Well, it’s an awkward
wet morning for this type of thing but sometimes it just can’t be helped. As markets fail to keep smiling upon the announced bailout (now failout, apparently) of Spain’s banks, it might be worth dropping in and taking a quick look at Ireland’s troubled financial sector and its creeping bank rescue.
The ever worthy Nama Wine Lake did some good work and peered at the 2011 financial reports for Ireland’s major banks. The results are troubling. Read more
We thought there was a solid tradition in Ireland: first referendum is a No, the second is a Yes. It seemed so simple. But the Irish government has gone and smashed that venerable tradition by saying, if the people vote No, it won’t be putting this issue to a referendum again… incontrovertibly.
Worrying. Read more
Voting booths are open and Ireland’s snap general election is underway on Friday. Here’s a handy table of the parties’ financial policies from Morgan Stanley:
Fresh off the wires:
DUBLIN, Dec 15 (Reuters) – Ireland’s parliament voted in favour of an 85 billion euro EU/IMF bailout on Wednesday, paving the way for the IMF to approve its portion of the funds later this week. Read more
Relief that Ireland and the European Union have agreed a €80bn-€90bn bail-out provided a positive start to the week for riskier assets, reports the FT’s market overview. The FTSE All World equity index was up 0.6 per cent, commodity prices were higher and the dollar was weaker as traders made bolder bets. US stock futures were up 0.5 per cent. News of the deal helped the region’s banks gain some ground in early dealing. The FTSE Eurofirst 300 was up 0.4 per cent and London’s FTSE 100 was higher by 0.5 per cent, boosted also by Wall Street retracing early losses on Friday to finish marginally higher. The Dublin stockmarket was up 0.6 per cent. Investors were likely also to be heartened by the Asian markets’ first chance to react to Friday’s news that Beijing was further tightening monetary policy. Another 50 basis point hike in China’s bank reserve requirement ratio, intended to trim lending and attack inflationary pressures, appeared to have been taken by traders in their stride. The FTSE Asia-Pacific index was up 0.8 per cent as the region welcomed the Ireland news. The Nikkei 225 in Japan had risen 0.9 per cent, a fresh five-month high. The euro saw early strength, gaining 0.2 per cent versus the dollar to $1.3739 and up 0.1 relative to the yen at Y114.61.
Pressure mounted on Ireland on Wednesday to agree to a joint European Union-International Monetary Fund rescue package, as fresh evidence emerged of fading confidence in the country’s banking system, the FT reports. With the rescue mission poised to begin negotiations with the Irish government on Thursday, analysts said there was growing evidence that bank deposits were dwindling, after Irish Life & Permanent said corporate customers had withdrawn €600m – more than 11 per cent of the total – over a matter of weeks in August and September.