non-performing loans

These Are The 3 Main Issues For Europe In 2017

What will the year ahead look like for Europe? 2017 will be another chapter in the European Union’s slow unraveling (which even Soros sees as inevitable)... a process that has been underway for over a decade.

Are Chinese Philosopher Kings Losing Their Yuan FX Religion?

It took a while, but the world are slowly coming to grips with the simple fact the Chinese miracle is built on a pile of debt with only an unconstrained printing press to support it. The danger is obviously that the political establishment in China will be in dire need to distract the hordes of angry masses that are about to lose their life savings.

Frontrunning: December 23

  • Berlin market attack suspect killed in Italy (Reuters)
  • Tunisian Suspect Had a History of Criminal Activity, Extremism (WSJ)
  • Hijacked Libyan plane lands in Malta with 118 on board (Reuters)
  • Deutsche Bank, Credit Suisse Settle U.S. Probes as Barclays Sued (BBG)
  • Italy Sets Up Fund to Help Troubled Banks (WSJ)

Italy's Largest Bank Laying Off 14,000, Raising €13 Billion In Business Overhaul

UniCredit announced a major business overhaul, planning to raise €13 billion in capital to return the largest Italian bank to profitability, hoping that a balance-sheet cleanup and cost cuts will persuade investors that Italy’s biggest bank can restore profitability. As part of the three-year strategy, the bank plans to shed an additional 6,500 jobs, bringing the total to 14,000.

Everything You Need To Know About The Italian Referendum (& Should Be Afraid To Ask)

While the post-Trump euphoria in US stocks has been the perfect distraction from the ugly realities elsewhere, this weekend's Italian Referendum could well be the biggest 'revolt' yet, topping Brexit and Trump. Should Italy vote "no", as polls forecast, PM Renzi may quit, leaving the Italian bank recapitalization would then be in jeopardy and, as Bloomberg's Mark Cranfield warns "we could be looking at a Greece-like market reaction on steroids."

Up To Eight Italian Banks May Fail If Renzi Loses Referendum

Just as we were concluding our write up on the return of Europe's solvency crisis, the FT reported that said crisis may be just around the corner because as many as eight of Italy’s troubled banks "risk failing" if prime minister Renzi loses next weekend's constitutional referendum and ensuing market turbulence deters investors from recapitalizing them, citing senior bankers.

The Serfs Have Rebelled - Europe Next?

Hayek’s The Road to Serfdom described how personal freedoms are progressively eroded by the state in the name of the common good. In the main, the serfs are patient and tolerant of their masters, but in a democracy, the establishment behind the state risks being challenged. And that has happened twice this year, first with Brexit and now with Trump in America... but remember the serfs never win, as Hayek recognised.

Bank of England Asks UK Banks To Detail Their Exposure To Deutsche And Italian Banks

In what may or may not be a coincidence, just hours after Bloomberg reported that DB launched a probe into whether it "misstated" derivatives, moments ago the FT reported that the Bank of England is seeking details from large British banks on their current exposure to Deutsche Bank and some of the biggest Italian banks, including Monte dei Paschi, "amid mounting market jitters over the health of Europe’s financial sector."