Goldman Agrees With Zapatero That Spain Needs No Bailout, As Goldman Prop Desk "Does Its Thing"
Just because Goldman tends to get a pretty good look at all counterparty books, we will surely take their word on this one. Or not- as we reported recently, DTCC indicated that Spain has seen massive
synthetic derisking over the past 2 weeks. We contend that Goldman's prop desk has been a major participant in the recent derisking action. We would be happy to be proven wrong: if Messrs. van Praag and Canaday would but disclose the firm's prop positions which refute this claim, we will immediately issue a retraction. Also, the latest DTCC data will
be updated when it becomes available tomorrow morning European
Caffeinated Time: we expect Spain to be among the top recipients of market suspicion in the past week. In other news, we expect Spanish CDS spreads to blow out shortly, and the Spanish curve to invert within two weeks, even as Goldman sets everyone at hypnotic ease.
PM Zapatero's press conference is business as usual
It seems he is answering a question from a journalist regarding this morning’s rumour (of Spain asking €280bn aid): he says that the rumour is complete madness, that Spain has strong solvency and that rumours can hurt Spain (and are intolerable).
Comment: We agree with him on all three accounts. Still, Spain needs a thorough labour market reform to set the economy on a higher growth trajectory for the next 5 years.
15:21 04May10 RTRS-SPANISH PM ZAPATERO SAYS RUMOUR OF SPAIN ASKING FOR 280 BLN AID FROM EURO ZONE IS COMPLETE MADNESS
15:22 04May10 RTRS-SPANISH PM ZAPATERO SAYS SPAIN HAS STRONG SOLVENCY ON DEBT
15:23 04May10 RTRS-SPANISH PM ZAPATERO SAYS RUMOURS CAN DAMAGE SPAIN'S INTERESTS, THAT'S INTOLERABLE
15:24 04May10 RTRS-SPANISH PM ZAPATERO SAYS LOAN FOR GREECE IS A CONSIDERABLE COMMITMENT FROM SPAIN
15:24 04May10 RTRS-SPANISH PM ZAPATERO SAYS SPAIN HAS TO RESTRUCTURE FINANCIAL SECTOR
15:28 04May10 RTRS-Report Spain wants 280 bln euros aid is madness-PM
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