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’Farewell G7 AAA’s
As rumours (scurrilous, nonsense – Ed.) swirl in the market of a French rating downgrade, Citigroup’s chief economist Willem Buiter is considering a much bigger issue – a world without any AAA G7 sovereigns.
Crisis weekend, Asia open + G7 edition [Updated]
Well, then. Asian markets did open lower but hardly in armageddon territory; look like the bankers were prepared after all. Or the G7 and ECB assurances have really helped.
Anyway, here are key points from that G7 ministers’ statement issued shortly before the Asia open:
The yen and economic fundamentals
How do we know that foreign funds are being repatriated into Japan? Because the yen strengthened against the dollar after the earthquake and until the G7 intervened. Why did the yen strengthen? Because funds were being repatriated,
G7 yen intervention: A ‘one-day wonder’?
Extraordinary times indeed call for extraordinary measures. When the yen surged more than 4 per cent in less than an hour to a fresh post-war low of Y76.25 on Thursday, it was clear that something had to give.
Intervention!
While you were sleeping…
Statement from the G7: (emphasis ours)
‘We, the G7 finance ministers and central bank governors, discussed the recent dramatic events in Japan and were briefed by our Japanese colleagues on the current situation and the economic and financial response put in place by the authorities.
Quote du jour, G7 ostrich edition
“The G7 countries are completely asleep at the wheel. I looked at the information they put out from their meeting I was absolutely shocked … they seem to show no awareness at all that much of Europe is facing a serious crisis and it’s not limited to Spain,
When G7 bond yields tell you nothing
UBS draws attention on Monday to the fact that widening G7 sovereign CDS spreads are as yet not being mirrored by rising bond yields.
That’s not to say that CDS are being mis-priced. There just happen to be other extenuating circumstances keeping yields low,
A little more intervention, a little less action
You spend years developing and structuring a single European currency. You take care mandating the terms and conditions for entry. You reject unworthy applicants. You launch with great success. You become the key alternative choice for settlement of international claims and central bank reserves.