World economy talk

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did i mention Spain's banks are in trouble?

ya i did

so it begins...

El Gobierno prepara la nacionalizacin de BFA-Bankia para esta misma tarde - ABC.es

El Gobierno de Mariano Rajoy prepara la conversión en capital de los 4.465 millones de euros que inyectó a la entidad a través del Fondo de Reestructuración Ordenada Bancaria (FROB) para apoyar la fusión de las siete cajas de forman el grupo Banco Financiero y de Ahorros (BFA). Esto supone la nacionalización parcial de Bankia, según fuentes solventes consultadas por ABC.

translation:

The Government of Mariano Rajoy prepares conversion into capital of 4.465 million euros injected into the body through the Bank Restructuring Fund (FROB) to support the merger of the seven boxes of forming the group Financial Savings Bank ( BFA). This involves the partial nationalization of Bankia, according to reliable sources consulted by ABC.

Bankia is Spain's 3rd largest bank

Bankia has massive exposure to the Spain’s real estate and construction sector

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Greece political parties are still trying to form a coalition govt

if they fail to form a coalition govt there will be elections next month

Greece has to present budget cuts to the troika to get additional bailout funds next month

good luck

Greek leftist vows to reject EU-IMF loan terms | DAWN.COM

Palpak nga...

The leader of Greece's far-left Syriza bloc, Alexis Tsipras, has abandoned his efforts to form a governing coalition.

Mr Tsipras said he had failed to reach agreement with mainstream parties because of his insistence on rejecting austerity measures demanded by the EU and IMF as part of a bailout deal.

He made the announcement after failed talks with the Pasok and New Democracy parties, which support the bailout.

Pasok leader Evangelos Venizelos is now expected to try to form a coalition.

The BBC's Mark Lowen in Athens says there are serious doubts over whether Mr Venizelos will succeed - meaning a new election and a prolonged political crisis seem increasingly inevitable.

Financial chaos has sparked huge social unrest in Greece and led to a deep mistrust of the parties considered to be the architects of austerity.

An earlier attempt by New Democracy (ND) leader Antonis Samaras to form a coalition failed on Monday.

However eurozone governments agreed to give Greece another instalment of 5.2bn euros (£4.2bn; $6.7bn) to allow it to meet its immediate financial obligations.

The board of the European Financial Stability Facility said on Wednesday that an initial 4.2bn euros would be paid on Thursday, while the remaining 1bn euros would be paid out later "depending on the financing needs of Greece".

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they can't form a govt

June elections na yan

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JP Morgan $2B+ derivative trading loss

JPM conference call
http://www.shareholder.com/visitors/...pupcheck=0&she

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Third attempt at forming a goverment.

The leader of Greece's socialist party, Evangelos Venizelos, has abandoned efforts to form a new government.

Mr Venizelos, the third leader to try to forge a coalition since Sunday's inconclusive elections, said he would now meet the president in a last-ditch effort to avoid fresh polls.

The country's debt crisis has raised the possibility it could default and be forced out of the eurozone

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Fitch downgrades JPM

Fitch Ratings-New York-11 May 2012: Fitch Ratings has downgraded JPMorgan Chase & Co.'s (JPM) Long-term Issuer Default Rating (IDR) to 'A+' from 'AA-' and its Short-term IDR to 'F1' from 'F1+'. Fitch has placed all parent and subsidiary long-term ratings on Rating Watch Negative.

Fitch has also downgraded JPM's viability rating (VR) to 'a+' from 'aa-' and placed it on Rating Watch Negative. In addition, Fitch affirmed JPM's '1' support rating and 'A' support rating floor. A full list of rating actions follows at the end of this release.

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Third attempt at forming a goverment.

still no govt

elections June 17

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AUDUSD falls below 1.0000

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flight to safety

German 10 yr yield is now at record low below 1.5%