Ireland 17 bps wider;
Italy 33 bps wider;
Spain 29 bps wider;
Portugal 44 bp wider;
Greece 65 bps wider;

Large Eurozone banks weekly change,  -1.27 to -7.40 percent;
Euro$ down,  -1.27 percent.

Comments

• France and Belgium spreads over Bund widen 10-11 bps;
• Belgium, Italy, and Greece spreads over the Bund at widest weekly close of the year;
• Large Euro bank stocks at lowest weekly close of the year;
• Euro FX at lowest weekly close of the year;
• Spain’s IBEX, Italy’s MIB, and Greece Compos lowest weekly close of the year;
• Banks opened on Thursday for the first time in nearly two weeks amid severe new rules imposed as part of the bailout deal.  By Friday, banks had returned to their normal working hours and there were no longer reports of big queues.  – BBC
• After almost a week of fraught talks, dead-end meetings and irate exchanges, Italy‘s centre-left leader said on Thursday that he had not been able to find enough support among the country’s fractured parliament to form a stable government, prompting the country’s octogenarian head of state to take the job of ending the gridlock back into his own hands. – Guardian
• Silvio Berlusconi has reiterated his call for a broad coalition government with his centre-left opponents as Italy’s political parties launch another round of negotiations in an attempt to break the impasse resulting from last month’s inconclusive elections. – FT

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Bersani admits defeat in forming new Italian government

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CYPRIOT depositors are not the only ones suffering the aftermath of a banking bust. People who bought shares or subordinated debt in Spain’s dodgiest cajas, or savings banks, have either been all but wiped out or forced to take hefty losses. Many small Spanish investors are among them.

– Economist

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