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ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

Black Monday: 25 years later, the world hasn’t learned much

Half time at the EU summit, we don’t have much but a step forward on the banking union front. From 2013 on, “a single supervisor“, i.e. the European Central Bank, will monitor certain undecided actions of an undecided number of banks in Europe. For EU standards, that’s a pretty solid plan. Monsieur Hollande of la France commented most eloquently:

There was an agreement, a good agreement, on timing and about the banks as [a] whole.

Aha. Oblivious to the Spain issue (not to mention the Italy issue), which is likely to be on the agenda for today, Hollande continued:

Tonight, I have the confirmation that the worst is behind us […] We are on track to solve the problems that for too long have been paralyzing the euro zone and made it vulnerable.

Thank you, France, you’re dismissed.

On the little detail there is, we know that all of the around 6,000 banks within the European Union will fall under the ECB supervision until 2014, presumably starting with those that were bailed out by their respective governments. read article

Today‘s part of the summit is likely to focus on what they didn’t agree on yesterday: a time line, followed by another press conference geared at Germany-for-all-and-all-for-one sentiment.. At this point, nobody knows when exactly the ESM will be able or allowed to inject money into [Spain’s] banks. Any debate regarding the increased fiscal integration that will save the continent, has been pushed back until the end of the year.

Google accidentally released its earnings report during the trading day as opposed to after the closing bell last night. And the numbers weren’t great, with earnings per share and revenues coming in 15% and 4% below estimatesGoogle’s shares fell 10% on the news, were then suspended, but registered an overall drop of 8%. Contrary to all of that, CEO Larry Page made a statement regarding the strong performance of the company last night. read article

Today is the 25th anniversary of Black Monday, the day in 1987 when the Dow Jones Industrial Average plunged 23%, erasing about $1tn between October 19 and October 22. Time to reflect on what we have learned and whether things are better now. Considering the above, the jury is still out. read article

Weekend reading

– “Would I have done Bear Stearns again knowing what I know today?”, why governments should be careful in suing banksread article

– another one bites the dust: Newsweek discontinues print edition, read article

– James Bond in numbers: Pierce Brosnan most badass (what!!), Daniel Craig on way to alcoholism, read article

– Sallie Krawcheck, former president of Merill Lynch on why she worked more hours than any man she knows, read article

Have a good one.
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2 Responses

  1. princess1960 says:

    hello…………. Black Monday 1987.. now we have scandals with WALL STREET allmost everyweek….. (ah synithia)
    ECB what i have to say for tham ..(i think they don’t decide)because IMF ..SP can not resist anymore WHY? have to go IMF …all have one program military/ you here ./.you there /..that’ it . UNBANK E …idea is to safe iIT SP .can be happening what you think????formaly (for few month) and again from begining ..ALL the europe ..ma all is M …(ok accapte nobel price)
    Hollande ..HA .. HE THINKING I AM SOMETHING MORE SMART OR I HAVE POWER? bsh
    Google ok if you are in game you are not just to winn ,but and to loose ..so thay lose .is not first even the last..let tham all to play and lose …like others …FB JM BA and how many ????
    thank you i will read for weekend
    have a nice weekend ..for me is the same ..

  2. […] The FT’s headline of the weekend was that US money market funds have overcome their fear of the eurozone explosion and went back to making investments in Europe, increasing their exposure by 16% in September. So maybe Francois Hollande spoke to them before announcing that the worst of the crisis was over. […]

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