With Greece, Ireland and Portugal all under international bailout programs, financial markets are anxious about the risks from a seething Spanish banking crisis and a 17 June Greek election that may lead to Athens leaving the euro zone.
"Markets remain skeptical that the measures taken thus far are sufficient to secure the recovery in Europe and remove the risk that the crisis will deepen. So we obviously believe that more steps need to be taken," White House press secretary Jay Carney told reporters.
Canadian Finance Minister Jim Flaherty said ministers and central bankers of the United States, Canada, Japan, Britain, Germany, France and Italy would hold a special conference call, raising pressure on the Europeans to act.
"The real concern right now is Europe of course - the weakness in some of the banks in Europe, the fact they're undercapitalized, the fact the other European countries in the euro zone have not taken sufficient action yet to address those issues of undercapitalization of banks and building an adequate firewall," Flaherty told reporters.
The disclosure of the normally confidential teleconference came as European Union paymaster Germany said it was up to Spain, the latest euro zone country in the markets' firing line, to decide if it needed financial assistance, after media reports that Berlin was pressing Madrid to request aid.
A G7 source, speaking on condition of anonymity because of the sensitivity of the issue, said there were concerns about the risk of a bank run in Spain, which is struggling to recapitalize nationalized lender Bankia and smaller banks stricken by the collapse of a property bubble.
"There is concern on whether there will be a bank run in Spain that could have repercussions beyond the euro zone," the source told Reuters.
Spanish Prime Minister Mariano Rajoy is pressing for a direct European rescue for his country’s banks with moral support from the European Commission, but Germany appeared to rule out such a "bailout lite" for the euro zone's fourth biggest member.
A source with knowledge of the matter said Madrid is working along with European institutions to find a way to directly refinance banks using rescue funds without the government having to come under a full EU/IMF bailout programme.
"Right now the most urgent issue is the banks, and there are negotiations to refinance the banks directly without it being an intervention. It's a mechanism for all [European] banks, not just for Spanish banks," the source said.
Under current rules Spain can get a loan from the European rescue fund, or EFSF, but it would come with tough conditions and intrusive supervision, with a high political cost for Rajoy. The new permanent European rescue fund, the European Stability Mechanism (ESM), due to enter into force in July, can lend to banks but the request still has to be made by the state.
The source with knowledge of the matter said Spain believed the European Union's executive could take a plan for bank aid to a summit of the bloc's leaders on 28-29 June.
EU Economic and Monetary Affairs Commissioner Olli Rehn said Brussels was considering direct bank recapitalisation by the ESM to break the link between weak sovereigns and ailing banks, but it was not possible under the treaty currently being ratified by member states.
"This is not part of the ESM treaty for the moment, in its present form, but we see that it is important to consider this alternative of direct bank recapitalisation as we are now moving on in the discussion on the possible ways and means to create a banking union," Rehn said.
Germany, the main contributor to the bailout fund, opposes changing the ESM treaty to allow direct bank recapitalisation and has veto power. Berlin contends that only a formal programme approved by national parliaments permits proper international supervision of how aid funds are spent.
Ridsdale: ‘Finance changes will boost PNE’ - Lancashire Evening Post
Preston North End chairman Peter Ridsdale has said changes in rules over club finances will benefit the Deepdale club.
The Lilywhites’ supremo said the club would be “in the top three or four” clubs with the highest turnover in League One next season following the promotion of Sheffield Wednesday, Charlton Athletic and Huddersfield Town.
He said this meant the club would benefit from new financial fair play rules which introduce limits on loss-making and investment from shareholders from the start of next season.
The changes, introduced as part of a push by governing body UEFA to ensure clubs are financially viable, will see the amount clubs are permitted to lose in a financial year shrink in the coming years.
Mr Ridsdale said: “As a ‘big club’ in League One, we will benefit from having a higher turnover which will allow us to spend more than our competitors.
“This is particularly true of some of the smaller clubs in the division which have a lower turnover.
“We are in a position where we can work smarter and benefit from the transfer market, as we have shown in recent weeks.”
The club’s manager Graham Westley has signed 12 players ahead of the start of the new campaign in August.
A study compiled by accountants Deloitte last week showed North End posted a turnover of £10.8m during the 2010/11 season when they were relegated from the Championship.
That meant they achieved the tenth highest turnover of the North West’s 20 Premier League and Football League clubs.
Mr Ridsdale said the table showed the likes of Burnley and Blackpool both receiving large payments from spells in the top flight.
The chairman said: “Burnley were still receiving parachute payments from being in the Premier League, while Blackpool were in the Premier League that season.
“Our own figures will show another reduction next year because the television money League One clubs receive from Sky is lower than in the Championship.”
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Print this pageGerman finance minister Wolfgang Schaeuble firm on eurozone measures - Economic Times
Taiwan forex reserves down 1.5 pct in May - CNBC
TAIPEI, June 5 (Reuters) - Taiwan's foreign exchange reserves stood at $389.275 billion at the end of May, down 1.5 percent from the previous month, the central bank said on Tuesday.
Taiwan's reserves are the world's fourth-largest after China, Japan and Russia. The figures do not include gold.
The central bank also said the market value of securities and Taiwan dollar deposits held by foreign investors reached $201.1 billion, equivalent to 52 percent of foreign exchange reserves.
RESERVES M/M CHG FOREIGN HOLDINGS
(US$ bln) (pct) (pct of reserves)
2012
End-May 389.275 -1.47 52
End-April 395.07 +0.31 54
End-March 393.87 -0.14 56
End-February 394.43 +1.06 56
End-January 390.30 +1.25 53
2011
End-December 385.547 -0.62 48
End-November 387.968 -1.36 47
End-October 393.327 +1.00 51
End-September 389.174 -2.78 48
End-Aug 400.294 -0.12 53
End-July 400.76 +0.11 60
End-June 400.33 +0.40 62
End-May 398.683 -0.20 65
End-April 399.54 +1.76 65
End-March 392.63 +0.50 61
End-February 390.69 +0.93 60
End-January 387.111 +1.34 66
(Reporting by Jeanny Kao; Writing by Faith Hung; Editing by Michael Urquhart)
((jonathan.standing@thomsonreuters.com)(+886 2 2500 4881)(Reuters Messaging: jonathan.standing.thomsonreuters.com@thomsonreuters.net))
Keywords: TAIWAN ECONOMY/RESERVES
Islamic Finance set to mobilize trade and investment flows between Asia and the Middle East - AME Info
The two day WIBC Asia event, held under the official support of the Monetary Authority of Singapore, kicked off today with an inaugural address by H.E. Ravi Menon, Governor of the Monetary Authority of Singapore.
The inaugural address was immediately followed by an opening keynote session which featured H.E. Dr. Ahmad Mohamed Ali Al-Madani, President of the Islamic Development Bank and Edy Setiadi, Executive Director of the Directorate of Islamic Banking, Bank Indonesia. The session addressed the challenges and opportunities inherent in the increasingly global geographic footprint of Islamic finance and also discussed the national and international initiatives that will ensure consistency and foster greater interconnectedness across key jurisdictions for Islamic finance.
A key highlight of WIBC Asia 2012 was the high profile Power Debate session led by internationally respected CEOs and industry leaders. Moderated by Haslinda Amin of Bloomberg Television, the session analyzed the expanding role of Islamic finance as a conduit for trade and capital flows between Asia and the Middle East and also discussed how Islamic financial institutions can better develop the capacity to structure large-scale multi-currency and cross border transactions. The Power Debate session featured Toby O'Connor, Chief Executive Officer, The Islamic Bank of Asia; Hussain AlQemzi; Chief Executive Officer, Noor Islamic Bank and Group Chief Executive Officer, Noor Investment Group; Muzaffar Hisham, Chief Executive Officer, Maybank Islamic Berhad; Dato' Jamelah Jamaluddin, Chief Executive Officer, Kuwait Finance House (Malaysia) Berhad (KFH Malaysia); Syed Abdull Aziz Jailani Bin Syed Kechik, Chief Executive Officer, OCBC Al-Amin Bank Berhad; Shamsun Anwar Hussain, Director - Consumer Banking, CIMB Islamic Bank Berhad; and Wasim Saifi, Global Head, Standard Chartered Saadiq, Consumer Banking.
Speaking to the media present at the event, David McLean, Chief Executive of the World Islamic Banking Conference: Asia Summit noted that "Asia is becoming an increasingly attractive destination for investments that are Shari'ah compliant. To reap the full benefit of the region's rapid expansion and robust development, there is a need to press on towards achieving global connectivity and deepening economic cooperation with various key centres for Islamic finance. In order to better facilitate cross-border relationships, more intensive international co-ordination of regulatory approaches, supervisory oversight and industry practices is needed."
He also said that "as interest in Islamic finance expands across Asia, an increasing number of Middle Eastern investors are looking at opportunities to deploy their capital in the region and Islamic finance is perfectly positioned to act as a catalyst to further bridge capital flows between Asia and the Middle East."
"An ongoing dialogue between key regulators, industry practitioners and market participants representing the two key centres for Islamic finance, i.e the Middle East and Asia, is vital to achieve greater international harmonization in the architecture for Islamic finance", he added.
A similar view was expressed by Hussain AlQemzi, Chief Executive Officer, Noor Islamic Bank and Group Chief Executive Officer, Noor Investment Group, who said that "in order to ensure an orderly evolution of Islamic finance from a niche segment into the mainstream international financial markets, it is vital to further enhance the industry's capabilities for cross-border activities, which in turn will encourage innovative product development, robust and standardised regulatory frameworks and the long term stability of the industry. What the industry lacks at the moment is the breadth and depth that investors enjoy in the conventional market. An inter-linkage between the key Islamic financial centres will facilitate investor access to a wider range of Shari'a-compliant products beyond those available in their domestic market."
He also said that "the annual World Islamic Banking Conference: Asia Summit is becoming an increasingly important platform that facilitates dialogues between the two key centres for Islamic finance - Asia and the Middle East. The theme for this year, "Islamic Finance in Asia: Strengthening International Connectivity and Capturing Cross-Border Opportunities", highlights the tremendous potential for significant cross-border transactions which the Islamic finance industry must tap into. As a key industry player we are keen on exploring these unique opportunities."
Commenting on their participation at the event, Toby O'Connor, Chief Executive Officer of the Islamic Bank of Asia said that "the theme for the 3rd Annual World Islamic Banking Conference: Asia Summit (WIBC Asia 2012), "Islamic Finance in Asia: Strengthening International Connectivity and Capturing Cross-Border Opportunities", highlights a significant opportunity that IB Asia is focused on. We hope that the high-level discussions at this important forum in Singapore will foster new business relationships between key growth markets for Islamic finance. We are once again delighted to renew our partnership as a Platinum Strategic Partner of WIBC Asia."
WIBC Asia 2012 continues on the 6th of June and will features an exclusive keynote address by Jaseem Ahmed, Secretary-General of the Islamic Financial Services Board (IFSB), and a special address by Daud Vicary Abdullah, President and Chief Executive Officer of INCEIF- The Global University of Islamic Finance.
Forex Signals - EURUSD Bulls Do Exist - International Business Times
Recap: We stayed flat yesterday, as promised, though the resistance break would have hit all targets as the pair rose 100 pips after the break.
We are tracking a rising support today after the bullish movement yesterday and, given the overall bearish trend for the past 5 weeks we will look to get short off of a support break. Of course the major threat to the trade is the pair being oversold but we don't yet have enough evidence to call the downtrend over.
Forex: GBP/USD flat after the European open - FXStreet.com
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