ratings

Tyler Durden's picture

Eurogroup Gives Greece 10 Day Ultimatum: Apply For Bailout Or Grexit





Update: And now this: "Moody's places Greece's Caa1 government bond rating on review for downgrade"

Europe has an unpleasant habit of dropping tape bombs at the most inopportune of times, like at 3pm or later a Friday. And while on Wednesday it was the ECB yanking repoable Greek collateral for local banks, today it was first S&P, which downgraded Greece 5 months after upgrading it, and moments ago it was none other than the Cyprus bail-in man himself, the Eurogroup's Dijsselbloem  who just have Greece a 10 day ultimatum to fall into place or risk a terminal bank run and capital controls (both hinted at earlier by the post-DOJ settlement political "rating agency')

  • GREECE MUST APPLY FOR BAILOUT EXTENSION ON FEB 16 AT THE LATEST TO KEEP EURO ZONE FINANCIAL BACKING -EUROGROUP CHAIRMAN DIJSSELBLOEM

This means that Greece now has 10 days, or until the Monday after next to decide whether it will stay in the Eurozone or Grexit.

 
Tyler Durden's picture

S&P Downgrades Greece, Suggests Worst Case Scenario With Bank Runs And "Capital Controls": Full Report





And the hits keep coming. On the heels of a demand for repayment of ECB's profits from GGB bond gains and to extend the T-Bill limit to give the nation time to negotiate with EU leaders (i.e. a Bridge Loan) which Jeroen Dijsselbloem already dismissed earlier in the day, S&P just piled on...

GREECE RATINGS CUT TO B- FROM B BY S&P; MAY BE CUT FURTHER

This downgrade comes just 5 months after upgrading Greece because "risks to fiscal consolidation in Greece have abated." EURUSD is not moving much (having already cratered after US payrolls) but Greek stock ETFs are sliding once again.

 
Reggie Middleton's picture

The Auto Industry: Financing a bubble like you've never seen before...





Well, actually, we have seen this bubble before haven't we? Is GM really doing that well? In 2007, they did well too. In 2008 their finance arm= .gov bailout, 2009 GM Bankrupt! It's amazing what mainstream media will report, and even more amazing how many "smart" people (including analysts) will go along with it. Reggie's truth laid bare...

 
Tyler Durden's picture

Frontrunning: February 4





  • Arab World Unites to Condemn ‘Barbaric’ Death of Jordanian Pilot (BBG)
  • Jordan hangs two Iraqi militants in response to pilot's death (Reuters)
  • As Oil Prices Climb, Some Harbor Doubts (WSJ)
  • Taiwan plane cartwheels into river after take-off, killing at least 19 (Reuters)
  • Seven dead as commuter train hits car near New York City (Reuters)
  • Apollo’s 600% Profit on Oil Company Leaves Rivals Behind (BBG)
  • Greece's rock-star finance minister Yanis Varoufakis defies ECB's drachma threats  (Telegraph)
 
Tyler Durden's picture

More Greeks Approve Of Russia's Leadership Than Europe's





You know Merkel, Draghi, Dijsselbloem et al. have a problem when... More than one in three Greeks (35%) in 2014 approved of Russia's leadership, while fewer than one in four (23%) approved of the EU's leadership.

 
Tyler Durden's picture

S&P Settles DOJ Lawsuit For $1.5 Billion; Agrees Not To Accuse Government Of Retaliation For US Downgrade





As had been widely rumored in the past two weeks, and as the WSJ reported overnight, moments ago McGraw Hill, parent of disgraced rating agency S&P, entered into a $1.5 billion settlement to fully resolve the DOJ lawsuit regarding S&P ratings on RMBS and CDOs. As the WSJ reported overnight, In the "span of about 30 hours, the Justice Department lowered its asking price and backed off demands that S&P admit to violating laws when it issued rosy grades on risky mortgage deals, the people said." But the bottom line: 'S&P agreed to ... withdraw its assertion that the Justice Department lawsuit was political retaliation for the ratings firm’s 2011 downgrade."

 
Tyler Durden's picture

Frontrunning: February 3





  • RBA cuts interest rates to record low of 2.25% (SMH)
  • RBI keeps rates on hold (Reuters), India allows banks flexibility on big projects to reboot growth (Reuters)
  • BP slashes capital spending by 20% (FT)
  • Greek Retreat on Writedown May Move Fight to Spending (BBG)
  • Rosneft accounting move helps BP beat profit forecast (Reuters)
  • Amazon in Talks to Buy Some of RadioShack's Stores (BBG)
  • Behind Obama's budget proposals, a gloomy view of the future (Reuters)
  • How the Justice Department, S&P Came to Terms (WSJ)
  • Staples, Office Depot in Advanced Talks to Merge (WSJ)
 
Tyler Durden's picture

Venezuela's Largest Pharmacy Chain Execs Jailed For "Provoking The People With Economic War"





Because admitting that the Venezuelan utopia is failing due to the policies of Hugo Chavez' "socialist revolution" would leave the thread by which Venezuelan socialism hangs ready to snap, President Maduro has shifted the blame for hyperinflating-price-based staples shortages and food lines from a cut in oil revenues to the dastardly capitalists. As The BBC reports, Maduro ordered the arrest of executives of one of the country’s largest pharmacy chains for allegedly creating shortages of everything from diapers to heart medicine. A triumphant information minister proclaimed, "we came, we normalized sales, we summoned the owners, we arrested them and they're prisoners for having provoked the people with economic war."

 
Tyler Durden's picture

Frontrunning: February 2





  • Germany Sees No Need to Scrap Troika in Overseeing Greek Turnaround (WSJ)
  • European markets subdued as Chinese data weighs (Reuters)
  • U.S. Oil Workers Strike Enters Second Day as Crude Prices Slide (BBG)
  • Oil prices rally above $55 as investors pile in (Reuters)
  • Obama Wants a New Tax on U.S. Companies' Overseas Profits (BBG)
  • If Trading Bonds Is Hard, Think About Pain When Rates Rise (BBG)
  • Julius Baer Braces for Swiss Franc Impact (WSJ)
  • Coke, Budweiser win as Super Bowl ad battle gets serious (Reuters)
 
Tyler Durden's picture

Market Wrap: Futures Attempt Bounce On Sudden Rebound In Crude





The overnight session had been mostly quiet until minutes ago, when unexpectedly WTI, which had traded down as low as the mid $46 range following the weakest Chinese manufacturing data in two years, saw another bout of algo-driven buying momentum which pushed it sharply, if briefly, above $50, and was last trading about 2.6% higher on the day. In today's highly correlated market, this was likely catalyzed by a brief period of dollar weakness as well as the jump of EURCHF above 1.05, within the rumored corridor implemented by the Swiss National Bank, which apparently has not learned its lesson and is a glutton for a second punishment, after its hard Swissy cap was so dramatically breached, it hopes to repeat the experience with a softer one around 1.05. Expect to see even more FX brokers blowing up once the EURCHF 1.05 floor fails to hold next.

 
Tyler Durden's picture

"The Thread By Which Venezuelan Socialism Hangs May Soon Snap"





Say you are a socialist, and you have intervened heavily in the economy. Suddenly, things don’t work as you thought they would. Somehow, economic laws seem to refuse to bend to your will. However, you cannot really believe that since according to your convictions, wealth is a byproduct of government plans and decrees. So the solution to the unintended consequences of the initial intervention is to intervene further, in an attempt to refine the plan, so to speak. So you try again. And again. And again. Chances are, your name is Nicolas Maduro. In summary, the thread by which Venezuelan socialism hangs may soon snap.

 
Tyler Durden's picture

Now We 'Know' Greek Banks Are Really In Trouble





"When it gets serious, you have to lie," were the infamous words of one J-C Juncker and today - following the 40-50% collapse in Greek Bank equity capital this week,ECB's Bank Supervision boss Nouy has come out to calm everything down:

*NOUY SAYS GREEK BANKS ARE 'PRETTY STRONG',  HAVE STRENGTHENED THEIR BALANCE SHEETS
*ECB'S NOUY SAYS GREEK BANKS WILL SURVIVE CURRENT CRISIS

Which, translated for the elites means, "sell-sell-sell." And then - just to add even more pressure, S&P puts Greece on Watch Negative.

 
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