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Deal Or No Deal? Argentina Declared In Selective Default, Holds Press Conference - Live Feed

Tyler Durden's picture




 

After an exuberant day in Argentine bond and stock markets, we are nearing a decision. With a handful of hours left until it's all over, various 'deal's have been proposed today from Argentine bankers as a last-minute rescue package. S&P has already decided that it's a done deal:

  • *ARGENTINA CUT TO SD FROM CCC- BY S&P
  • *ARGENTINA DEFAULTED ON $13B IN FOREIGN DEBT, S&P SAYS
  • *ARGENTINA MISSED $539M BOND PAYMENT, S&P SAYS

And now, Argentine Economy Minister Axel Kicillof will speak in a press conference at country’s consulate in Manhattan (ironically a block from the holdouts' office).

 

The hope:

"The idea is to get a stay (suspension of the court order) to reach January," said Ribeiro Mendonça. "Clearly there's a concern. There are no winners in a default scenario that brings lower levels of economic activity and a higher jobless rate. The banking sector is going to be the one that contributes the most because it is linked to the debt restructuring."

The reality from S&P,

"We are... lowering our long-and short-term foreign currency sovereign credit ratings on Argentina to selective default ('SD') from 'CCC-/C'," said the agency's release, "indicating that Argentina defaulted on some of its foreign currency obligations. At the same time, we are removing the 'CCC-/C' foreign currency ratings from CreditWatch, where they were placed with negative implications on July 1, 2014."

Things do not look good:

  • ARGENTINA'S LEAD LAWYERS BLACKMAN AND BOCCUZZI LEAVE TALKS, SAY NO COMMENT ON STATUS OF DEBT TALKS - REUTERS WITNESS

 

Press conference due to start at 515ET 530ET: (click image for link to live feed)


 

And for posterity's sake... here's the MERVAL recently...

 

and long-term...

 

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Wed, 07/30/2014 - 17:15 | 5024386 loonyleft
loonyleft's picture

Sucks when you aren't part of the in crowd.

Wed, 07/30/2014 - 17:17 | 5024397 flacon
flacon's picture

How many times now has Argentina defaulted on it's debt - it's like every 10 years like clockwork. They sure know how to sucker people in don't they. 

Wed, 07/30/2014 - 17:20 | 5024414 Publicus
Publicus's picture

The world will default on USD. Checkmate to the NWO.

Wed, 07/30/2014 - 17:36 | 5024471 Comte de Saint ...
Comte de Saint Germain's picture

Argentina may try to invade again the Falklands in order to divert public attention and the subsequent social unrest.

Wed, 07/30/2014 - 17:53 | 5024522 souljaboy
souljaboy's picture

That's a bold statement.

Wed, 07/30/2014 - 17:52 | 5024523 Publicus
Publicus's picture

And the USA will wage a war with Russia.

Wed, 07/30/2014 - 18:07 | 5024597 Skid
Skid's picture

That's not necessary, today a mayor soccer leader died. Everybody is talking about that and they don't care about the public debt. 

Wed, 07/30/2014 - 17:21 | 5024418 negative rates
negative rates's picture

It's been 75% returns on the 10 year for decades, but since people memory's are short, they reinvest time and time again not knowing where the money went.

Wed, 07/30/2014 - 17:19 | 5024408 Deathrips
Deathrips's picture

If a default falls in Argentina, will it make a sound?

 

Yes.

 

RIPS

Wed, 07/30/2014 - 17:20 | 5024411 Sudden Debt
Sudden Debt's picture

Come on man... They still have 40 minutes to come up with the money...
I trust them...
But go get Ivan... Just in case.... And tell him to bring his bat with him...

Wed, 07/30/2014 - 17:50 | 5024513 FrankieGoesToHo...
FrankieGoesToHollywood's picture

Blues Brothers trying to get to the Cook County Assessor's office comes to mind...

Wed, 07/30/2014 - 17:31 | 5024455 Max Damage
Max Damage's picture

Well the USA is in selective default also but those scum at S&P would never dare call trillions of toilet paper a default

Wed, 07/30/2014 - 17:57 | 5024549 williambanzai7
williambanzai7's picture

Wed, 07/30/2014 - 17:15 | 5024387 Slave
Slave's picture

IMF to the rescue! Oh wait...

Wed, 07/30/2014 - 17:15 | 5024389 Cow
Cow's picture

Two questions:

1.  Will the ISDA declare this to be a default?  http://dc.isda.org/

2.  How many CDS are there on this?  I wonder if anyone collects.

Wed, 07/30/2014 - 17:18 | 5024403 cossack55
cossack55's picture

Two answers:

 

1. No, never.

2. # of CDS=None yo damn bidness

    who collects=GS & JPM  

 

Was it ever thus.

Wed, 07/30/2014 - 17:15 | 5024390 fonzannoon
fonzannoon's picture

Did Bass get Corzined?

Wed, 07/30/2014 - 17:34 | 5024464 negative rates
negative rates's picture

If he didn't get out of danger, prolly so, and now you know.

Wed, 07/30/2014 - 17:17 | 5024392 Madcow
Madcow's picture

I'm sure there will be another "Sorry buy you got tricked fair and square" message issued to folks who bought CDS.  It should be clear by now that these "derivative securities" are worthless. 

 

Wed, 07/30/2014 - 17:18 | 5024399 Winston Churchill
Winston Churchill's picture

Not for calculating bonuses they aren't.

Wed, 07/30/2014 - 17:17 | 5024394 I Am Not a Copp...
I Am Not a Copper Top's picture

Don't cry for me Argent...aw the hell with it

Wed, 07/30/2014 - 17:20 | 5024410 WTFUD
WTFUD's picture

Matters can only improve when a stake is driven through the heart of EVERY POLITICIAN AND BANKSTER.

Wed, 07/30/2014 - 17:22 | 5024425 astoriajoe
astoriajoe's picture

Mervalous!

Wed, 07/30/2014 - 17:25 | 5024437 spanish inquisition
spanish inquisition's picture

I would like to see a hard default on everything with a refinancing package from the new BRICS bank.

Wed, 07/30/2014 - 17:25 | 5024438 Glass Seagull
Glass Seagull's picture

 

 

Future ISDA statement:  "After our board members loaded up on Argentine bonds, and sold copious ARG CDS baskets, we have decided that ARG did nothing wrong and is an incredible place to hunt birds and partaaaaaaaaaaaay!"

Wed, 07/30/2014 - 17:27 | 5024446 Gringo Viejo
Gringo Viejo's picture

I understand Argentina has defaulted and taken a shit on bond holders. What I don't understand is why anyone would give a shit as to how they're rated by S&P.

Wed, 07/30/2014 - 17:37 | 5024469 CHX
CHX's picture

Topologically speaking, the second chart shows for what's in for gold. Default, bitchezzzzz

Wed, 07/30/2014 - 17:43 | 5024477 trader1
trader1's picture

in other news:

 

http://www.independent.co.uk/news/world/europe/land-for-gas-secret-germa...

 


Germany and Russia have been working on a secret plan to broker a peaceful solution to end international tensions over the Ukraine.

The Independent can reveal that the peace plan, being worked on by both Angela Merkel and Vladimir Putin, hinges on two main ambitions: stabilising the borders of Ukraine and providing the financially troubled country with a strong economic boost, particularly a new energy agreement ensuring security of gas supplies.

More controversially, if Ms Merkel’s deal were to be acceptable to the Russians, the international community would need to recognise Crimea’s independence and its annexation by Russia, a move that some members of the United Nations might find difficult to stomach.

Sources close to the secret negotiations claim that the first part of the stabilisation plan requires Russia to withdraw its financial and military support for the various pro-separatist groups operating in eastern Ukraine. As part of any such agreement, the region would be allowed some devolved powers.

At the same time, the Ukrainian President would agree not to apply to join Nato. In return, President Putin would not seek to block or interfere with the Ukraine’s new trade relations with the European Union under a pact signed a few weeks ago.

Second, the Ukraine would be offered a new long-term agreement with Russia’s Gazprom, the giant gas supplier, for future gas supplies and pricing. At present, there is no gas deal in place; Ukraine’s gas supplies are running low and are likely to run out before this winter, which would spell economic and social ruin for the country.

As part of the deal, Russia would compensate Ukraine with a billion-dollar financial package for the loss of the rent it used to pay for stationing its fleets in the Crimea and at the port of Sevastopol on the Black Sea until Crimea voted for independence in March.

However, these attempts by Ms Merkel to act as a broker between President Putin and the Ukraine’s President, Petro Poroshenko, were put on the back-burner following the shooting down of the MH17 plane in eastern Ukraine.

But insiders who are party to the discussions said yesterday that the “German peace plan is still on the table and the only deal around. Negotiations have stalled because of the MH17 disaster but they are expected to restart once the investigation has taken place.”

“It is in everyone’s interests to do a deal. Hopefully, talks will be revived if a satisfactory outcome can be reached to investigations now taking place as to the causes of the MH17 catastrophe.”

Wed, 07/30/2014 - 17:46 | 5024493 Kirk2NCC1701
Kirk2NCC1701's picture

Sounds like a bullshit deal, created in committee:  Something for everybody.

Wed, 07/30/2014 - 17:56 | 5024544 trader1
trader1's picture

makes you wonder cui bono from a german-led peace deal that gets put on hold due to the downing of MH17.

NSA must still be tapping merkel's phone, or maybe putin's phone is hacked too.

or all random.

Wed, 07/30/2014 - 17:50 | 5024512 Bernoulli
Bernoulli's picture

Doesn't sound so bad, does it?

Wed, 07/30/2014 - 17:52 | 5024525 fonzannoon
fonzannoon's picture

So Merkel and Putin had a deal in the works so _ created a distraction by shooting down a commercial aircraft to divert the attention and hopefully start a war?

Nah!

Yeah?

Wed, 07/30/2014 - 17:40 | 5024479 Ignorance is bliss
Ignorance is bliss's picture

(Argentina) derives its name from latin (argentum) which means silver. 

The first use of the name Argentina can be traced back to the first voyages made by the Spanish and Portuguese conquerors to the Río de la Plata (meaning "River of Silver"), in the first years of the 16th century.

Wed, 07/30/2014 - 17:46 | 5024494 q99x2
q99x2's picture

Default and send your children to Obama.

Wed, 07/30/2014 - 17:48 | 5024504 Kirk2NCC1701
Kirk2NCC1701's picture

Seems that while Argentina's stocks go up, her stockings go down.  Screwed!

And Juan is paying for the banksters' Happy Ending.

Wed, 07/30/2014 - 18:02 | 5024575 remain calm
remain calm's picture

Its in fucking Spanish. WTF? No way I understand this unless I am eating a Burito

Wed, 07/30/2014 - 18:38 | 5024757 Latitude25
Latitude25's picture

No deal.  It's a default.

Wed, 07/30/2014 - 19:01 | 5024886 NoWayJose
NoWayJose's picture

The US will eventually have a selective default too. Goldman and JPM will get paid - everyone else (including your 401K plans and mutual funds and ETFs will not). Sorry Bill Gross, you haven't been playing the political game correctly, so you won't get paid either!

Thu, 07/31/2014 - 03:43 | 5026387 iLiquid
iLiquid's picture

Stocks soar -- why not?  As the default shows, your pe$os and bonds are worth shit.  Better convert them into some ownership of real productive corporations while you still can.  At least you've got to get some stake in some real business and goods.

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