Tag Archives: tensions

Euro Official On Cyprus: “Markets Believe We Will Find A Solution, This Might Not Be The Case”

21 Mar

BFvAB8iCIAA23X2.jpg largeWhile the market levitation courtesy of the Fed, BIS and BOJ continues unabated to give the impression that all is well, allowing empty momentum-chasing chatterboxes to say that Cyprus is not a big deal because… well, look at the market (and real traders the chance to quietly dump existing risk positions), the artificial, centrally-planned calm during the storm may be ending. The reason comes from none other than the Eurogroup, whose deputy finance ministers held a conference call last night, and whose transcript has been seen by Reuters.

Here are the highlights.

 Euro zone finance officials acknowledged being “in a mess” over Cyprus during a conference call on Wednesday and discussed imposing capital controls to insulate the region from a possible collapse of the Cypriot economy.

Not very confidence boosting. But then again, with confidence in Cyprus now gone, the time for damage control is long gone. Sure enough, it just goes from bad to worse:

“The (Cypriot) parliament is obviously too emotional and will not decide on anything, if Cyprus does not even feel that they can attend the call it is a big problem for us,” the French representative said, according to the notes seen by Reuters.

“We have never seen this.”

“Ring-fencing” is back, and so are Lehman references.

 
The official also referred to the need to resolve Cyprus’s two biggest banks, both of which are close to collapse, and mentioned the possibility of Cyprus leaving the euro zone.
In the event of an exit, the official said steps needed to be taken to “ring-fence” the rest of the euro zone from the impact and to ensure there was no contagion to Greece.

Bad news for locals: your economy is done, so may as well drag the entire Eurozone down with you:

    “The economy is going to tank in Cyprus no matter what,” the notes quoted him as saying. “Restrictions on capital will probably be imposed,” he said, adding that further conference calls would be organised in the coming days.

And the punchline:

    “Markets believe that we will find a solution and that we will provide more money and this might not be the case,” one of the participants on the call said

Hint to those confused: the market is not at all ignoring Cyprus. The central banks manipulating the market are doing their best to make it seem the market is not affected by a development which not even politicians have any idea how to negate as everything is now in unchartered territory. Of course, if and when control of the market is lost, that’s when things get really interest.

Source: zerohedge.com

 

 

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EU budget rejected by European Parliament

13 Mar

E.U. budgetEuropean Parliament rejects the conclusions of the European Council (heads of State or Government of the EU) from 8 February when it was established the multiannual financial budget for 2014-2020, which could overturn the compromise reached in February regarding the distribution of EU funds.
Today the P
arliament voted by a large majority (506 votes for and 161 against) a resolution rejecting the conclusions of the Summit in February, indicating that most of the voters disagree with the 2014-2020 multi-annual budget  wich must be agreed by Parliament in Strasbourg to take effect. If a solution is not reached until the end of the year, it will be established the 2013 EU budget, which complicates things as multiannual financial budget 2014-2020 is different from the financial year 2007-2014.
Moreover, the rejection by Parliament of the MFB (multiannual financial budget) was anticipated early in February by Martin Schulz, President of the European Parliament.
Parliament is unhappy that the EU budget has been reduced with 960 billion in seven years for the first time in EU history. If there will not be a compromise and the Parliament will oppose they will reach a deadlock. The budget will be approved each year which will generate tensions everytime between EU members, some will complain that they received too little while others that have contributed with to much.

Exclusive: North Korea tells China of preparations for fresh nuclear test – source

16 Feb

 

China - North Korea(Reuters) – North Korea has told its key ally, China, that it is prepared to stage one or even two more nuclear tests this year in an effort to force the United States into diplomatic talks, said a source with direct knowledge of the message.

Further tests could also be accompanied this year by another rocket launch, said the source, who has direct access to the top levels of government in both Beijing and Pyongyang. Continue reading

North Korea appears to conduct 3rd nuclear test, officials and experts say

12 Feb

North Korea nuclearNorth Korea conducted a nuclear test on Tuesday, South Korea’s defence ministry said, after seismic activity measuring 4.9 magnitude was registered by the U.S. Geological Survey.

The epicentre of the seismic activity, which was only one km below the Earth’s surface, was close to the North’s known nuclear test site.

“We’ve been informed by the South Koreans that there’s been a (North Korean) nuclear test,” a U.N. Security Council diplomat told Reuters on condition of anonymity. Continue reading

Tensions Rise Between China and Japan

8 Feb

China Japan disputed islands

China and Japan engaged on Friday in a fresh round of invective over military movements near a disputed group of uninhabited islands, fuelling tension that for months has bedeviled relations between the Asian powers.

An increasingly muscular China has been repeatedly at odds with others in the region over rival claims to small clusters of islands, most recently with fellow economic giant Japan which accused a Chinese navy vessel of locking radar normally used to aim weapons on a Japanese naval ship in the East China Sea. Continue reading

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