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NEWS: Italy’s central bank extended asset quality inspections started last year on eight of 20 banks. Japan’s industrial production fell in June by the most since March 2011. Australian central bank Governer Glenn Stevens said there’s still room to lower interest rates. To read more, click here.
NEWS: Japan consumer prices rose the most since 2008 in June. China ordered more than 1,400 companies in 19 industries to cut excess production capacity. Former ECB chief economist Juergen Stark told Handelsblatt there’ll be “a lot of pressure” from France to buy its government bonds, even without applying for a bailout. To read more, click here.
NEWS: German Vice Chancellor Philipp Roesler ruled out another debt cut for Greece. German companies are the most pessimistic in more than a year on the euro. See page 3. Anglo Irish Bank will have 3 billion euros less to repay creditors. A train derailment in northern Spain killed at least 60 and injured more [...]
WHAT TO WATCH: The euro-area PMI for July may show a slower pace of contraction. 9 a.m. (See chart below.) Euro-area finance officials hold conference call on Greek bailout. TBA. ECB publishes bank lending survey. 9 a.m. Portuguese Prime Minister Pedro Passos Coelho’s new Cabinet will be sworn in at 4 p.m. To read more, click here.
NEWS: Chancellor Angela Merkel pledged to keep Europe whole. The Fed will trim its monthly bond buying in September, a Bloomberg survey shows. China’s government sees 7 percent growth as the bottom line. To read more, click here.
G-20 news: G-20 nations will pursue “carefully calibrated and clearly communicated” policy so the U.S. and Japan don’t spook markets when they roll back stimulus. Finance ministers advised Europeans to move away from budget-cutting and toward growth. To read more, click here.
NEWS: Ben Bernanke may tell Congress that reducing QE won’t presage an increase in the main Fed rate. Barclays and four ex-traders were fined $487.9 million by the U.S. Federal Energy Regulatory Commission in a probe into manipulation of energy markets. Moody’s said Ireland’s ratings outlook may stabilize by the end of 2014. To read more, click here.
Japan’s Topix index slid more than 5 percent, the most since the aftermath of the March 2011 tsunami and nuclear disaster, as financial companies plunged amid rising bond yields. The rout triggered a halt in Nikkei 225 Stock Average futures trading in Osaka. The yen rallied, snapping a two-day drop that took it to the weakest in [...]
Today’s euro-area bank-deposit figures for March may highlight the extent of the bank run in Cyprus even as a proposed deposit levy on savers was dropped after lawmakers refused to implement it. Greek’s deposit-growth rate turned positive for the first time in three years in February. Four nations experienced a drop in deposits on a year-over-year basis in February: [...]
Crisis Watch by David Powell, Bloomberg Economist Comparisons between the dangers posed by the banking systems of Cyprus and Malta appear to be misplaced, though the rapid expansion of the Maltese financial sector has the potential to someday become a problem. Click here to read the full article.